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Life Insurance: What’s in it for me?  

Finishing Well / Hans Scheil
The Cross Radio
October 5, 2019 8:30 am

Life Insurance: What’s in it for me?  

Finishing Well / Hans Scheil

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October 5, 2019 8:30 am

Life insurance. Everyone knows it provides great security to your family when you pass, but what many people don’t realize is that is can also provide great benefits while are living. Certain life insurance products and strategies allow you to take care of your family in life and in death. On this show, Hans and Robby go over the technical aspects of using life insurance for more than just a death benefit.  


One of the purposes of “Finishing Well” is to teach, but we need to know what motivates you to look into life insurance to teach you about it properly. For some people, it is the peace of mind knowing their family will be okay when they pass. For others, the tax benefits, savings benefits, and retirement benefits motivate them to use life insurance as a product to expand their wealth. Hans tells a story about a client who was motivated by these reasons to get a hybrid long term care policy. The story ends with this client passing and having a huge benefit for his family, but it also led to Hans learning how to better educate clients on life insurance.  


Hans and Robby go even further into hybrid long term care insurance products, specifically one that allows you to fund a life insurance death benefit with money from an IRA. This product also allows you to use the death benefit during your lifetime for long term care expenses tax free.  


Hans understands that most people do not love insurance companies, but he also sees the good they provide. When you can find someone who represents enough companies that they can put your best interests first, you will end up with a much better outcome.  


Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on for free!


You can contact Hans and Cardinal by emailing or calling 919-535-8261. Learn more at  

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You're listening to the network and welcome to finishing well brought you by Cardinal Certified financial planner belonged to Schild and best-selling author and financial planner helping families finish well 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 with finishing well well were to have some fun today on finishing always certified Schild with today's title life insurance what's in it for me. That's obviously harms the question. I think that you know clearly when I was a 30-year-old young man and there was life insurance sales sit there like Wyman to be bad.

You know what difference it makes me know what's in it for me it's it's it's an interesting question whom assured but you know as I processed bad and you know there's a very provoking verse that you may have read in James where James the brother Jesus clearly says, you know, pure and undefiled religion is this which is to care for widows and the fatherless or orphans and the kind of scary thing is is that you have for most men, you know, I'm looking at. At some point in time my wife to be that widow and an as young as I am Hans for 64 years old. I can't believe how many of my friends Artie passed away and left those widows and unfortunately the ones that I know I've left them with no life insurance and there they are at and it it's it's a scary thing that you know they're having to fend for themselves with what they can get from Social Security.

Most things and I just wasn't that hard to have some other planning right we people need term insurance will young because they have limited budgets and we need every dollar that they can pay toward life insurance go toward the death benefit is inexpensive so that the nice thing about this is this problem for people in their 20s or 30s or 40s. Even maybe in the 50s can be solved pretty inexpensively where people can get large amounts life insurance for small budget. So one of the things that we just want to say that's in it for us. For me it is to know that I'm honoring God in unit with with the resources he's given me to make sure that my own widow and my own children are well taken care of and that and that case of my death so we don't want to let go of that one. But you went to a conference and CPA Stephanie talk about all kinds of stuff that's what's in it for me.

Oh yeah I just you know I just said I've been in the life insurance business 43 years. So which is a long time and I've been a CLU for over 30 years and so you know, I've always had a little bit of I don't know just distrust. I guess where I listen to all these people talking about all the tax advantages and there's all these complicated things we can do with trusts and that are all wonderful things of life insurance, but there I've always felt like they're missing the point. You know that it that it did but but but in reality they're not missing the point of me just life insurance makes sense from a tax and savings perspective just. That's why most rich people and lots life insurance sell lots a whole life insurance because they want to be sure it's in effect when they die, but were meeting there missing the point is that that's not the reason I'm in the life insurance business I'm in the life insurance business to impress upon people. The need to create an estate further family word otherwise wouldn't be there to create a good life for their family and by themselves. The peace of mind that you have knowing that if some happens me my wife and husband, visits, and children are going to be well-off so I like what she said before the show. Quoting from Marie earlier show that we did. I don't mind be in somebody's goad.

