Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Good morning to all. Craigshillig here and this is Safe Money.
I'm here every Saturday to talk with our listeners about
financial strategies we use to manage and protect assets safely.
I've been in an insurance agent for over twenty four years.
During that time, I've learned a few insurance strategies, like
using annuities as safe money harbors or using cash value
(00:23):
life insurance to supplement your retirement income. Just a reminder,
you can call our office at five six three three
three two two two zero zero if you'd like to
enroll into one of my virtual Medicare community meetings I
give two every month via zoom, or you can email
(00:43):
me at Craig at Craigshillig dot com and that's my name,
cr Aig at cr Aig scchi lllig dot com. Today,
I'd like to continue my talk about life insurance because
(01:04):
September is Life Insurance Awareness Month, helping protect your loved
ones with life insurance. So everyone always asks how much
life insurance do you need? Your life insurance needs will
depend on a number of factors, including the size of
your family, the nature of your financial obligations, your career stage,
(01:30):
and your goals. For example, when you're young, you may
not have a great need for life insurance. However, as
you take on more responsibilities and your family grows, your
need for life insurance typically increases. Here's some questions that
can help you start thinking about the amount of life
insurance you may need. What immediate financial expenses would your
(01:57):
family face upon your death. The first one is going
to be funeral expenses, but any debts. Wise man once
told me once a debt created should not outlive the
person who created it. How much of your salary is
devoted to current expenses and future needs? Income replacements A
(02:20):
big one. That's a big missed item. People don't realize
that if I take away your income, what that does
on a monthly, semiannually, or annual basis, and then that's
without inflation or compounding. How long would your dependence need
support if you were to die tomorrow. That's a big one,
(02:43):
because if we all have kids childcare. I have some
clients their childcare bill costs as much as their mortgage.
How much money would you want to leave for special
situations upon your death, such as funding a child's education,
gifts to favorite charities, or an inheritance for your children.
(03:07):
What other assets or insurance policies do you currently have,
So let's talk about types of life insurance policies. The
two basic types of life insurance are going to be
term life and permanent cash value life insurance. Now there's
also universal life and variable Those are also permanent products
that I'll talk about later, But the two basic types
(03:29):
are going to be term or permanent. Term policies provide
life insurance protection for a specific period of time. If
you die during the coverage period, your beneficiary receives the
policy's death benefit. If you live to the end of
the term, the policy simply terminates unless it has an
automatic renewal provision for a new period. Term policies are
(03:53):
typically available for periods of one to say, thirty years,
and may in some cases be renewed until you reach
the age of ninety or ninety five, depending on the company.
With guaranteed level term insurance, both the premium and the
amount of coverage remain level for a specific period of time,
(04:15):
so it's kind of a catch twenty two. So whatever
your premium is this month will probably be the same
that whole period, but so will also the death benefit.
So if it's a quarter of a million dollar policy now,
it's still going to be a quarter of a million
dollars policy in ten, fifteen, twenty, or thirty years. It
(04:37):
doesn't calculate inflation, so everybody knows that a quarter of
a million today won't buy the same amount of goods
and services in one to five years, so keep that
in mind. Permanent insurance policies offer protection for your entire lifetime,
regardless of your health, provided you pay the premium to
(04:58):
keep the policy in force. As you pay your premiums,
a portion of each payment is placed in the cash
value account. During the early years of the policy, the
cash value contribution is a large portion of each premium payment.
As you get older and the true cost of your
insurance increases, the portion of your premium payment devoted to
(05:21):
the cash value decreases. The cash value continues to grow
tax deferred. As long as the policy is in force.
You can borrow against the cash values, but unpaid policy
loans will reduce the cash value and the death benefit
that your beneficiary will receive. If you surrender the policy
(05:41):
before you die, i e. You cancel the coverage, you'll
be entitled to receive the cash value minus any loans
or surrender charges is involved. Many different types of cash
value life insurance are available, including whole life. You generally
make level equal premium payment for life. That's how the
(06:02):
price is calculated based on your expecting life expectancy. The
death benefit and cash valure are predetermined and guaranteed subject
to the claims, paying ability and financial strength of the
issuing insurance company. Your only action after purchasing the policy
is to pay the fixed premium. Now, when we're talking
(06:24):
about universal life, you may pay premiums at any time
in any amount, subject to certain limits. Universal life is
kind of a there's a low amount you have to pay,
but you could pay more if you want it. The
amount of insurance coverage you can be changed, and the
(06:47):
cash value will grow at a declared interest rate, which
may vary over time. Variable life insurance, as with whole life,
you pay a late level for life. However, the death
benefit in cash value fluctuates depending on their performance of
the investments in what a is known as sub accounts.
