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It's about to start in just a few seconds. Enjoy it, and please share it around with all your friends. Thanks for listening, and thanks for choosing the Truth Podcast Network. This is the Truth Network. Welcome to Finishing Wealth, 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 Wealth, we'll examine both biblical and practical knowledge to assist families in finishing wealth, including discussions on managing social security, Medicare, IRAs, long-term care, life insurance, investments, and taxes. Now, let's get started with Finishing Wealth. Oh, welcome to Finishing Wealth, certified financial planner, Hans Scheil. And today's show, so amazing a title, Can't Get Long-Term Health Care Insurance Because of Health? Oh, do you need to listen to this show? Because, oh my goodness, what God has provided for, you know, the old saying that's always darkest before the dawn.
And for those folks who have maybe chronic liver disease or chronic kidney disease, they can never get long-term health care insurance, like, oh my goodness. We've got some wonderful things to explain, but I also wanted to just take a moment and say biblically, you know, it's always darkest before the dawn, and it was dark, I assure you, on Passover night, and God was working behind the scenes to free the Israelites. Not only would they leave Egypt, but they would leave with all the goods, right?
They would be leaving very wealthy. And it was really dark on Good Friday night. I can't imagine that Peter slept all too well, and I can't imagine Mary did, but oh my goodness, what they would see and what they'd be able to experience for eternity, because God was at work. And interestingly, on that same night, if you study it, Passover happened the same night as in the book of Esther, that things look very black for her, as her uncle Mordecai was to be hung the next day on 100-foot gallows, and all the Jews were to be killed on the 14th day of Adar. And then poor Peter, on the same Passover day as Jesus would happen on Good Friday, he was sitting between two guards, and James would have been killed by a sword a few days before, but God was at work. And an angel came, had to slap him awake somehow, and then he went right through the gates. And just like that, we will go through the gates when our time comes, because I assure you, God is going to make a way, and it's amazing when you work with people that are close to God. He's going to work through them, and I really feel like that's what God has done with you guys for these annuities.
Yeah. I mean, it's just, I can't tell you how much joy that Tom and I have in just finding this product, and we didn't trust it at first. First of all, we didn't think they were going to take these people, because they don't come right out and say, oh, we're going to take this whole list of people. I mean, they just, all they showed us was the underwriting that they do, which is for long-term care insurance, is what it amounts to, and they don't really do any health underwriting.
They ask you some questions, or we ask the questions first, but you can still apply for the thing, even if you answer yes, and none of these conditions I'm talking about today are on the questions. So it's, when we first ran across this thing, we said, I think that this person and this person and this person might be able to get this thing, and so we started offering it, and then we sent in through our first case, and our first case study here, and this gentleman had a TIA two years before we met him, and he's doing a bunch of financial planning with us. His wife already had long-term care insurance. He didn't, because for whatever reason, he didn't have it. He's much older than her, and so we sent it in, and you know, you could just tell by looking at this guy that he is the picture of health. He works out every day.
He's retired. He, you know, and just what they're going to do for all the applicants of this is they're going to do a video interview, okay, and so you got to get up and down out of a chair, and you got to walk with your feet one right after another. You got to demonstrate some balance, some agility, and then they're going to give you a memory test. The whole thing is very short, so, and you're either going to be in or you're going to get one of the lower levels of benefits, but we sent him through. He flew right through, and then we've done several others, and it's just, it's just a blessing that we can take $100,000, which is no small amount of money, but we just use that as an example and turn it into $315,000 of long-term care insurance just with the approval and the purchase of this policy and putting $100,000 in it, and so for him, he's got $5,250 a month for long-term care, either at home or in an assisted living or in a nursing home, and that $5,250 a month is going to grow over time to where, you know, if he uses it 10 years from now, it's going to be $6,000, $7,000 a month of benefit, and it's going to pay for 60 months, you know, far in excess of the $100,000 that he put in there, and if he winds up never using long-term care, well, his $100,000 is just going to sit there and grow. It's not going to have any super-duper interest rate, but it's there.
We're currently, it's paying 4.5%, and if he never uses long-term care, just uses a little bit, then his beneficiaries are going to get all the money that's in the policy, so it's, you know, it is for the right person, it's a blessing. So when you say you had a TIA, for those who aren't aware, like I'm not 100% sure I know, is that like a mini-stroke? It is.
