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March 6, 2021 8:30 am
Pre-existing conditions prevent many people from obtaining long term care insurance and specifically home health care insurance. Hans goes over solutions for consumers with pre-existing conditions, through age 89, who want to protect themselves against the high cost of bringing help into their home.
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Hey this is Mike Swick from if not for God podcast our show stories of hopelessness turned in a hope your chosen Truth Network podcast is starting in just seconds. Enjoy it, share it, but most of all, thank you for listening and for choosing The Truth Podcast Network. This is the Truth Network welcome to finishing well brought you by Cardinal guy, certified financial planner belongs agile, best-selling author and financial planner helping families finish well for over 40 years on finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes.
Now let's get started. Finishing well welcome to finishing well certified financial planner on the Schild today show is long-term care. The existing conditions and so no pre-existing conditions. A lot of us of experience that at some point in time with health insurance and only comes long-term care insurance.
Obviously the Bible speaks to this issue. From my perspective, you know, we have this pre-existing condition. If you were born you know you were born into sin, and so all of us face that and you know Satan.
He definitely recognizes that you have a pre-existing condition and he would just assume you never did anything about your pre-existing condition. But if you think about the way that you overcome your pre-existing conditions. You know in order to be able to get to heaven is just simply the word grace right it's through Jesus when he came he was full of grace and truth and his grace makes it available for us to take on his redemption, his blood in order to cover our sin, and so that word grace becomes really important when you think about it from a healthcare standpoint and leg as I think about you and him my own situation with my father and how he didn't have long-term care insurance and so when the time came and he fell and he needed this kind of care and any other money to pay for it himself, but he literally threw the people out of the house because you know it was so expensive and he didn't you know wanting in there. He didn't want to deal limiting other people in their 87 one of their and and so it was actually Tammy and I that were needing grace at this point Opal. So when Tammy and I did and and I had pre-existing on those who know me well know I had cancer, I've had several things that you can imagine Lala yeah, you have a lot of preconceived existing conditions well we found in this case with the shows gonna be about today that I could find grace for this and be ablative to provide for my family. So if the point in time comes right that I take a fall like my father did and and my kids are wondering what are we gonna do with dad right. I have a policy, we do and and and it was his life and so does she. And you know it it it helps us both to think well of this kind of thing happens you know were covered and its grace.
I think that neither one of you know that one of you would be eligible for a traditional long-term.
So if that's all we would have to offer on the I think that you may have rejected it because of the price when we get right down to it, a traditional long-term care policies to do what is called full underwriting both to you would have been rejected.
Like a lot of people at your age is that only 10% of the people that should have a policy or could have a policy and should have a policy and can afford it.
Actually have a policy and the other 90% are uninsured in this number hasn't really moved for the 44 years I've been selling the stuff to talk about today is for those of you that have pre-existing conditions were gonna talk about what you really do to prepare for is almost the inevitable is you needing some care at some point in your lifetime. And if you don't prepare for this time.
Then all the decisions are going to be made during a crisis and by crisis as you're knocking to be driving the bus. At this point you you're the one in the crisis so you're the needing the care just like your father when driving the bus you were driving the bus and your brothers and sisters and your wife and you are just trying to figure out some way to get care in there for him at home in the way you figured out was to bring in home healthcare is a sure one going to one of those nursing homes or assisted living, then thereafter the hospital and you didn't really care how much it cost. He did right. He had more than enough money to pay for and so the issue is. He really needs this care it's going to keep him at home. He's got enough money to pay for it.
There's an agency I hope to find an agency and set all that up. It was that part of it was pretty easy once your father find out about all the see-through mouth. He was healthy enough to do that which you know I had it.
Interesting lesson and that those who know me well know I had Kovic here in a couple three weeks ago and you don't think what we talk about when you're in a crisis, things change, especially if you're 85 years old. Time to 65 is old and not 85, and due to Kovic might my blood pressure skyrockets that like 210 over in 115 whatever it was I had to get a hospital I had to get the hospital right away. Well Tammy had Kovic so she could go with me so it was either call in England for me drive and so it might blood pressures at 215 and I'm here the Christian car drag goes taken off to make this trip in Winston the emergency room. While I am so aggravated because my blood pressure so high, I'm just curious at every driver that's gone by, and so as we are think of as I was think about this conversation.