(07:10):
The sub account is a pool of investor funds professionally
managed to pursue a stated investment objective. You select the
sub account in which the cash values should be invested.
Variable Universal life is a combination of universal life insurance
and variable life insurance. You may pay premiums at any
time in any amounts, subject to limits, as long as
(07:34):
the policy expenses and the cost of insurance coverage are met.
The amount of insurance coverage can be changed, and the
cash value in death benefits goes up or down based
on the performance of investments in the sub accounts. With
so many types of life insurance available, you're likely to
find a policy that meets your needs and your budget.
(07:54):
The cost and availability of life insurance depend on factors
such as age, health, and the amount of life insurance
that you want to purchase. Choosing and changing your beneficiaries
When you purchase life insurance, you may name a primary
beneficiary to receive the proceeds of your insurance policy. Your
(08:15):
beneficiary may be a person, a corporation, or other legal entity.
You may name multiple beneficiaries and specify what percentage of
the death benefit each is to receive. If you name
your minor child as a beneficiary, you should also designate
an adult as the child's guardian in your will. Because
(08:38):
most insurance companies won't issue a check to a minor.
What type of insurance is right for you. Before deciding
whether to buy a term or permanent life insurance, consider
the policy cost and potential savings that may be available. Also,
keep in mind that your insurance needs will likely change
as your family, career, health, and financial picture change, so
(09:03):
you'll want to build some flexibility into the decision making
process in any case. Here are some common reasons for
buying life insurance and which type of insurance may best
fit the need. So if you buy a house, you
have a mortgage or long term debt. For most people,
the home is one of the most valuable assets and
(09:25):
is also the source of the largest debt that they have.
An untimely death may remove a primary source of income
used to pay the mortgage. Term insurance can replace the
lost income by providing life insurance for the length of
the mortgage. If you die before the mortgage is paid off,
the term life insurance pays your beneficiary and amount sufficient
(09:46):
to pay the outstanding mortgage balance that is zowed family protection.
Your income not only pays for day to day expenses,
but also provides a source for future costs such as
college education expense and retirement income. Term life insurance of
twenty years or longer can take care of immediate cash
(10:08):
needs as well as provide income for your survivor's future needs.
Another alternative is cash value life insurance, such as whole
life insurance, universal life, or variable life insurance. The cash
value accumulation of these policies can be used to fund
future income needs for college or retirement, even if you
(10:30):
don't die. If you're a small business owner, small business
owners need life insurance to protect their business interest. As
a business owner, you need to consider what happens to
your business should you die unexpectedly. Life insurance can provide
cash needed to buy a deceive your shareholders. Life is
(10:50):
safe for the unexpolicy. Make sure to periodically review your coverage.
Over time, your needs will change. An insurance agent or
financial professor can help you with your review. Why I
don't want to buy life insurance If you're like most people,
it's not that you don't appreciate the value life insurance.
(11:11):
In fact, many people believe they need more coverage. You
probably wouldn't mind owing additional life insurance. It's just that
you don't want to buy it. Thinking about buying life insurance,
talking about buying life insurance, discussing the reasons for buying
life insurance. All of this makes many people feel very uncomfortable.
(11:33):
Here just some of the reasons why you may be
putting off buying the life insurance you know you probably need.
I don't have enough time. You'll get around them its,
but not today. It's itemting on your list of things
to do right after washing the windows. With all the
things you've got to do, buying life insurance can come
(11:54):
off as a low priority, just one more thing you've
ought to do. The whole idea of discs using life
insurance isn't a whole lot of fun. Who would rather
take the dogs for a walk on the beach, attend
a child's softball game, or spend those precious few hours
of free time in the evening visiting with friends or family. Nonetheless,
(12:15):
buying life insurance is really an important task that you
should address. Life insurance can help ensure that your family
will have enough money to meet their financial obligations in
the event of your untimely death. The subject is boring
and morbid if you really don't like to think about death.
