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Protecting Your Paycheck

Planning Matters Radio / Peter Richon
The Truth Network Radio
March 12, 2019 2:51 pm

Protecting Your Paycheck

Planning Matters Radio / Peter Richon

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March 12, 2019 2:51 pm

An unexpected accident, injury, or sickness can set back your financial progress and stability. Medical insurance helps to pay the doctor's bills but, how will you pay yours? Proper and adequate coverage can help to protect you and your families comfort and lifestyle and help to make sure you stay on track towards your future financial goals. Peter and Amber discuss the different kinds of protections you can put in place, the costs, and the benefits available.

Amy Lawrence Show
Amy Lawrence
Amy Lawrence Show
Amy Lawrence
Amy Lawrence Show
Amy Lawrence
Zach Gelb Show
Zach Gelb

Plan to fail.

When you plan for success planning matters radio and another beautiful morning appreciate you join me on the program always brings some life to the show some energy over here. Bob and I even folks we want to help you check your paycheck through all walks of life and a lot of times on the program we talk about in vestments were talking about the growth of your assets for the purpose of retirement planning and then protecting your standard of living in retirement today were to talk a little bit more about protecting that paycheck throughout your working career and some steps that you can take some protections that you can have in place some products that you may want to consider that will help you make sure that your standard of living your lifestyle and your family is protected regardless of what circumstances you may encounter.

And so we do help people again through all walks of life. Whether you're already retired and you're just wanting to make sure that your protecting your standard of living your comfort. The quality of life.

Even after retirement, or if you are working your way toward retirement or trying to get there or even working your way through the Dave Ramsey baby steps out of debt to up point that you can begin to manage while were here to help and assist in and we do make our time available and we have solutions to assist helping protecting that paycheck at almost any point in your planning progress and process in guiding questions about today's material or about your situation at all. You're welcome to pick up the phone. Give us a call 800-338-5944, but Amber a lot of what will be talking about today is sort of on your side of the protection of that paycheck you deal with supplemental insurance, disability insurance, catastrophic event insurance, cancer, heart attack, stroke, things like that that do occur in life that if we leave ourselves unprotected can be pretty costly. That's right we do host a large product line that have been hand selected just for you that pay cash benefits directly to you in case you haven't accident and injury or sickness occur and do not want to pull that money from your savings now. Sometimes I look at our insurance premiums. And I don't love paying them shocker rights health insurance premiums are astronomical and a lot of folks that I talked to are very confused on what is the difference between supplemental insurance or I hear them say all I had health insurance. I don't need any more coverage will there's a lot of differences supplement no insurance is meant to bridge the gap between you and your major medical a lot of us are picking up health insurance plans with a high deductible or what they call high deductible health plans and where would we get that five to $10,000 from if we had an event happen in our life and needed to have care absolutely no let's focus on that major medical on the health insurance for just a moment.

Last year Amber you had a health scare. We were at a point last year where you were. You were doubled over in pain. We couldn't really explain what it was, it wasn't an obvious cut, scrape break bruise. It was something inside it was internal and and you had your gallbladder removed. Pretty scary time. Definitely a scary time period of recovery there after where you were not working as much, but thankfully even though I hate writing those checks to the health insurance company we had that health insurance in place and it would have been much more expensive had we not had that health insurance in place on top of the health insurance in place. We also had a hospital policy in place and so I was able to file a claim on my hospital plan and believe the check in about four or five days. It came in pretty quickly and we were able to put that towards the high deductible towards the deductible right because when you're paying for major medical there's some room before the insurance kicks in, where you are responsible for the bill and a lot of times this is 3000 4000, $10,000 before the insurance really has to pay the first penny so we had that deductible $5000 a week. We had to cover, but the hospital plan that you had helped us cover that as as well and so these are the kind of things that you can put in place to help protect that paycheck is again if we had not had that insurance in place, it would've taken a chunk out of our savings.

It would have prolonged and delayed our progress toward wealth building and accumulation and eventually retirement. If you have to come out of pocket 5000, 10,000 2000 thousand dollars for some kind of medical emergency, then how far back does that put your eventual retirement or your goal of getting out of debt and beginning to build wealth and for literally kind of pennies a day pretty much the cup that the price of a cup of coffee per week.

You have that hospital plan that helps us cover that deductible. In most of our plans runabout like Peter said a couple coffee a week so I like to say four to $10 depending because you can add your kids and spouse and I some of the great selling points. Are you add one. Can you get the rest for free except for some of our cancer plans where children are free up into the age of 26, which is great. Now I've got several of these types of plans for myself of God. Short term disability plan, I got an accident plan I got a cancer planner got dental plan. Of course I got a health insurance plan what's going to go through those one by one in and talk a little bit about what they do and then again each of these suits is kind of of a few dollars a week. The price of a cup of coffee. So not only do I have all these plans but I'm I'm cutting out the coffee for my life make decisions real I still want my coffee is a joke and I still do drink coffee here, but I make my own cups now, so let's start with the short term. Short-term disability, what exactly does that cover short-term disability products can be set up so many different ways but to keep it simple here to sign a few things you were going to pick out how quickly you're going to receive the money, how long you're going to receive the money for and how much money you're going to receive on a monthly basis depending on what happens to you, the disability policy.