It is. I think he had a couple of them, and they were minor, and he continued working. I mean, I think he like took a week off or something and got diagnosed. I don't think he ever went to the hospital, but people that have those in their history, they're just in their recent history, and people that have them tend to keep having them. I mean, that could be why he's in shape, and there's no long-term care insurance company that's going to touch him, except this one.
Wow, and there are so many that are on this list, right? In part of the video, you guys have, you know, you go into lots of case studies of similar things that you would have never thought people would possibly qualify for long-term health care insurance, right? Well, in the video, I made a list of them on the board, and I could just, and these are people that we've gotten insured. Now, keep in mind, people that have these conditions that get this insurance, they're not in the advanced stages of this disease.
They're people that are taking care of themselves. They maybe have had it for a long time, but a lot of these, like rheumatoid arthritis is an example. People are on that MRAL, and it puts it in remission, and they got to do a lot of exercises and take care of themselves, but these people, a person with rheumatoid arthritis that's doing all the right things is much different than one 20 years ago. It just is, and you would never know this about these people unless they told you, and they certainly can't pick up on any problems in the interview, so I'll just go down the list. These are actual cases that we know they had this, but the insurance company never asked them, and they did other things to evaluate them, so rheumatoid arthritis, chronic liver disease, chronic kidney disease, cancer, heart disease, multiple sclerosis, Parkinson's, fibromyalgia, long COVID, type 1 diabetes.
Now, this is not an all-encompassing list. These are just the ones we've had experience with where we've had success getting them through, like the lady with multiple sclerosis. Multiple sclerosis is a disease that can stay in remission for a long time. It shows up.
There's problems. They begin treating it, and it goes into remission, hopefully, and then it stays there, maybe ramps up again, and they get it back in remission, and that's the case with this lady, and she had already written off long-term care insurance, and she just knew she couldn't get it, and she's got this, so she passed the memory test with flying colors and the agility test and all that, and you don't have to be a superstar doing calisthenics. They just want to make sure you're not holding on to the walls while you're walking around and stuff around you, so. Yeah, when I watch the video, and again, we want to remind folks that if you go to cardinalguide.com, you can watch a video right along these same lines when you look at the, you know, seven of worries tab, and this particular tab is going to be obviously long-term care, but, you know, when you use the term underwriting, in other words, when you apply for any kind of insurance, there's these people that make sure that you qualify, and they have a criteria that they're going to go by to make sure that you qualify for this, and since this isn't regular long-term care or even hybrid long-term care life insurance, this is actually an annuity product that is underwritten in a completely different way, right? That's exactly right, and it's based on research, because what really causes the claims with long-term care insurance is the cognitive stuff. I mean, that's a big percentage of the claims is people that are losing their memory, and they need to be they need to be watched, and they need to be helped with all this stuff, and these people have figured out a way through the video to catch the early people, early cognitive problems, and keep them out of the risk pool, so, you know, and, you know, when we run across somebody that has severe cognitive impairment or diagnosed cognitive impairment, I mean, we're not going to put them into this thing and put them into the test, but there's a whole lot of people walking around out there that don't know they have it, but they're going to find out during this test, and it's it's a low percentage that fail the test with cognitive, but it's enough to make the product profitable to move them out of the system, and then the physical assessment, this company thinks that that's more useful than actually the medical record. I mean, somebody with cancer isn't really put in a nursing home or long-term care. I mean, they're going to either get treated and get better, or they're going to pass away. I mean, some of those people are going to go and need long-term care, but it's really not a good basis, in my opinion, to kick somebody out for long-term care, and they don't ask, okay? So, anyhow, I just want to focus with everyone that this is something that we, you know, we can probably get for you, or if you're a couple, we can put one of you on the traditional type of long-term care insurance, and then use your savings to get the one of you that has, you know, a condition that would prevent them on this thing. So, it's wonderful. Absolutely, and that's a good point to pause and remind you that, again, this show is brought to you by Cardinal Guide, cardinalguide.com, where, you know, if you go to the home page at cardinalguide.com, you're going to see these seven worry tabs, and those are a great way to organize these radio shows and the videos, and again, today's show would be under the health, I mean, long-term care tab, and when you go there, you're going to see a video right along these lines that lists all these case studies, give you show notes as to, you know, what's going on with the money, exactly, you know, what's all the details are, and again, that's at the long-term care tab at cardinalguide.com, as well as how to contact Hans and Tom, the contact information, and Hans's book, The Complete Cardinal Guide to Planning for and Living in Retirement. It's all there at cardinalguide.com, and when we come back, a lot more of you can't get long-term care insurance because of health. Well, this is great information on today's show.
