Rethink Healthcare - Medicare Updates LT Care Sept is Life Insur Month

Episode Transcript

Speaker 1 (00:04):
Hys Brian Thomas with John Roman from cover Sincey with
another edition of Rethink Healthcare Together. I always host the
fifty five to fifty five carec Morning Shoe Money through Friday,
but today is the day I get to facilitate conversation
about medical insurance coverage, which I always joke sounds like,
oh my god, let me change the channel, but no,
it's interesting, it's fascinating and it can be a huge

(00:25):
money saver for you by hearing what John has to
say and what his team can do for you better
medical coverage with less money. It's true. It happens all
the time. As unbelievable as that sounds, but it's a
concept we go through every week in different areas and
different facets of that conversation. Today we're going to be
having a conversation on something. What is creditable coverage? Do

(00:45):
I have that right? Creditable coverage? Credible coverage? Yes, and
welcome back, my friend. You can find John on the
team at coversincey dot com. Fill the form out and
have him do an analysis of what you've got. There
is a better way, or call them up at five
one three eight hundred call all right details and information
out there. Back to creditable coverage, I'm baffled. I don't

(01:05):
know what that means.

Speaker 2 (01:06):
So credible coverage is a term that's been used on
an increditable or credible, creditable, creditable coverage, Okay, yeah, because
credible is a different word than creditable, creditable. So basically
it's always been there, right, So, if you're a Medicare recipient,
so basically, if you're sixty five or and you are

(01:27):
on a current group health plan, and we get a
lot of listeners that are you know, I'm still working,
I'm sixty five years old. The health insurance plan being
offered through my employer is still really affordable to me.
I want to stay on right for years. That's typically
fine because we talk about the word creditable with your
in regards to your health insurance. What happens is Medicare

(01:50):
has a requirement that the group health plan that you're
on is equal to what you be getting on Medicare,
and for most most of us for the last decades,
it's it's they're equal, right, Your group health plan through
your employer is pretty much equal to what you're gonna
get on Medicare. So it's not been a big issue.
Now we've talked here for the last few weeks because

(02:11):
of how important it is to really understand the Medicare
changes that are coming in force for twenty twenty five.
The big piece on that is them minimizing the out
of pocket all right, So that means that the maximum
exposure that you would have financially for prescription drug coverage,
so that way you can only pay the maximum of

(02:32):
two thousand dollars a year for prescription out of pocket.
That's great for a lot of listeners that are maybe
on very expensive medications, and I've been paying eight grand
because that's where the that's that's the whole right now,
is eight thousand dollars out of pocket. Right So if
you're one of those listening right now, it's great for you.
It's gonna really help you minimize your your out of
pocket expenses. But for the majority of us that probably

(02:55):
aren't on very expensive medications, you know that minimizing of
that two thousand, the you know, basically cutting it by
seventy five percent, right, is going to put us in
a really big bind. So we talked about some of
the things that can happen these these plans can start
minimizing your networks. Your doctors might change, They might decide
to start covering less medications on these insurances because they're

(03:16):
gonna have to figure out how to save cost somewhere. Right,
But how does that equate to you? That might be
sixty six, sixty seven, you're still on your group health plan. Well,
I'll be very honest with you. Ideal a lot of
groups I write group health insurance. And here's the thing
you have to listen to. Most of the health plans
out there do not have a two thousand dollars maxim

(03:39):
out of pocket. Most group health plans that I even
familiar with have five, six, seven thousand dollars maybe even
more out of pocket. So what's going to happen is
that group health plan that you've been writing, right, is
no longer considered creditable to Medicare. Right, So what happens
is maybe you decide to retire at six nine, I're like, well,

(04:01):
I'm gonna go on Medicare now, I'm gonna drop my
group health plan. Right, Well, those last four years that
you're on your group health plan, now, by twenty twenty
five standards is not considered creditable. So what happens, Medicare
is going to turn around and every year that you
didn't pick up your Part B coverage, which, again, if
you're on group health insurance for your employer, you should

(04:21):
not be buying Part B. You're paying for something you
can't use. So right now, this year, the minimum price
on that is one hundred and seventy four dollars and
seventy cents, right, So imagine a ten percent penalty per
year that you didn't take it. So if you decide
at sixty nine I'm gonna be seventy, I'm gonna go
on Medicare, You're talking about a forty percent penalty for

(04:42):
you getting on Medicare Part B now and stupid, and
that will last you the rest of your life.