I why don't you and I are in fact I'm honored to, you know, if I'm the person that sits down with you and looks you in the way and tells you that you need to do this and you need to do for your family and you need to do it in God's in line with this and I'm the one that that maybe some is in a call that a little pressure or whatever they are. Find that person. I'm honored to do that because I know when I do that with enough people. Somebody's going to be real thankful for them mentally letter that one window calling San know that my husband no and and and think of how she feels about her husband having taken care of her in that way you know I need to have some kids working for me other young young people now young adults that there one of their parents passed away, or both their parents passed away at a young age, but they had life insurance and they were educated through that and they got their start life they got what start they would've gotten anyhow.

But it was there because of the life insurance policy that mom and dad had, but there are these other things that we can yeah care and so was of the purpose.

One of the purposes of finishing well is to teach and if the logic in the investment value of life insurance and the tax benefits are what motivates you to purchase life insurance that's fine and I listen to a guy at my graduation when I got my Masters degree from a American college was speaking in the sky was very good speaker and lifelong life insurance person dealing with all these wealthy people, and he talked about he had had 43 claims at this point this is back in 2007 in his career. 43 clients that had died in these so many millions of dollars so these were well-to-do people and he said that none of these people that bought this insurance thought they were going to die thought this thing was the path they were doing it for their retirement. They are doing it for their savings for the tax benefits. So if that's the stuff that motivates you to do what I'd like to you for other purposes than so be it. And I do go to these conferences and I learn about all the stuff in life insurance can be a tremendous tax shelter. Starting with the fact that if you look in my book, you look in the appendix, which is on page 95 of the Col. guide complete cargo guide to planning for living in retirement items that I have a 1925 1926 tax return and I purposely made the instructions are part of the return on page 2 of the return and it says items exempt from tax and number one is amounts paid under a life insurance contract paid to paid on the death of the insured so that's that's tax free and frankly I I have been doing business with some CPAs lately. I just had a run of CPAs, to me for investment advice, financial planning advice lot around Medicare long-term care that thing and I've asked some of this is good news to them is that life insurance benefits paid to beneficiaries are tax-free. And I don't think you knew that when we first started talking now how would I know I and I just did it. I mean yeah I it's obviously critical because at that point where you know that the beneficiary obviously needs the money from the person just passed away from hospital expenses/no final expenses. You know this is not what you think that provision is remain unchanged in the tax code 400 years and why has Congress visit.

Trust me, they been up there.

People have been messing with it trying to get rid of the tax benefits of life insurance with her still there in their beta agency unchanged.

They had some modifications but that factor hasn't changed you by life insurance policy you die, your beneficiary gets checked.

They owe no income taxes on some of these other ramifications of what's in it for me with life insurance really are attractive to me. You know that you know clearly it's a savings account in and some other thing was a tax-free savings account that you can make some withdrawals from tax-free. How's that sound data compared to 401(k) but you don't get to make withdrawals from that until your certain age were you just have a savings account or brokerage account you're paying taxes all along anytime goes up in value you have to work with the life insurance. I guess retirement whole life insurance and how do you have it as a savings account that you get what has a cash value and if you overfunded that's what we do, and people are buying life insurance and they want to maximize the savings in the tax and the growth aspects week we effectively overfunded weed by choice pay way more premium than is necessary, and that all accumulates into a significant cash value and then it earns interest and dividends which are tax-deferred, so if you draw them out during your lifetime. You know, taxes. But there's a way that you can borrow on never pay it back and not pay taxes you have to commence a meeting for me to go that one with secret so essentially there is there is a way.

Obviously if you're in dire straits and you know I will even in dire straits. I had significant I was taken advantage as I got 2 million on me.

2 million on Rhonda million on Patrick in a million on Stuart and I have those large amounts of that I can put large amounts of money in there and I was making a pretty good salary 1015 years ago and I knew that I might spend it. If I had land around so I overcommitted to these policies and I build up a substantial cash value and when I open my business almost 9 years ago I borrowed against the life insurance. I still am paid much of it back and saw that does is reproduce the death benefit. Yes I my payback one day I might not I might just the loan sits there until I die and then shook it is smaller than $2 million, but will just cancel itself out to me and insist it's an unbelievable tax shelter and can be you got to buy the right kind of policy from the right person. I'm not saying that all life insurance policies are wonderful and there did every meeting just need to put a do on it coming with somebody that knows what they're doing it's thing to finishing well with certified financial planner Hans Schild. Today's show life insurance what's in it for me.