I like because it covers multiple things I like to say when you're insuring your body or insuring it in three ways. The accidental side so things that accidentally happen to us.

Those slips, trips, falls, burns and breaks this sickness side, which is those heart attacks, the strokes, the cancers things of that nature. I know some people say well I didn't mean for a heart attack to happen to me accidentally happen to me but we purposefully drove to Burger King to eat those burgers everything right. Well, so whether I'm a cook, working with knives and and and stoves and burn myself or cut myself or whether I'm an executive in a high stress job.

There is the possibility of injury on the job site. Regardless, blue-collar white collar again all walks of life have the potential to have injuries on the job. Now here's the other part of this Amber does the accident does the injury have to occur when I'm at work have my paycheck protected again.

You can customize the policy to the customer's needs and for the business owner's needs as well so if the business owner decided to get group policies that the employee paid for. We could set that up. And so there's a way to customize to where it's in favor of either the person purchasing or the employer that setting it up so again as an individual I could purchase this or the business can purchase this for their employees on behalf of their employees or even just offer it to their employees and leave it up to each employee whether or not they they want to pick up this protection absolutely again like you say were covering people to all walks of life were to sit down work.

I look at your situation, working to talk to you about your needs and your family and working to customize that policy. Based on that. It's not what I want for you it's what's best for you.

So how quickly that that says that if you're out of work for more than seven days or more than 14 days or more than 30 days.

That's when this this protection kicks in our some people need their money right away and then other people may have. You know enough money squirreled away that they could wait 14 days that they may have sick leave. How much do you want to replace 30% of your paycheck, 50%, 60% of your paycheck to about 72% good. Again, we don't want to encourage people to file for disability and they need it that we don't want to give them 100% where the cut the insurance companies don't want to pay hundred percent of your income to you to encourage you to stay at work and for how long. So if if you're out of work for up to three months or up to six months 12 months 24 months. So again, life happens right and and we understand that life is what happens to plans and and during the course of life things unexpected happen Murphy's losses news sort of says that can go wrong will and usually does it though at the worst moment. No tools rule says that Murphy was an optimist, but when things go wrong. Having these protections in place help to prevent you going into debt. Help prevent you draining your savings and help to pay your bills.

Keep food on the table.

Keep the lights on, because again major medical insurance covers the doctor's bill but what about all of the rest of the bill. What about the mortgage payment.

What about the car payment. What about the car insurance. What about groceries on the table. You know those are things that we still need to pay for, and these protections having them in place and we feel like sometimes were were working for for for insurance and for taxes another another bill that II hate writing the check for but I get use out of. I drive on roads. I like to have the that the fire and the policeman there if I need them. I don't love how taxes work, but I understand that they are necessary and that I get use out of them. Similarly with insurance you know we don't often love writing the bill for homeowners or auto insurance or are our medical insurance but then is that protection important.

It's important to have that in place and just for a small portion of your income. You can protect the rest of it. You know you brought tax days taxes on disability and an athlete is sometimes so you you can set up policies before attacks are after-tax and a lot of the times. If your employer is purchasing the disability for you, meaning that they are paying a portion of the funds or they're paying all of the funds toward your disability that's written a certain way for the business owner and you will owe or could potentially owe additional taxes as well as a business owner on top of that when you go to file the claim so you believe you're getting up to 72% of your lost wages.

But are you really will.

Here's the thing. There has never been a dollar that has created or earned or grown that Uncle Sam does not have some kind of plan for how to tax what you call that the troll brings a Trowbridge uncles, Sam, is there in the middle and then he ask you a riddle. How would you like your money to be taxed before or after you cross. And so with insurance and this is basically all types of insurance fall into this category.

You can choose not all. Some of them don't have a choice but for many types of insurance you can choose to pay the taxes ahead of time before you pay the premiums or the benefit is going to be taxable for you.

So if you're paying the premium with pretax dollars than the benefit is going to be taxable right with life insurance, life insurance has a huge tax benefit in the death benefit is tax-free. I want to write all of that entertainment to two beneficiaries then and that reason why is because you're paying those premiums with money with dollars that has already been taxed as of the benefit is tax-free with medical insurance you bring that money past that Trowbridge are paying the tax on it and then the benefit to you is tax-free.

You're not going to have $100,000 Dr. Bill and then the IRS pop up and say, oh by the way you owe us tax because you paid the tax ahead of time and with many of these short-term disability.

