Funding Long Term Care

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You've chosen The Truth Podcast Network it's about to start just a few seconds. Enjoy it and please share around all your friends. Thanks for listening and thanks for choosing the truth podcast network. This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner Lonza Schild, best-selling author and financial plan of helping families finish well for over 40 years of 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, finishing well is a general discussion and education of the issues facing retirees guide.com are no advisors on Schild CFP some insurance this show does not offer investment products or investment advice welcome to finishing well with certified financial planner Hans Schild and actually my dear friends the day show ordinary talking about funding long-term care and so naturally I know when you think about funding long-term care immediately go to Colossians 4 if you hadn't before you will after today. So in Colossians 4 you have this phenomenal couple verses that actually Hans pointed out to me and so I love them and I love how they apply to will talk about today are those verses are make the most of every opportunity. Let your conversation always believe always be full of grace, seasoned with salt, that you may know how to answer everyone. And so we have of course were to get to how this applies to you know what can happen when we become in need of long-term care, but because I know that this is so near and dear to Hans's heart. I hate being my friend and knowing and for some time is like the one thing that I know Hans wants to share the wisdom right. The wisdom that he wants to make sure that people are aware of is that this is an event that's coming at and he wants you to be able to weather this storm for your family and for yourself. And so a lot of what he's doing here is he saying hey guys you're listening today you're my favorites.

Right. That's grace. I favor you my favorites and I don't want you to face these things in without having the wisdom and then he's gonna seasonally. He's pretty salty EE he is going to make you thirst for some sense of you know God is going to have this under control and so you know the neat thing about this verse is Paul was describing people around the outside right when you're talking to people that aren't you know aren't on the inside of the church that when we reach out to them.

I mean that's the bigger issue here is that we treat them in spite of their behavior is if they are our favorites like it says in Isaiah 61 Jesus said if you and declare this is the year that Hans is his favorite that Rob is his favor that you are his favorite and and that's the idea of grace is favor and then make you thirsty for where that came from right Hans read that week that right over.

My heart told me to write great gait in conversation and then feeding it with all go say that I want lead people back to me the same way I can put this in a little bit of negative century mental right word on something people are social, clinical about certain things and like the government under Social Security taxes, but the government is doing interest rates or other standard. My all of which is probably true or is true, it just isn't helpful to our conversation about people from getting what they really need protection. Many times from the real pain around a lot of issues that need so I just got like that you spoke to me. Just as telling me me alone to sleep. There ever a need to do that.

It's in the area of long-term bringing up a difficult subject likely invited and have it just isn't something that you now like I am someday and I'm back I be able to do to make it to the bathroom and all these things that that that are regular require this. Karen and wants to face that stuff but it is for many, many, many, I guess probably more then don't are going to face this at some point either long or short term we are in people that every money save for retirement date or a comfortable retirement.

Make time people have resources more resources than they really need because people are accumulated things many times have been very smart with their money or Google or whatever you want to call it so they hire me to do a financial plan. We go through all the and they want to know how I'm going to increase it and how they can.

Local taxes as possible. All of those things that are all really exciting and fun to talk about things really can disrupt their own plan is if they face long-term care. So what what I'm doing when I'm doing retirement planning is sit down with somebody in their 60s or their 50s. If there are enough going on this little earlier in her 70s. If you're a little late. Still a lot we can and my mind is what's going to happen there plan you either or both of the long-term care what were talking about long-term care is if you gotta pay somebody to take care of you and help you with basic activities of daily living will help you get in and out and get grass in the vacant store. The doctor endlessly think that we all take for granted and then many of us at some point in our meeting, we reach a point because an accident or sickness or memory issues that we now have to hire somebody to do or we have to go live somewhere that this is all around. It's done more efficiently better, but more efficiently facility like living but it's done more pleasing to like me hostile in my home. Regardless of where it happened to be real expensive wreck havoc on our retirement so this is really important and you know what today's video or today's video that I sent you Robbie to prepare for today is about comparing a hybrid long-term care plan to a traditional long-term care plan. And when I do this for instance or the example I never put something out there that are destructive number. This is a real client real people. They told me with the resources, and these people are quite well-off to go watch the YouTube video you listen to some of these numbers. I don't want the size of the numbers of the premiums in the investment.

Because one of the things I'm going to tell this guy is.

If he wants to ensure half the risk divide everything back to and we have both of these plans start at $6000 a month which is $200 a day long-term care and they both go on for like 15 months or four years that and then they both the traditional long-term care in the hybrid long-term care very similar benefit increase for inflation by 3% year this thing in when the skies in his 80s.

This will be $12,000 a month benefit will be have doubled no change in the price health and I love to shark that that you have that you get to see when you see the video, which accordance of course, if you didn't know Cardinal advisors is where causes videos are in this for the course is called funding long-term care but the chart really it shows this these options and and then again you can divide that by whatever number that that you're comfortable with.

