Rethink Healthcare - Life Insurance Awareness Month

Episode Transcript

Speaker 1 (00:01):
Hey friend Thomas with John Rolman from Cover. Since you
can find John online to cover since he dot com,
and or any member of his team, going to emphasize
that you don't need to speak specifically with John. This
is another edition of Rethink Healthcare together and normally host
the fifty five cares in morning show, but enjoy our
conversations every Sunday at this time talking about the just
bringing a greater sense of awareness about medical insurance. And today,

(00:23):
since it is there's a month for everything, life Insurance
Awareness Month, we're gonna dive it on into the world
of life insurance today. John Roman, good to see you
man too. Brian, Good morning, Good morning. It's five one
three eight hundred call five one three eight hundred two
two five fives. That's how you get in touch with
John and the team at Cover since you or go
online to cover since he dot com. Real quick recap,

(00:45):
as I always start the program out, John is a broker.
He is your broker. He's working for you, not insurance companies.
So when it comes to getting medical insurance or in
today's case, life insurance, there's a world of insurance companies
floating around out there, and thousands of insurance policies, John
and the team find the best one for you and
your situation. So in terms of medical insurance, one size

(01:06):
definitely does not fit all. He can get your dollar
one coverage, you can get you all the catastrophic coverage,
hospital coverage and all that for less money. Think about that,
better medical insurance for less money. And that's the same
thing I'm hoping John tell me. Is that the same
thing in the case with life insurance?

Speaker 2 (01:20):
Well, absolutely, Brian. I mean it's there's so many different
products out there nowadays, and you know, most people just
get in trench with you know, going online and looking
up and going, hey, I need life insurance, or I
already got it through work, or I don't need to
think about it. It's it's one of those things where
you know, and we'll talk here, you know, about numbers
here in a second. But it's it's kind of at
a sight out of mine. You know. Most people don't

(01:42):
want to have that conversation. Most people don't want to
be thinking about what if when this happens. You know,
they go, you know, I want I need to be
I getting to buy a new car, I'm gonna, I'm gonna,
I'm gonna focus on that and not really you know,
worry about what is going to happen, hopefully decades in
the future, but as we know, it can happen, you know,
at any moment in time.

Speaker 1 (02:02):
Well, you know, for so long, my my attitude was like, well,
I'm gonna be dead, so I'm not gonna know what's
going on.

Speaker 2 (02:10):
It's too late for me.

Speaker 1 (02:11):
It's like I'm not believing a sense of awareness, Like
in the afterlife, I'll be looking down and looking at
my mistakes because they didn't adequately prepare in terms of
life insurance.

Speaker 2 (02:19):
They're like, oops, I guess they have to figure it out. Yeah, well,
you know there is a certain truth that there's a
certain truth to that.

Speaker 1 (02:24):
Man. Yeah, but I mean, you know, as parents, right right,
I know. But see, I'm a different place than my life.
My kids are adults now, so you know, I let
them find for themselves. No, but I do have life insurance.
But I get the importance of life insurance. Of course,
you get funeral expenses. You may have a mortgage to
pay off, maybe you're you got debts and student loans,
all that kind of thing that could be easily solved

(02:46):
with the life Well, just thinking about incomb replacement right,
income and place. I mean, that's the biggest thing that
most people don't even really think about. They're like, well,
if I die, I'm leaving money that the payoff bills.

