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Welcome

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to Healthy, Happy, Wise, Wealthy, the podcast where we take people who

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have lived through some fire and now want to take that light and help

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guide others. I am your host, Mary Meyer. I'm so glad you're here.

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I want you to step away from today feeling like you

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know some things about how to heal, about how to move

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forward, about how to create the life that you want to live.

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Let's get started. Hi, everybody. Welcome back to Healthy,

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Happy, Wise, Wealthy. I have with us today Xander Lehn, and

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he is an insurance professional.

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I know him from the Missing Link network. And I know in our first

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episode, we had Jaclyn on from that to talk about the importance of

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networking. And networking has been good for both of us. I know.

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So I wanted to have him on because insurance is one of those things, in

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my opinion. I know a little bit about insurance, too, because ins. You know,

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I had 20 years married to an insurance

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broker, basically, so I got to know a lot about that field.

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And I know for people, there's usually a lot of questions they have about

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insurance, and maybe they don't want to call to ask somebody, because

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I think in this world, sometimes you want to know the answers before you call

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somebody, just to make sure you're on the right. The right track.

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So. And you have only been doing this a couple years and you

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made a big life transition. I know we talk about that lot on this show,

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too. So, yeah. Introduce yourself a little bit and tell us

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why you chose to go into this profession. Yeah. Thanks, Mary. I

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appreciate you inviting me on the podcast. That's pretty cool.

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Definitely a fun opportunity. And I did make a big life

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transition to become an insurance broker and

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work with the people that I do. And I love what I do

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now. Before I was an automotive

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technician for like 12 plus years,

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I went to school for IT degrees, you know,

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the whole nine yards. And I loved doing it,

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but it became a little

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challenging to deal with. You know, that I

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didn't have a lot of autonomy. I was tied to one place.

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I was doing a lot of work that I didn't

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have control over. And I really like having the ability

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to. To kind of control my own destiny, if that makes sense.

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And at the same time, as I was feeling this

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tug, this push and pull in my career,

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I also lost a family member and

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experienced what happens when there isn't

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a plan in place. And I

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knew one of my good friends was a life insurance

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salesperson. And I said, hey, I want to find out about what you

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do. And after I learned, I said, you know, What?

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I'm gonna make a drastic 180. I signed

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up that night for the classes and while

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working a full time job, raising two kids, wife, you

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know, family, everything, I did the, the 40 hour course

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in two weeks, passed my test the first time

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and just went, you know, head first into

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figuring out all this world and I haven't looked

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back. That's very brave. Making a transition like that

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with family in tow and everything is a

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very brave transition to make. Yeah, it's

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definitely scary but rewarding at the same time. And

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you know, I, after a couple years doing this, I, I, I

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would make the same decision again. Yeah.

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And I, I do enjoy just highlighting on this podcast that

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life takes turns and you don't always know where you're going

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and lots of times those are career changes. And for you

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it was just like, man, I, I'm making a change because this,

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you have that personal experience and you're like, this is, this is

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really the avenue I want to go. So I think, you know,

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you do highlight or you do focus a lot on

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senior life insurance, final expense, those kind of

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things. So we're gonna, we're gonna move into that. I know probably,

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you know, boomers are, the boomer generation is in

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that age and it's, you know, for most of us listening, it's either

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we're one of those or our parents are or a grandparent.

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So this affects all of us. And life insurance in

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general does. It's something I know. I got life insurance very young, in my

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20s. Yep. A term policy.

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So can you give a general overview of the

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benefit of what the different things? There's three different types, right?

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Yeah, yeah. So real quick, you, you touched on something

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important that I primarily work with seniors

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and a big reason is that there's 10 to 12,000

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people in the US turning 65 every

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day. So it is a huge market and they need a lot

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of help. And they're getting advertisements on

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tv, on Facebook, everything blasted this way and that.

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You know, some people say they get a hundred spam calls a day, you

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know, telemarketing, things like that. And so

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there's just a lot that is

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happening in that age group right now.

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And so that's why I serve that market primarily is

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because there's just such a big need. It's

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a little easier for somebody that's, you know,

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32 to hop online and

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click a few buttons and figure it out themselves. Maybe they're using

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chat GPT that answer some questions. But

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if you're 72, you don't really

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use a lot of that stuff for the most part. Right?

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Yeah. So you asked, you asked one thing that was, what are the

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different types of life insurance? Right.

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There's two main types. One

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is whole life or permanent, and one is term,

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and that's temporary. Or it has a time period where it

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expires. There's a hybrid in the middle, and some people

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may have heard of it, it's called universal life.

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It can be permanent and it can term out. It depends on

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how it's set up and the purpose for why you're using it.

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There's a few big pieces that, when

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you're comparing those types of coverage on, like, why

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would I make one choice or the other?

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Personally, I think that each one of those types of

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insurance has a great purpose.

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I have permanent and I have term coverage for

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myself, and here's why. I'm 31, I've

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got young kids. If I pass away

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before they're adults, I want to make sure my wife has, you

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know, the mortgage covered, bills paid, some living

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expenses while she's trying to figure life out without me.

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Right. And so a term policy is great because you'll hear

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the advertisements, oh, you can get

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$500,000 for 30 bucks a month.

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And the only way they're able to do that is because it's term.

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At some point that's not going to be there. And

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the biggest statistic that they really don't cover with term

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insurance is that only about 3% of

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people that have term coverage actually pass away

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while it's active. The majority of people, 97%,

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live through their term policy and then

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get something different or just, you know, they don't have that

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anymore. Yeah. How longer term? You

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know, is it 20 years, 30 years, 10 years? What's the typical amount of

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time that you buy term insurance for? And I imagine that affects the

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rate. Yeah. So the longer the term, the more

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expensive the rate. Interestingly enough, you'd

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kind of think it would be backwards, but if you compare

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a 20 year versus a 30 year, it's going to be a few

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dollars more for that 30 year because they're taking on more risk

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for those extra ten years. Right, right. The longer you live, the more

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likely something is to happen. So

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the majority of term policies people

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look at are 20 or 30 years. But, you know, a lot of

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people, we get our life insurance from an employer maybe.

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Right. And you might even hear, oh, you could

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take that with you when you go. But that type of term

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insurance, because of almost 99% of

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employers only offer term coverage. It's actually

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called annually renewable. And so every year,

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if you take it from your employer, it gets more expensive.

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It's your new age and the rate can go up.

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There are some caveats to that. Some of them change every five

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years or whatever. But in general,

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having private coverage that you own is more

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secure and guaranteed than that employer

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provided. And one other really important piece of

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that is that for the majority of employer

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provided coverage, anything over

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$50,000 of life insurance is

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going to be counted as taxable income for your beneficiary.

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And people don't know that. So they'll buy up their insurance

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with their employer and if something happens, it can

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significantly change their family's, you know,

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income tax and things like that. Yeah, and I,

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I definitely would say I would highly recommend if

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you have, own a home, if you have children, if you have anyone that's

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depending on you whatsoever to pay a bill,

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that you have some life insurance and the younger you

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are, the cheaper it is. I know I still have a policy. I think I

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started in my, in my 20s and it's,

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I think it'll go another, I don't know, it's term. Yeah,

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I lost Track. Maybe another 10 years. But it's under $30 a month

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or right at that 30. So yeah, that's worth it for that peace

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of mind of, you know, or if you have,

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you know, kids, you want to leave something to, you know. Exactly. It's a,

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it's a great tool, but that's all that it is. It's

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a tool. There are term plans that you can

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get your money back from after, you know, if you pay in

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for 20 years. That's something called return of

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premium. And a lot of people don't know that. Most insurance companies

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don't offer that and they think, oh, I'm going to get my money back. But

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it, the majority don't and that's actually

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to help them keep the cost lower. So if

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you have that return of premium, you're comparing options

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between companies, it's going to make that more

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costly, more expensive. Yeah, that's interesting. So return a

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premium is, I mean, it's kind of a savings account,

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you know, some money with time on the interest. But

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that's not a bad, bad option to do if you wanted to do

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it. So. Yeah. Yep. And a little piece that most people

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just don't know about. Yeah, I would have forgotten about that. I don't

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know that I recalled that. So I know we want to get to the senior

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stuff, but Tell us briefly about like what whole, what the difference with whole life

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is. Whole life is a lot more expensive, right? Yeah. So

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per, like unit of coverage, let's let, let's say per

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thousand dollars of life insurance, whole life is going to

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be significantly more costly. You know, might hear people like Dave

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Ramsey say, oh, buy term and invest the difference.

