Annuities and Long Term Care

Episode 5 June 17, 2021 00:38:16
Annuities and Long Term Care
Annuity Straight Talk
Annuities and Long Term Care

Jun 17 2021 | 00:38:16

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Show Notes

Bryan Anderson, founder of Annuity Straight Talk, speaks with Ashok Ramji, a financial consultant with TOP Planning LLC, an independent asset protection and retirement income planning firm serving retirees and pre-retirees alike. In this episode, they delve into the topic of long-term care and how people can start planning for it.

 

Ashok opens the show with a discussion on his article “Long-term IRA Planning for Long-term Care”. He and Bryan stress why the average consumer needs to plan for extended care even though it’s not a comfortable topic for a lot of people. They also talk about life insurance policies as a way to retain assets.

 

Want to learn how annuities are involved in all of this? Ashok explains how an annuity can be used as a tool to fund premium payments for insurance, and Bryan talks about his newsletter “Long Term Care and Annuities”. 

 

What You’ll Learn in This Episode:

 

 

Key quotes:

 

 

Call Annuity Straight Talk at 800-438-5121 or schedule a call at AnnuityStraightTalk.com



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Episode Transcript

Speaker 0 00:00:05 This is annuity straight talk since 2008, your host Brian Anderson has helped clients nationwide navigate the complex market for, with Brian's assistance. Hundreds of clients have achieved a profitable and secure retirement. I would know because Brian has answered many of my questions concerning annuities and retirement planning so that you can benefit as well. Let's get started. Here's Brian <inaudible>. Speaker 1 00:00:47 Hello. My name is Brian Anderson and I'm here with the annuity straight talk podcast, founder and creator is myself and I have an esteemed cohost. His name is a show. Key comes from Seattle. Why don't you go ahead and introduce yourself. I am a show grungy with top planning. Actually, my office is in Kirkland. And for those of you who go to Costco, you probably see that Kirkland brand well Kirkland Washington is just east of Seattle and that's where you'll find me well, and I don't actually have a town that I claim as my own. I just consider myself Northwest Montana. So when I say Kirkland, I mean Seattle as well. That's right. The greater Seattle Kirkland area and Montana. Yes, exactly. Yeah. So a show, you had a great idea for a presentation today based on what we talked about last time, and you said, let's go ahead and talk about long-term care. Speaker 1 00:01:37 And you are an expert in the long-term care arena, whether it be insurance or annuity. So why don't you let us know what you think? Sure. So I am, one of the things that I do is I'm a member of the ed Slott elite advisor group. There's about 400 advisors around the country and what we really focus on our IRAs. And we try to figure out how to do some planning around individual retirement accounts, because by and large, when many people are working, they have a 401k. And then when they leave that place of employment, they'll roll over that asset into an IRA. And IRA is, are different types of accounts. They have specific types of rules. So sometimes we're always figuring out what are some things we can do for long-term planning. And so to that end, and we're going to put this reprint up on the annuity straight talk podcast, but I have a brand new article dated June of 2021. Speaker 1 00:02:29 The headline is long-term IRA planning for long-term care. Another way of referring to longterm care might be extended care. But the big picture idea is that when someone has trouble performing, usually we call it two out of the six activities for daily living. There are six activities. There are bathing, eating, dressing, toileting, transferring, and continents. These are things that we do normally as young adults and we take for granted, but as we get older, typically, as especially people are living longer, we have some trouble performing those activities, or there may be what's called cognitive decline where we start forgetting certain things. So under the health insurance and portability and accountability act of 1996, the federal law codified basically that most long-term care insurance policies will look for two of these six activities for daily living in order to be what's called tax qualified. So there's some standardization now in the industry in terms of what they're looking for. Speaker 1 00:03:40 And my article basically said, okay, if you have an IRA or something, that's qualified money. When you have a longterm care incident where you can't perform those things and the long-term care is extremely expensive, how are you going to be able to start funding that? And one of the issues is that if your money is overwhelmingly in a qualified money place, when you take those assets out by and large, you've got to pay taxes on them. And it becomes that sort of second on the treadmill. The more you run, the more taxable income is coming out. So that's what we were doing. Some planning, right? Of course. And if I may jump in and leave it, like, this is obviously not at all a comfortable topic for a lot of people to talk about. And so we understand the personal nature of thinking about the situations where you