Speaker 2 (02:55):
But you know, I look at especially the younger years,
you know, with my wife and I you know, I
mean she was stay at home for years with the kids,
and you know, I was the primary redwinner for the family.
So I mean, if something had happened at that point
in time, like you know, and if I only had
maybe enough life insurance to pay off the mortgage, well
that's great, I meant, least that's one less bill. But man,

(03:18):
what happens. I mean, now she's got to go find
somebody to take care of the kids. Now she's got
to go go back to work, you know, after not
working for like ten years. Who's hiring or at a
good paying job. What's the quality of their life going
to be? Like, you know, when you're at a certain
level in life, you know, and god, I mean my
oldest son's now in college, you know, and I'm paying

(03:39):
for it right because I'm working, you know, And what
would have happened if ten years ago I had passed away,
and you know, now he's trying to get in college,
and there's just so expensive. I mean, I was just
looking at this realistically, looking at what I paid twenty
years ago to what he's paying now, and I'm like,
it's double, it's double what I paid. And it's just like,

(04:00):
those are the things we just don't think about. And
you know, so many people walk around nowadays, Brian, and
they go, oh, I got it through work. My work's
giving me, you know one the two times my income, right,
does that really even cover majority of what we actually
have in debt anymore?

Speaker 1 (04:15):
No? And you know what, that's the thoughtful exercise that
I'm sure you would cover since you go over with
people who are coming to consult with you. Because I
don't remember any period of my life where when I was,
you know, getting my life insurance and I have my
own separate policy, not there any employer, and I always
opted for something that was offered me through the group.

Speaker 2 (04:34):
That was smart.

Speaker 1 (04:35):
Yeah, then most people don't do that because it was
really so cheap. I mean, it didn't really cost it
was like ten bucks a month or something like that.
I was going to get what one third or two
two thirds of my salary or something, but you know
it was enough little extra incentive to go ahead and
do it, or no, three times my salary. I think
it was.

Speaker 2 (04:50):
That's really good. That's not even what most people get now.

Speaker 1 (04:52):
Okay, But I never thought about what it would go
to because my view was, well, I got a million
dollar policy on my own and it's not that expensive,
and so I know a million dollars, if it plopped
down in my wife's lap, would cover any outstanding expenses.

Speaker 2 (05:07):
Yeah, I mean most people can't even really retire in
a million dollars.

Speaker 1 (05:10):
No, no, I understand that, but I was only thinking
in terms of like what immediate needs you might have,
salary replacement, paying off the mortgage, but you know, fast forward,
all that stuff's been done now yeah, yeah, No, I
mean it's gonna drop my life insurance.

Speaker 2 (05:23):
I mean, in that situation, you might not need as much,
you know what I mean? And this is you know,
we can get into this later, but we'll talk about
it now since you brought it up. I mean, you know,
I'm a firm believer that you should have two types
of life insurance policies everyone. I think the first thing
is you need especially when you're younger, when it's really affordable,
you get yourself some sort of whole life insurance policy,
something that lasts you the rest of your life, and

(05:43):
you don't need a ton of money, or I think
about yourself at eighty something years old, do you really
need a million dollar policy at that point? But maybe
fifty or one hundred thousand dollars gets you through the
funeral expenses, all the stuff that your family is going
to run into when you pass away. You know, you know,
the bills don't stop coming. No, you still have a house,
so we's guys still got to pay taxes in the house,
try to fix it up to get it sold, right,

(06:05):
You don't want to just have some clear out at
the end going height, we're just gonna put up thing
for auction and try to liquify this house because you know,
the kids can't afford to pay the bills on a
second home right now, you know, so just have like
a small whole life policy. And there's many different options
that we talk about with clients to do this, between
I U L's and universal life and whole life policies

(06:26):
that make sense, and that way you keep it affordable.
And then you do a term policy for those your
working years.

Speaker 1 (06:32):
Well, that's the really affordable, that's really.

Speaker 2 (06:33):
I mean, I mean, you know you're getting these these
policies and they're they're you know, cheaper than buying a
cup of coffee a day, you know, right.

Speaker 1 (06:43):
Well, and is it is it true that you give
a young person out there, maybe someone twenty five years old,
if they lock in a a term insurance rate as
opposed to a whole but they lock in a term
insurance rate, it's going to be very inexpensive because they're
young and healthy, and it stays permanently at that rate
up until what age, is it sixty five or so?