We have got it is one of the seven were don't forget to put the guide after the Cardinal and you can get right the PDF on this whole subject. Life insurance absolutely free. You just downloaded there at seven worst ever.

You can order the book by using get on Amazon mean ages. The youth look up you go to our website get on Amazon or you can just send me a note that you were listening to the show and you'd like me to send you a copy of the book of the glad to. You can also download the individual chapters right from our website on a PDF format for free and have written it an easy to read format is done real well on Amazon and I I'd like people to become more educated on the subject's back is this one really have some huge effect on generations and not to mention the thought of the widows that are struggling out there. As a result of people not understanding the benefits of this product and having an abuse of we've only gotten to one of said the what's in it for me have life insurance sides natural when there's a couple that might shock you right 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 Social Security care and long-term care. Just go to Cargill and contact Tom to schedule a live recording of finishing well at your church Christian or civic group contact Tom, the Cardinal that's Cardinal welcome back to finishing well with certified financial planner Hans Schild today show is life insurance. What's in it for me is kind of funny concept. Actually when you think about I'm dead. So what good is this stuff to me that were find out that today on finishing well with again, certified financial planner Hongqiao there's a etched in your book on life insurance.

There's a man mentioned by the name of Marshall and II can't help but think that that I mean, he's like the poster child for you know how God could use life insurance for his kingdom yet. What I mean when I first met him he couldn't be less interested in life insurance business fellow was a was a doctor so career retired many years had done well in the stock market and the equipment my brother sold a Medicare supplement seen his wife and then started talking to them about long-term care and talk to Denise as you really talk to my brother because maybe you can use your IRA to buy some long-term care insurance. What that is is a a life insurance policy that's funded with money out of the IRA and the life insurance policy allows you to receive benefits or take your death ultimate death benefit and use it during your lifetime to pay your long-term care bill tax-free import.

Once he got a hold of all that we we sign them up when we took some of his IRA money and committed to that and got it all set up and he and the missus covered in there just as happy as they could be. And that's when he gave me this book for med slot and Ed slot is a meeting I was at about a week ago that and that the time am just getting his book from Marshall and he gives it to Manny's is once take a look at this not been listening to scam public television, why read the whole book in the process of reading the book I said you know I circled the whole part of it and add slot and assignee come back and see a Mercedes more insurance and I said hi come on so I went back the next week or couple weeks later and I talked to him about just that. Is it the rest of his IRA. He really wasn't used to that he took the minimum distributions paid the taxes. This is before we had Q CDs of the sky would've been given money out of his IRA to the church and what we simply did is we sold in a life insurance policy that covered his wife and him together on the survivorship processor doesn't pay off till both of them are gone and we funded it with the with the minimum distributions out of the IRA and we funded it with the net amount of the minimum distributions. If you take a $10,000 minimum distribution you have to pay 3000 or so in tax so anyhow, the math is irrelevant. We we figured out a way to reduce his IRA and we set that up with guaranteed payments in an annuity it's a little bit complicated, it set them up so that his sons, his three sons would receive 100,000 each with a second one of them dies then there was a another part for the you know the ministry that he was. Oh yeah, well then what what what was first of all, then what happened is he died about three months after I did all okay.

He was actually the way I learned about the ministry is. I told him that I was going to go to Ed slot's classes and I was going to use part of the commission that I earned on all this insurance is holding to go to add slot and get the training and I also told him that I was going to donate part of it to after he bought the insurance to this ministry is getting Bibles in China is very important to him and still is, I still get mail from and so I made the donation and this is right before he died and then when I went there to settle up things with his son after his death, and with the funeral and then I met with them afterward. His son needed my help to just get all the beneficiaries get everything were supposed to go and he donated his whole IRA because he had another IRA that he would tell everybody about he kinda winked at me said were to get to this one next but that's where he was donating money to this to the submissions of the world and into something again.

He just is real important piece of St. Jerome in the world and the people in China don't know about Christ.

We need to get the Bibles in there and so I helped his son give that whole IRA without taxes in to the church into to the missions Brian is a beautiful thing and an but also it it it it speaks to a strategy for people that may have a prodigal son right or up children by other marriages and things like that in a way to get things wrapped up without going through the will will yeah missing. He liked so much about the life insurance besides the fact that it was tax-free. It was just a guaranteed amount was 300,000 equal shares that a limited pay years she still paying on a busy pan out of that IRA and its $10,000 a year as the premium he was 80 years old and those went on and he just he wanted this inheritance to go to his three sons and my guess is there to get a whole lot more than that, but this is going to come quickly going to go to them that I have to pay taxes on it and these are kinda big numbers for those of you that are listening if you got somebody that you want to leave money to whether it's a niece or nephew or a stepchild or somebody that you know was good to you.