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And there's some theory around that and it may be valid.

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But there's a few truths to the situation.

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Because whole life is permanent. You have a guaranteed

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insurance policy as you age, if your health changes,

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if you get sick or if your income goes down,

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you can count on that lower rate forever. You don't have to

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re qualify down the road. And so if you want some

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guarantee that the family's going to have something, whether it

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is just for final expenses or it is a

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gift or whatever, it's a guarantee because it's

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whole life, it's permanent coverage and it's not

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going to change down the road. You don't have

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to have $500,000 of permanent coverage

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because maybe, you know, when you are 82, you just don't

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need to give away that much. Right. So you could have a small policy

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that's just that guarantee for down the road where

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you're, when your term ends, you're not trying to re qualify.

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Maybe you have a new chronic health condition and you don't,

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you know, you can't get new insurance.

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How much in general, how much more expensive is that? Oh

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goodness. Well, like for instance, at my age, if I

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am like 31, I could get maybe half of a

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million dollars of life insurance on term coverage for

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around 30 to $35 a month. If I took

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that same amount and went to a whole life coverage,

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it's going to be maybe 30,000 or

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$40,000 is not going to be a whole heck of a lot

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comparatively, when you look at numbers. Yeah, yeah.

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But that's the difference is the guarantee and the

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continuous, you know, hey, I don't have to re qualify down the

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road. Right. That's almost estate planning

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at that point, right? It is, yep. And the, the last piece

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of whole life is that it does build cash value.

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So a lot of people have heard of a family member or a friend that

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cashed out and like took a cruise or whatever. And that's usually

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where that comes from is they borrow against the built up

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value in their life insurance and for some purpose,

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whether it's a need or a want, they can use that down the road.

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Yeah. So briefly, universal life, the in between of

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those Two. Yep. So Universal Life kind of combines

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the two. And depending on how it's structured, it may

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build cash value quickly, it may not. It may be

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more like a term policy where there's very little of the premium

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goes to cash value, but it can adjust with your

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life. That's why it's called universal, because you can have the same policy

240
00:15:05,880 --> 00:15:09,640
and you could maybe this year you are. All of a sudden you're

241
00:15:09,640 --> 00:15:13,350
making more money and you want more coverage. You just pay more into

242
00:15:13,350 --> 00:15:17,110
that Universal life and they can restructure it without

243
00:15:17,190 --> 00:15:20,950
you having to go back through underwriting. If something happens down

244
00:15:20,950 --> 00:15:24,310
the road and you need to lower your premium, they can

245
00:15:24,310 --> 00:15:27,950
restructure it. A lot of people what's

246
00:15:27,950 --> 00:15:31,710
really hot right now, it's called IULs. Not

247
00:15:31,710 --> 00:15:34,630
sure if you've ever heard of that. Indexed Universal Life.

248
00:15:36,310 --> 00:15:40,150
I think I. Yeah, we'll explain it. I think I maybe have. Yeah.

249
00:15:40,870 --> 00:15:44,590
So it's basically a universal life policy that's supposed to

250
00:15:44,590 --> 00:15:48,070
build cash value that's credited against

251
00:15:48,470 --> 00:15:51,710
the stock market index, which is usually the S

252
00:15:51,710 --> 00:15:55,390
P500. And so there's other indexes that it

253
00:15:55,390 --> 00:15:58,950
could be credited against, but it's supposed to only ever

254
00:15:58,950 --> 00:16:02,630
gain value without losing the basis.

255
00:16:02,710 --> 00:16:06,450
So let's say you have $10,000 of cash value and the stock

256
00:16:06,450 --> 00:16:10,210
market crashes your cash value secured. If the stock

257
00:16:10,210 --> 00:16:14,050
market performs really well, the cash value may increase

258
00:16:14,530 --> 00:16:16,370
at like 6 or 8%.

259
00:16:18,290 --> 00:16:21,730
It's. It is a great tool,

260
00:16:21,970 --> 00:16:25,690
but it's being very oversold right now. And that's

261
00:16:25,690 --> 00:16:29,010
something that. Getting an honest opinion on

262
00:16:30,370 --> 00:16:34,170
to understand how it could affect you 10, 20 years down the

263
00:16:34,170 --> 00:16:37,530
road. It's really important. Yeah,

264
00:16:37,850 --> 00:16:41,610
I know sometimes these vehicles are. Insurance are used as

265
00:16:41,610 --> 00:16:45,330
vehicles for savings for different reasons. I

266
00:16:45,330 --> 00:16:48,010
know my brother did that. And when I looked at that, I'm like, I don't

267
00:16:48,010 --> 00:16:51,810
like it. I think it

268
00:16:51,810 --> 00:16:55,490
probably is a little bit dependent on personality, but. Or if it makes sense to

269
00:16:55,490 --> 00:16:59,290
you. Yeah, it's definitely dependent on personality. You know,

270
00:16:59,290 --> 00:17:02,910
there's. If you're looking at it as an investment

271
00:17:03,150 --> 00:17:06,870
tool, it's more of a secure

272
00:17:06,870 --> 00:17:10,670
kind of thing. So it's not crazy growth. It's not going to be like

273
00:17:10,670 --> 00:17:13,630
a. A house in

274
00:17:13,950 --> 00:17:17,710
2021 that was just exploding in value.

275
00:17:17,710 --> 00:17:21,150
It doesn't do that necessarily, but it has

276
00:17:21,390 --> 00:17:25,070
security and guarantees that some

277
00:17:25,070 --> 00:17:28,319
people do use for financial planning. Some people

278
00:17:28,559 --> 00:17:31,599
shun it and some people embrace it. But again,

279
00:17:31,999 --> 00:17:35,759
that's up to you and your financial planner, which always

280
00:17:35,759 --> 00:17:39,359
advised to do. Yeah. Advise for

281
00:17:39,359 --> 00:17:42,479
financial planning, which we're not getting into that a lot. But insurance is usually a

282
00:17:42,479 --> 00:17:46,119
part of financial planning. So for sure, all the different kinds of

283
00:17:46,119 --> 00:17:49,839
insurance, because a catastrophic loss of any

284
00:17:49,839 --> 00:17:53,439
kind is going to affect your ability to

285
00:17:53,839 --> 00:17:57,370
manage your wealth. So. Yeah, that's why. That's why it exists.

286
00:17:57,770 --> 00:18:01,610
Exactly. Yeah. So let's move a little bit

287
00:18:01,610 --> 00:18:04,810
into the senior market then. I know you. This is what you

288
00:18:05,530 --> 00:18:09,050
have chose to do. So all these people are turning 65,

289
00:18:09,290 --> 00:18:12,970
you know, 10,000 a day, is that what you said? It's between 10

290
00:18:12,970 --> 00:18:15,690
to 12,000 a day. Okay. That's a lot

291
00:18:16,650 --> 00:18:20,330
more than a couple, that's for sure. Yeah, more than a couple. So

292
00:18:20,570 --> 00:18:24,310
explain to us what,

293
00:18:24,390 --> 00:18:28,230
what they're, what they're hearing about

294
00:18:28,230 --> 00:18:31,990
this, what, what are their thoughts on it and what is their con or

295
00:18:31,990 --> 00:18:35,670
confusion about it? Yep. So there's like this

296
00:18:35,670 --> 00:18:39,350
huge push in the senior market for final

297
00:18:39,350 --> 00:18:42,910
expense insurance or some people call it burial

298
00:18:42,910 --> 00:18:45,110
insurance or cremation insurance.