Death is an unpleasant subject, and life insurance raises issues
(12:40):
of our own mortality. Some people say that the very
thought of starting the life insurance buying process makes them
feel stressed out. There's no great appeal to contemplating on
our own mortality. It's a subject we'd rather ignore than address.
The result can be inertia or denial. It doesn't have
(13:01):
to be that way. People who do act on their
life insurance needs tend to focus on the positive aspects
of meeting their responsibilitied for and care for the loved ones.
They think of it as contingency planning, helping protect their
families against the uncertainties of life. They also recognize the
life insurance is reality about life and love about helping
(13:24):
to ensure a positive quality of life for their spouse
and children if they die prematurely. I don't know if
you just he's right for you, or how much life
insurance you need join the club. Few of us truly
understand life insurance and we need it is appropriate, how
much we need, when and how benefits are paid, how
(13:47):
benefits may be taxed, and more. That's okay. It's not
your job to know everything about life insurance. That's the
job of an insurance professional. Thinking you need to have
all the answers about which type life insurance is appropriate
for you. Is sort of like needing surgery and thinking
you need to know which type of scalpel to use.
(14:07):
That's the surgeon's job. In the same respect, the right
insurance professional can help guide you through the process of
selecting the policy that most suit your needs, budget and objectives,
and can answer your routine questions. Life insurance isn't a
high priority compared with other expenses I have for many
(14:31):
underinsured people. It's not so much that they don't want
life insurance they need, it's just difficult to find the
extra dollars to pay for it. Buying life insurance you
can't afford benefits no one if it causes your family
hardship or requires you to make choices that seem incongruguous. Gee, kids,
(14:53):
I'd love to take you on vacation, but our life
insurance premium is due and I can't afford to. You'll
eventually continue the policy. Then you lose, and your family
also loses. That's why it's important to purgase a policy
that meets your needs and your budget. Fortunately, there are
many types of life insurance available. These include term life insurance,
(15:15):
policies and various types of permanent cash value life insurance policies.
Term policies provide life insurance for protection for a specific
period of time. If you die during the coverage period,
your benefic srary receives the policy's death benefits. If you
live to the end of the term, the policy simply
terminates or automatically renews at an increase, and then you
(15:39):
have a choice to continue that or cancel it and
start a new policy. Permanent insurance policies offer protection for
your entire life, regardless of future health changes, provided you
pay the premium to keep the policy in force. Also
one note on permanent policies, the premium never changes generally,
(16:02):
so whatever it is today, it'll be that same premium
in ten, fifteen, twenty thirty years. As you pay your premiums,
a portion of each payment goes towards building up the
policy's cash value, which may be accessed through loans or withdrawals.
Keep in mind, though, that loans and withdrawals will reduce
(16:23):
the cash value and the death benefit and could cause
the policy to lapse, which may result in a a
tax liability. If the policy terminates before the death of
an insured additional premium payments may be required to keep
the policy in force. The cash value continues to grow
tax deferred as long as the policy is in force.
(16:45):
Several different types of permanent life insurance available are whole
life insurance, universal life insurance, variable life insurance, variable universal
life insurance. The bottom line, it's easy to understand why
people tend to put off purchasing life insurance. They know
that they need, but look at it this way. Buying
(17:07):
life insurance is in one way you can help secure
your family's financial future. And and what could be better
than knowing your loved ones will be protected even if
you're no longer around to take care of them. Now,
I have a poem I'd like to share I've shared
in the past. This is from Van Mueller. I am
(17:28):
a piece of paper, but even more, I am an idea.
I am a promise. I help people see visions, dream dreams,
and achieve economic immortality. I am an education for the children.
I am savings. I am also property that increases in
value from year to year. I lend money when you
(17:52):
need it most, with no questions asked. I pay off
mortgages so that the family can remain together in their
own home. I assure fathers and mothers the daring to
live and the moral right to die. I create, manage,
and distribute property. I guarantee then the continuity of business.
(18:18):
I protect the jobs of employees. I can serve the
employee the employer's investment. I am a tangible piece of
evidence that a man or woman is a good spouse
and parent. I am a declaration of financial independence, a
charter of economic freedom. I am the difference between an
(18:39):
old man and an elderly gentleman. I'm the only thing
that a father or mother can buy on the installment plan,
and the survivor doesn't have to finish pain for it.