Yeah when I'm 85 I'm not going to be in a position that that I'm not contact Chris about how I feel, especially after this fall, or had some crisis and and you're really not in a position to make good sound sits at the knees or your kids. By the way if they need your approval of it and so so many of these people that idea. I deal with people in this crisis, like all the time, weekly basis and I'm counseling the kids typically sometimes the parents and the kids and the real issues which go to get somebody in there to get some help in their and that's kinda horrible.
Actually, a little extra hard during these Kovic times to find the caregivers but we figured out we find him and the people with the most money are the hardest ones to get them to part with some, especially if you think about that age. If you save money all the time and you have assets and you been conservative and then all of a sudden your kids are want to pay somebody 25 bucks an hour it will be more when you're 85 and I'm 85, 10, 25 bucks an hour for several hours a day and you just see this is not needed and you just you know is is just hard so what were really going to talk about today's short term care insurance, which is the first 50,000 the first hundred thousand dollars of the bill. We can offer this insurance in most states all the way through age 89 including North Carolina and South Carolina policies are in all the policies that we talk about and it has very simple underwriting and if you buy only the home healthcare portion.
It has even simpler underwriting than the policy that you bought which pays for a year of home healthcare and then it pays for a year of assisted living or nursing home care and those are separate benefits he could really get two years on the deal is very affordable and you qualify. Most people can qualify for and so what were really talking about here is this is not just for people of limited means because is not as expensive as the big long-term care which is going to take care of, three, four, $500,000 of expenses.
This thing is only gonna take care of 50,000 hundred thousand hundred and 50,000 maybe depending upon the benefits but it's really the front end of the bill so if you're self-insured if you just decided not to buy this stuff, but you you you doing that because you have the money to pay for all I'm saying is this, let's get some coverage for the front end. I think you can most people can qualify for this and then this can be much easier to talk you into when you're 85 is spent in the insurance companies money to get you started than it is to get you to spend your own money and I love the story you talk about if your garage burned down the magic that illustrates it now just said you know if your well-to-do and you have a separate garage and first of all your 85 and you have separate garage. You probably have it insured and that's where the whole self-insurance, but let's just assume you know you didn't and it burns down, you're going to make a decision of whether you're gonna rebuild it at 85 or not, you may just clear the rubble and does not have a garage, and then you're going to look at that.
Let's rebuild it and then is going to cost me $50,000 or $30,000 or something and then I'll pay for but if it's insured, there's no decision may just insert people that say there self-insured with long-term care.
A lot of them have insurance on their home in their cars, other boats, you know, I just get insurance on everything and you know you they could afford to replace that to so just so were clear as people with money regardless of your age and even not. Regardless of your health.
But even with a lot of pre-existing conditions we can get a plan of insurance for the first 5000 thousand dollars of the bill in place for you so you can spend the insurance companies money on the front end. That's what short term care does help think about in front of tenure from our 20 years from now. I've been paying homage premiums for many years and I have been gladly and but all of a sudden allow I need home healthcare. I'm excited to call a stately therapist. Make sure you get a chance to get get my claim that I can. I've been waiting for you, so there will be hesitation because look, let's talk about somebody on the other end of the spectrum. Just a lady, she went to my office is on the phone as a coded talking to her son. I know these people and she's got her so security check. A little small pension income folder house years ago.
She's 81 and there on the phone with me trying to arrange all her assets so that if she has a long-term care of matching go on Medicaid. So I'm giving him some advice about that and I also, brought up are you sure you want to do that, you know, because her son has some some money about them.
Not a huge amount, but he's he's doing real well for himself and what I think is going to happen is if she needs to go into care or she needs to bring Karen to home he keep he's gonna end up paying for an earlier gonna bring her into their homework or something they're not going to just immediately send her to a nursing home and try to apply for Medicaid and I convinced him of that and what we ended up selling her was a policy that pays for home healthcare toothpaste 1200 a week and it pays it for 52 weeks and I just send you a check for the 1200 bucks and you only gonna have three visits from home healthcare agency in any given week to qualify for the whole 1200 so gives you a lot of flexibility about paying a younger relative or somebody from the church to be there part of the time it's just a lot of flexibility and so that's just really buying them a year of time so they can figure out what they're going to do after that and they were all their all for the Santa Ana having a friend Wendell Medicaid nursing home. I can assure you that I would not wish that on any any human being what we got a whole lot more about pre-existing conditions. Long-term care today on finishing well.