299
00:18:46,550 --> 00:18:50,180
And there's a lot of companies who market

300
00:18:50,180 --> 00:18:53,580
to seniors. It's very big in TV advertising,

301
00:18:54,060 --> 00:18:57,740
it's huge on all the social media. They're able

302
00:18:57,740 --> 00:19:01,340
to really target that demographic and bring

303
00:19:01,340 --> 00:19:04,060
up that need because there is a need there

304
00:19:04,780 --> 00:19:07,980
primarily for people who maybe don't have,

305
00:19:08,620 --> 00:19:11,980
you know, big savings or some sort of healthy

306
00:19:11,980 --> 00:19:15,610
retirement account that they're going to. Well, I have all this cash

307
00:19:15,610 --> 00:19:18,410
over here. My family can use that when the time comes.

308
00:19:19,690 --> 00:19:22,890
But it doesn't even exclude that

309
00:19:23,370 --> 00:19:27,130
maybe upper echelon or upper level market

310
00:19:27,690 --> 00:19:31,490
that may be a little more financially secure. And

311
00:19:31,490 --> 00:19:34,810
here's why. What final expense insurance does

312
00:19:35,210 --> 00:19:38,090
is it can be based on term or whole life,

313
00:19:38,810 --> 00:19:42,130
but it provides usually a faster

314
00:19:42,770 --> 00:19:46,290
payout of insurance, death benefits to the family

315
00:19:46,770 --> 00:19:50,250
to be able to make sure that they have the money right when they need

316
00:19:50,250 --> 00:19:53,930
it without coming, going into debt, coming

317
00:19:53,930 --> 00:19:57,410
out of pocket or even having to dip into the estate.

318
00:19:57,410 --> 00:20:00,370
Right. And that's where it can protect each

319
00:20:00,930 --> 00:20:03,250
level of, you know, financial,

320
00:20:06,460 --> 00:20:10,220
you know. Yeah, so explain that, Explain that situation. So,

321
00:20:10,220 --> 00:20:13,740
you know, no one, nobody likes to talk about death, but like

322
00:20:13,740 --> 00:20:17,380
planning for death is just something we do and we should do and you know,

323
00:20:17,380 --> 00:20:21,220
it's just a part of life. Right. So. So I think what you're

324
00:20:21,220 --> 00:20:23,420
saying is someone has, there's a death in the family

325
00:20:24,780 --> 00:20:28,460
expected or not expected. So maybe it's not expected, but

326
00:20:28,460 --> 00:20:32,300
they're over 65, they have that final expense

327
00:20:32,380 --> 00:20:35,950
plan. So what I hear you saying, tell me if I'm right, is that they

328
00:20:35,950 --> 00:20:39,750
will get in time to pay for the funeral costs and

329
00:20:39,750 --> 00:20:43,390
burial costs. They'll get the money. Yep, exactly.

330
00:20:44,110 --> 00:20:47,550
So that's where it really does come down to the fine print.

331
00:20:49,069 --> 00:20:52,830
Some insurance companies will say, hey, we pay in 24 hours.

332
00:20:53,310 --> 00:20:56,110
But then the fine print, it'll say,

333
00:20:56,830 --> 00:21:00,670
oh, we require a death certificate first. And so it's,

334
00:21:00,740 --> 00:21:04,460
it could be three or four weeks before they actually receive

335
00:21:04,460 --> 00:21:08,140
the payment. And depending on how things go, you know, the

336
00:21:08,140 --> 00:21:11,140
funeral home may take that into consideration,

337
00:21:11,700 --> 00:21:14,260
they may charge you a higher amount.

338
00:21:15,700 --> 00:21:19,540
Or what some people do is they actually will take their policy down to

339
00:21:19,540 --> 00:21:23,380
the funeral home and hand it over to the director and say,

340
00:21:23,380 --> 00:21:25,300
hey, we just want to pay with this.

341
00:21:27,750 --> 00:21:31,590
One big piece that most people don't know about is that if you

342
00:21:31,590 --> 00:21:35,230
do that they can take a fee, an additional

343
00:21:35,230 --> 00:21:38,070
cost because they're not getting paid today.

344
00:21:39,350 --> 00:21:43,109
So that funeral home is going to charge a premium if

345
00:21:43,109 --> 00:21:46,550
they don't have the money right when they want it.

346
00:21:48,790 --> 00:21:52,150
And people will ask, well, why should I get

347
00:21:52,540 --> 00:21:56,220
life insurance as a senior at you know, five thousand or

348
00:21:56,220 --> 00:22:00,020
ten thousand dollar insurance policy, why wouldn't I

349
00:22:00,020 --> 00:22:03,660
just go and prepay for this? And

350
00:22:03,740 --> 00:22:06,940
I've seen it before, I've clients who've told me the stories

351
00:22:07,260 --> 00:22:10,940
where a family member said, hey, I've got everything

352
00:22:11,020 --> 00:22:14,220
set up, it's all taken care of. And then they pass away

353
00:22:14,700 --> 00:22:18,460
and you're at the grave site, the funeral director comes

354
00:22:18,460 --> 00:22:22,020
up and says, hey, I'm so sorry but we can't finish the

355
00:22:22,020 --> 00:22:25,620
services. We've only been paid X dollars and

356
00:22:26,100 --> 00:22:29,780
he didn't finish the other 3,000 so we

357
00:22:29,780 --> 00:22:33,620
need that before we're going to put him in the ground. And

358
00:22:35,380 --> 00:22:39,220
this the the simple fact of if he had even a

359
00:22:39,220 --> 00:22:42,900
small life insurance policy in that kind of situation, they

360
00:22:42,900 --> 00:22:46,670
could have said, oh, no problem, we've got it taken care of. But somebody had

361
00:22:46,670 --> 00:22:49,950
to take out a checkbook, take it out of their

362
00:22:49,950 --> 00:22:51,790
401k or whatever, right?

363
00:22:53,550 --> 00:22:57,230
And so while prepaid planning is great, it's not

364
00:22:57,230 --> 00:23:00,910
guaranteed until you have that thing paid off. And

365
00:23:00,910 --> 00:23:04,350
you know, it's all good. Having some life

366
00:23:04,350 --> 00:23:08,030
insurance can be a pretty important piece. Yeah. And there's one

367
00:23:08,030 --> 00:23:11,710
other very big topic that people don't discuss when

368
00:23:11,780 --> 00:23:14,900
or think about when it comes to life insurance for seniors,

369
00:23:15,620 --> 00:23:19,300
if you're married, if you have a spouse or somebody that you

370
00:23:19,300 --> 00:23:23,140
rely on for income, even if they're not, you know, directly

371
00:23:23,140 --> 00:23:26,860
married to you when they pass away, you don't get to keep both

372
00:23:26,860 --> 00:23:30,500
incomes from Social Security. And a lot of people,

373
00:23:30,900 --> 00:23:34,500
the majority of Americans are reliant on Social Security

374
00:23:34,500 --> 00:23:38,340
for their income. And so imagine if your income gets cut in

375
00:23:38,340 --> 00:23:42,160
half, can you all of a sudden afford all the bills next month?

376
00:23:43,760 --> 00:23:47,360
Whereas a life insurance policy can help you bridge the gap

377
00:23:47,600 --> 00:23:50,560
while you adjust your living situation.

378
00:23:51,280 --> 00:23:54,560
Yeah, yeah, that is very important for sure.