Speaker 1 (04:48):
So that's unconscionable.

Speaker 2 (04:51):
Yeah, So there's been a lot of complaints on this,
I guess because of course CMS Center for Medicare Services
decides to make a rule and just like a lot
of times when government intervenes, they kind of roll something
out and then they go, hey, how does everyone want
to treat this? And everybody's like, oh my god, like

(05:12):
we're not prepared. Almost all the group health plans do
not have a two thousand dollars maxim out of pocket,
so they're all going to be considered non credible. So
the nice thing that CMS did here just recently and
going okay for twenty twenty five, we are going to
allow it to be business as usual as before, but
we're going to relook at twenty twenty six, which basically

(05:33):
from our experience, means is we got a year to
get this thing figured out, and more than likely it's
not going to be considered credible next year. So it's really
one of those things you need to start thinking about
at this stage is if hey, if I'm on a
group health plan, if I'm over sixty five, if I
should have opt for Medicare. It's a conversation we need

(05:55):
to have, or at least as a conversation you need
to have with your HR department, or just call your
insurance company and ask them, hey, is the plan that
I'm on right now now considered creditable for Medicare? Because
if they say, well, no, you need to get off,
because eventually you're going to pick up Medicare. I doubt
you're gonna be working team to your eighties, right, And

(06:15):
we don't want to see you having fifty sixty seventy
percent penalty just on your part B premium. I mean,
you're talking about that's like significant cost.

Speaker 1 (06:25):
And I just what is the motivation to penalize someone.
They were insured, they were taking care of business, they
stayed on their group planned, they did the right thing
by maintaining medical insurance and protecting their family for potential
bankruptcy by going uninsured. And here long comes the federal
government's going to whack you for that.

Speaker 2 (06:44):
We see that and everything. So it's this doesn't shock me.
And again it's always been there. We would you know again,
I have clients all the time that are aging, you know,
aging up their close to seventy and they finally retire
and it hasn't really been an issue. I can think
of maybe four or five clients we really had an
issue with because the group health plan they had was
really not good and they thought it was really affordable,

(07:07):
and it wasn't considered credible because they had of pocket
was so high even on today's standards. But it's not
something I see. I would say ninety nine percent of
the clients that I deal with, it was an easy transition. Oh,
you're seventy years old. If you decide to retire, you're
on group health, that's fine, we're not going to get
it with penalties. But here's the thing. It's not just
your Part B, it's your Part D, which is your

(07:27):
prescription drug coverage. So that's a one percent penalty per
month that you're not on it. So if you wait
four years or three years, you're talking about not only
am I paying the penalty on Part B, I'm now
paying thirty six or forty eight percent more for my
prescription drug coverage. At a certain point, you're paying way
more and it doesn't make sense. So it is a

(07:50):
conversation we need to have if that is your situation.
And I will tell you this a lot of times
when I'm talking to people that are still in their
group health plans, when we actually analyze what they're paying
for their group health insurance, and then we look at
their out of pocket expenses, which are you know, let's
be honest, six seven eight thousand dollars maybe fifteen a

(08:10):
sigare family, right, If you're doing like a Plan G
medic your deductibles two hundred and forty bucks, that is
your So sometimes when we look at that true your
out of pocket plus your premius based upon our recommendation.
On we add those two together for the year, you'll
see that a lot of times going on Medicare and
picking up Affordable plandic medic Gap Plan, Medicare Supplement Plan

(08:30):
G with your own prescription drug card, your actual cost
per year is actually cheaper. So again that that should
be a good conversation to have if you're thinking, if
you're sixty five or turning sixty five and thinking about
going onto Medicare, like I'm still working, let's least have
the conversation to make sure it makes sense, because the
last thing we want to do is it not be credible.

(08:51):
You're gonna get penalized or you end up paying more
for the group health plan with your high out of pocket,
then it even makes sense to go on Medicare at
this point. So it just good conversation have.