So remember this show was brought to by Cardinal guy.com Cardinal guide.com is where you find Hans's book the complete cardinal guide to planning for a living retirement first chapter were talking about today long-term care insert me in that book, and it's an easy resource to be available. All you do is email Montel you want to look them out on today's All those things available in Cardinal guy.com will be right back. Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA so security care and long-term care. Just go to Cardinal guy.com in contact to schedule a live recording of finishing well at your church Christian or civic group contact contact Cardinal guy.com that's Cardinal guide.com welcome back to finishing well, a certified financial planner Hans Schild today show were talking about pre-existing long-term care. Pre-existing conditions, and so you got some outlining force that we can cover most anybody right what we can and underwriting or the fact whether you can get it or not is is a huge deterrent to people even looking into long-term care if I had to tell you how many people tell me bring them in for financial planning.
They tell me on the front.
All I can qualify for long-term care. Maybe they tried before, maybe they didn't maybe they just gave their health history to somebody over the phone or some salesperson there was selling traditional long-term care. They got in their mind they can't qualify and I'm a tell you that a whole bunch of those people can qualify for this and then what what I put together for my salespeople because they have trouble keeping track of all the stuff real time for people is we have eight different solutions in the realm of what is called short term care basic care, which is one year of coverage for home healthcare or assisted living coverage and then some of these policies only cover home healthcare.
They do it very well. At 1200 bucks a week for 52 weeks and the qualifications are very easy you say why do you have eight well, like all eight of them are available in North and South Carolina. So we really don't necessarily need all eight of them, but across the country there's nine states that don't have any of the scepter when actually they have two of them there. Six. There they have no short-term care so you know, we work all over the United States who were in 50 states and DC, so we need to have something for everybody and something for everybody with pre-existing conditions and so I tell you a couple of quick stories is that we have it. Client who was diagnosed with ALS on the way in is a client year and 1/2 ago and I helped him get his Medicare is Medicare supplement and we navigated all the underwriting on that.
His spouse is under 65 and then we start talking about how to pay for his care and where was real obvious to them and pretty obvious to me that he's not can build a qualify for any long-term care insurance so I really I just put my thinking cap on and we we we decided that were going to spend his IRA, which has about $300,000, which is most of their money on care when he needs a still immediate yet he still getting around okay walk and but she sees it is common where he's going to be there actually need a van to get him around and she's going to be the one doing the care and that's going to ultimately wear her out and she knows that and so we were able to get them get him signed up a year and half ago for this plan that it's a membership as a service contract where they pay and about $2000 a year and for the $2000 a year they get 3000 hours of home healthcare in his lifetime 3000 hours and there's some other contingencies on I want to explain it, but she now knows that when he ultimately needs care that she's a she's going to be able to use this is not an insurance policy. It's a service contract that you pay into to bring in five days a week five hours a day, home healthcare, which is good to be a huge help to her. I know when I think about you in on my own family. As I looked at it made my mother died of cancer and it got to the point for her with my sister taking care of her that she came out of the hospital she needed some type of care and so she went into a facility for whatever it was three weeks and I said well we Medicare will pay this for this anymore and so she came back to my sister's house because there was literally no place she didn't have that kind of thing in those last days for my sister or it will you give my brother came in to help her and oh my goodness, what what it would admit for my mom to have one year is actually only she would've needed maybe five months and same thing with my father just one year would've made such a huge difference. These this plan has the easiest health questions: just basically says do you now or are you now receiving help with bathing, dressing, eating, transferring, okay from either professionals or even from family. So if you're getting help with those things now. You can't buy this policy, but he wasn't. Then he still said he could he could still buy this, a year and 1/2 and ALF. He could still by this point, so we've got that in all 50 states and DC and then I sold him another plan from an insurance company that the only thing it asked is kind of a similar question you just asked are you receiving home healthcare yesterday only wasn't he still isn't so he could buy that today, and that pays for 60 days of home health aide hundred 20 bucks a day and then it also pays for skilled care.
He's gonna need respiratory therapists and that pays like 150 bucks a day.