Speaker 2 (07:03):
Well, so there's a misconception on term policies. So you
basically what you're doing is you're paying a fix rate
for you know, ten, twenty, thirty, forty years, right right,
and then at the end of forty years, people are like, oh,
my life insurance policy is going away. No, that just
locked in price goes away. Yeah, and then you'll see
the real and then what happens. It starts increasing and
you'll see a double, triple, quadruple in the next four
or five years. So it's not something you want to

(07:24):
keep long term. Just because a pricing gets so expensive.
But you know, you're buying a life insurance policy at
that point if you can do it young. Even I
bought over a million dollar life insurance policy before I
had kids in a family. Yeah, I just knew eventually
that's where I wanted to go. But you know, I'm
in my twenties. I'm like, I can get this thing
for like forty bucks a month, right, let me buy
it now and lock it in for forty years and
not even think about it, you know, And that was

(07:45):
a great desis. Now I've had to buy a lot
more since because of expenses owning a business. You know,
I look at multiple factors now, like if something happens
to me, like I have fifteen employees that you know,
still have to operate, you know, have to bring someone
in to take over my position or figure out who
that employee can step up, I'm gonna pay more. That

(08:06):
life insurance gives us flexibility to kind of whether that's
three to six months storm that's going to happen, so
that like hey, John's gone, he's the one out there
promoting the business. Maybe business starts tanking. We don't want
to have to fire a bunch of employees because John
got into a car accident, you know, and so we
have life insurance policies on that. I have like key
man policies, you know, especially if I lost a really

(08:27):
good employee, how do I replace that employee, especially somebody
has been working for you for a long time.

Speaker 1 (08:31):
Well, how does that policy work? Because you can't have
a document a contract that replaces a key man. They
can only give you money.

Speaker 2 (08:40):
They give you money, But I got the money to
then go fire and go out there and find someone
that can replace that person's position, right, or even think
about it on the end of Like, I do a
lot of businesses that have partnerships, right, and I look
at this as a standpoint, and let's say, let's say
my wife was in the business. Wee. Let's say I
have a partner, right and their wife isn't part of

(09:00):
the business, and we're fifty to fifty of the business. Well,
what happens if he passes away? Now I got to
deal with the wife that's not him in the business,
and you know she's gonna want money out to that point,
So how do I pay for that? If I don't
have the cash.

Speaker 1 (09:15):
To buy him out?

Speaker 2 (09:15):
I can buy her out. So you can actually have
that in the contract to help buy out the fifty
percent of the business that he owns.

Speaker 1 (09:22):
It's that's an angle that I never see, not being
an entrepreneur guy or ever, owning my own business is
nothing I would have thought out. So there's someone out
there listening right now, going I own my own business.
I never thought about that.

Speaker 2 (09:33):
I even think about even you know, I have friends
that are, you know, not owners of their businesses, but
maybe a low end partner or something like that, and
they do that for the guy that owns the majority share,
because like, hey, one day I want to own the
business and have an opportunity to buy you out. You're
you're older. Let me take a key man policy out
that gives me that money to be able to buy
you out if something does happen to you. Okay. So

(09:54):
I mean there's just so many angles to talk about,
what life insurance. But you know, for the average listener,
it's it's going to be looking at the fact that
nearly fifty percent of Americans right now are either uninsured,
no life insurance, like no life insurance, or just don't
have enough. And I you know, most people that we
talk to. We realize they just they don't have enough.

(10:16):
I mean, you'd be surprised how many people that we
talk to about life insurance don't even have enough to
completely pay off their mortgage. Wow. Yeah, yeah, I mean
it's that's the scariest part. I mean, like, oh, I
got life insurance through work, and we find out it's
a fifty thousand dollars policy and they're they're they're holding
a two hundred and fifty thousand dollars note on their own. Sure,

(10:36):
you know, what does that look like that the guy
that makes the most money and the family passes away,
or what does that look like when the spouse passes
away and she's going to take care of the family. Yeah,
you don't even think about that. Oh I'm good if
something happens to me, I can pay off the house.
What happens to your wife? I mean, you know, we
always it's hard to put a dollar amount on what
your wife or your partner's worth.