I am a certificate of character, evidence of good citizenship,
and unimpeachable title to the right of self government. I
(19:04):
am protected by laws that prevent creditors from accessing the
moneies that I would give to love ones. I bring dignity,
peace of mind, and security to the later years of life.
I am the great social compact that merges the individual
into the mass and places behind the frailty of human
(19:27):
beings standing alone the immeasurable strength of human beings standing together.
I supply investment capital that makes this smoke go up,
the chimneys, wheels turn, and motor's home. I guarantee that
there will always be Christmas with Tinsel, a happy fireside,
(19:51):
and the laughter of children, even though a breadwinner parent
is no longer there. I am the guardian angel of
the house. I am your life insurance policy. Coming up
in future shows, i'll talk more about Medicare Medicare seasons
coming up in October. You guys know I do community meetings.
(20:16):
My next meetings are scheduled for September sixteenth and September eighteenth.
My October dates right now are October ninth and October fourteenth.
Take note there will be a lot of changes for
Medicare this year. I don't have new pricing yet. I'll
probably have those in about three or four weeks. You
(20:38):
have to wait a couple more shows, but there's gonna
be changes on both the Medicare advantage side and prescription
drug side. I haven't seen new pricing yet, other than
to know that understanding a lot of segments, costs are
going to go up. Between cope's deductibles and if you're
(21:01):
under sixty five, for the under sixty five health insurance market,
your max out of pockets will increase next year. I've
seen max out of pockets as high as ten thy
four hundred on an individual. That means family max out
of pockets are going to be above twenty grand. That's
(21:23):
not a deductible or a max out of pocket. That's
a small car. So just be aware of that. Subsidies
are supposed to be reduced for twenty twenty six under
the Triple B new legislation, the Big Beautiful Bill. So
if you're on a health insurance marketplace plan now, just
(21:47):
be aware that your subsidy may and your premiums will
go up. Your subsidy will go down in January, and
I'll have more information on that stuff late October early
November when we see with the new pricing is for
you can call it trump Care or biden Care, doesn't matter.
(22:08):
On the health insurance marketplace, medicare side prescription drug plans,
remember in October November, you're going to want to look
at those because those prices will change. The good news
on that is I believe your maximum drug out of
pocket for twenty twenty six will only be twenty one
(22:30):
hundred bucks. That's a good thing. Now, nobody wants to
spend twenty one hundred bucks on their drugs, but that
would be the top end number you would hit if
that if that was in your situation. Medicare advantage plans,
there's rumors that some of the plans locally are going
to terminate, so keep an eye out. You'll get new
(22:53):
information about your plan changes, probably in the next two
to three weeks. There's usually a com out the last
week of September, so keep an eye out for those.
If you're on a Medicare advantage plan now. I have
not seen pricing for United Healthcare, well Mark, Orietna yet.
I just know they're going to change and in October,
(23:16):
hopefully by then I can tell you who's got the
hottest plan for twenty twenty six and if you need
help with that, you can come see me. Don't forget.
I give monthly virtual meetings regarding Medicare for two different
companies every month, and one meeting I will cover the
Medicare supplement plan with a standalone drug plan. That meeting
(23:38):
is normally a sponsored by well Mark. United Healthcare is
a sponsor. For my other virtual meeting, I focus on
the Medicare advantage plan known as Medicare Parts C and
cover the benefits of that platform. You can call my
office at five six three three three two two two
zero zero for the zoom meeting codes an additional dates
(24:00):
and times. I don't have fourth quarter dates yet because
I'm still waiting to see who's going to be the
sponsors for those. Maybe i'll have those in about two
or three shows. You're also welcome to email me at
Craig at Craigshillig dot com and that's my name c
R A I G at c R a I G
(24:24):
S c h I L L I G dot com,
and I'd be happy to send you the virtual zoom
Link meeting codes and hopefully I would say give me
about a month and i'll have If there's late October
meeting dates, I'll probably have some in October through November
before Thanksgiving. If anybody's interested in that. This is Craig
(24:48):
Schillig with Safe Money
Good morning to all. Craigshillig here and this is Safe Money.
I'm here every Saturday to talk with our listeners about
financial strategies we use to manage and protect assets safely.
I've been in an insurance agent for over twenty four years.