would require long-term care. Speaker 1 00:04:33 You know, the two out of the six ADL's and the idea with this is to talk about the financial side of it, how you plan for it so that you can be in control of it, and you don't have to rely on someone else to do it. Is that fair to say, absolutely. Do you want to take control or do you want somebody else to decide what happens with you when boy, I'm 42 years old, I'm getting old, right. And I love to be independent and I love to take care of my own problems, whatever they may be. And I'm not facing long-term care by any means, but I guess we never know, but the point is like take control of what you can. And we're going to try to talk about some, maybe some real efficient ways to do that in cases where it may or may not be viable, right? Speaker 1 00:05:18 And at the end of the day, someone may decide, well, I'm going to buy a product maybe, or maybe not. But at the end of the day, you might have a plan. So the product may be part of the plan, but it's just like anything where we buy car insurance. We have homeowners insurance, insurance plays that role because if that contingency, materializes and comes out of left field, hopefully there's some sort of plan to address it by and large. The two biggest payers of extended care or long-term care are friends and family. And it's an idea to have people like that. Friends and family provide the care they're caregivers, but they're unpaid. And that usually means that they give up career advancement. The other major payer right behind friends and family is Medicaid. And what's happening. For example, we were saying earlier, where am I located? Speaker 1 00:06:13 I'm in Washington state, Washington state has the first program in the nation right now we're starting January of 20, 22. They are going to start taking money out of W2, wage earners, paychecks it's 0.05, 8%. So if someone's making a hundred thousand dollars, $580 would go per year towards long-term care, it's a state fund. Why are they doing this is because the states are the ones that are involved with Medicaid. And unfortunately they're spending a lot of money. So they're trying to develop a system where they can have worker money that is hopefully shoring up the system. Okay. That makes sense. So fair to say that regulators and lawmakers are concerned about the problem as well. So there's no reason why any average consumer shouldn't also be there. Agreed. And so what we could do is show some ideas of where some of the tools that we use in our businesses could use that could be used to plan for these things. Speaker 1 00:07:17 And so why don't we, yeah. Why don't we start with, uh, you know, pure long-term care insurance, a show, and you know, more about it than I do. I understand it's an issue. And I think I can evaluate a contract pretty well and talk about it, but give us some of your thoughts since you did have a published article on the topic. Sure. So traditional long-term care insurance is an idea where every month they may, I'll give you an example. They may reimburse for $3,000 a month. It's a hundred dollars per day. You'll have to wait usually for what's called an elimination period of about 90 days to remember long-term care is something where you're not expected to be able to perform something for the long-term and it's measured as a 90 day period. So it's not just take it again, if you can't put your socks on and yeah. Speaker 1 00:08:07 Can't brush your teeth to be PG about it, right? Yeah. So if it's expected to last for awhile, that's where you'll trigger benefits. And then the insurance company will reimburse for the monies that were spent. And the biggest issue that we see is that if someone is buying a policy now and typically policies from my experience are purchased, maybe in one's fifties, the median age of claim is 83. So we're thinking about a 30 year timeframe before someone goes on claim. So there's an important thing to have benefits compound. If I buy a policy today and it has $3,000 in reimbursements, if I don't go on claim until say 2051, and it's 21 now $3,000 now is not going to be the same as 3020 51. So we need to have some what we call compounding of benefits so that we're maintaining our purchasing power. Speaker 1 00:09:07 Yeah. So I guess what you're hinting at is like you could pay for a long, long time. You've got to do a calculation to see what the true benefit of that investment would be over time. Correct? You don't know whether you're going to go on claim or not. And the statistics show, most people do go on claim, but there's a chance we as individuals, we don't like really discussing this subject and maybe we live a long fruitful life and we don't ever issue. We don't ever encounter this issue. So that may be a feeling of, I have this discussion all the time. It's like, well, I pay for car insurance every year in my car. I have a perfect record. So why am I, you have to pay for car insurance. And in Washington, it's becoming a thing you have to have long-term care insurance. Speaker 1 00:09:51 Wow. No, that's interesting. I think about it. Like my grandmother is going to be 91 next week and she's doing just fine on her own taking care of stuff, but she is the toughest person. I know. And I'm not kidding. Like, she's tough. Like she might live too, you know, our mind slipping a little bit, but she might live