We'll be right back. 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. Welcome back to Finishing Well with certified financial planner Hans Scheil and today's show, Can't Get Long-Term Care Insurance Because of Health.
Well, God has provided a way where there seemed to be no way, and it's really an exciting thing, Hans, right, for you guys who have been working on this stuff for years. Well, I mean, we have, and, you know, the long-term care insurance industry, you know, at one point when we only had traditional long-term care, like 40% of the people that were applying for this stuff were getting turned down, and it's still, it's still pretty high when we submit, and we're screening out the people that shouldn't be applying, you know, like if we know they're going to get rejected, we don't even send in an application, but still, 40% of the people applying for traditional long-term care don't get it. And then with the hybrid long-term care life insurance, it's higher, but it's probably somewhere in the 70s and 80s percent get it or 20% don't get it. But when we send in couples, and especially people in their 70s, but even in their 60s, I mean, we just come back and one of them doesn't get it. And that's a real hard thing to deal with is people, first of all, they're angry, you know, like, why am I, especially if they have some disease, which to them doesn't seem like it's reasonable. And then the other one who can get it, they don't want it because the other one can't get it.
And it's just, it's kind of a mess. And we're, we've been pretty successful in saying, oh, let's just wait a minute, let's, you know, you're going to need it. Regardless of she can't get it, you need it. And then what we got to do is figure out if she has it, how are we going to pay for it?
And that's where this product, it just came along. It uses an annuity. It's not a life insurance policy. And that allows them is to, they don't have to underwrite for life insurance, or they don't have to underwrite for the probability of passing away as much. It's just, they're trying to weed out the known claims and they actually can still offer those people something.
But I don't really want to focus on that on this meeting, or this video, I just want your radio show, I want you to get an idea of, you know, what exactly it is we're talking about here. So maybe we could just jump into the example. And what we tend to do a lot is we throw out $100,000. And then we've had many people end up buying it at $75,000, where it's just a little too much money for them to crank into this thing. But they get pretty good benefits for 75. We've also done this, many of these people like the gentleman with Parkinson's, he put in $150,000, he just wanted more benefits.
And understandably, so he's an early Parkinson's, I mean, you could never tell it by looking at him and talking to him, I just looked at him over the zoom, he was clear on Washington State. But anyhow, so you put in $100,000. And, you know, if you file a claim in the first five years, for the first four years, really, you're going to get a limited benefit.
Now, that's not to say you can't use it, it's just, you're not going to get as much benefit. But, you know, after the fourth year, the beginning of the fifth year, you're going to get the full benefit of the policy. And which I'm showing in my example, the guaranteed benefit is $5,250 a month. And that will last for 60 months. So it's, you know, it's $315,000 of benefit that you can access out of your $100,000 annuity that you put in. Now, the money, the $100,000 grows at interest currently four and a half percent. So by the time you get down into the fifth year, the seventh year, the 10th year, the money will have grown enough, the original 100,000, that your benefit is going to be more than 315,000, because that goes up to And then they got this wellness benefit that I'm not going to really get into, but you can do, you get together online or on the phone with a coach, and they put together a wellness program for you. And then you agree to it, you have input in it. And then you do it and you log in that you're doing the stuff, you get wellness credits to your long term care benefits, who can even be higher than what we're talking about here. And it's just a true blessing.
And so let me just stop for a sec, Robbie, and I want to see if you have some questions from here. Yeah, I guess, you know, the one that just jumps out there immediately for me is annuity. When I think of an annuity, I don't necessarily see how, you know, that fits into long term care insurance, because I thought it was more of an income strategy, that kind of thing.
Well, it is. So it's an annuity, because what I want to tell you is, technically speaking, legally speaking, this is an annuity, but you're not going to ever turn on the income. Okay, so you're just going to indefinitely postpone the taking of the income and the things just going to accumulate cash value. Okay, and we have other annuities that we sell where there is an income out there. And that's what creates the tax benefits. But the reality is, people don't ever plan to turn on the income. They, they're just going to let the money accumulated interest till they later need it, or till they pass away, and then it just goes to their beneficiaries. So, so we're, we're kind of taking advantage of a tax strategy by making it an annuity. And then the only way you're going to take benefits out of this policy for you, if you're the owner, is when you need long term care. And that's where it's going to pay out a monthly benefit, very much in excess of what, in excess of what you got in there. Does that make sense? Oh, absolutely.