During that time, I've learned a few insurance strategies, like
using annuities as safe money harbors or using cash value
(00:23):
life insurance to supplement your retirement income. Just a reminder,
you can call our office at five six three three
three two two two zero zero if you'd like to
enroll into one of my virtual Medicare community meetings I
give two every month via zoom, or you can email
(00:43):
me at Craig at Craigshillig dot com and that's my name,
cr Aig at cr Aig scchi lllig dot com. Today,
I'd like to continue my talk about life insurance because
(01:04):
September is Life Insurance Awareness Month, helping protect your loved
ones with life insurance. So everyone always asks how much
life insurance do you need? Your life insurance needs will
depend on a number of factors, including the size of
your family, the nature of your financial obligations, your career stage,
(01:30):
and your goals. For example, when you're young, you may
not have a great need for life insurance. However, as
you take on more responsibilities and your family grows, your
need for life insurance typically increases. Here's some questions that
can help you start thinking about the amount of life
insurance you may need. What immediate financial expenses would your
(01:57):
family face upon your death. The first one is going
to be funeral expenses, but any debts. Wise man once
told me once a debt created should not outlive the
person who created it. How much of your salary is
devoted to current expenses and future needs? Income replacements A
(02:20):
big one. That's a big missed item. People don't realize
that if I take away your income, what that does
on a monthly, semiannually, or annual basis, and then that's
without inflation or compounding. How long would your dependence need
support if you were to die tomorrow. That's a big one,
(02:43):
because if we all have kids childcare. I have some
clients their childcare bill costs as much as their mortgage.
How much money would you want to leave for special
situations upon your death, such as funding a child's education,
gifts to favorite charities, or an inheritance for your children.
(03:07):
What other assets or insurance policies do you currently have,
So let's talk about types of life insurance policies. The
two basic types of life insurance are going to be
term life and permanent cash value life insurance. Now there's
also universal life and variable Those are also permanent products
that I'll talk about later, But the two basic types
(03:29):
are going to be term or permanent. Term policies provide
life insurance protection for a specific period of time. If
you die during the coverage period, your beneficiary receives the
policy's death benefit. If you live to the end of
the term, the policy simply terminates unless it has an
automatic renewal provision for a new period. Term policies are
(03:53):
typically available for periods of one to say, thirty years,
and may in some cases be renewed until you reach
the age of ninety or ninety five, depending on the company.
With guaranteed level term insurance, both the premium and the
amount of coverage remain level for a specific period of time,
(04:15):
so it's kind of a catch twenty two. So whatever
your premium is this month will probably be the same
that whole period, but so will also the death benefit.
So if it's a quarter of a million dollar policy now,
it's still going to be a quarter of a million
dollars policy in ten, fifteen, twenty, or thirty years. It
(04:37):
doesn't calculate inflation, so everybody knows that a quarter of
a million today won't buy the same amount of goods
and services in one to five years, so keep that
in mind. Permanent insurance policies offer protection for your entire lifetime,
regardless of your health, provided you pay the premium to
(04:58):
keep the policy in force. As you pay your premiums,
a portion of each payment is placed in the cash
value account. During the early years of the policy, the
cash value contribution is a large portion of each premium payment.
As you get older and the true cost of your
insurance increases, the portion of your premium payment devoted to
(05:21):
the cash value decreases. The cash value continues to grow
tax deferred. As long as the policy is in force.
You can borrow against the cash values, but unpaid policy
loans will reduce the cash value and the death benefit
that your beneficiary will receive. If you surrender the policy
(05:41):
before you die, i e. You cancel the coverage, you'll
be entitled to receive the cash value minus any loans
or surrender charges is involved. Many different types of cash
value life insurance are available, including whole life. You generally
make level equal premium payment for life. That's how the
(06:02):
price is calculated based on your expecting life expectancy. The
death benefit and cash valure are predetermined and guaranteed subject
to the claims, paying ability and financial strength of the
issuing insurance company. Your only action after purchasing the policy
is to pay the fixed premium. Now, when we're talking
(06:24):
about universal life, you may pay premiums at any time
in any amount, subject to certain limits. Universal life is
kind of a there's a low amount you have to pay,
but you could pay more if you want it. The
amount of insurance coverage you can be changed, and the
(06:47):
cash value will grow at a declared interest rate, which
may vary over time. Variable life insurance, as with whole life,
you pay a late level for life. However, the death
benefit in cash value fluctuates depending on their performance of
the investments in what a is known as sub accounts.
