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This is the Truth Network. Welcome to Finishing Well, brought to you by cardinalguide.com with certified financial planner, Hans Scheil, best-selling author and financial planner helping families finish well for over 40 years. On Finishing Well, we'll examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing social security, Medicare, IRAs, long-term care, life insurance, investments, and taxes. Now let's get started with Finishing Well.
Welcome to Finishing Well with certified financial planner, Hans Scheil, and today, really neat show from our perspective, the distinction between care managers and caregivers. And so you can tell that we're going to talk about something that's going to require some wisdom, and so we couldn't help but think about it in Psalms 90. It was written by Moses, they say, and Moses, you know, when it came to needing wisdom, and his father-in-law said, you need to get more people to help you on all this stuff. And so it fits well with this idea of caregiving is separating out the duties, but also he wrote the 90th Psalm. Moses did, actually, when he was quite old. But even then, he said, teach us to number our days that we may devote our hearts to wisdom.
And wisdom is how you finish well. And so when it comes to this whole idea of, gee, at some point in time, I don't want to be in denial. I may need some caregiving. I may need a lot of caregiving. How is that going to happen, and what is the difference between a care manager and a caregiver or a caregiver in the agency? So Hans, what do you think? Okay, well, I would just, you know, we made a video about this, as we do with all of our shows, all of our shows.
And so I've just got it listed here. It's on the board. You know, a caregiver is someone with direct hands on assistance with ADLs. I mean, they're helping. They're providing personal care, meal preparation, lighthouse keeping, companionship, medication reminders, basic health monitoring, varying levels of training. I mean, they can be all the way from nurse, but typically they're not.
They're home health aides to people that have taken a short course on it. And at some level, if your spouse is needing care, you're a caregiver at some level, whether you hire people for this or not. And certainly at night, if you're being cared for, they're being cared for at home, you are the caregiver some of the time. So that's what a caregiver does. A care manager does assessing individual needs, creating and implementing a plan of care, coordinating healthcare professionals, arranging services, monitoring quality of care, like watching to make sure they're doing the work, advocating for individual and support to family members. So I mean, it's just pretty clear when you read those textbook definitions of a caregiver is the person that really does the work and the care manager is the person that sets up the work and supervises. And those job descriptions would be in a home healthcare agency. And we're not suggesting that you look upon yourself as either the care manager or the caregiver.
The whole point I'm trying to make on this video in the show is that many people are just in denial and they've got a simple solution. They're saying, oh, my kids will take care of me. My wife will take care of me.
The neighbors will take care of me. And it's just not a very realistic proposition. Darrell Bock It is something that, like we talked about, requires a lot of wisdom because, oh, my, for those of us who had our foot in that water, there's lots of things that you don't even begin to take into consideration until you're in the middle of it and you have that kind of obligation, especially if you don't have resources.
David Morgan Well, yeah. And so we're getting into responsibilities here. And adult kids when they're 40, 50 years old, in their 30s, and then their parents are in their 60s and 70s, when people can actually do something about this, it sounds real clear, my kids will take care of me.
She just lives right down the road. And my daughter's a nurse, or my daughter's done this, and she's there. And, you know, it's a responsibility that you feel, I felt for my mother, and my father. Yeah, I'm sure you did for your father, that it's just a responsibility that comes with the territory. And then a lot of times within siblings, there's two or three of you, if you're lucky, and then one of the three of you is going to be the more natural caregiver, the person that's going to bear the burden of this. But just to rely on that as your long term care plan, in my thinking, I want to, you know, just that's what we're talking about today. And, you know, I'm thinking that what you're going to do is you're going to have plenty of responsibility as a care manager for your parent, or for your spouse. Even though you're going to be hiring caregivers to come in, and actually provide the care. So, and when you, you know, so I'm trying to make that distinction, is you're still going to be a caregiver, if you're for your parent, you're going to go see them, you're going to spend the weekends with them.
Maybe they live with you. And then you're going to be a caregiver. And then at night, when the caregivers are not around, you are the caregiver. So it's not like you're shunning your responsibilities here. You're just simply hiring people to do the heavy lifting. While you're either at work, or you're able to just go get some free time. It's like taking care of young kids 24 hours a day.