As far as the coverage you need on the investment that you can make right yeah and so for example for husband-and-wife. The people are 64 with a lot of our clients coming in at that age for Medicare and this example is 6000 a month 200 that adds up to $288,000 benefits if you win in the facility right now.

He started using it immediately.

Makes 64 that it happened. Most people is years off in the future and like at age 80, either one or both of the people they would have 9628 among the inflation rider would be almost $500,000 benefits and then if they waited till 90 years with happened many people it's over 12,000 and 13,000 a month and benefit 650,000 so I was able to look proximate thunder show.

In this guide you wanted by a hybrid long-term care life policy with these benefits you want to do a pay as you go thing with traditional long-term care which is use it or lose it, meaning that you're either gonna use it and get some benefit out of it or not, long-term care and nothing patent estate if you don't get so the comparison that I don't get much into the numbers� Want to talk about nuts and bolts of every person buying a long-term care policy regarding budget and pack sufficiently to same issue where they want to go the hybrid route and pay for it worth in return for long-term care benefit or handle life insurance benefit at the end. Or you can go traditional long-term care route by all.

Just a year. I really enjoyed the video from the standpoint of it sounds like, really. I've never seen before.

Some of the advantages announces to me it always seem like I would deftly do the hybrid, but there are advantages that actually big ones to the traditional long-term care and and you know just this week, I became aware palms and I did not know this, that Corrie 10 boom. Many Christians with no phenomenal same that that helped some of the Jews get out of you know Colin back in the day in and ended up in a concentration camp herself had a unbelievably wonderful ministry which you may not know about her life was she had a horrible stroke that left her in. Without the ability to talk or the ability to write or really communicate on any level and then she lived another 10 years so you eat anything you know I'm just me know God will. How could this happen this wonderful unbelievable St. but that's the way her life played out, and for her last 10 years. She was in long-term care and and so you know, God had some plan at all that I do know I don't know all things work together. I know, but you know, so we don't necessarily know what's coming and so this this show to me is just critical to know the mission of what we do here at finishing well and so will remind you before go to break that this is always brought you by Cardinal guide Cardinal guy.com first Tom Schaal's book the complete carnal guide to planning for living retirements on their website guy.com we come back we got more goading from the goat himself about long-term care. Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic room. Here's a chance for you to advance the kingdom through financial resources and leveraging Hahn's expertise and qualified charitable contributions veterans aid and attendance, IRA, Social Security, Medicare, and long-term care. Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well, your church, Sunday school, civic group, contact Tom to Cardinal guide.that's Cardinal guide.com welcome back to finishing well certified financial planner Hans Schild today show funding long-term care and looking at some different options in ways that you can go about planning for this storm that may be coming towards you and your family. So Hans you want to dig a little bit more about this.

This example so we go to the traditional long-term care. Both of these people are 64 lived in California very successful relocated from Wyoming still have a type of the company opened really living out in the mountains while the good life there understanding that they retired young is a retired a couple years ago and been very fortunate so now doing financial planning family: Medicare insurance, athletic, and and talking about long-term care in the sky want to quote immediate and he was thinking he was asking for long-term character like it beefed up and the annual premium on the long-term care insurance policy covering both the traditional policy is $9885 a year almost. So that's pretty stiff premium for a lot of people.

Although I would be paying that amount premium myself if I was just buying traditional long-term care now because get it beefed up policy. Like I have my bottom line years which I want to have that cost and then this guy has a lot of resources, then we can take it to the next level we could increase that premium to 21,607 2090. Same policy same everything in the premium only last 10 years so you know he just he would pay almost double her little more than double the both of an 18 years done pinprick now and I have a question I� I didn't. I've not heard of that option so that when, surprise me in the video and I so if if you kinda paid double in 10 years, you, like paid up the policy and softly hear about people in long-term care policies that they raise the rates as people get older.

If you paid it up at a time that they can't do that. I sent that's exactly right. And then the company felt the 10 year pay plan in the flat here. They said will guarantee that will never rate they've even added it when you do the 10 year option. They've added a guarantee that they will never rate yourself. See basically Michael Clayton guarantee this is when I can raise the rate we wouldn't do that for five, six, seven years and we only got two or three years.

Last out guarantee it customer so that's a nice benefit and the sky may very well do that reason I showed in this beefed up policy is traditional is way through the small Corporation that you that he could just pay the full premium for his wife and him and actually write it off. Through Corporation and then have this whole thing paid off in 10 years, he would have to pay tax on might end up helping them do that, but I actually think you can go the other way.

The other way is the hybrid long-term care and the hybrid long-term care pays pretty similar benefit to separate policies, one on the Mr. and one of the messages and book 1 of the places the benefits are drastically different is the hybrid is an indemnity file that means if he 56. Grandma benefit and then gets to be 86 grand a month is increased to 9628 year which it will ration our baked in their and then he has stroke like the lady in the example that you were giving and heat. This is the kind Gattaca stands all this at all possible.