Speaker 1 (09:01):
It is a good conversation, And let me emphasize that
component of it, because you know, I can hear I
can sort of see in my mind's eye someone listening
right now and just hearing you know, words flying and going,
oh my god, I'm at that time of my life.
But some of the things John just mentioned in passing
I don't even register with me, like I'm I'm not

(09:22):
hip to what he's talking about, which is why they
need to call you and have this sit down conversation
to have you thoroughly explain it, but also at the
same time do this analysis of where they what insurance
they have currently, what's coming down the pike, so you
can better prepare them and and and and give them
the resources and tools by way of knowledge and information
they absolutely need, because you know, it's confusing, man, I mean,

(09:45):
you know this is this is what you do every day,
But for the regular Joe, it's like, eh, whatever you know.

Speaker 2 (09:52):
And they've been Brian, It's not a lot of information
we need. I just want to know what you're paying
for your health insurance through your group, so you can
call your HR department. You can look on your pay stub, right,
you can find exactly, Hey, this is what I'm paying
per month for my health plan. I want to know
you know what your deductible and out of pocket is
for that for your family, and just give us a

(10:13):
call if you're getting close to sixty five. You know,
we say that three month before sixty five schedule an
appointment with that information. We'll sit down and analyze it.
You know, and if I see that you have credible
coverage and you're like, well, my group health plan costs
me fifty bucks every two weeks, stay where you're at,
you know, Like, we'll have that conversation, but you'll be
surprised I would say fifty sixty percent of the time.

(10:36):
Once we go through that analysis, I tell them, like, listen,
it makes no sense to stay on your group. You've
got medical expenses. You're out of pocket. Is so I
you're running up three, four or five thousand dollars a
year in medical expenses, Like, let's go get let's go
to Medicare. Welcome to Medicare because the coverage there. Guys,
if you're hearing this right now, the coverage on Medicare
is ninety eight percent of the time. Is better then

(11:00):
what you're doing on the group health side.

Speaker 1 (11:01):
You've said that before, and every time you say that,
I just find that so hard to believe. I mean,
you know, you're having said that out loud on so
many occasions. They're going to screw it up, they're going
to change it, and it'll suck at some point you know,
it's just like going to before they get their hands
in the cookie yar and they tend to make matters worse,
but at least as of right now.

Speaker 2 (11:21):
They do if you do the wrong plan, right. We've
talked about this before. If you're if you're in a
situation and you end up going on to like say,
a Medicare advantage plan and have a lot of out
of pocket expenses, probably not a good option for you.
When you turn sixty five, you know you need to
minimize your financial exposure. That's when you can get one
of these Medicare supplements or we call metagap here in Ohio.
That I mean, I love it because it's it's a

(11:42):
two hundred and forty dollars deductible this year. I mean,
can you imagine we've no one I've ever talked to
goes the most I have to pay out of pockets
two hundred and forty bucks a year. That's mind blok.

Speaker 1 (11:50):
It is.

Speaker 2 (11:51):
I've been nineteen years doing under sixty five health insurance.
I've never sold a plan that I can honestly say,
no matter what happens to you, the most you're gonna
pay is two hundred and forty Bucks doesn't exist, doesn't.
So you know, when I talk to clients, the first
thing I go, you know, the first time I had
that interview with them. It's usually a lot of my
clients turning sixty five ago, congratulations, you made it. They go,
what do you mean? I was like, you're about to

(12:12):
get the best health insurance you've ever had.

Speaker 1 (12:16):
Well, it is nice to know. I'm glad you were
able to say that with a straight face, and let's
hope you can continue to do so. All right, so
that is creditable coverage. Now over to long term care
and home health care. We've had brief conversations about these
topics before, but you know, when you look out of
the landscape, I guess all the last of the baby
boomers is hitting sixty five, Like.