Speaker 1 (10:56):
Employing a nanny, for example, that's going to be expensive.

Speaker 2 (11:00):
You want to still go back to working. It's not
my wife that drives the kids to every sporting event
and picks them up from school every day. You know,
I can't even imagine what the what the ramifications would
be if I had I probably to hire two people
to do that job. But I mean, it's it's this
is there's just a smart things to really you know,
kind of plan out. And you know, we we talk
so much about, you know, different aspects of life insurance,

(11:22):
and a lot of people think, like, hey, John, this
is just this is just a plan if I pass away.
You know, this is leading money. That's a premise of it, right,
But you know, so many life insurance policies nowadays have
aspects to them that can actually give you money while
you're alive. You know, We've talked about this on previous shows.
You know, I am a huge proponent of life insurance

(11:43):
policies that pay out critical illnesses. So these are life
insurance policies that if you have a heart attack or cancer,
or you know, major life threatening illness and you don't
pass away, you can actually pull out. You know this
because I can pull out twenty five percent of death benefit.
I've seen policies that pay out all that up to

(12:04):
eighty percent. So imagine having a million dollar life insurance
policy and you go and get cancer and.

Speaker 1 (12:10):
Eight hundred thousand dollars.

Speaker 2 (12:12):
You can get eightdred thousand or even the lower one
gives you two hundred and fifty thousand dollars and it's
tied to your life insurance policy.

Speaker 1 (12:18):
Here takes the sting out of a cancer diagnosed.

Speaker 2 (12:20):
Well, absolutely absolutely, I mean, here's two hundred and fifty grand. Well,
you just you're really worry about getting better, maybe take
a year off, you know, I mean, who knows what
you're going to be dealing with, you know, I mean,
but that's that's money in your pocket. You're like, hey,
I didn't die, but my life insurance paid me.

Speaker 1 (12:37):
That's an amazing benefit. And I was thinking, you know,
sadly somebody might get a terminal cancer diagnosis. You get
a big fat check like that. You can live out
the remaining days, maybe doing that world tour or taking
a little vacation time, or you know, whatever happens to be.

Speaker 2 (12:52):
One hundred percent and being in business over twenty years,
I've had clients use it that way, I bet you know,
and you know, I can think of client here just
you know, in the last decade that was pancreatic cancer.
You know, it's just that's they knew they're like, but
you know, they were ended up getting one hundred couple
hundred thousand dollars out of their life insurance policy, and
they're like, I don't at least have to worry about
working right now. That's you know, and otherwise they would

(13:15):
have because I mean, let's be honest, most of us
kind of work paycheck to paycheck. There's not too many
paychecks we can take off from not having to worry
about working right exactly. So that's that's a huge piece
for him. The other things too that you really look
about too is long term care. You know, We've talked
about this numerous times on the shows. There's life insurance

(13:37):
policies that have long term care components. So kind of
the same situation where you have, you know, two of
those five activities of daily living, like you can't dress yourself,
feed yourself, you know, you know, get out of bed,
you know. So there's a checklist that qualify you. Yeah, No,
it's a typical eight ls that you'll activities of daily
living that will be a trigger for you to go

(13:58):
into like a like a nursing facility or something like that. Gotcha,
So now you can pull out money out of your
life insurance to pay for that sure which, let's be honest,
I mean when I talked about people all the time,
we just we just had a friend of the family
we were talking to and their grandparent went through this
situation and they went through about a half a million
dollars in like a little over two years. Oh my god,

(14:23):
you know. And I mean, imagine where's that money come from?

Speaker 1 (14:25):
Exactly?