The accident the injury. Those products can be structured in much the same way where there's a little bit of a choice on whether you pay with pretax dollars or post-tax dollars but where you've it's a teeter totter where you don't pay on one injured in the pay on the other. That's right insurance can be confusing and that's why it's great to have a tour guide.

If you are interested in getting more information or would like to sit down to figure out what's best for you and/or your family pick up defendant give us a call 800-338-5944 or for your company. If you are an employer and you or HR representative and you want to put these types of protections in place for your team for your group for your employees. That is a great benefit. It is an additional protection that is really invaluable to your workforce and no cost to the best pick up the phone. Give us a call 800-338-5944, 800-338-5944, so covering a little bit of that short-term disability.

How about that accident. What if I have a slip, trip fall break bruise and I need to be protected for that talk about what the accident policy covers and what the value is so on the accident plan. It probably one of my most popular plans we do file quite a bit of claims a week on that policy. Your price point is super fair deal for what people get in return. It's running about six dollars a week insurance is typically what what's the benefit. Let's say that I had some kind of accident, and I know some of it depends on exactly what the time of accident is but to run down a couple not to bore you guys but if you're admitted to the hospital for 18 hours or longer working at gate that you thousand dollars and then every day you're in the hospital you're looking at $250 a day.

If this treatments progress into intensive care. The dollar amounts increase, but it pays for crutches, braces, wheelchairs days in the hospital, surgical needs, and it even has an built in life insurance so it's very similar to regular life insurance but it pays if you're traveling basic accidents. Of course are going to pay for any debts on those six bucks a week and paying for those slip strips, falls, burns, breaks on or off the job and that cash goes right to you and you had the decision to decide exactly how you spend those dollars so the rent for daycare just basic food on the table just to pay her living yet to deliver living expense and if you'd like to find out more again about any of these pick up the phone.

Give us call 800-338-5944. We are right here in North Carolina-based firm locally owned and operated serving wake County Raleigh surrounding areas all the way to Eastern North Carolina to the coast New Bern Greenville. We love serving our art, our clients and were here is the resource of when these kind of things happen to have somebody to call up the phone. You can talk through exactly what the coverage protects you from and how to get the most out of that benefit and talk about something that can be a little bit more expensive.

How about cancer Amber I got I got this policy just as it is a cancer preventative just so I you know when when I have the protect I bought it because I don't want to use it dollar for every individual that through a credit card at me and said here put this on file for my individual policy or my policies so that I do not get cancer, I'd be a rich lady. Now it doesn't work that way but yet to file a claim for somebody who did that well. It's very reassuring because the bill for cancer diagnosis can can be quite hefty.

We call it peace of mind insurance for a reason not to get too sappy on you guys, but I feel like were building a relationship over the Saturdays. Every Saturday we talk that I just recently lost my grandfather to cancer and you know both my grandmother and my grandfather were sick at the same time, one with kidney failure, one with cancer and those medical bills rack up so quickly, both at one point were in an extended care facility, and that's $3500 a month times two are cancer policies.

There are a variety of different choices that you can choose from but they started about four dollars a week mean guys four dollars a week is not bad. If you feel like you're in a little bit more of a risk you can jump up to a higher policy, but you're looking at a lump sum payment that could grow for you every year.

Your cancer free payments for radiation and chemotherapy anti-nausea medication eye surgeries that you may need on down to the extended care facilities for your health insurance kinda pulls back from you. I a lot of people may feel that their health insurance would cover 100% of every is not, but that is a myth, it is a mess. I do know for a fact a lot of health insurance companies only cover 21 days and extended care facility, and then you're on your own and a lot of care works the same way. By the way. Sure a lot of health insurance companies are turning or should I say companies that are purchasing health insurance for employees are turning towards these health insurance plans that have a deductible and once you meet the deductible you have cost to share and what that means is you have a percentage of the bill that you still must pay once you meet your deductible and I find that a lot of people are really surprised by this and they are super thankful that they have a supplemental product in place because that's what it's designed to do so.

Amber, you shared the story of your grandfather, who had cancer, talk about the going back to the short-term disability in the accident plan. Can you recall any any stories that can illustrate the value of of these products to some of your clients or individuals. I'll start off with a soft story telling, some of these claim stories can be pretty tragic file. Quite a lot of them so I'll tell you a story about myself. I started in the supplemental field almost 10 years ago I was told about the supplemental products, starting with the accident plan and I didn't understand quite what I was doing, nor did I understand what supplement or insurance does or did for people however I purchased it anyways was July 1 10 years ago I cut my thumb in a green thinking. Can I tell the whole truth, honey sure that when I comment them on a green thinking and I was getting our sons food together because Peter's mom is going to come pick him up the next day and so I was putting everything together in this plastic container and I didn't quite get the green bean can open all the way and so I took my thumb and I press down on the green being candidate slits and it cut me in the web of my thumb in my pointer finger so to be 100% candid ice cream for my lovely husband Peter Rochon and I said it's been story. Now I got it because I got a card and so he comes running in there. He was like oh I was not so bad in. He poured superglue and a guys skin.