Speaker 2 (12:37):
Now, yeah. I mean. The funny thing is, as far
as people going on Medicare, I'd say it's ten thousand
people a day going onto medicare. So it's just a
sheer amount. I mean, that's a lot to really grass
your mind around. And you know, again, like we always
preach on our show, it's it's forward thinking, it's planning,

(12:59):
having a plan in you know, because you know, we
see so much even through our office where you know,
we have clients we've helped that just went on Medicare
and they're like, well, I'm on Medicare, I got my supplement,
I got my prescription. I'm good, right, I'm good. Well,
then something happens. I mean, the way medicine is nowadays.
I mean, you know, it's not like forty fifty years ago,

(13:21):
you end up having a stroke, you got a coin
flip of surviving, right. Most people go through those events
and you know, something happens. They end up surviving it,
but you know they're they're in a worse spot, right,
They're not able to do a lot of the activities
of daily living anymore. You know, maybe it's your spouse
that goes through that situation. You're like, well, I don't
want to go put my husband or my wife in

(13:42):
a facility that I can't see her every day. I
want to have the availability to be home. But I'm
seventy two years old. I can't get it right of bed,
I can't. I don't want to clean up after my
wife or something along that line. So we're seeing such
a big trend more towards home healthcare. You know, and
that's the cheapest route to go, you know, for you,

(14:07):
for you know, your family members, because the cost of
course a long term facility where you get twenty four
supervision and all that. I mean, we're seeing ten eleven, twelve, fourteen,
fifteen thousand dollars at some of these facilities a month,
and right, that's yeah, I mean a month, yeah, I mean.

Speaker 1 (14:23):
It's it's it's crazy, right, mind blowing.

Speaker 2 (14:26):
Mind blowing, and no one really has that set aside.
I mean, so security is not going to pay that really.
So you know, the biggest payer for home healthcare and
long term care facility is actually Medicaid. That's the number
one insurer for that. But how do you get to medicate?
You pretty much liquidate your assets, you know, and we
don't want you to be in that situation. Last thing

(14:47):
you want to do is I worked my entire life,
I have all these assets, and then I got to
turn around and liquify a bunch of that that I
wanted to turn down, you know, to my family. At
one I want to sell the farm to you know,
pay to have my wife and a facility. So but
we're also seeing a huge turn to the home healthcare
more people are more inclined to let's take care of

(15:08):
my spouse at the home. They're not in such a
bad situation. You know, they're not laid in the bed
twenty four to seven, right, they can kind of get
around a little bit. I need that extra help. Well,
that's when the real cost comes down, Like you're gonna
go turn around and hire a nurse to come in
a couple of times a week, you know, at you know,
four one hundred dollars a day, you know, three four

(15:29):
times a week. And that's a huge, huge cost that
again we're not prepared for. So this is one of
those things I really want to talk about because there
are some really really affordable plans out there that can
be specifically for just like the home healthcare. I mean,
we have plans, and you can start these plans in
your fifties, you know, while you're still healthy. You know,
we're talking twenty twenty five bucks a month, I mean

(15:52):
the cost of probably going through a fast food you know,
a line. Now you can pick up a plan and
that you have that assurance, say, hey, if something happened
to my spouse, I would like to have them at home,
and I have a home health care plan that's going
to pay to bring someone into my house two three
times a week to help the things that I don't
want to do. And that's what I'm saying. It's a

(16:15):
very affordable piece. And if worst case, when you're calling
in to talk about Medicare, that's a conversation we need
to have. Or if you're already on Medicare, do it then,
because as you get into your seventies and seventy five,
that's when the plans get really expensive. Or of course,
if it's too late in you're already in that situation, Brian,
there's not much I can do well.

Speaker 1 (16:34):
I understand that's the bad news you have to pass
along some times. But that's why you know the focus
of this is to be forward thinking and to not
wait to just have the conversation. I don't care what
point in life you are. If you're responsible for your
own medical care, then you need to get in touch
with John and the team and have them look at
all this and talk about the long term solutions and

(16:54):
the problems and pitfalls of people face as they move
forward in their lives. So college plans again, going back
to college plans again, because everybody's back in school.

Speaker 2 (17:05):
Now, everybody's back in school. There's a lot of hot
there's a lot of the even some of the local
colleges are starting to really analyze and look at the
current health insurance plan that you have. And I've been
getting a lot of phone calls here recently going hey,
I listened to you, and all of a sudden, my
son decided to go to like UC and we found

(17:26):
out that the plan that we have is not considered
creditable under their terms, on their own separate terms, and
they're now wanting us to sign up for their health
insurance plan, which you know, I've seen these plans at
twelve hundred to two three thousand dollars a semester, and yeah,
they're very expensive and there and when you look at

(17:46):
the plans, they're kind of limited. You know. A lot
of the stuff is like, well, you can go see
our in office urgent care facility that we have here
on campus. Not really much coverage outside of that. You know, listen, guys,
there are so many affordable options at that stage, give
us a call, we can look at a plan. We
know a lot of the plans that are available for
these these these colleges let's just have a conversation. I

(18:09):
can show you way more affordable options and signing up
for your college's you know, health insurance plan. So just
kind of like forward thinking on that end.