379
00:23:56,000 --> 00:23:59,800
So if someone wants to, you know, their, their, their term

380
00:23:59,800 --> 00:24:03,560
life is over, let's say they're 65, 70, 75. I

381
00:24:03,560 --> 00:24:07,330
imagine the, these, it does range in price depending

382
00:24:07,330 --> 00:24:10,970
on how much you get. And, and underwriting, which is health

383
00:24:11,210 --> 00:24:14,930
testing. So can you explain that a little bit so

384
00:24:14,930 --> 00:24:18,610
people kind of have an idea? Yeah, well, a lot of

385
00:24:18,610 --> 00:24:22,170
people will, will be in shock. When I've talked with

386
00:24:22,170 --> 00:24:25,610
a, it's like a 74 year old lady, she had a

387
00:24:25,930 --> 00:24:29,210
20 or 25 year term, it cancelled,

388
00:24:29,610 --> 00:24:33,370
they sent her a bill. If you want to keep this for another six years,

389
00:24:34,040 --> 00:24:36,920
all of a sudden it's going to be $1,000 a month

390
00:24:37,400 --> 00:24:40,920
instead of whatever it was $60 a month before.

391
00:24:41,480 --> 00:24:44,840
She was like that's absurd. Right. So I went over,

392
00:24:45,160 --> 00:24:48,520
we're addressing and looking at everything and

393
00:24:49,240 --> 00:24:53,000
I said, well, this is what you can qualify for in permanent insurance.

394
00:24:53,000 --> 00:24:56,280
Right. Similar budget of what you had been paying,

395
00:24:56,840 --> 00:25:00,120
but the amount, you know, it was like 300,000.

396
00:25:00,740 --> 00:25:04,500
It went down to like let's say 10,000. And she was like well

397
00:25:04,500 --> 00:25:06,980
that's absurd. I used to get this much.

398
00:25:08,340 --> 00:25:11,860
And that's just because you're not about. To die, you're closer to death.

399
00:25:12,180 --> 00:25:15,860
Yeah, according to an underwriter, you're closer to death. I,

400
00:25:15,940 --> 00:25:19,420
that I said that kind of. Rudely but, but that's

401
00:25:19,420 --> 00:25:23,020
exactly what it is. And, and it's the difference of going

402
00:25:23,020 --> 00:25:26,740
from term to permanent. Right. She paid in for 20 years

403
00:25:27,340 --> 00:25:30,900
and didn't get anything back because she didn't have return of

404
00:25:30,900 --> 00:25:34,540
premium. And ultimately in her situation she decided, or we

405
00:25:34,780 --> 00:25:38,460
together combined said hey, you probably don't need it. Your house is

406
00:25:38,460 --> 00:25:42,180
paid off, your car is paid off. You could just set aside the

407
00:25:42,180 --> 00:25:45,500
money out of your Social Security for a couple of years and

408
00:25:45,740 --> 00:25:49,500
have your arrangements taken care of. But not

409
00:25:49,500 --> 00:25:53,220
everybody's in that situation. And some people just want

410
00:25:53,220 --> 00:25:56,580
to make sure that the family or the state is

411
00:25:56,740 --> 00:26:00,580
taken care of. I have a doctor or a dentist,

412
00:26:00,580 --> 00:26:04,420
a doctorate in dentistry that I have coverage

413
00:26:04,420 --> 00:26:08,100
with him and his wife. Even though they have like a

414
00:26:08,180 --> 00:26:12,020
$150,000 policy with one of those

415
00:26:12,020 --> 00:26:15,540
big permanent companies, you know, the,

416
00:26:16,580 --> 00:26:20,420
they're like, hey, if, if we pass away, this needs to be the income

417
00:26:20,420 --> 00:26:24,240
for the spouse. The. But we don't want to have to take that policy down

418
00:26:24,240 --> 00:26:27,920
if we're tight on cash and use that at the funeral

419
00:26:27,920 --> 00:26:31,600
home and have them charge us excess fees. So

420
00:26:32,160 --> 00:26:35,600
right there it's just protecting the estate and making sure that

421
00:26:35,920 --> 00:26:39,760
each individual in that family has the help they need

422
00:26:39,760 --> 00:26:43,520
right when they need it. So what would you guess? Do you have an

423
00:26:43,520 --> 00:26:46,960
idea about what they need to be planning for, for funeral

424
00:26:46,960 --> 00:26:50,740
expenses in general? Yeah, so

425
00:26:51,300 --> 00:26:54,940
I, I do funeral expense planning

426
00:26:54,940 --> 00:26:58,580
on a, basically a daily basis with people. And

427
00:26:59,860 --> 00:27:03,660
so I'm all too familiar with the topic. If you're planning for a

428
00:27:03,660 --> 00:27:07,380
cremation and you don't have the money

429
00:27:07,380 --> 00:27:11,140
today, if you have a life insurance policy that you're going to pay for

430
00:27:11,140 --> 00:27:14,980
it right now, you're going to need between 4 and

431
00:27:14,980 --> 00:27:18,680
$5,000 of life insurance coverage. That's

432
00:27:18,680 --> 00:27:21,760
going to help take care of everything, pay the fees and

433
00:27:21,920 --> 00:27:25,400
etc. Between transportation costs, death

434
00:27:25,400 --> 00:27:28,880
certificates, the cremation, they even

435
00:27:29,200 --> 00:27:31,520
put you in a casket for a cremation.

436
00:27:33,120 --> 00:27:36,880
But the level of quality service that you want,

437
00:27:37,040 --> 00:27:39,520
it could be a little less or a little more.

438
00:27:41,120 --> 00:27:44,730
If you want a burial, the really

439
00:27:44,810 --> 00:27:48,330
starts at at least $10,000.

440
00:27:49,850 --> 00:27:53,530
And that's if you can find a plot of land for a

441
00:27:53,770 --> 00:27:57,130
cheap or decent price. But

442
00:27:57,770 --> 00:28:01,330
most people that I've been working with in the last two years, if

443
00:28:01,330 --> 00:28:04,770
they've had to do a burial that nothing was planned in

444
00:28:04,770 --> 00:28:08,250
advance, it was closer to the 12 to

445
00:28:08,250 --> 00:28:10,030
$15,000 range.

446
00:28:11,620 --> 00:28:15,300
Yikes. Yeah. That is a final expense for sure.

447
00:28:15,700 --> 00:28:19,540
Yeah, hence the name. So let's

448
00:28:19,540 --> 00:28:23,060
talk underwriting for a second. So underwriting, that's, that's when

449
00:28:23,060 --> 00:28:26,580
prices vary per person based on their health. Yes.

450
00:28:27,300 --> 00:28:31,140
There's a lot of different ways that companies do underwriting.

451
00:28:31,140 --> 00:28:34,820
Each individual company is different. One of the big things

452
00:28:34,820 --> 00:28:38,660
that people need to look out for is, is if they're going

453
00:28:38,660 --> 00:28:42,380
into one of these insurance companies that says we don't

454
00:28:42,380 --> 00:28:46,140
ask any health questions, we issue

455
00:28:46,140 --> 00:28:49,140
a policy to anyone, and

456
00:28:49,540 --> 00:28:52,980
anything like that is going to have a two year waiting period

457
00:28:53,219 --> 00:28:56,980
before a death benefit's paid. And the rates are going to be

458
00:28:57,220 --> 00:28:59,940
on average much higher than

459
00:29:00,500 --> 00:29:03,460
anything that they could qualify if their health was

460
00:29:04,170 --> 00:29:07,970
even remotely decent. Okay. Now that type of policy does

461
00:29:07,970 --> 00:29:11,650
have an important place, right. There's some

462
00:29:11,650 --> 00:29:15,330
people who got a cancer diagnosis and they're like, you know

463
00:29:15,330 --> 00:29:19,090
what? It's better late than never. And so I'm going to put in

464
00:29:19,090 --> 00:29:22,250
a policy with one of these guaranteed acceptance companies

465
00:29:22,650 --> 00:29:26,050
and just, you know, hope that I make it through those two years and

466
00:29:26,050 --> 00:29:29,850
everything's okay. If you do pass away in that time period,

467
00:29:30,640 --> 00:29:33,960
the family Gets all of the money back that you paid in. So it's not

468
00:29:33,960 --> 00:29:37,440
like it's all a loss, it's just not a full death benefit.