to 105. There's no talent at this point. I mean, I guess the longer life goes, the more likely it is that you'll receive it. And I can tell you, grandma wants to be around as long as she can now. And it might mean five years in a home or an assisted living facility. If she cannot take care of herself, unless her daughters want to do it. But that's part of the question, right? Again, taking control over things. Good thing to have at least some planning, maybe that is from a long-term care insurance policy. Speaker 1 00:10:46 It's not to say that her daughter, for example, couldn't also help, but it's another tool in the toolbox to be providing assistance, but it's not ideal to have the daughter help. Correct. Because she gives up in positions. The, that would be my aunt. It would imposition her or she would take her from, uh, her other productive activities. And yeah. Anyway, so not to spend too much time on that specific example, but because we're not there yet and we're going to have a party next week. So now here's the thing is that it's a good thing to have. I'll tell you that this feature, the compounding of benefits that I've been discussing is very good. Just to give the se another view of it is these contracts are what are called guaranteed renewable. So if the carrier is experiencing more claims than they're receiving in premiums, they can go to the insurance commissioner and say, can we raise prices all across the board for this business, for this particular policies? Speaker 1 00:11:41 And they won't single a single person out. So that's where long-term care insurance does really well, but there's always that potential with a guaranteed renewable. Yeah. And I think I've seen that problem with people that come to me, other issues where they say, well, we got long-term care insurance. And I know Jen worth is a big, we're not doing a whole lot on company specific, but it's fair to say Genworth was a big player in the long-term care market for a long time. And if they bought it when they're mid fifties now, and now they're in their mid to late sixties, they're questioning well, was should I keep it because it started out at 300 a month and now it's seven 50 a month. And I have a hard time telling them what to do because there's so much invested in that already. But I mean, and I think the show, cause this is a perfect opportunity to say there are alternatives and I'll point out another story with a person I was working with, who said, we like the idea of long-term care insurance. Speaker 1 00:12:36 But my dad, this was his dad said he had long-term care insurance. And he paid these big premiums forever. And then he passed away peacefully in his sleep at 87, living by himself doing just fine. And then all of that money was gone. So maybe you can tell everybody, is there an option to provide for long-term care where the money is not lost? There are certain return of premium features that can be put on as a writer for a long-term care insurance policy. Well, I'm talking about maybe some of the alternative strategies. Yeah. So then if we were to exit the long-term care insurance discussion, now we start looking at things like life insurance. And before we do that, just a second to say, though, this is annuity straight talk. If you like what you're hearing here, there's a phone number to go to because I know we're going to get a few minutes into this on life insurance, right? Speaker 1 00:13:26 Brash guy right here. You got the reasonable guy over west of me in Seattle. He's sharp, he's smart. We both know what we're doing. 804 3 8 5 1 2 1 hit annuity straight talk, schedule a call meet with either one of us or send us an email. So now let's talk a little about another tool. That's very powerful is where you can use a life insurance policy. This is permanent cash value, life insurance. I'm not talking about term and it may have a writer on there where it has the advantage of if long-term care is never needed, then it provides a death benefit. But if someone is living and now they trigger benefits because they, for example, cannot perform two of the six activities for daily living. Now they can take that death benefit and it becomes a pool of benefits while they are living. So it now serves two feet. Speaker 1 00:14:22 Well then the second feature would be, you can also do some legacy planning with that as well. And so that kind of ties in with our last episode, which we're going to tie up next week as well, or in a couple of weeks, when we talk about some ideas for maximizing inheritance, right? But the life insurance policy would be similar, similar if not the same underwriting, but when you talk about legacy planning, so a lot of people will, again, we'll go into more detail, but the life insurance would be the same underwriting as a long-term care policy, but is a way to retain your asset. And in the worst case scenario, actually the best case scenario would be that you never needed it. But then you pass on an even larger benefit to your heirs. Is that correct? Correct. The underwriting is a little different because now when it comes to life insurance underwriting versus long-term care underwriting, they're little different. Speaker 1 00:15:14 But for the most part, this is what you said is spot on that. You can now do some legacy planning, but you may take those precious dollars and you can say, well, let