Speaker 1 (18:17):
Again, Well, if parents can keep their children on their
policies now for a lot longer than they.

Speaker 2 (18:22):
Used to, they can do it the twenty six right.
But here's a big situation that we run into. So
you know a lot of these colleges. Let's say you're
on an Affordable Care Act plan here in Ohio. Well,
your kid decides he wants to go to Indiana University, right, Well,
the problem is you're an HMO plan that's really kind
of designed for Cincinnati. When you go over to Indiana,
you don't, you have no network, right, So they're look

(18:43):
at your plan and go, well, your plan doesn't work here,
so you have to go on our plan. And there's
not an option because we're disqualifying what you have. So
now you got to pay two grand a semester for
four grand a year to be on our health insurance plan.
And when you tack that onto the thirty five forty
thousand dollars a year that you're paying for college, Guys,
this is that's another ten percent increase on what you're

(19:05):
doing on top of the room and board and everything
that you're dealing with. So I've picked us up a
lot more because see, I have a lot of clients
in that situation. But I'm the same that my son's eighteen.
He's going to go off to go to college. You know,
I wanted to make sure, like, hey, our plan is perfect,
you can go anywhere that you want. But then I
start hearing from a lot of clients, well my plan
doesn't work there. Now I got to go pay all

(19:26):
this money for the college plan. So again it is
a conversation we want to have. And if you if
you just call in and go, hey, my kids go
into the XYZ college, I mean more than likely we
probably already know which plans they are accepting, and I'm
going to make sure that you guys are have the
right way.

Speaker 1 (19:40):
Well, I guess I have to ask because you know
the number. The numbers are spinning in my head when
I hear about these college insurance plans. Are the college
is getting a slice of that action or is this
all going to the insurance company.

Speaker 2 (19:51):
So it's interesting the companies that I have to deal
with that actually approve it are some third party company
that actually sells the health insurance.

Speaker 1 (20:03):
That's where the Commission's going.

Speaker 2 (20:05):
Yeah, so it's you know, it's funny. I had one
plan they approved for like ten clients, and then all
of a sudden, the eleventh client came in the exact
same plan. They go, we're not taking this anymore. I'm like,
as of yesterday because the other ten, the other ten
got approved. God and I was just like, I was like, listen,
I don't know who you talk to we're going to
resubmit this, and ended up being some other agent that

(20:28):
they end up talking to and they go, oh, yeah,
that is considered credible. So it's it's kind of a
really weird, ambiguous thing, like I don't know.

Speaker 1 (20:37):
Well, and you know, I can't let that comment go
by without pointing out. I mean, that's one of the
benefits of working with you in the team is that
you solve those problems on behalf of the people that
you're working for. You know, the people are listening right
now who work with you get insurance. So you have
questions about insurance, you solve the problem for them. They
aren't left in the wild. In the wilderness well, this

(20:58):
is an accreditible plan apparently, so I got to spend
the two grand per semester over the college. No, you
got bad information from the guy trying to sell you
a two thousand dollars semester policy.

Speaker 2 (21:08):
Yes, that's all it comes down to. Absolutely. And you
know what I did, Brian. I literally go which I
knew your requirements. I literally highlighted him on the brochure
and I resent it in I'm like, these are your
requirements and this shows you on the plan where it's covered.
Explain to me why you're telling this is not credible
and I need it in writing and they approved, right,

(21:30):
you know. And that's just like anything. It's like when
you get that bill from the hospital, going you owe
this money, don't sit there and turn around and cut
a check and pay for it. Have a conversation, check
your explanation of benefits. I mean, you'd be surprised how
often we run into the fact that they never even
build your insurance. I gave him my card. They just
didn't do it. They just sent me the bill right right.