Speaker 2 (14:26):
You know, And oh, I had a life insurance policy
I could pull that out of because I was smart
and I did it when I was thirty, you know,
and got it set up the right way.

Speaker 1 (14:34):
I don't want to go backwards. But the list of
criteria that would qualify you for that, you know, the
care that you just mentioned, you're staying in a facility
you've been you're disabled based upon the criteria. But back
to the cancer diagnosis situation. You know, I got a
cancer diagnosis, but I'm not disabled. No, So I wouldn't
get a check under those circumstances.

Speaker 2 (14:54):
What if I had one of those life insurance if
you had had a criticalness policy, would have just because
they got diagnosed beca diagnosed cancer?

Speaker 1 (15:01):
Yeah, wow, boy, I missed an opportunity there. You never
thought I'd get cancer though. No, And let's be honest,
none of us think about it.

Speaker 2 (15:08):
You know.

Speaker 1 (15:09):
That's why we're having this conversation. People get ahold of John.

Speaker 2 (15:12):
Well, I mean, and that's just it's just good financial planning, right,
I mean, you can go and invest your stocks with
a financial planner and get everything set up the right way,
and here's my retirement plan. But you know I always
tell people is like, well, what happens before that, what
happens when you're in your forties or fifties or early sixties,
and now something that just comes up, you're going to
start tapping into all that money you're saving for retirement.

(15:32):
That's just that makes no sense taking all those penalties
if you're taking out of iras before you're old enough,
or you know the textra ten percent the government wants
to take back from me, Like, don't use that stuff.
And here's the best thing about life insurance policies, guys,
it's not taxable. This is something that you're leaving to
your beneficiaries and they government can't put their claws in it.
So if you have a million dollar policy, you're multimillion

(15:54):
dollar policy, you pass away that money is getting transferred
to your beneficiaries tax free. Oh my, And that's that's
the key, you know, And and that helps with especially
things going through probate or you know, assets allotments at
the end. You know, people are like, oh, I'm getting
all this property or I remember my aunt passed away
when we were younger, and she left her she left

(16:17):
an annuity to me and my two brothers. It was
pretty sizeable. We actually ended up using a lot of
that money to help pay off our student loans. But
you know, the windfall that we got on that, I
mean a big chunk of that one back to the government. Yeah.
You know, if she would have had a life insurance
policy and a smaller one to help offset that, that
would have covered our taxes that we would have to
pay and would be able to keep her money rather
than having to give it back to the government.

Speaker 1 (16:38):
Right, Well, Labor, the point of my lost opportunity about
the check that might have been written had I better
planned ahead for my cancer diagnosis.

Speaker 2 (16:45):
Is that taxable? Which part the critical because it depends
on that It depends on how the policy is written. Okay,
so that is something that we would talk about when
it goes through. But you know, for the most part,
a lot of things I try to do with my
clients is make make the transition and the policy is

(17:07):
set up the right way so you're not paying taxes. Yeah,
that's the one thing I've tried to learn over the
twenty years of being in business. How can I not
have to pay more tax Right?

Speaker 1 (17:16):
It's really important part of the conversation. So, you know,
talking about missing misconceptions that people might you know, be
thinking about one. I mean we sort of address and
touch on the expense part of it. It is too expensive,
some people might think that, but at least for a
term policy if you're young, no, it is not expensive,
at least as you and I perceive expensive. You can

(17:36):
get it for like you said, a price of a
cup of coffee a day.