I see. So, and I want to point out that that long term care benefit is tax free. So, what I want people to know is if you own an annuity right now that you bought years ago, and maybe you're not even that happy with how much interest it's accumulated. But it's out of the surrender penalties, or it's near the end of the surrender penalties, and it's got a bunch of accumulated interest you've never paid taxes on. You can take that annuity and use it to buy this thing. Okay, you can roll over. So we have lots of very healthy people buy this policy too.
Just the way I'm describing is that they can take their tax deferred interest and their principal in an old annuity, roll it over into this, they still don't pay taxes, and then ultimately collect the benefits as a tax free long term care benefit. Does that make sense? Absolutely. Absolutely. So, there's lots of ways we use this. And you know, the title of the show is the main way we use this is to bring in people and cover people that have a disease that most of the long term care insurance companies are going to say no.
This company may very well say yes. And we have experience with it. Now, there's other places that we I mean, sometimes when we have Mr. and Mrs. and Mrs. has got one of these diseases. And so she applies for this.
Well, Mr. buys this too. Instead of buying one of those other products, because this thing can stand up very well for a healthy person against those other products as well. So sometimes people just don't like buying long term care insurance or any kind of insurance from two different companies in a couple. And the other benefit from my standpoint is, as I look at it, is that if you pass away without using the insurance as compared to regular traditional long term care insurance, your heirs still have all that money that you invested, right?
They do. And that money is actually accessible to you too while you're alive. It's just nobody's going to do that down the road or that's going to be the point of last resort where they're going to pull some of the cash value out because it's robbing from your long term care insurance. Right. But unlike traditional long term care insurance, it's your money.
It is. And you pass away. I've had a lot of people ask me that question. What if I'm killed in a car accident or something five years from now and I've never used this?
What happens? I say, well, you take the money you put in. It's accumulated at interest. There's a small charge in there for the long term care benefit and it's really relative to the amount. It's small, but it's there.
And then whatever the cash value is, is going to be paid to the named beneficiary, which is usually the spouse or if there is no spouse, it's the adult children. Right. And so, again, it's amazing to me that, you know, here you have something that really for those who have the disease, whatever that may be, and type 1 diabetes is one of those that were like, wow. But interestingly, most of the folks that I know with type 1 diabetes are actually quite physically fit because they had to be in order to combat the disease. Right.
Just to make it this far. You're absolutely right. And they look great on video. That's the thing that I've been dealing with for years is I'm sitting across the table from these clients and they look great physically. They're active, you can just tell by hanging out with them for a while, and yet we get into their health history and then we find something on this list. And, you know, I want to tell the insurance company this, man, these people look great, you know, but I don't get that chance. And then essentially they look at their medical record and it's, no, this company is going to look at them on video.
So they're going to have the benefit of seeing that. So, and I wanted to get in one more point is this is available in 43 states in D.C. So it's not available yet in California, Connecticut, Indiana, Maryland, Massachusetts, New York, and Virginia.
Okay. Those seven states, and I've just been told that Virginia, Massachusetts, and Maryland are coming soon. So this might be available in a couple of months in those three states.
So, and it's filed in all of them, but New York. It's so wonderful that, you know, this is now available. And again, we want to remind you at this point that the show is brought to you by Cardinal Guide and cardinalguide.com, where you're going to see the home page for Cardinal Guide. And there are the seven worry tabs that we always talk about.
And this show today is going to be under the long-term care. And there's a wonderful video, again, goes over all these different case studies. And the beautiful thing about that is it has show notes about all these things, more details, of course. And again, you know, these things, like all of them, are custom designed based on your health care, your and your husband's situation, your financial situations.
And we just use certain financial numbers as examples. You know, whatever your thing may be would require for you to use the contact information at cardinalguide.com. Either contact Hans or Tom and have them do something, you know, custom for you and your family. Or again, you've got his book, The Complete Cardinal Guide to Planning Foreign Living and Retirement.
It's all there at cardinalguide.com. Great show, Hans. Thanks.
Thank you and God bless you. 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 result. 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.