(21:51):
And I had that happen many times over the years.
I'll get a bill and the man, I'm like, what
is I know we're covered on this, Why have I
gotten you know, and my wife topically just forget about it.
They just haven't gone through the processing yet, and that
we won't get another bill for that. But every once
in a while you get another bill. And it's that's
the point. They never submitted it to the insurance company,

(22:11):
or they submitted it and they put wrong codes down.

Speaker 1 (22:16):
What do we have iced eleven now?

Speaker 2 (22:17):
Yeah, iced ninees and all that. I mean, it's just
there's so many different codes out there, ten thousand codes now,
it's it's it's ridiculous. But pret byte on finger second
event would be a different code than parrot byte on
finger first event. Yes, And it's that detail. And then
you'd be surprised how many times people get double billed.
I've seen that. You know. Have you surprised how many

(22:39):
times the offices are where you're going use a hiring
code to get more money? You know? It just it's's
I've seen so much in the nineteen years I've been
doing this that it's like it doesn't shock me when
it happens. And I tell everybody, it's like they call
me up and go, John, you saw me this plan?
It's not working the way you told me. I'm like, well,
first off, I just wanted to tell you ninety five
percent of the time my problems up at the practitioner's office,

(23:02):
not building something right, using a wrong code, and sure enough,
that's usually what is and.

Speaker 1 (23:06):
You figure that out for your client. Absolutely no time
on the phone with the insurance company. You don't have
to call the doctor's office. Let John's team take care
of for You's. To me, that's one of the most
beneficial components. I mean money savings and better coverage, clearly,
but just the idea it's hassle free once you're involved
that you just like, I know John's number, it's eight hundred. Call,

(23:28):
just gonna give him a ring. You know again, you
put smiles on my listener's faces all the time. I
just there isn't a week that goes by someone who
doesn't call me or sending me an email and let
me know about that, because, let's face it, this is
just the right way to go. So I guess September
is I understand Life Insurance Awareness Month?

Speaker 2 (23:48):
Yeah, because at the end of the day, you'd be,
just like everything else, you'd be surprised how underinsured people are.
When it comes to life insurance. And this is one
of those things, you know, when I first got into
this industry, it was like, I love talking about health
insurance because you're gonna use it, right, Yeah, I hate
talking about life insurance because the time you're using it
is you're not getting it right. Your beneficiary is so

(24:10):
But you know, just kind of just a few things
I want you to think about, right. We use the
acronym when I talk to clients. You can run from
life insurance, but you can't hide, hide hide, right, And
those are the four main components that I feel you
should be looking at ensuring for life insurance.

Speaker 1 (24:27):
Right.

Speaker 2 (24:27):
So the first thing is easy, h is your home. Right,
You've got a mortgage, whatever it is, you want to
pay that off, especially if you're younger. Right, we see
people in so much debt three four, five hundred thousand
dollars or more on a home. And if you even
your twenties or thirties or forties and you have a mortgage,
the easiest thing to do is leave your family with

(24:48):
zero debt when it comes to your house, free and clear. Right,
that's gonna save you a couple thousand dollars a month,
just on a mortgage payment that your wife for your
husband doesn't have to pay for anymore. Right, So make
sure you're always are carrying a life insurance pays off
your house.

Speaker 1 (25:02):
And hopefully and hopefully it covers the real estate tax
bill too. Yeah.

Speaker 2 (25:06):
Yeah, I mean that's something else to think about.

Speaker 1 (25:08):
You're up a lot of money.

Speaker 2 (25:09):
No, you're absolutely right. It's crazy now what these rates are. Yeah.
Another one is your income. A lot of us don't
really think about that end right, it's you should be
ensuring your yearly income minimum five times your income. You know.
I typically tell most of my clients to do ten
times right because if something really happened to you and
you're the primary breadwinner, and let's say your spouse is

(25:30):
home taking care of the kids, what is it going
to look like for your wife to go out and
try to find one hundred thousand dollars your job, you
know what I mean? Or your spouse.

Speaker 1 (25:37):
So there's a million right there, there's a million, right job,
you need ten years worth of that, So it's a
million dollars life insurance. Add on to that. Whatever your
home's valued. Add let's say three hundred and fifty grand,
so you need million three hundred and fifty and if
you want to throw in a few years worth of
real estate taxes on that, we're getting up close to
one point five million dollars in life insurance.