469
00:29:37,520 --> 00:29:41,280
Gotcha. Now beyond that, the a big factor

470
00:29:41,440 --> 00:29:45,280
are chronic health conditions like heart disease, lung

471
00:29:45,280 --> 00:29:47,920
disease, kidney or liver disorders.

472
00:29:48,880 --> 00:29:52,640
Cancer is a big one. And diabetes. If

473
00:29:52,640 --> 00:29:56,240
your conditions are under control or with basic medications,

474
00:29:56,840 --> 00:30:00,120
you could probably pass through underwriting. With most

475
00:30:00,200 --> 00:30:03,920
insurance companies, okay, it's once they've

476
00:30:03,920 --> 00:30:07,160
been chronic or you're on some pretty heavy duty

477
00:30:07,160 --> 00:30:11,000
medications. And that's how they do it. Most of these companies

478
00:30:11,160 --> 00:30:15,000
nowadays are just running a prescription history check

479
00:30:15,400 --> 00:30:18,840
through the medical information Bureau. It's called an MIB report.

480
00:30:19,400 --> 00:30:22,920
They check your history, they know exactly what you've taken for the last

481
00:30:23,460 --> 00:30:27,260
five years and they can say this medicine's a

482
00:30:27,260 --> 00:30:30,900
risk factor or no, everything you're on is, okay, let's

483
00:30:31,700 --> 00:30:35,500
issue this policy. That's interesting. So they don't like send someone out to take

484
00:30:35,500 --> 00:30:39,299
your blood pressure and look at you and stuff anymore. If you have a

485
00:30:39,299 --> 00:30:41,780
big policy like let's say you're going for

486
00:30:43,300 --> 00:30:46,980
half a million dollars. Some insurance companies will

487
00:30:46,980 --> 00:30:50,750
still require traditional underwriting or like a physical or

488
00:30:50,750 --> 00:30:54,190
a medical exam. But since COVID

489
00:30:54,270 --> 00:30:57,710
happened, they've really done

490
00:30:57,950 --> 00:31:01,750
a good job at improving the way

491
00:31:01,750 --> 00:31:05,350
they do underwriting and categorizing things. And most

492
00:31:05,350 --> 00:31:07,790
insurance companies are moving to that

493
00:31:08,830 --> 00:31:12,630
quick decision through the Medical Information Bureau. Because our

494
00:31:12,630 --> 00:31:16,430
medical reports are all stored electronically anyways, they might as well

495
00:31:16,430 --> 00:31:19,730
use them, you know? You know. Yeah, that's interesting. Yeah, for sure.

496
00:31:20,290 --> 00:31:23,250
I know the world has changed since COVID so that changed

497
00:31:24,370 --> 00:31:27,410
everything. Yeah. Even like how you get insurance.

498
00:31:29,570 --> 00:31:33,410
Okay, so let's move on to Medicare. So you do Medicare

499
00:31:33,410 --> 00:31:37,250
for people, and that's kind of a big topic. So that's health insurance

500
00:31:37,250 --> 00:31:40,930
for seniors. And what are the, what are the things

501
00:31:41,010 --> 00:31:44,750
people need to know about Medicare? Yeah, so a

502
00:31:44,750 --> 00:31:47,910
lot of people get Medicare confused with Medicaid.

503
00:31:48,710 --> 00:31:52,350
That's a big one. I, I, people

504
00:31:52,350 --> 00:31:55,910
come up to me all the time, oh, I have Medicare. And they're like under

505
00:31:55,910 --> 00:31:59,430
65. I'm like, do you or do you have

506
00:31:59,430 --> 00:32:02,790
Medicaid? Oh, yeah, yeah, it's that, it's that other one.

507
00:32:03,430 --> 00:32:06,950
So that's a big thing is that Medicare is a federal

508
00:32:07,350 --> 00:32:11,010
health insurance program that's for seniors

509
00:32:11,090 --> 00:32:14,690
65 and older or people who have been on Social

510
00:32:14,770 --> 00:32:18,370
Security disability for two years or more.

511
00:32:20,130 --> 00:32:23,650
So I have a client that's in Medicare who's in his 30s,

512
00:32:24,290 --> 00:32:27,930
but he's on disability and he

513
00:32:27,930 --> 00:32:30,610
qualified after being on disability for two years.

514
00:32:31,730 --> 00:32:35,370
But primarily this is for people who are 65 or

515
00:32:35,370 --> 00:32:39,030
older and don't have any sort of employer

516
00:32:39,030 --> 00:32:42,510
provided health insurance. If you're retired or

517
00:32:42,590 --> 00:32:45,870
if your employer kicks you off because you're

518
00:32:45,950 --> 00:32:49,710
Medicare eligible, Some of them do that even if you are still

519
00:32:49,710 --> 00:32:53,390
employed. Yeah. So what should people

520
00:32:53,550 --> 00:32:57,270
expect to pay for a policy? Medicare

521
00:32:57,270 --> 00:33:00,990
policy. Yep. So there's a couple different ways that

522
00:33:00,990 --> 00:33:04,750
Medicare works. There's. There's original Medicare. That's just

523
00:33:04,750 --> 00:33:08,550
the federal system. It has three primary

524
00:33:08,550 --> 00:33:11,750
parts. Part A is hospital insurance,

525
00:33:12,150 --> 00:33:15,670
and that's free. If you paid into Social Security,

526
00:33:16,070 --> 00:33:19,750
you or your spouse for 40

527
00:33:19,750 --> 00:33:23,430
quarters. So if you worked full time or, you know,

528
00:33:23,830 --> 00:33:27,630
equivalent amount of 10 years of full time work before you

529
00:33:27,630 --> 00:33:30,580
turn 65, hospital insurance is free.

530
00:33:31,620 --> 00:33:35,420
Then there's part B, and that's doctor's insurance if

531
00:33:35,420 --> 00:33:38,980
you need to go to a doctor's office, anything like that.

532
00:33:39,540 --> 00:33:43,300
Part B right now costs $185 a month.

533
00:33:43,780 --> 00:33:47,500
Most people elect to have it automatically withdrawn from their

534
00:33:47,500 --> 00:33:51,020
Social Security. And they don't even know that it's

535
00:33:51,020 --> 00:33:54,580
happening. They just. It's kind of like in the back of their mind. Right.

536
00:33:55,040 --> 00:33:58,880
They're not directly paying that bill. Some people do, but it's

537
00:33:58,880 --> 00:34:02,680
$185 a month. It went up $10 this

538
00:34:02,680 --> 00:34:06,240
year from last year. It used to be 174 and some change.

539
00:34:06,640 --> 00:34:10,160
Okay. And that does vary from year to year.

540
00:34:11,040 --> 00:34:14,480
And then there's part D. And part D is prescription

541
00:34:14,480 --> 00:34:18,160
drugs. Now, relatively recently,

542
00:34:18,240 --> 00:34:21,800
it wasn't when it started. You're required to have a

543
00:34:21,800 --> 00:34:25,600
prescription drug plan or some type of prescription drug coverage,

544
00:34:26,470 --> 00:34:30,230
and people will hear about things like Goodrx or

545
00:34:30,390 --> 00:34:34,230
one of these pharmacy discount programs. They might sign

546
00:34:34,230 --> 00:34:37,830
up because it's five bucks a month or something. But

547
00:34:37,830 --> 00:34:41,510
that's not actually a prescription drug plan. And it could

548
00:34:41,510 --> 00:34:44,950
cause issues down the road if you think that it is credible

549
00:34:44,950 --> 00:34:48,070
coverage. It's an important piece for seniors to know.