(07:10):
The sub account is a pool of investor funds professionally
managed to pursue a stated investment objective. You select the
sub account in which the cash values should be invested.
Variable Universal life is a combination of universal life insurance
and variable life insurance. You may pay premiums at any
time in any amounts, subject to limits, as long as
(07:34):
the policy expenses and the cost of insurance coverage are met.
The amount of insurance coverage can be changed, and the
cash value in death benefits goes up or down based
on the performance of investments in the sub accounts. With
so many types of life insurance available, you're likely to
find a policy that meets your needs and your budget.
(07:54):
The cost and availability of life insurance depend on factors
such as age, health, and the amount of life insurance
that you want to purchase. Choosing and changing your beneficiaries
When you purchase life insurance, you may name a primary
beneficiary to receive the proceeds of your insurance policy. Your
(08:15):
beneficiary may be a person, a corporation, or other legal entity.
You may name multiple beneficiaries and specify what percentage of
the death benefit each is to receive. If you name
your minor child as a beneficiary, you should also designate
an adult as the child's guardian in your will. Because
(08:38):
most insurance companies won't issue a check to a minor.
What type of insurance is right for you. Before deciding
whether to buy a term or permanent life insurance, consider
the policy cost and potential savings that may be available. Also,
keep in mind that your insurance needs will likely change
as your family, career, health, and financial picture change, so
(09:03):
you'll want to build some flexibility into the decision making
process in any case. Here are some common reasons for
buying life insurance and which type of insurance may best
fit the need. So if you buy a house, you
have a mortgage or long term debt. For most people,
the home is one of the most valuable assets and
(09:25):
is also the source of the largest debt that they have.
An untimely death may remove a primary source of income
used to pay the mortgage. Term insurance can replace the
lost income by providing life insurance for the length of
the mortgage. If you die before the mortgage is paid off,
the term life insurance pays your beneficiary and amount sufficient
(09:46):
to pay the outstanding mortgage balance that is zowed family protection.
Your income not only pays for day to day expenses,
but also provides a source for future costs such as
college education expense and retirement income. Term life insurance of
twenty years or longer can take care of immediate cash
(10:08):
needs as well as provide income for your survivor's future needs.
Another alternative is cash value life insurance, such as whole
life insurance, universal life, or variable life insurance. The cash
value accumulation of these policies can be used to fund
future income needs for college or retirement, even if you
(10:30):
don't die. If you're a small business owner, small business
owners need life insurance to protect their business interest. As
a business owner, you need to consider what happens to
your business should you die unexpectedly. Life insurance can provide
cash needed to buy a deceive your shareholders. Life is
(10:50):
safe for the unexpolicy. Make sure to periodically review your coverage.
Over time, your needs will change. An insurance agent or
financial professor can help you with your review. Why I
don't want to buy life insurance If you're like most people,
it's not that you don't appreciate the value life insurance.
(11:11):
In fact, many people believe they need more coverage. You
probably wouldn't mind owing additional life insurance. It's just that
you don't want to buy it. Thinking about buying life insurance,
talking about buying life insurance, discussing the reasons for buying
life insurance. All of this makes many people feel very uncomfortable.
(11:33):
Here just some of the reasons why you may be
putting off buying the life insurance you know you probably need.
I don't have enough time. You'll get around them its,
but not today. It's itemting on your list of things
to do right after washing the windows. With all the
things you've got to do, buying life insurance can come
(11:54):
off as a low priority, just one more thing you've
ought to do. The whole idea of discs using life
insurance isn't a whole lot of fun. Who would rather
take the dogs for a walk on the beach, attend
a child's softball game, or spend those precious few hours
of free time in the evening visiting with friends or family. Nonetheless,
(12:15):
buying life insurance is really an important task that you
should address. Life insurance can help ensure that your family
will have enough money to meet their financial obligations in
the event of your untimely death. The subject is boring
and morbid if you really don't like to think about death.
Death is an unpleasant subject, and life insurance raises issues
(12:40):
of our own mortality. Some people say that the very
thought of starting the life insurance buying process makes them
feel stressed out. There's no great appeal to contemplating on
our own mortality. It's a subject we'd rather ignore than address.
The result can be inertia or denial. It doesn't have
(13:01):
to be that way. People who do act on their
life insurance needs tend to focus on the positive aspects
of meeting their responsibilitied for and care for the loved ones.