He's going to need occupational therapy, physical therapy and all that stuff is can be brought in. We may get some of that automatic urine, even if we do this thing is still going okay so it's very simple underwriting and that we were able to write that on a guy that was diagnosed ALS. I'm not sure if the insurance company would've appreciated me doing but we write a lot on a lot of perfectly healthy people and she's taken a lot of comfort in knowing that she's got that plan there in place. I just talk to her two days ago and I was just encouraging her when you need this, even before you need and let's start. Let's not get you worn down before before we take it in. Now I have another client who I talked about on the show before and she wouldn't qualify for the other short term care insurance that you have Robbie like through four years ago. Well probably for five years ago through 45 when the first time I offered it. She would've but she wanted to. Then when she started to have some problems. I brought up again and then she wouldn't qualify for.
And so what we did with her money that she inherited. We we we took it and we put it into some annuities that will actually that have no health questions and they will actually create a cash flow to pay for care so we got all kinds of solutions for people with health problems. But what I did sell her was the same thing the same insurance policy is sold, the guy with ALS and I sold after about a year and 1/2 ago and she just is coming out of the hospital about three weeks ago with from a very serious surgery went to the rehab and then what we were able to work out is she didn't go home. She went to a residential care facility, which is like one of these high and go in there they surgery all your meals. You have your own little apartment. She's there on a temporary basis, but I think it's can be permanent and this policy is paying the 60 days of the home health aide and every day she's getting occupational therapy panel hundred 50 bucks for that every day she's getting physical therapy has been hundred 50 bucks for that. And Medicare is paying for those things she's getting 300 bucks a day for those two things and hundred and 20 a day for the home health aide that's doing number of visits and their she could buy this insurance with almost no health questions so I'm done just explaining the most extreme and what that's done, it's allowed her to stay out of the nursing home and to go into her own home and now she's she wants to get out of that residential facility she wants to get back home. I don't think it's can be smart for her to do that. But when she does that. This insurance is still going to pay benefits for home healthcare at home which she'd have a hard time partnered with her own cash to do right one. The other thing that you know works is it Medicare will pay for a certain period of time, but since your insurance companies paying for it to write it but then this is an indemnity and I is the right word is absolutely in an indemnity is not a reimbursement.
A couple of the short term care policies that we sell two of the eight are reimbursement policies but the one you have, which is the one we sell the most of is an indemnity payment so that means that if you get the care on a given day or years. It's a week of home healthcare.
If you get those three visits. They just send you a check for 1200 bucks I don't care who paid form. They don't care how much you spent. If you met the minimum criteria you get a check and then you can use that to modify your home, you can pay somebody from the church or you can bang the money for when Medicare and pay for to get me got all kinds of things and it just is so easy to get these older people that are facing problems I'm dealing with his lady's daughter had to get the power of attorney sharpened up will she mean that that that was an interesting thing just getting her all there and get me attorney to put together and I brought it to him and then she brought over my house and they went to the bank and got it signed and notarized me, but we had to do all that, but it's really am basically dealing with the daughter and the mother would not agree to this care she's just she's not in a good state right now but she's all forgetting everything she can out of this insurance vessel. Well, it's understandable. And yes, it just is and what the even complaining about a little bit in the daughter you know and I just got MMM MMM that this just you know once you understand that she couldn't qualify for the stuff that is better than this.
And then secondly, I offered the stuff that's even better.
Five years ago and she five turned down some tell us the daughter not to her but I just got in and out just essentially be nice.
Now I am in but it it it gets back like we talked to at the beginning of the show that grace is for your children right mid you're going to be sick you're not in a feel-good your need. You really are not a good position to make these.
This is this like I was driving to the hospital and my blood pressure as well. I think Amanda corner my daughter and she was right and I was married do things that week that we should in the dark, but fortunately you know that doing these things now and more in them up of the right. Mine is really giving grace to our kids that they don't like.
I would've been able to do for either of my parents which would just played. So what much better for our family and in decisions that are that are doable right now to and so while we like always, our shows go by too quick. But this whole chapter which is on long-term care is available in Hamsun's book the complete cardinal guide to planning for and living in retirement, which is email@example.com and forget the guide. After Cardinal and cardinal guide.com there you can you know Ascom's questions and get a consultation. Whatever it is that you feel like along these lines, which I know not only be grace for you and for your peace of mind that if he definitely grace for those in your family. Thank you for listen. Thank you.
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