550
00:34:48,630 --> 00:34:52,410
All right, so would you recommend getting both having the Rx

551
00:34:52,410 --> 00:34:55,530
plan and Medicare Part D or.

552
00:34:56,170 --> 00:34:59,970
Yeah, it really depends on your situation. Right. So now

553
00:34:59,970 --> 00:35:03,250
that we know what original Medicare is, there's two

554
00:35:03,250 --> 00:35:06,330
ways that people move forward and

555
00:35:06,730 --> 00:35:10,370
finish protecting their health care. Because most

556
00:35:10,370 --> 00:35:14,210
of the time, Medicare only pays for about 80% of

557
00:35:14,210 --> 00:35:17,530
your costs. And so if you go into the hospital

558
00:35:17,850 --> 00:35:21,560
and you're on a fixed income, do you want to pay 20%

559
00:35:21,640 --> 00:35:25,400
of a hospital bill? No.

560
00:35:25,640 --> 00:35:28,280
No. Right. Nobody, I mean,

561
00:35:29,560 --> 00:35:33,320
rack up $50,000 in a week at a hospital. Yeah.

562
00:35:33,400 --> 00:35:36,360
What about you? But I don't really want to pay 20% of that

563
00:35:36,680 --> 00:35:39,880
myself. No. So people look at

564
00:35:39,880 --> 00:35:43,690
supplementary Medicare coverage. And so there's two types of

565
00:35:44,000 --> 00:35:47,520
that is a supplement plan or an Advantage plan.

566
00:35:47,840 --> 00:35:51,520
And a lot of people get the Advantage plans confused. Some people

567
00:35:51,600 --> 00:35:55,320
refer to them as Part C, Medicare

568
00:35:55,320 --> 00:35:58,560
Advantage. There's a lot of different names, but

569
00:36:00,400 --> 00:36:03,680
those, those two are the big differentiators.

570
00:36:03,920 --> 00:36:07,560
Advantage plans and supplements. Now, we'll touch on

571
00:36:07,560 --> 00:36:11,310
supplements first, because this was how most people

572
00:36:11,470 --> 00:36:14,990
used to do it. The supplement plan

573
00:36:15,310 --> 00:36:18,950
is like a private. It's kind of like having dental insurance.

574
00:36:18,950 --> 00:36:22,790
Right. And you pay for it. Cost 30 bucks a month or whatever. You

575
00:36:22,790 --> 00:36:26,309
can go to the dentist. Well, the supplement, you pay a

576
00:36:26,309 --> 00:36:30,150
monthly fee and they cover. It's supposed

577
00:36:30,150 --> 00:36:33,630
to cover that other 20% that Medicare doesn't.

578
00:36:33,870 --> 00:36:36,990
So it fills in the gap. That's why a lot of people call it

579
00:36:37,180 --> 00:36:40,980
medigap coverage. But makes

580
00:36:40,980 --> 00:36:44,660
sense. There's a lot of different ways those plans are structured. And

581
00:36:44,660 --> 00:36:48,060
so if you're thinking about a supplement or

582
00:36:48,060 --> 00:36:51,860
medigap plan, it's important to really sit down

583
00:36:51,860 --> 00:36:55,460
and analyze your health care needs before you make a

584
00:36:55,460 --> 00:36:59,180
decision, because you only get one time of

585
00:36:59,180 --> 00:37:02,780
a guaranteed issue where any. You could have cancer

586
00:37:03,010 --> 00:37:06,690
and they have to write you a policy when you turn 65.

587
00:37:06,930 --> 00:37:10,770
It cannot deny you. Oh, interesting. So if you

588
00:37:10,770 --> 00:37:14,130
have really complex healthcare needs and you have

589
00:37:14,370 --> 00:37:17,730
the monthly ability to pay for that supplement,

590
00:37:18,050 --> 00:37:21,850
it could be a very, very strong way to do your

591
00:37:21,850 --> 00:37:25,330
Medicare plan. The other piece is that you have no network.

592
00:37:25,890 --> 00:37:29,450
Like, you have to stick within these doctors. You can go

593
00:37:29,450 --> 00:37:32,810
anywhere that Medicare is accepted, which is nationwide.

594
00:37:34,890 --> 00:37:38,650
With Medigap or the Medicap. You can do that

595
00:37:38,890 --> 00:37:42,330
with Medigap or supplement plans. Yes, those

596
00:37:42,410 --> 00:37:45,850
specifically because you're still with original Medicare.

597
00:37:46,170 --> 00:37:49,210
You have no required network.

598
00:37:50,730 --> 00:37:54,330
People that travel, people that get out of town,

599
00:37:54,410 --> 00:37:58,220
that's a really important, important piece for them. And so they like

600
00:37:58,220 --> 00:38:01,860
that. Yeah. So

601
00:38:02,100 --> 00:38:05,020
I want to recap a little bit because I, I know you talk about this

602
00:38:05,020 --> 00:38:08,820
every day, but I'm processing it and, and maybe people are too.

603
00:38:09,300 --> 00:38:12,900
So basically, you would want to get part A, part B, part

604
00:38:12,900 --> 00:38:15,620
C and. Part D. So

605
00:38:16,660 --> 00:38:19,780
it. Part C is not required.

606
00:38:20,340 --> 00:38:23,810
Okay. Part D is. But

607
00:38:23,970 --> 00:38:27,570
yes, once you turn 65, if you don't have creditable

608
00:38:27,570 --> 00:38:31,370
coverage from an employer, you want to sign up pretty much as

609
00:38:31,370 --> 00:38:34,370
soon as possible. Because if you don't have

610
00:38:35,810 --> 00:38:39,330
prescription drug coverage, you can get fined

611
00:38:39,570 --> 00:38:43,370
later in life when you finally do sign up because you did it

612
00:38:43,370 --> 00:38:46,930
too late. There's. It's called a late

613
00:38:46,930 --> 00:38:50,530
enrollment penalty. And there are prescription

614
00:38:50,530 --> 00:38:53,930
drug plans that cost nothing out of pocket, no

615
00:38:53,930 --> 00:38:57,770
extra money. And so it makes complete sense where

616
00:38:57,770 --> 00:39:01,490
even if you have super basic healthcare needs, you don't think you need

617
00:39:01,490 --> 00:39:04,970
it. Like I'll just sign up in a few years when it's more important.

618
00:39:05,770 --> 00:39:09,610
Don't do that. Okay, so part, part D can

619
00:39:09,610 --> 00:39:12,490
be a zero cost. Exactly. Okay.

620
00:39:13,210 --> 00:39:16,630
All right. It does depend on your market. So you know, I can't

621
00:39:16,630 --> 00:39:20,230
guarantee in, in every single place, but most

622
00:39:20,230 --> 00:39:24,030
places have a zero dollar plan. Okay, so can you

623
00:39:24,030 --> 00:39:27,750
go through again and just tell us kind of the expected cost

624
00:39:27,910 --> 00:39:31,550
per, per part. So, so

625
00:39:31,550 --> 00:39:35,190
part A is free if you've worked full time

626
00:39:35,430 --> 00:39:38,950
for 10 years or if you put in 40 hours

627
00:39:39,030 --> 00:39:42,630
or 40 quarters. Sorry. Of payments into your Social Security.

628
00:39:43,350 --> 00:39:47,110
Okay. Or if you're, if you're like a stay

629
00:39:47,110 --> 00:39:50,950
at home spouse and your partner did that, that qualifies. Like

630
00:39:51,350 --> 00:39:54,630
because you filed jointly or whatever, it qualifies you.