Oh, man. And I love that idea that, you know, that, that idea of it being a manager of caregiving, gives you an idea that this is something that can be delegated, rather than you take on the whole project, and all the details, right? Well, yeah, and in the beginning, you can, there's associations, there's professionals, they can find these professionals through an association, I can help you do that is bring in a person to do a couple hours of assessment of laying out a plan of care, assessing your husband or wife or your parent, and assessing them for home health care, making a list of what they need really being that care manager, you can hire somebody to do that.
And then you can kind of take it over where you're the person dealing with the home health care agency, you're the person that's inspecting their work, you're coming in and helping them, making sure they have supplies, watching to see sure that they actually do the work, inspecting your parent, I mean, that's a big job is just overseeing this stuff, when you're hiring people to do the heavy lifting. It is, it is. And having been there and, and done that, it would have been nice, it would have really been nice. Had there been a whole lot more thought put into it. When we before we knew what we were, you know, going to get ourselves into, which is really, you know, kind of what we're lining out for our kids, not only, you know, we got the insurance to help pay for some of those caregivers, but we've told them, you know, this is, we don't want you to go through what we went through.
And let's organize this thing ahead of time, right? Well, and the other side of that is that the person who's receiving the care thinks that the caregiver and the care manager are just going to stick them in a nursing home somewhere, if they give in, I mean, that's, you know, and they sure don't want that. And the reality is, when this is actually happening to you, everybody wants you, and you included, want to stay at home.
I mean, you want to age in place, as they call it. And that can happen for a long time. And it can happen living well for a long time, if the proper caregivers and care managers and all that stuff is in place. Yeah, if it's not planned out well, planned out well, it's a very bad situation.
Right. And I can tell you personally, you know, I really think one of the mistakes we made in my father's care was allowing some of that happening at a rehab center because, you know, that's what the doctors recommended and stuff like that. And had he stayed at home, I really think during some of that period, we really would have managed it better. Oh, sure. Yeah, people are just, I mean, you're more comfortable in your own home. I'm more comfortable. I mean, when I come back from a trip, I mean, it just feels so good to just sleep in my own bed, to sit in my own chair, have the dog there, you know, eat food cooked in our kitchen, you know, all of that. And, you know, you translate to somebody in their 80s or 90s that's needing care or their 70s, whatever it is, and they're going to be better if they're home, provided that they get the proper care.
Right. Because, you know, I myself and I remember my father going through this, you know, he couldn't rest, you know, he really couldn't sleep, you know, there were the type of beds that they had and the kind of things that they were doing all night and people getting up and all these different things. And of course, one of the main things he needed to do was to recover and that requires rest. And he was just uncomfortable. And they never, you know, their whole goal was they were going to get him to walk again.
Well, they never got that goal accomplished. And so I feel like we really, you know, made his life miserable unnecessarily. Again, that's something I guess you just kind of pray about and use wisdom. But it just speaks to me the idea of like, guys, let me go home. I want to go home and make those plans ahead of time so that your family knows what's going on, right? That's all part of using wisdom to make plans ahead of time. Well, yeah, and we're going to do in the second half of the show is we're going to talk about like what you can do about this now. Okay. And we're going to get a bit action oriented and talk about some solutions.
Not all of which are insurance, but a lot of them are part of it is insurance. And so we're going to we're going to talk about that in the second half of the show. And we wanted in the first part here just to make this realistic and to the extent that people listening are in denial about this problem possibly happening to them, we kind of move you out of that denial and into the, you know, into the problem solving mode.
But we got a whole lot more coming. We want to remind you that the show is brought to you by Cardinal Guide, cardinalguide.com. And there you'll find the Seven Worries tab.
And one of those worries is long term care, which is what we're talking about today. And of course, there's a video series on this and wonderful show notes with all sorts of resources on what especially what we're going to talk about in the second half of the show. So you don't want to miss that as well as of course, there at cardinalguide.com, you're going to find the contact page where you can contact Hans, contact Tom, you know, to get a personalized thing for your situation, which is really this is really an individual type of thing. And of course, Hans is booked the complete Cardinal Guide to planning for and living in retirement.
It's all there at cardinalguide.com. We'll be right back with a whole lot more on care managers like distinction between a care manager and agency caregiver investment advisory services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents.
Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. Well, welcome back to Finishing Well with Certified Financial Planner, Hans Scheil, and today's show, we're talking about the distinction between care managers and agency caregivers or other caregivers. And so Hans, we talked about the issues, now what are some solutions? Yeah, and the whole thing around the title was to make that distinction because, you know, there's a certain responsibility like you have and had for your father. And, you know, just kind of dealing with the fact that if you're supportive of your father buying long-term care insurance or getting something to help through a potential crisis, that somehow you're given up on your duties or whatever. And I was making this distinction, there's going to be plenty for you to do, Robbie, or the, you know, for your children, for you, as a care manager, just setting this up, even if you're hiring people to do the actual hands-on assistance.
So let's talk about just kind of some first steps of what you can do. So like at a bare minimum, in most states, we offer a thing called recovery care. And it is a policy you can buy just the home healthcare side of it, as opposed to, you can also buy the home healthcare side, in addition, the facility side. But let's just talk about the home healthcare benefit. It's up to $1,200 a week, and it's an indemnity benefit, and it pays cash to you or to your caregivers or whatever. It's just going to pay you the money, and then you're going to spend the money as you see fit. So if you wanted to hire your neighbor, or you wanted to hire somebody to go to one of these short courses, that they would learn how to be a caregiver, and then you would pay them.
This insurance covers 52 weeks at 1,200 bucks a week, or a little over $60,000. And at a basic minimum, that's a wonderful thing to have. It gives people a year where they don't have to worry about money. Well, they're, you know, if a crisis happens, okay? Oh, yeah.
And it, you know, from my standpoint, you know, it's a first step to make sure you have something in place. And fortunately, you know, if that would have been all my dad would have needed was that one year. But, you know, you just don't know how long these things are going to go for, right?
Sure. And you can even buy it for shorter periods. But, you know, once you're going to get it a year or three, you know, 52 weeks, and what's a nice benefit with it is if a person falls and breaks their hip or something, and then they, you know, they have to have care come in for like, let's say three months, while they're recovering, and then they get better. And they go on for a while, or a long while and maybe never need care again, those 13 weeks of payments, they get restored into your policy, so that you in the future have 52 full weeks of care again.
So I don't want to get too much into the details. But this is a plan and we sell this to a lot of wealthy people as well, who have just just the whole subject, because they're wealthy, and they have money and the resources to pay for this stuff. And I'm able to convince them to do this 52 week or one year thing for home health care, just so that they have something in place.
Because when they're, I mean, people that have resources, a lot of times are very hesitant to spend them even on themselves. So this will give you a year's worth of coverage to get out of a crisis. Okay. And then with this same policy, you can add 360 days of facility care, like a 200 bucks a day or 6000 a month, and it'll pay for a year for you to go to an assisted living. And it'll just pay the rent there.
Now, it's only good for a year. So, you know, you're going to say, well, that's not enough. Well, we're going to talk about some other solutions here in a second.
But this is just a place to start. And the premiums are reasonable. And then added to that, the qualifications are much less difficult than full blown long term care insurance. Okay, right.
Okay. Now, so when we start talking about long term care insurance, most if not all of the policies that we sell now, they pay equally for home health care, or assisted living. So it's like my policy that I own pays for a total of eight years of care at a pretty substantial amount. And those eight years of care are for Rhonda or me, either one of us. And it can be done, the care can be received in our home, or it can be received in a facility. And so a full blown long term care policy is going to have a benefit period longer than a year, most have a minimum of two years, and they are going to pay several hundred dollars a day. And it's going to be for care either at home, or in a nursing home, or an adult daycare. So and then the larger policy you buy, the more costs you, and they are more difficult to qualify for. So the best thing to do with that is if you're interested in that or curious whether you could qualify, is just to give us a call.
We're in all 50 states in the District of Columbia. And we do this stuff by zoom and by phone. So, you know, I don't want too much of a sales pitch for us. Traditional long term care is an option. And then the next step from there is where a lot of people go is, if you have money in an IRA, that's not necessarily spoken for, we can use a lump of your long term of your IRA money to purchase long term care insurance with a single premium. And we can do this on one or two people. And you know, there's a way that creates it spreads the taxes over time.