me have them serve dual purposes. So I don't know which way life is going to go. So at least I can cover it well, can I say like, not to be super contrarian, but just like a, you know, a reasonable debate or discussion with us? The reason why I say, I think the underwriting is similar is because the benefit on the back end is the same where, and just I'll make up a number. You put a hundred thousand dollars into a whole life policy that you get $200,000 of death benefit that can be accelerated for long-term care would be the equivalent long-term care payment for a policy if you had paid for it over several years, but in the end, the life insurance policy will leave something behind at the end. Speaker 1 00:16:02 So again, I mean, I don't know that I'm right, but I think there's a mathematical calculation that can tell you the difference between those two practices of doing it. Absolutely. Now there's one other before we exit the life insurance discussion, there's a new advent of certain type of life insurance policies, where for example, you might have a dollar of death benefit and you might have three or $4 now positioned for long-term care. Those are referred to as hybrids, sometimes combination products. So it's really life insurance and long-term care. And some of the advantages there are remember earlier, I was talking about how a traditional long-term care insurance policy could allow for what's called a compounding of benefits where those benefits start rising over time. When you have that sort of design, where you actually have potentially way more in longterm care than life insurance, you can have that compounding of benefits. Speaker 1 00:16:55 So there are some definitely new tools on the life insurance side, where we could use to help people do some legacy planning and prepare for extended care. And yeah, go ahead, Brian. Well, I was going to say, yeah, there are a lot of new options. So don't, you know, look at the old school way of just buying a long-term care insurance policy in a lot of times that is the best way to do it, but it depends on when you need the care. So obviously if you pay two months of premium going to a 90 day elimination period, then all of a sudden you get the benefit. That was a pretty good deal, right? But I think a lot of people are scared of potentially having to pay for it for 20 years and then maybe not even ever using it. And that's why again, where the insurance industry comes in to solve problems and like meet people halfway in some respects to say, okay, well, because it was the insurance industry had to go and lobby Congress to get regulatory changes, to allow for accelerated death benefits. Whereas if you have a $200,000 death benefit, normally you had to wait until you passed away for your beneficiaries to receive it. Whereas now, in a lot of cases, you can take that death benefit while you're still living to offset costs of an unexpected nature. Namely long-term care. That's correct. He's now the death benefit really becomes a living bet. Yeah. And then that's the correct term, no living benefit. Thank you. Speaker 1 00:18:24 See, I told you he's technically smart. He's like, he's so much more smoother than, than I am. I just thrown out there, but you're still always accurate. Now there is another tool that we can use when we're doing planning. And by the way, in my article, you'll see that we talked a little bit about pooling the insurance method. There are alternatives to doing insurance. You could do, you could retain the risk. You could manage the risk. Like for example, you could say, Hey, if, and when I need long-term care, I'll actually have my neighbor come and help me out so I can manage it, try to avoid it. Did statistically. It doesn't look like, you know, the statistics are in our favor, but then we have the insurance method, the pooling method. And one of the tools that we could use is an annuity, which is very apropos because we are dealing with annuity straight talk. Speaker 1 00:19:12 In my experience, the annuity can serve two roles. It could either be on the funding side or, and maybe I should say, and it could also be on the providing benefits side. Right? So what do I mean by the funding side? Let's just say someone has decided, I want to use long-term care insurance. I want to use life insurance. Where are those premium payments going to come from? Someone might earmark a fund for that rainy day for long-term care and or acute medical expenses. Maybe they have that in a fixed deferred annuity. And that way they can take off a percentage every year under the flex strategy, for example, and say some of those monies go to pay the premiums, the advantage of that approach, in my opinion, and this is just one way to do it would be that regardless of market risk, you know, you can count on this is how much we're going to silo off for this. Speaker 1 00:20:13 Right? And so if the market performance is poor, you don't feel like I've got to now put more money into this to accomplish those healthcare related objectives. Yeah. Like a quick little case study, reference to that where I've had, I've been talking about the flex strategy for a lot of years, probably 10 now. And I had a couple who bought an index annuity from me in 2014 and they peeled off 40% of their portfolio rather than the 60% that a guaranteed income would require. And they