Were you were geared to somebody and you don't want to mockup your will or think about what your heirs are going to think about this set up a life insurance policy even with a single premium that's gonna pay this money to them after their death, and that just stays it's not public nobody's really gonna know about that to your death. But that's yeah yeah but it's not public. Now yeah I had some but but but to to get on point here with this is that people buy life insurance and is got some just wonderful reasons than people buy life insurance when they're in their 70s and 80s and 60s and they buy whole life insurance and it is a good investment in its comes to your beneficiaries tax-free. But there's some living benefits. Besides, that is, is that if you got a bunch of money stashed up there and you needed, you can get out the cash value is number one.

The second thing is is most of these modern life insurance policies have the chronic illness writers on and they pay for long-term care so that if you don't have long-term care insurance which allowed people don't. But you have this life insurance is really intended for after your death. But now you need long-term care, you can withdraw from the ultimate death benefit lot companies will set this up for the just pay the money to the nursing home, tax-free and get your nursing home or home health care bill paid for free suite Absolutely. You know, that was one of the things it just really attractive to me, but you know all I never would've thought you because what happens with term insurance is you get up there in your late 60s, whatever it looks just like I'll never be able for that anymore and the and have an alternative buying whole life insurance never occurred to me you know in wheat we had talked about you know you are asking me about stories about clients and you know I think a lot about I deal with a lot of people and second marriages and then a lot of these people may live well now they're in the second marriage but they don't have enough money after the first death of either spouse to be passing money on the kids before the other spouse is best way so this gets a little complicated when you get her kids his kids and now you get grandkids that are kinda like both the years, but they're not and they are but when it really gets down to the kids a lot of these folks said they don't have enough money to start passing out money to like her kids which are your step kids from the prior marriage, so everything goes to either spouse and was going to go first or you consume and sometimes wrong. Life insurance is a wonderful way to deal with is is a letter by a life insurance policy could even be a small amount, 20, $30,000, 10,000 50,000 and then leave the death benefit to the chill letter pay for it out of her Social Security check. And then he does the same for his kids and then still leave all the kids in the will of the second person but you know it that way. When these kids come to their parents funeral.

They don't leave empty-handed. And there's something there's a check there even $5000 makes a difference and that can be just like guaranteed life insurance funded out of their own Social Security check. It's a is it's a it's a great equalizer. There is a need for money like right now and it's just as tight a bit tired. I watch my dad's checking account.

You know, because I was executor and all my gosh I'm in the bank tided up almost immediately and and so this is something that your errors leave other people to deal with your money. There can be dealing with you. I have people read my books and looking through there and I have 25,001 some people since 25,004 telling you getting a check, you know you get the stuff for me and I get it set up in our vault, and the people to follow me in case I'm not around really gets get your children that money if you buy a $25,000 policy is just for those final expenses were to have the check down to you money quick you can take it like a credit card up to the funeral home. Hans the goat is talking to you if you feel go to is because he really eat it it it it really is a nice thing to thank the gods you know giving us forewarning on on things that that people in our lives or to deal with because we don't want to face our own mortality. So looking at life insurance like what's in it for me is unique persistent. I'm not trying to get in about 11 insurance companies and never work for these people for 43 years so that the thing I got going for me as I got about 50 of them that I represent. So you know I keep them at arms length as well.

But there there wonderful to be cut and a check for hundred thousand dollars of the just, you know, in the hour and believe me we that they don't mess with with my clients when when when somebody dies, we those checks are coming out on drivetime again. I'm afraid so.

For more information. Of course we would urge you to go to Cardinal guide. Don't forget the guide.

After where you can see again. This tech tab on the seven worries would be life insurance you can get the book. You can get this section. PDF absolutely free course if you got a question of some France don't hesitate to email them. There, we thank you for this to show we hope you get a list of the podcast. If you miss some of it you go back just tell Siri or Lexi Alexa. Whoever I want to listen to the finishing well podcast, and thereafter you listen to us a favor and give us a rating list which, like what you don't mind thank you for listening.


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