631
00:39:55,030 --> 00:39:58,630
So are there exceptions on that? What I'm wondering about is like

632
00:39:58,789 --> 00:40:01,790
you had a spouse who did that, but you get remarried too early. I've heard

633
00:40:01,790 --> 00:40:05,470
that can cut it and not make it happen. Or if you're

634
00:40:05,470 --> 00:40:09,310
working past 65 or what are their, are there like

635
00:40:09,790 --> 00:40:13,430
devil in the detail stuff? There are some exceptional

636
00:40:13,430 --> 00:40:17,230
circumstances that can make part A not free.

637
00:40:17,790 --> 00:40:20,830
And there's a lot of people who

638
00:40:21,390 --> 00:40:25,190
had to take early SSI or you know, but they

639
00:40:25,190 --> 00:40:28,790
didn't quite qualify for disability. And so their part

640
00:40:28,790 --> 00:40:32,350
A isn't paid for. And I looked it up for one

641
00:40:32,350 --> 00:40:36,170
gentleman just about a week ago and his would have been

642
00:40:36,170 --> 00:40:39,970
$253 a month. And he's like, I don't

643
00:40:39,970 --> 00:40:42,730
want that. I said, you know, you don't need it

644
00:40:44,570 --> 00:40:47,690
because he has, he just has prescription drug coverage.

645
00:40:48,250 --> 00:40:52,090
So that's the one that's required. You don't need

646
00:40:52,170 --> 00:40:55,890
part A and part B if you're in

647
00:40:55,890 --> 00:40:59,650
some interesting bind. Yeah. So you have to basically get a

648
00:40:59,650 --> 00:41:03,130
part D pretty much as soon as you turn 65. That's, that's the

649
00:41:03,130 --> 00:41:06,090
requirement. And the other ones you can pick and choose from.

650
00:41:06,730 --> 00:41:10,570
Yeah, right. Yeah. It really comes down to your specific

651
00:41:10,650 --> 00:41:14,410
case. You know, the majority of people are going to want to

652
00:41:14,410 --> 00:41:17,930
have A and B and D

653
00:41:18,409 --> 00:41:21,890
because most people want to make sure they can go to the hospital, the doctor

654
00:41:21,890 --> 00:41:25,530
and pick up prescriptions, right? Yeah. So A is

655
00:41:25,530 --> 00:41:29,220
hospital and that's generally free. B is the Doctor and

656
00:41:29,220 --> 00:41:33,020
that's $185 a month. Yeah. And

657
00:41:33,020 --> 00:41:36,660
then D is prescription drugs and that's generally free. And then part

658
00:41:36,660 --> 00:41:40,340
C, what is what, that's the supplemental for what isn't

659
00:41:40,340 --> 00:41:43,940
covered at a hospital or that that's

660
00:41:44,020 --> 00:41:47,540
for the 20% that's not covered. Right. So part

661
00:41:47,540 --> 00:41:51,340
C is different from a supplement plan we've got. That's

662
00:41:51,340 --> 00:41:54,910
like the delineating factor here. Okay, so the supplement, supplement plan,

663
00:41:55,470 --> 00:41:57,870
those are over here. This is Medigap,

664
00:41:59,230 --> 00:42:02,710
Medicare supplements, things like that, that covers the

665
00:42:02,710 --> 00:42:06,350
20%. Okay. If you join part C over here,

666
00:42:06,990 --> 00:42:09,870
what part C does is it actually combines

667
00:42:10,510 --> 00:42:14,270
A, B and D all together

668
00:42:14,830 --> 00:42:18,230
into one plan. And that's called a Medicare

669
00:42:18,230 --> 00:42:21,560
Advantage plan with prescription drug coverage.

670
00:42:22,440 --> 00:42:26,280
And so that, that does come down to a county by

671
00:42:26,280 --> 00:42:29,560
county basis. Every county will have its own

672
00:42:30,120 --> 00:42:33,840
Medicare Advantage plans. A lot of them will look very similar to

673
00:42:33,840 --> 00:42:37,480
the county next to them. But if you're in a very rural spot,

674
00:42:37,640 --> 00:42:41,480
they might not even be available. If you drive 100 miles

675
00:42:41,480 --> 00:42:45,280
outside of Reno, where we live, there's not going to be

676
00:42:45,280 --> 00:42:49,070
any Medicare Advantage plans offered. You have to be on

677
00:42:49,070 --> 00:42:52,190
a supplement. They just don't have big enough

678
00:42:52,190 --> 00:42:55,270
populations to support that type of coverage.

679
00:42:55,830 --> 00:42:59,350
Okay, if you, if you've ever heard of a PPO or an

680
00:42:59,350 --> 00:43:02,950
HMO health insurance, that's

681
00:43:02,950 --> 00:43:06,630
how Medicare Advantage plans work. So they're a

682
00:43:06,630 --> 00:43:10,430
managed care organization. You know,

683
00:43:10,430 --> 00:43:14,220
they're the big names in insurance. If you ever

684
00:43:14,460 --> 00:43:17,980
you think of a health care insurance company, they probably do

685
00:43:18,060 --> 00:43:21,500
Medicare as well. And they'll have a

686
00:43:21,500 --> 00:43:25,220
specific network of doctors, hospitals and

687
00:43:25,220 --> 00:43:28,300
specialists that they will work in.

688
00:43:30,060 --> 00:43:33,020
For a lot of people, this is going to be

689
00:43:33,740 --> 00:43:36,692
the route that they take. It's about 60%,

690
00:43:36,868 --> 00:43:40,470
50 to 60% of Americans are on

691
00:43:40,470 --> 00:43:43,790
Advantage plans. And the reason is, is that

692
00:43:44,110 --> 00:43:47,790
they for the most part have no additional out

693
00:43:47,790 --> 00:43:51,070
of pocket cost above your part B premium.

694
00:43:51,790 --> 00:43:55,310
So most of them are built around a zero dollar monthly

695
00:43:55,310 --> 00:43:58,990
premium. They cover your prescription drugs with

696
00:43:58,990 --> 00:44:02,350
some small co pays. They have a fixed

697
00:44:02,670 --> 00:44:06,270
maximum out of pocket cost that you can build into your budget

698
00:44:06,720 --> 00:44:10,160
in an emergency type of situation. And then

699
00:44:10,400 --> 00:44:13,880
they have set co pays for all of your visits to the

700
00:44:13,880 --> 00:44:17,600
doctor, you know, routine stuff.

701
00:44:18,080 --> 00:44:21,920
And then they also provide or can provide

702
00:44:22,640 --> 00:44:26,160
supplemental benefits like dental, hearing, vision

703
00:44:26,560 --> 00:44:30,200
or other things like a lot of people hear

704
00:44:30,200 --> 00:44:33,930
about Flex cards, those are always associated with

705
00:44:33,930 --> 00:44:37,610
Advantage plans or part. C. Okay, what's a flex

706
00:44:37,610 --> 00:44:41,050
card? Oh, that's a good question. Thanks.

707
00:44:43,290 --> 00:44:46,890
Flex cards, as most people refer them to,

708
00:44:47,290 --> 00:44:50,810
are usually over the counter spending cards.

709
00:44:51,210 --> 00:44:55,050
And each individual company will determine what

710
00:44:55,050 --> 00:44:58,670
you can and can't use them for. But what

711
00:44:58,670 --> 00:45:02,310
they'll do is they'll load up a certain amount of money on

712
00:45:02,390 --> 00:45:05,270
it looks like a Visa debit card or something like that.