knew that the 40% would keep them safe. But what happened from 2014 and 2015 is the market shot up considerably. And so that allowed them to set other things in place over time, purchased another annuity with the gains. But they have now that annuity, that was 40% of their portfolio is about 20%. And it's not fitting the purpose that they had attended initially blessed by great market performance. Speaker 1 00:21:15 They now have a substantial asset that they look at and say, we don't need long-term care because we have this real safe asset sitting here. Right? And that to me is one of the benefits of doing, or just a really efficient strategy where it's not a long-term care policy. But they said, when they actually retired, like we have this chunk sitting there, we've had all this other growth. We're happy with it. We've locked some more stuff away. We're very comfortable. Now we know that that asset is just going to be something that's safe and accessible for any type of emergency. Right. Beautiful. I mean, that's where they're retaining the risk, but they've siloed that off to a side fund, that's protected from adverse market performance, right. Where it was supposed to support income in the early years, but growth was substantial enough that they didn't need it. Speaker 1 00:22:06 And it's the kind of case study where it's not too uncommon with my clients. It was just, I'm so proud of what I do. And I'm so happy for them. I love them like family and they're great people. So I'm happy to see them doing well. If somebody wants to become family, where do they go? Annuity straight talk.com. The green button call the number, right? Schedule a call. Fall hits my calendar. Availability dates, sorry. It's summer. Nothing's available on Saturday now because I got things to do. And I got adventures to pursue, but schedule a call on the calendar. We're going to get a show on there as well. If you want to talk to him, some, you might think I'm a little bit too. Maybe I'm a little loud Shokes, real reasonable, nice guy. And he knows the same things I do. We, uh, we're on the same page, but, uh, you can always call 804 3 8 5 1 2 1. Speaker 1 00:22:57 If you want to just chat my phone's on silent now, but if you, uh, want to ring me now leave a message. I'll call you back when we're done. Now let's switch gears to, we've talked a little bit about annuities as a funding mechanism. You had an article from January the 11th of 2020, where we talked a little bit about long-term care in annuities. Actually here. You're talking a little bit about, well, first of all, there are some indexed annuities that can pay more money if certain benefits are triggered. Right? Right. Yeah. So we're going to, there's two different ways that I know to use annuities and you can correct me if there's a third one, but I believe there's only two. So in a lot of guaranteed income contracts and many people are going to be aware of this because a lot of that's a big sales pitch where you're going to get X amount of income. Speaker 1 00:23:49 But if you need long-term care, you're going to get two X income, right. Where we're going to double the payment. But there's a catch to that where double the payment, if you need long-term care, only exists. If there's an underlying cash value remaining in the contract, okay? And this obviously deserves a chart of its own. And this is where we can improve a shock. We can add some interactivity where we switched to a chart real quick, and I can show you, but the underlying account value needs to grow while that money's being drawn for income. And if the account value is at zero, then the longterm care enhancement is what it's called will not be paid. And so a lot of times that account value on the illustration will go to zero around the 17th or 18th year. In which case the average person is in their early eighties, late seventies. Speaker 1 00:24:43 And that's when they might need the benefit the most. So I've always urge people not to buy annuities for that. I like to plan for it separately, just because I think it's a situation where there's a lot of contracts that won't necessarily pay out what you want. And the other catch with the annuities with a long-term care enhancement to an income benefit is that it's not a qualified in a showcase. You want a qualified long-term care expenses, right? It's just additional income. The additional income will be additionally taxed in your highest tax bracket where true long-term care insurance, whether through annuities or a life insurance or long-term care policy are qualified long-term care expenses and are paid tax-free. So if you have a $3,000 a month benefit from a long-term care policy, that's going to be tax-free income. Where if you have a $3,000 a month enhancement to an income benefit from an annuity, that's $3,000 of taxable income. Speaker 1 00:25:43 So it's not all what it seems. And that's always said, it's a nice addition. If everything else in the contract does exactly what you need. Right? Correct. It's like a, the cherry on top, right? Yeah. You know, one thing I just realized was the median age for someone to go on claim for long-term care is 83. I believe if someone's buying that contract, when they're 65 or 66, 17 years later, it takes them that 83, right. When the average person needs it. Yeah. Right. Yeah. Yeah. So, so I don't think again, like if