Speaker 2 (17:40):
You're absolutely correct, I mean, yes, one percent. The younger
you do life insurance, the less expensive it is. But
even as we get older, there are so many life
insurance companies out there. And you know, I say, I
represent hundreds of companies. I mean, we represent hundreds of
life insurance companies too, So I know the companies that
you know are way over and you know I will

(18:01):
tell you right now if you're not dealing with a
broker and someone's coming out and representing XYZ Life insurance company.
They are selling you their product right then, as they
can't price shop. But they're not gonna go, well, you
know if you go look at this company, but I
don't sell you know, they're like half the price with
the same exact coverage. They're never going to tell you that.
And that's really the benefit of us is we're gonna

(18:22):
do the same evaluation with you. And then I'm literally
gonna I don't do every company. I have a program.
It does I literally put into a program put all
your information and your medical history, your prescriptions, everything that's
going on, and it literally spits me out the top
five companies with the pricing. How about that? I mean,
it's it's miraculous nowadays.

Speaker 1 (18:40):
I know, I'm wildly curious and maybe you can't answer
this question on the fly, and I'm gonna throw you on.
What is it like you've done this so many times?
What kind of variation between price high end low end,
for all things being equal kind of stuff? You input
all that into your computer system. How different might the
premis be depending on which company you're dealing with? Like,

(19:03):
what's the word. I mean, one company's gonna twenty thirty.

Speaker 2 (19:05):
Oh wow, okay, yeah, I mean, and I'll tell you
right now. I have had clients come to me after
shopping it through some of the property and casualty companies
that are out there, and they're like, sixty percent works.
Oh yeah, because they have you. While they're in there,
they go, oh, you package and bundle and do all
this type of stuff, and they're way overcharging on the
life insurance and you get, hey, we'll give you ten

(19:25):
percent discoun on this end. But like at the end
of the day, you're looking at that life insurance policy, mean,
you're paying sixty percent more for exactly the same coverage.
Here's here's why don't we go of this company? You know.
And there's all different types of options too, you know,
especially when I get to clients that are a little
bit older and go, John, I really want to look
at life insurance. But you know, I haven't even seen
a doctor in ten years. What does that look like?
And people are always scared of I got somebody come

(19:46):
out and drawing blood and all this type of stuff.
Usually what I tell is like, hey, let's pay a
little bit more money for life insurance policy right now,
and let's do one that doesn't do a pa parramids
where they come out and do the blood work. Yeah,
you haven't seen a doctor in ten years, so I
can get this policy issued and then like in six
months or year, let's go back and then do the
blood work and all that, and then everything comes back
find we just dropped that more expensive one, and now
you have one in play.

Speaker 1 (20:07):
But this is just the answer to the question after
you already have the yes at.

Speaker 2 (20:14):
Least because you go in and they go, oh, you're
PSA tests are nine. You know, yeah, we're not going
to assure you at all. Exactly. Now you just lost
a really good rate where that even a little bit
more expensive plan that didn't do the PARAMID doesn't even
one j anymore. So that's why we got it. That's
why we have to have those conversations, because you'd be
surprised how many people give me a call after some
agents sent them up and oh I got declined from

(20:36):
this company. I'm like, oh, what happened? They go X
Y Z, and I'm like, yeah, you're in a bad situation. Now.
If I would have if I would have been in
the one talking to them, I would have advised them
not to do that pyramid right away.

Speaker 1 (20:46):
Okay, now I kind of view my thankfully I already
have life insurance, as I mentioned before, but now I
have this the limphoma diagnosis, Am I now unensurable? If
I never had life insurance and I was like, dang it,
I should have done that earlier, if I want to know, Because.

Speaker 2 (21:01):
There's windows for different things. You know, a lot of
people think, oh, I had cancer six seven years if
I can't do life insurance. There's life insurance policies that
don't even look back more than five years. Okay. There's
also things that you know, especially as we get older
and we do have more and more medical issues, like,
oh man, I just don't have any life insurance. I'm
scared of what that's going to look like to my
family because I don't. I have nothing planned for funeral.