So I don't want to get into the details of it. But it is, if you have some assets and some resources, and you don't want to sign up for kind of a yearly premium that's very expensive for long term care, you might want to consider one of these single premium options. And, you know, that that's about it is that even starting with a real basic policy on you and your spouse, if you're married, is going to give you some coverage. You know, if you get in this situation, it's going to prevent your family from bearing the burden of trying to take care of you. Yeah, and it certainly helps you also engage in that whole conversation, clearly with your spouse, which, you know, a lot of folks think, well, my spouse is going to take care of me.
And they're up there, you know, wow. You know, when you, you know, I remember I was, you know, and I guess my early 60s, when my dad really started going downhill, and I one time he fell, and I thought I was going to get him up. I mean, that's just not, it's just not doable. You know, and so would it require something other than that, which requires a discussion, obviously, between you and your spouse and your kids, and who is going to do this. And, and I think a big part of the whole thing is just those discussions. So the family knows, you know, okay, we have, you know, my parents have this plan, and this is what they want, as far as being at home, and all those discussions to me are a big part of finishing well, right?
Well, they are. And then, I guess the last thing that I want to talk about for a solution is, I mean, we provide a lot of this insurance, and then people get rejected, like one of the two, in the family, that we apply for to the insurance company, they come back and they say, we're not insuring the misses, or we're not insuring the mister, because of their health conditions. And, you know, it's very disconcerting. And then for us, we got to sit down and say, now that healthy spouse, you need to buy this thing, because who's going to take care of you?
I mean, just because he can't get it, or she can't get it, you need it. And now we have a product for a lot of people that works, and it is an annuity product. We just got a lady issued that has chronic liver disease. And what they do is they do a video exam. So they're going to do a so you're going to be on a chair, and if you have difficulty getting in and out of a chair, or kind of walk in a straight line without holding on to the furniture, you're probably not going to get improved at the best level of this policy. But, you know, this lady, I mean, we've gotten a man with early Parkinson's approved at the highest level. We've gotten people that had prostate cancer six months ago. I mean, so in other words, instead of having a man with a heart attack, I mean, so in other words, instead of having a medical exam, you're going to get a mental or a cognitive test.
And then in addition, you're going to be given an agility test. That's pretty simple. Just getting up and down out of a chair, but this insurance company, if you can stick some money in an annuity, and then it can provide about four times the benefit in the future, the money that you put in there, I don't want to get too specific with it, because we just start going down that road, we're going to get people confused. But if you've been turned down or know you're going to be turned down for long term care insurance, but you're in otherwise feel like you're in pretty good health, you can get around fine, your cognitive function is fine. You know, it might be something if that's been stopping you from looking into long term care insurance. We have this solution now that we have lots of people going ahead with this.
Yeah, wow. It's like all sorts of different opportunities that, you know, and then, you know, I like the hybrid one, too, if you've got that going on to where, you know, if you never did need long term care with that one, you know, and I don't want to confuse people either, because we talked about so many. But I guess that's more the reason why it really pays to go to the cardinalguide.com and call and say, you know, here's my situation, here's my health situation.
But as we talked about today, there's all sorts of benefits to all the different ones, you know, depending on your individual situation, your individual health. This show is brought to you by cardinalguide.com. And at cardinalguide.com, of course, there's the contact page, you know, if you're thinking, wow, what, you know, what would this look like in my situation with my resources and with my health issues? It's all there at cardinalguide.com, as well as the Seven Worries tab.
We're talking about long term care today. There's show notes, all sorts of resources there. And of course, Hans' book, The Complete Cardinal Guide to Planning for and Living in Retirement. Great show, Hans. I appreciate it. Thank you, and God bless you.
God bless. The opinions expressed by Hans Scheil and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such.
Any statements or opinions are subject to change without notice. Investments involve risk, and unless otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation.
Finishing Whale is designed to provide accurate and authoritative information with regard to the subject covered. Investment Advisory Services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other.
Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. We hope you enjoyed Finishing Whale, brought to you by cardinalguide.com. Visit cardinalguide.com for free downloads of this show or previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments, and taxes, as well as Hans' best selling book, The Complete Cardinal Guide to Planning for and Living in Retirement and The Workbook. Once again, for dozens of free resources, past shows, or to get Hans' book, go to cardinalguide.com. If you have a question, comment, or suggestion for future shows, click on the Finishing Whale radio show on the website and send us a word. Once again, that's cardinalguide.com. Cardinalguide.com. This is the Truth Network.