everything else in the contract is exactly what you want, then by all means like have that as a little cherry on top, like you said, but don't buy it specifically for that purpose. And then, okay. So that's the one way to do it, which again, it's a huge marketing tactic don't necessarily fall for it because if you want to do serious planning, you call one of us. Speaker 1 00:26:41 Like we're not into sales pitches, we're into analytics and discussing options. Right. And you and I do this all the time. I call a show when I have, Hey, let me tell you what I told this guy, give you a little bit of idea. What a situation is. You think I'm on the right track. You do that with me. I do that with you. When the wisdom of the crowds, we're trying to solve problems. And we have a lot of the tools. We don't know everything, but we know a lot and we're here to help people no matter what. And so that's where it leads into. There are annuities that are made as a hybrid, essentially between the safe structure of an annuity with a true long-term care benefit where a tax-free qualified long-term benefit. Right? Correct. And now we're starting to get into, for example, and it's in my article, there were two codes from HIPAA, the health insurance portability and accountability act the inserted two sections into the internal revenue code. Speaker 1 00:27:42 This was around the mid nineties. And one of them is section 77 0 2 B as in Bravo. And there's another 1, 1 0 1 G as in golf. But you can have an annuity that is compliant with section 77 0 2 B as in Bravo. And I believe that's what you're talking about, where it can actually serve the purpose of long-term care. Yes. Those are very, you have to know where to look for those annuities and yes, there's just a couple of them out there, again, not naming companies, but there's a couple companies that have slightly different things, but fit inside that the 77 0 2 B and the point being that it will require some underwriting, maybe not as much as life insurance or traditional long-term care, but it will require some underwriting, but it's a way for you to put a certain amount of money aside. I'm just going to quote a number because this is where I think it still stands, but you put X amount into the annuity, say a hundred thousand, you put a hundred thousand dollars into this annuity. Speaker 1 00:28:42 You're going to have two and a half times, which is $250,000 of long-term care payable over five years, which more than covers the average long-term care exposure. I think what your article had that, do you have those numbers right in front of you? Like how long average care experience lasts? Absolutely. So the median age, I'm just trying to even refresh my article here that the someone is on, for example, this is from the federal government's data. It shows that on average men and women need care for men. It's 2.2 years on average and women 3.7 years. And by the way, something that's interesting is it's usually women that go on claim for long-term care because they tend to live longer than men. Yup. So that's why they tend to be on claim long. Okay. So, and by the way, yeah, no, go ahead. There's another stat here 20 of 65 year olds may need the support services for longer than five years. Speaker 1 00:29:46 So there's the Pareto principle, the 80 20 rule. There's going to be some 20% that may be on long-term care for really long time. Yeah. And that's, that's the case. And I've seen that in my family as well, by early onset of debilitating diseases. Parkinson's Alzheimer's people who contracted that in their early fifties who were in need of a care scenario. This is why I'm a huge believer. I had an uncle who developed Alzheimer's very successful guy. It was unfortunate. It was hard to watch, but he had the foresight when he was in his early age to buy disability insurance and long-term care insurance. And so it was really the benefit was that his other assets were not depleted for his wife. Who's left behind and his young children and all that stuff. So it's a really good idea. But again, back to the annuity portion of it, when you say 2.2 or 3.7 years, a five pay long-term care benefit, qualified tax-free distributions of that is a pretty good place to put your money if that's one of your concerns. Speaker 1 00:30:51 And so I think that kind of, again, the biggest problem I've ever seen with people I've ever heard of is a lot of people say, well, my dad or my uncle, or whoever had this policy for 25 years died when he was 87 and never use the PO and all the money was just gone. And people have told me, I'd like to have long-term care, but I don't want the money to be gone. And either life insurance or a qualified, an LTC qualified annuity is probably one of the best ways to do that. Do you agree with me? I do. In fact, you know, it, life insurance, just to give it as a easy way of thinking about it, you could structure that as what's called live, die or quit. So if you buy a permanent cash value, life insurance policy and you die, your heirs, get the death benefit. Speaker 1 00:31:42 So there's a legacy planning. If you needed care, then you're able to accelerate some of that death benefit and use it for long-term care. But the quit option is if it's got a return of premium feature, most don't get the interest back. Yeah. But you could say, Hey, you know what, 10 years from