(21:22):
I mean, there's different things like final expense plans. You
don't need a whole lot at that point. Maybe you
just want twenty grand soft from the blow. It's off
on the blow, like, you know, make this a little
bit easier. So there's life insurance at every stage of life.
You know, one of the big things I want to
hit on here, Brian, that a lot of listeners. There's
a lot of information out there right now about something
called Index Universal Life policies. So Index Universal Life Policies

(21:46):
is a universal life so it's a whole life base plan,
right so that it's a permanent plan that lasts you
the rest of your life. This is the investment type
of This is an investment type product. And really where
I've toned in a lot for clients is, especially with
my clients that are business owners and self employed, there's
not a whole lot of areas outside of dumping money

(22:06):
in stocks that gives us options as an investment vehicle
to be able to put away for retirement. And you
can do this with a life insurance policy. And a
lot of people might hear these things about infinite banking,
become your own bank. Guys, they're doing it through life
insurance policies. They're doing it through these Index Universal Life policies,
so they're very interesting. You're basically buying a life insurance policy.

(22:27):
We crunch all the numbers and make sure everything's kosher
for you, but basically what it's designed to do is
you can overfund the death benefit. So what you're doing
is you're buying a life insurance policy for XYZ premium,
and then you can put additional money away on top
of that. That's going right to the cash value. So

(22:47):
it's building up value this cash benefit that's in it,
and we show you exactly the maximum that you can
put in every year. And what's nice about this, you're
tying it to a stop market options. So like SMP Barclays,
you can tie directly to that fund. They have a ceiling,
but they also have no they have a floor, so

(23:08):
you can't lose money. So even if the market goes bad,
you're still guaranteed a certain interest rate and this can grow.
Now here's the best part about life insurance policies that
most people don't realize. You can take loans out on them,
so you have cash value over Well, think about this way.
Let's say you started in your twenties and started putting
an extra couple hundred dollars a month into this life

(23:29):
insurance policy. Well, when you're in your fifties or sixties,
you have a lot of money in that account. You
can now pull money out of that accounts as a
loan right, and that loan comes through, you can choose
to pay a back or not. It's your life insurance policy.
But as we know, if people you know, one of
the things I always look at is like how these
guys that make hundreds of millions of dollars a year

(23:50):
pay little in taxes. They take out loans based on
their stocks and different things they do. Well, you can
do it on your life insurance policy, and a loan
is not taxable. I was waiting for that. I was.
I had that my next question. Yes, And I mean
so like, okay, compare that to a four oh one K,
which is your investment vehicle. You're gonna take money out
of that. You're gonna get the Bejeeber's tax daddy. You know,

(24:12):
I've I've talked a lot of financial planners are like,
if you're getting a good match by your employer, it's
a good investment vehicle. But not really because every you
don't want to do things that you're being paid paying
taxes on later.

Speaker 1 (24:22):
And well that's also a disincentive to take money out
of the retirement plac is because you're putting money away
for your retirement, not for day to day living expenses
before retirement.

Speaker 2 (24:29):
Correct you're not. But even when you do retirement, you're
still paying tax on it. Well, this is something that
is you have a wroth, which again I highly regular
an option. It's too late for me. But but here's
the biggest thing, Brian, I mean, imagine building this up.
I mean, we we've written this on kids. I've put
my kids on iuels and I'm putting money into their
accounts that's growing for them. And I've run numbers and

(24:52):
I'm like, eventually, you know, when they get to working age,
I'm like, now you got to start funding this yourself.
But I've been doing it for them, I mean, and
it's growing a lot of money. Oh that's why. And
here's the best part about it. I mean, fifty sixty years.
They can be on these plans before they even retire,
and all that compounding interest and everything they get. And
now they turn let's say they retire at sixty five,
they take out a big loan, all that money not taxable,

(25:13):
and then they can just let that life insurance policy disappear.
But here's the other piece too. You start off with
a lower death benefit, but as you're overfunding the account,
the death benefit starts increasing because there's so much money
in the cash value. So now let's say you do it.
Let's say you one hundred thousand dollars life insurance policy.
But I've been overfunding this for forty years. You might
have a life insurance policy worth millions if you ended

(25:35):
up passing away. Wow. So, guys, are I mean what
I'm letting you know? There's so many really good strategies.
And if you're even sitting here thinking like I don't
even know what I have or I've never looked at these,
it's worth a conversation to see if this makes sense
to you. And you know, especially if you're younger I mean,
or if you have kids or grandkids. I mean, guys,

(25:56):
some of the best things you can do is get
them a really good life insurance.