Speaker 2 (25:55):
And then you get to cover the other day. Right,
what about the truck that you bought that you're paying
seventy thousand dollars, right, it's got a twelve hundred dollars
a month note or something like that. Ward, you know,
I mean they're out there, or I mean, let's be honest,
we're the highest level of credit card debt we've ever
been in the history of the United States, you know,
I mean, how many people are walking around ten thousand
dollars and more in credit card debt at twenty plus

(26:15):
percent interest rate? Like pay that off? Your wife's notuck
your wife for your spouse is not gonna able to
pay that off. If you're no income coming anymore.

Speaker 1 (26:22):
You can't pay it off with you're alive. Yeah, take
away one salary from the spouse and you're gonna be
in a much more situation.

Speaker 2 (26:28):
Absolutely. And the last one is e education, right because
as someone shopping for colleges right now for my son
and seeing that the low ends like thirty grand you know, hopefully, hey,
have a really good senior year and get your GPA up.
I'd love to be able to get you a scholarship
so I don't have to pay one hundred percent of this.
But let's be honest, if you have young kids, I mean,

(26:48):
it's probably gonna be fifty thousand and sixty thousand a
year for your kid. I mean, the life insurance, especially
like a term, is so inexpensive when you're young. I
mean we're talking right now, millions, right, and you probably
sit here like I don't need to leave my spouse
a million dollars. Probably do. But the big thing about it,
if you're doing this in your twenties and thirties, like
you're talking about forty sixty seventy bucks a month for

(27:11):
a twenty year term. Yeah, you know, they're not overly expensive.
I hope you never have to use it, but it's there.
It's peace of mind that you leave your family in
the best possible situation and your term is locked in
until what's sixty What is the agent? So it's a
big misconception about term insurance. So what term insurance? Basically
does it locks your rate in for that time?

Speaker 1 (27:30):
Right, because I have term life and I honestly would
be inclined to just terminated. House is paid off. My
wife does better than me, she doesn't need my money.
But the rate is locked in, and I think I'm
paying you maybe forty fifty bucks when you advertise it
over the year, maybe forty fifty bucks a month. But
I got a ton of life insurance. We got it

(27:52):
when the kids were really young. But because it hasn't
changed and it's a very affordable premium, it was like,
let's just keep it. You know, there's no reason for me.

Speaker 2 (27:59):
To you, and you should, right, So the term's going
to lock you in forever. That timeframe is so that
way you know you have a fixed cost. Now once
the term expires, I's see around a twenty year term,
and I think that's yeah, yes, so your twenty first year,
what's going to happen? You've actually if you go back
to your policy, open the chart. There's a chart which
actually shows you how the premiums will start escalating every
year they do. So, so don't think about it like

(28:21):
oh my god, Like you know, not to bring out
your medical condition, but you know, if you have something
like cancer, right, like it's very difficult for you to
get life insurance, so you're not going to go get that.

Speaker 1 (28:31):
Preferred anywhere to cancel it.

Speaker 2 (28:33):
Yeah, so you know, in that realm, right, you're better
off just paying the escalating price. But if you're in
a situation where I'm still healthy, my my term's expiring,
you know, redo another term, you know, or relook at
that to make sure you get a better rate, because
that really what makes sense. But you're right, Brian, I
don't need a million and a half two million dollars
in coverage when my kids are gone and they're out

(28:55):
of college and my house is paid off and I
have really no debt. That doesn't make sense. And that's
that kind why we always do a hybrid plan. I
always do like a term plan to really cover with
a very affordable rate and give it to you why
you're in your working years, and then the whole life
side where maybe we can build some cash value, have
something that you can build out that it'll last you
the rest of your life. So so fifty thousand dollars

(29:19):
or something that just really makes sense, you know, to
keep you for the rest of your life.

Speaker 1 (29:22):
Fair enough. This has been another edition of Briefink Healthcare
together with John Roman from cover since he find him online,
fill the format, get the conversation started cover sincey dot com,
or just give him a call directly at five O
one three eight hundred call that's five oh one three
eight hundred two two five five