They think of it as contingency planning, helping protect their
families against the uncertainties of life. They also recognize the
life insurance is reality about life and love about helping
(13:24):
to ensure a positive quality of life for their spouse
and children if they die prematurely. I don't know if
you just he's right for you, or how much life
insurance you need join the club. Few of us truly
understand life insurance and we need it is appropriate, how
much we need, when and how benefits are paid, how
(13:47):
benefits may be taxed, and more. That's okay. It's not
your job to know everything about life insurance. That's the
job of an insurance professional. Thinking you need to have
all the answers about which type life insurance is appropriate
for you. Is sort of like needing surgery and thinking
you need to know which type of scalpel to use.
(14:07):
That's the surgeon's job. In the same respect, the right
insurance professional can help guide you through the process of
selecting the policy that most suit your needs, budget and objectives,
and can answer your routine questions. Life insurance isn't a
high priority compared with other expenses I have for many
(14:31):
underinsured people. It's not so much that they don't want
life insurance they need, it's just difficult to find the
extra dollars to pay for it. Buying life insurance you
can't afford benefits no one if it causes your family
hardship or requires you to make choices that seem incongruguous. Gee, kids,
(14:53):
I'd love to take you on vacation, but our life
insurance premium is due and I can't afford to. You'll
eventually continue the policy. Then you lose, and your family
also loses. That's why it's important to purgase a policy
that meets your needs and your budget. Fortunately, there are
many types of life insurance available. These include term life insurance,
(15:15):
policies and various types of permanent cash value life insurance policies.
Term policies provide life insurance for protection for a specific
period of time. If you die during the coverage period,
your benefic srary receives the policy's death benefits. If you
live to the end of the term, the policy simply
terminates or automatically renews at an increase, and then you
(15:39):
have a choice to continue that or cancel it and
start a new policy. Permanent insurance policies offer protection for
your entire life, regardless of future health changes, provided you
pay the premium to keep the policy in force. Also
one note on permanent policies, the premium never changes generally,
(16:02):
so whatever it is today, it'll be that same premium
in ten, fifteen, twenty thirty years. As you pay your premiums,
a portion of each payment goes towards building up the
policy's cash value, which may be accessed through loans or withdrawals.
Keep in mind, though, that loans and withdrawals will reduce
(16:23):
the cash value and the death benefit and could cause
the policy to lapse, which may result in a a
tax liability. If the policy terminates before the death of
an insured additional premium payments may be required to keep
the policy in force. The cash value continues to grow
tax deferred as long as the policy is in force.
(16:45):
Several different types of permanent life insurance available are whole
life insurance, universal life insurance, variable life insurance, variable universal
life insurance. The bottom line, it's easy to understand why
people tend to put off purchasing life insurance. They know
that they need, but look at it this way. Buying
(17:07):
life insurance is in one way you can help secure
your family's financial future. And and what could be better
than knowing your loved ones will be protected even if
you're no longer around to take care of them. Now,
I have a poem I'd like to share I've shared
in the past. This is from Van Mueller. I am
(17:28):
a piece of paper, but even more, I am an idea.
I am a promise. I help people see visions, dream dreams,
and achieve economic immortality. I am an education for the children.
I am savings. I am also property that increases in
value from year to year. I lend money when you
(17:52):
need it most, with no questions asked. I pay off
mortgages so that the family can remain together in their
own home. I assure fathers and mothers the daring to
live and the moral right to die. I create, manage,
and distribute property. I guarantee then the continuity of business.
(18:18):
I protect the jobs of employees. I can serve the
employee the employer's investment. I am a tangible piece of
evidence that a man or woman is a good spouse
and parent. I am a declaration of financial independence, a
charter of economic freedom. I am the difference between an
(18:39):
old man and an elderly gentleman. I'm the only thing
that a father or mother can buy on the installment plan,
and the survivor doesn't have to finish pain for it.
I am a certificate of character, evidence of good citizenship,
and unimpeachable title to the right of self government. I
(19:04):
am protected by laws that prevent creditors from accessing the
moneies that I would give to love ones. I bring dignity,
peace of mind, and security to the later years of life.
I am the great social compact that merges the individual
into the mass and places behind the frailty of human
(19:27):
beings standing alone the immeasurable strength of human beings standing together.