Speaker 1 (25:59):
You mentioned that before, about this in that context like
birthday gift, Christmas gift, you know, don't think about toys
and stuff and things. Think about this as a long
term I mean, huge return on investment gift you're giving
your kid who might look at you like, what the.

Speaker 2 (26:16):
Hell am I gonna do with this. I've had this
conversation so much around my kids. They flat out to
them because Dad, when we have kids we know you're
buying them, like, and we're happy that you're doing that.
I even asked them, I was like, do you remember
what you got a five years old from grandma? No,
but I'll tell you right now. If I told you
you had thirty thousand dollars sitting in an account by
time to go to college, you'd probably be like thanks, grim.

Speaker 1 (26:37):
Yes, exactly. It's better than the US savingspod. Oh yeah,
I cashed all mine out. Yeah, great, great investment on this.

Speaker 2 (26:45):
Uh well, I mean it's better than nothing when I well,
but at the end of the day, it's like, man,
I really wish my grandparents knew that. I really wish
they knew that strategy. So this is something you can
help out your family members on and they're not expensive.
That's what I keep trying to push people is like,
these are small, our financial plans that you guys can do,
And you know, I'd much rather you get your grandkids

(27:06):
something like that than you know that next shiny lego.

Speaker 1 (27:10):
Yes, yes, definitely. You convinced me. It's just like to
rewind forty years and and and start all over again
a variety of different areas.

Speaker 2 (27:18):
Granddad, what's a good what's a good option for you.

Speaker 1 (27:21):
I don't have grand children yet.

Speaker 2 (27:22):
We're holding We're hopeful. We're hopeful.

Speaker 1 (27:25):
Lord and Eric, if you're listening on a Sunday morning,
which I'm sure they're not, probably.

Speaker 2 (27:29):
Holding Brian to that, if you have a grandkid, we'll
be talking about will grink it. I mean, it's it's
just it's just such a great opportunity and they can
use the money forever they want. I imagine at thirty
years old, they can turn around they have enough money
in that account to help with the down paying with
their house.

Speaker 1 (27:41):
That is the beauty right there. And you know, I
had that thought in the back of my mind because
acquiring a home, you're gonna have to come up with
at least ten percent. You're probably purchased morning money insurance
on that. If you could put the twenty percent down,
that's gonna say if you a heap load of money
and insurance having to pay I mean every month, that's right,
And you.

Speaker 2 (27:58):
Have that cash value there, so even when they're looking
at that, that's something that actually shows as an asset
for you.

Speaker 1 (28:04):
Credit report is an impact.

Speaker 2 (28:06):
Well, when you do your when you do your loan paperwork,
you can show that you have X amount of moday
sitting in a cash value and that might help your
loan to value that.

Speaker 1 (28:13):
Yes, yes, boy, you've convinced me. And again can I
rewind the clock John Rolman. But to get in touch
with John about life insurance, which you're gonna want to
do clearly, get in touch with that five one three
eight one hundred call five one three eight hundred two
two five five. If you like to initiate the conversation online,
it's easy to do. They keep all over your information confidential.

(28:34):
Trust me on that. Just go to coversinc dot com
full format and tell them back to talk about life insurance.
And want to put an exclamation point on this any state.
I don't care where you're listening from. My audience tends
to grow week after week after week with streaming audio online.
So if you're out of the greater Cincinnati area, John
and the team a cover sense it can still help you,
so reach out to them coversince he dot com. This

(28:56):
has been another edition of Rethink Healthcare together with John Rolman.