It was not news again. Skin email thought he picked up the new skin, but he picked up the superglue and then wrapped it in duct tape. I couldn't believe it.

Duct tape fixes everything yet. Needless to say, so stitches the next day I did get the next day and I was super surprised to see how quickly the check came in the mail. After I filed on my accident plan so I picked up almost $400 for that cut. I paid a specialist visit at the doctor is $60. So in that perspective, it was pretty good. I ended up almost paying for the policy for the year.

Basically off of that one claim and again that was your personal example because I don't think you want to divulge details of some of the client. Some of the claims that you have file because some of them are much more severe. Luckily that was not a permanent kind of thing but Donna's good but others are not so lucky. And a lot of times these simple kind of things could mean that we miss paying a bill for the month. They may mean for more serious kind of situations that were putting our eventual retirement back a year or two. If we have to dig out of savings. Plenty of people have to borrow from their 401(k) for accidents or injuries, or being out of work for medical reasons are plenty of people have to file bankruptcy for medical expenses and these simple types of protections for a few dollars can help to insulate and isolate your financial well-being from that eventuality from from that potential and put in place an extra very hard at an cost-effective layer of protection. Safety net from your financial well-being from life happening and so we talk a lot on this program about retirement planning about investments but again are our catchphrases protecting your paycheck through all walks of life and wanted to highlight a little different side of the business today because we really formed this company for the purpose of you providing these insurance attractions for your clients and I was at that time, the vice president of another financial company where I was.

I was meeting with all the clients and setting up retirement plans wasn't for a couple years later that we decided to join forces and and really focus our time and attention completely on building our practice in the service that we provide to our our mutual clients, but this is something that is vitally important and and it's not just the paycheck this week or this month or or or next week and next month it is your financial progress and how you are progressing toward the eventual goal of not having to do what you have to do all the time and being able to afford to be able to do what you want to do. Whether it's digging into those emergency accounts orders retirement savings accounts are going in debt when accidents happen that puts you back it sets back. Your progress and that's why I think that these types of protections are so important in the combination with a a for they are the third, the structure of the foundations of the support for a full true financial plan that's right, Peter, and we do have a plethora of other products that we can show you guys again.

It's what's customized for your needs. What's best for you and/or your family. If you are interested please pick up the phone and give us a call 1-800-338-5944, 800-338-5944, 800-338-5944 Amber of still promote my new book under it for you based on Amazon. Understanding your investment options.

The most important book you will read this year and just briefly I go through everything in this book from checking accounts to savings accounts to CDs, money markets, bond stocks, index funds, what is the stock market index Howdy, how you invest in it what what are annuities exchange traded funds, real estate, gold life insurance crypto currencies owning your own business. What are the pros and cons of each option that you have to invest your money and what do you need to know what are the inherent risks. What are the utilization of each and the comment that I get an end, and many other financial advisors have read this book and and been in touch with me and commented wow you really took a nonbiased approach to explaining all the options I 100% agree with that and I love your approach as well. You are like that in life, though, and especially with your client you time and time again you're sitting down with them again going over what their needs are what they want in retirement what they want out of life and then turning around and putting a plan together for them for free that they can review that best suits their needs. It's about goals. Ladies and gentlemen, it is not about a specific product. It is about trying to figure out what is the best way for you to achieve what you envision your financial future to be about and understanding your investment options. The book can give you the basis of the understanding the foundation for making well thought through and informed decisions. If you would like a copy of that book pick up the phone. Give us call 800-338-5944.

If you do have investments that you like to to look over if you're planning for retirement and will and want to see how to make the transition away from the paycheck. Answer the questions of do I have enough how much more progress in savings do I need to to to get there.

How do I make my money last once I quit my job. Those are also questions that we answer in our attempts to help you protect your paycheck through all walks of life, pick up the phone. Give us a call and again, if you call from the radio program will make sure to get a copy of this book in your hands. Understanding your investment options 800-338-5944. Is this online rich on that's our last name Rochon rich on planning around codify right spot. If I iTunes I heart you can ask Siri or Alexei to play the rich on planning just to see what would Siri has to say Syria Iraq he theory he theory, we play the rich on planning podcast planning, podcast switching, planning, LLC and that they do evoke on Siri on iTunes on I heart media you can find us. You can find this by going to our website Rochon it does look like rich on

We love to have you join us each and every weekend here on the program, you can subscribe to the podcast were just happy to have you along for the ride. Taking your planning and your financial future. Seriously, we look forward to hearing from you soon.

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