I supply investment capital that makes this smoke go up,
the chimneys, wheels turn, and motor's home. I guarantee that
there will always be Christmas with Tinsel, a happy fireside,
(19:51):
and the laughter of children, even though a breadwinner parent
is no longer there. I am the guardian angel of
the house. I am your life insurance policy. Coming up
in future shows, i'll talk more about Medicare Medicare seasons
coming up in October. You guys know I do community meetings.
(20:16):
My next meetings are scheduled for September sixteenth and September eighteenth.
My October dates right now are October ninth and October fourteenth.
Take note there will be a lot of changes for
Medicare this year. I don't have new pricing yet. I'll
probably have those in about three or four weeks. You
(20:38):
have to wait a couple more shows, but there's gonna
be changes on both the Medicare advantage side and prescription
drug side. I haven't seen new pricing yet, other than
to know that understanding a lot of segments, costs are
going to go up. Between cope's deductibles and if you're
(21:01):
under sixty five, for the under sixty five health insurance market,
your max out of pockets will increase next year. I've
seen max out of pockets as high as ten thy
four hundred on an individual. That means family max out
of pockets are going to be above twenty grand. That's
(21:23):
not a deductible or a max out of pocket. That's
a small car. So just be aware of that. Subsidies
are supposed to be reduced for twenty twenty six under
the Triple B new legislation, the Big Beautiful Bill. So
if you're on a health insurance marketplace plan now, just
(21:47):
be aware that your subsidy may and your premiums will
go up. Your subsidy will go down in January, and
I'll have more information on that stuff late October early
November when we see with the new pricing is for
you can call it trump Care or biden Care, doesn't matter.
(22:08):
On the health insurance marketplace, medicare side prescription drug plans,
remember in October November, you're going to want to look
at those because those prices will change. The good news
on that is I believe your maximum drug out of
pocket for twenty twenty six will only be twenty one
(22:30):
hundred bucks. That's a good thing. Now, nobody wants to
spend twenty one hundred bucks on their drugs, but that
would be the top end number you would hit if
that if that was in your situation. Medicare advantage plans,
there's rumors that some of the plans locally are going
to terminate, so keep an eye out. You'll get new
(22:53):
information about your plan changes, probably in the next two
to three weeks. There's usually a com out the last
week of September, so keep an eye out for those.
If you're on a Medicare advantage plan now. I have
not seen pricing for United Healthcare, well Mark, Orietna yet.
I just know they're going to change and in October,
(23:16):
hopefully by then I can tell you who's got the
hottest plan for twenty twenty six and if you need
help with that, you can come see me. Don't forget.
I give monthly virtual meetings regarding Medicare for two different
companies every month, and one meeting I will cover the
Medicare supplement plan with a standalone drug plan. That meeting
(23:38):
is normally a sponsored by well Mark. United Healthcare is
a sponsor. For my other virtual meeting, I focus on
the Medicare advantage plan known as Medicare Parts C and
cover the benefits of that platform. You can call my
office at five six three three three two two two
zero zero for the zoom meeting codes an additional dates
(24:00):
and times. I don't have fourth quarter dates yet because
I'm still waiting to see who's going to be the
sponsors for those. Maybe i'll have those in about two
or three shows. You're also welcome to email me at
Craig at Craigshillig dot com and that's my name c
R A I G at c R a I G
(24:24):
S c h I L L I G dot com,
and I'd be happy to send you the virtual zoom
Link meeting codes and hopefully I would say give me
about a month and i'll have If there's late October
meeting dates, I'll probably have some in October through November
before Thanksgiving. If anybody's interested in that. This is Craig
(24:48):
Schillig with Safe Money
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Cardiac Cowboys
The heart was always off-limits to surgeons. Cutting into it spelled instant death for the patient. That is, until a ragtag group of doctors scattered across the Midwest and Texas decided to throw out the rule book. Working in makeshift laboratories and home garages, using medical devices made from scavenged machine parts and beer tubes, these men and women invented the field of open heart surgery. Odds are, someone you know is alive because of them. So why has history left them behind? Presented by Chris Pine, CARDIAC COWBOYS tells the gripping true story behind the birth of heart surgery, and the young, Greatest Generation doctors who made it happen. For years, they competed and feuded, racing to be the first, the best, and the most prolific. Some appeared on the cover of Time Magazine, operated on kings and advised presidents. Others ended up disgraced, penniless, and convicted of felonies. Together, they ignited a revolution in medicine, and changed the world.