now, 15 years from now, the financial plan has changed. Let me quit. So you can live dire, quit. And again, this is the industry's response to people feeling like, I don't know if I want to pay on something for all that time. Right. But then a traditional life insurance policy will not have that compounding of benefits that the long-term care traditional policy has. So just like everything, you can put them up on a piece of paper and say, pluses minuses, and maybe it's a combination approach. Or maybe you decide, we don't want to do this at all. Speaker 1 00:32:31 I'll just go with friends. The idea of being that a person can choose what they prefer. So it's not, we can't sit here and say, when you talk about the or quit, whatever, right. You know, the three lived there quit. I liked that idea where you can, and I've seen the whole life policies where the guaranteed minimum, you contractually guaranteed to get your money out. So you, in 10 years, do you just decide, Hey, I'm going to buy a motor home. Let me take the money out. It's a way of, it's kind of like renting insurance, if you will, where you're renting it. And you save that premium cost of a long-term care policy always had it in your back pocket. And if you decide not to use it, you can. So, and to share a quick story, cause this has been kind of a, I think we shared a lot of information, but I think stories help cover it after I have to. Speaker 1 00:33:18 Yeah. I have to thank my friend Claude for sharing this one. So he was saying to me that there was a woman who was maybe in her eighties or nineties and her son always would invite mom and say, Hey, can you come over? And we'd love to have you. And we haven't seen you in a while and stuff. And mom would never say no, she would just never come along. And so the son was talking to the sister and said, Hey, have you noticed that mom never wants to come anywhere something? And she says, yeah, well they end up getting mom a policy, whether it was long-term care insurance or something, they did some planning. All of a sudden mom starts getting on a plane. She's visiting them. She's seen the grandkids and whatnot. What was it? It was peace of mind knowing that if something were to happen to me, I didn't want to be a burden. Speaker 1 00:34:10 So something like live dire quit. You may do that legacy planning that you've talked a lot about with annuity, straight talk legacy, being a key of the retirement planning. But it also just while you're living, you just feel like whoa, I'm independent. And if something happened to me that I couldn't perform two of the six activities of daily living, I'm not going to be a burden for my children. I'm going to have the dignity to do what I want to do. And they can go about their lives as an example. So that's one scenario or quit and say, don't need this. They fixed index annuity, for example, has exceeded my expectations. I'm going to self retain so many options with planning. Yeah, no, I agree with you. There's a lot of ways to do it. And none of it has to be that scary. Just set aside some money. Speaker 1 00:34:54 That's what we're here to do is just try to make things as easy as possible for people. I think we covered it pretty well. A show could, uh, do you agree? And the only thing I'd just add to it is if you want to bounce some ideas and say, this is kind of a subject I've really not wanted to address in the financial plan, how would you guys help me look at this or something? The number to call 804 3 8 5 1 2 1 that's 804 3 8 5 1 2 1, go to annuity, straight talk.com green, schedule, a call button, get on our calendars. We're just happy to share some ideas and totally, and this is going to come out and probably the week following this, we're going to put a Shokes letter out as a newsletter and uh, give it some distribution to get people's eyes on it. So just kind of a low pressure form to talk about things, think of ideas and get some information, right? Speaker 1 00:35:45 Yes. It gives you a chance to have a week off. I could be the guest AST contributor writer, but don't get used to it. Okay. I need you to be writing in your new norm. I'm gonna know that'll give me an extra week to do something really, really good. So we're going to hold you to it. It'd better be twice as good. I got some great ideas, but I'll have to say that for next time, but Hey, a show. Thank you for sharing your wisdom. I'm glad bounce some ideas off yet. Thank you everyone for joining us, give us call 804 3 8 5 1 2 1. Check it out. Subscribe. If you like, we're looking forward to meeting with you next time. And we got a real good episode for you coming next. You've been listening to Speaker 0 00:36:36 The <inaudible> and do not necessarily reflect the <inaudible> ability of the insurance company. <inaudible> is an investment advisor, representative of insight, folios and sec registered investment advisor. The firm only transacts business in states where it is <inaudible> based. Financial planning and investment advisory services are offered as association. Insightful wedding LLC is not a registered investment advisor. It is dot another name under which insight folios provide services. Insurance products and services only are offered through top lending, LLC insight, folios Inc, and top lending LLC are not affiliated companies.

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