They might even move back to California. This is the scenario or about probably have sufficient services out there and while bring people in and the indemnity policy or indemnity benefit is to send them a check for 9628 a month, you have to send any receipts or prove that he got in the care patient care is accurate yet that's I am.

That's my policy rights I got assaulted and indemnity the end them. But in the traditional long-term care. There's no more indemnity on the market so you and for people of all affluent people like to stay in their house more so I think just because they're accustomed to living in a certain way and got the money to do it and when the very time to get sick and will be moving out somewhere community facilities. Anyway, stay home and want to first and the next thing is is if you have an indemnity you could hire somebody to just move in with you could just pay him 10 grand a month and pay them off the books or whatever loan live in the paper the living five grandma you would have to be just a finalist with the insurance just to get Jack a tax-free check the benefit of the policy and every so often you're going to need to prove the insurance you need help with activities of daily living, supervised the indemnity benefit is when it's at all possible, is preferred as I know several friends that found an unbelievable caregiver for their relatives that was able to move in and how cool is that being able to stay at home and get good care. I mean, that's a huge thing and sometimes this is the daughter is divorced or never married or somebody in the nephew and you can go to courses now. You can even take them online, become a caregiver, reuniting to get certification to thoroughly give you some training on doing the basics of character somebody needs help and you know it's appropriate to pay that evening in a well-to-do family. And then there's resentment. You have with the other playing.

First of all, I'm taking Caridad. You guys are living your life somewhere else. Denise nephew or somebody like that that get the having this insurance is just hazy needed benefits without having to use home health. It is nice enough on that.

I think it may bring something right point cons between cousins. I look at these options you have.

This traditional long-term care which to some extent has more bang for the buck because the benefits versus how much you pay in if you're using it and then you will be indemnity idea of what we just described of being able to get the money. I'm to use. You know, without having to come in with receipts and all the different things, but it all points to the fact that you're going a lot of this is why it's so helpful to have somebody like Hans who knows this stuff who's dealt with these situations time and again of a family that's gone through these things to go okay. He knows my financial underpinning understands my financial situation which in my case he does at any actually knows my health enough to know what I qualified for what I didn't qualify for and then putting all these different nuances together in order to develop something that's custom-made for your situation is just a godsend. From my standpoint right that these people have Hans that understands their financial situation to some extent but also understands her need for needs in their life and that's why it's so critical.

Really, I think so awesome that God put you with them, you neglected to be there so the numbers on their part for the Mrs. women payable more single premium is 152,000 for the Mr. its hundred 40,000 that if they paid all at once. We could spread the thing over a lot of years. These people are not a portal and the death benefit for each of them if they don't use the long-term care is 144,000 pretty much the insurance company is going to just return their money are pretty close to their money to the beneficiaries if they never use it.

Which is nice and if they do use it. There can be very happy. They bought and that that you know the death benefit is 144 the long-term care benefit is 288 so and then the long-term care benefit grows over time you can blow through the death benefit and have a very much extended and that even if you use it to the max for long-term care pays out way more than you put in there and then when you ultimately pass away. Both of these policies still have almost a $30,000 inherent death that the insurance commissioner. Death benefit even if they paid out all the that long-term care survey beneficiary 30,000 mile EE Zollo and the other thing you point out in the video was that if one of them passes away because he got both people right right that they can set up the policy if they don't need the money, which doesn't look like they will just go right straight to their errors or to the other spouse right where you set it up with the spouse of the beneficiary and then the heirs as the children and the contingent beneficiary and then use we make a provision and we advised surviving spouse to disclaim if they don't need the money that happens after the fact. They just this claimant, and then the insurance company pays off. It's a way of just passing the money on that they could be in a position where some people to be in a position where that surviving spouse wants the death benefit out of the other policy is a need that to live there going on so we can set it up where they have the option to do both and make that decision. As always we ran out of time before we ran on the shelf. Yeah, but I can see that I'm hoping that you that you listing the Hans and and you have an idea that this is this is something that takes some planning and take some customized planning and so want to remind you that the shows brought by Cardinal guide Cardinal guide.com or you can obviously email Hans calling he would love to hear from you.

Get his book the complete card and a guide to planning for and living in retirement. Of course the video that were talked about if you want more information on that. It's at Cardinal advisors a correspondence child objects. The other on a lot of whole Lotta Hans Giles out there doing videos set up to eighth ANS of the way to go, that's that's how easy that is that I can't thank you Andre thank you. Claimant finishing well is a general discussion and education of the issues facing retirees Cardinal guide.com Cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well with you by Cardinal guide.com visit Cardinal guide.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care, life insurance, investments and taxes as well as constant 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 you get Hans book go to Cardinal guide.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal guide.com Cardinal guide.com this is the Truth Network