713
00:45:06,470 --> 00:45:10,070
And they'll give you that on a monthly basis or quarterly,

714
00:45:10,070 --> 00:45:13,750
depending on how the company works, to go to the store

715
00:45:14,070 --> 00:45:17,710
and buy over the counter supplies. Some of them let you buy

716
00:45:17,710 --> 00:45:21,550
groceries like healthy foods. Some of them allow you to

717
00:45:21,550 --> 00:45:25,210
use it to pay for power like utilities or

718
00:45:25,210 --> 00:45:28,810
even gas at the pump. There's quite a variety,

719
00:45:28,970 --> 00:45:32,810
but each company has, you know, different restrictions and

720
00:45:32,810 --> 00:45:36,170
how they work. And so that, that's part of the Medicare

721
00:45:36,250 --> 00:45:39,890
Advantage plan for some. Some things. All right,

722
00:45:39,890 --> 00:45:43,330
so I am curious. I know you have stories about people

723
00:45:43,330 --> 00:45:47,170
who've bought a Medicare Advantage plan from someone who maybe

724
00:45:47,170 --> 00:45:50,810
doesn't know their area and that hasn't worked out for them. Why might that be?

725
00:45:51,880 --> 00:45:55,320
Yeah, so every Medicare Advantage plan

726
00:45:55,560 --> 00:45:58,440
has networks that they work in.

727
00:45:59,480 --> 00:46:03,280
Just this week, I met with a gentleman who had been

728
00:46:03,280 --> 00:46:06,680
sold an Advantage plan that he did not know

729
00:46:06,919 --> 00:46:10,760
he could not go to the preferred hospital or his preferred

730
00:46:11,320 --> 00:46:15,080
doctor that he's been going to for years. They just said, oh,

731
00:46:15,080 --> 00:46:18,920
yeah, this, you know, this is the greatest thing since sliced bread. And he's

732
00:46:18,920 --> 00:46:22,320
like, sounds good. He didn't even think to ask or

733
00:46:22,400 --> 00:46:25,920
know that he should ask about networks.

734
00:46:26,400 --> 00:46:30,160
Okay, so that's a big piece of it. The other

735
00:46:30,160 --> 00:46:33,760
piece is that networks can change. In

736
00:46:34,480 --> 00:46:38,320
July. Yeah, July, I helped a couple who had been with

737
00:46:38,320 --> 00:46:42,160
one insurance company for many years, and they.

738
00:46:42,320 --> 00:46:46,080
That insurance company lost a major contract with one of

739
00:46:46,080 --> 00:46:49,790
the largest cancer centers in Northern Nevada. This

740
00:46:49,790 --> 00:46:53,630
happened back in April of this year. And the husband

741
00:46:53,630 --> 00:46:57,350
is going through treatment. He had to leave his network

742
00:46:57,350 --> 00:47:00,950
provider, go to a different place, wasn't having

743
00:47:01,510 --> 00:47:05,190
the type of service that he really wanted. And so

744
00:47:05,270 --> 00:47:08,630
when they found out that there was a

745
00:47:08,870 --> 00:47:12,510
different organization that could still visit that original

746
00:47:12,510 --> 00:47:16,280
cancer center he likes so much, they were

747
00:47:16,520 --> 00:47:20,360
obviously overjoyed that I would be able to help them make that switch.

748
00:47:20,840 --> 00:47:24,680
Yeah, I can imagine that's. Yeah. Making a mistake with this can.

749
00:47:24,680 --> 00:47:28,440
Can be devastating, which is part of the reason why I wanted to have you

750
00:47:28,440 --> 00:47:32,280
on, because I do think people get. They just don't know

751
00:47:32,280 --> 00:47:35,120
who to ask the questions to. And they don't know if they're going to be

752
00:47:35,120 --> 00:47:38,640
sold a bill of goods that. That isn't true. So I

753
00:47:38,640 --> 00:47:42,310
certainly, by doing this, would like to have everyone and, and also

754
00:47:42,310 --> 00:47:45,870
I've seen, you know, my mom and aunts and stuff

755
00:47:45,870 --> 00:47:49,590
really kind of like get. And uncles and stuff like that that

756
00:47:49,590 --> 00:47:53,270
are in that boomer age get frustrated and, and

757
00:47:53,270 --> 00:47:57,069
concerned that they're making a bad decision or what which decision should I

758
00:47:57,069 --> 00:48:00,630
make? And that's like, because you know, then you're relying on

759
00:48:00,630 --> 00:48:04,270
someone that you want to have a very honest person in front of you like

760
00:48:04,270 --> 00:48:08,050
yourself, which is why I wanted to have you on to just, to, to just

761
00:48:08,050 --> 00:48:11,490
talk through it and you know, this is an. Explain it all

762
00:48:11,570 --> 00:48:15,370
accurately. Yeah. And kind of with what the expectations

763
00:48:15,370 --> 00:48:19,210
should be. Yeah. So there's a big piece there that

764
00:48:19,210 --> 00:48:22,050
you touched on. And I think it's really important

765
00:48:24,290 --> 00:48:28,010
to be working with someone like, like myself who's

766
00:48:28,010 --> 00:48:31,490
a broker with a lot of

767
00:48:31,650 --> 00:48:35,500
moral integrity and here's why. There's a

768
00:48:35,500 --> 00:48:39,260
lot of telemarketers that are brokers, but they may

769
00:48:39,260 --> 00:48:42,900
only contract with three or four

770
00:48:42,900 --> 00:48:46,660
different nationwide organizations and they don't

771
00:48:46,660 --> 00:48:49,740
even know what is happening in your market.

772
00:48:50,300 --> 00:48:53,660
And so if you live in central Texas or

773
00:48:53,820 --> 00:48:57,060
southeast Florida and you're getting a call from one of these

774
00:48:57,060 --> 00:49:00,820
telemarketers and they say, oh well, I've got better benefits for you

775
00:49:00,820 --> 00:49:04,560
on this plan. Get you to switch and you find out that like

776
00:49:04,560 --> 00:49:07,400
you said, it's not the bill of gold goods you were sold.

777
00:49:09,160 --> 00:49:12,840
It's really important to, you know, just find out someone

778
00:49:13,080 --> 00:49:16,920
who's either willing to do the research for you. Right. If

779
00:49:16,920 --> 00:49:20,680
they don't live in your area or somebody who knows your area

780
00:49:20,680 --> 00:49:24,360
like the back of your, their hand. Yeah. My services,

781
00:49:25,160 --> 00:49:28,840
a broker does not cost anything extra out of your pocket.

782
00:49:29,370 --> 00:49:33,210
We're compensated by the insurance companies that we work for and our

783
00:49:33,210 --> 00:49:36,650
compensation is set at a federal level. So one

784
00:49:36,650 --> 00:49:40,490
insurance company can't incentivize me over another. I

785
00:49:40,490 --> 00:49:43,930
want to do what's best for my client because it helps with retention

786
00:49:44,250 --> 00:49:48,050
and that long term relationship that I'm looking to build with

787
00:49:48,050 --> 00:49:51,530
the people that I serve. And so if you find somebody like

788
00:49:51,530 --> 00:49:55,230
myself who has that type of integrity and, and wants to

789
00:49:55,230 --> 00:49:58,950
do the research, they're going to ask you the right questions.

790
00:49:59,190 --> 00:50:02,950
Yeah. And that's a big way you can find out are they asking you

791
00:50:02,950 --> 00:50:05,670
questions or are they just selling you benefits?

792
00:50:06,870 --> 00:50:10,310
Yeah. Can you explain? I think a lot of people probably do know the difference

793
00:50:10,310 --> 00:50:13,670
between a captive agent and a broker. But can you explain that?

794
00:50:14,070 --> 00:50:17,830
Yeah. Yeah. So a captive agent would be somebody

795
00:50:17,830 --> 00:50:20,950
that works directly for a single insurance company.

796
00:50:22,740 --> 00:50:26,420
There are some captive agents that work for

797
00:50:26,820 --> 00:50:30,620
an organization that may contract to two or maybe

798
00:50:30,620 --> 00:50:34,260
three. They're not really a broker because they don't have access

799
00:50:34,580 --> 00:50:38,420
outside of their system. They're like captive to an agency

800
00:50:38,900 --> 00:50:42,020
even though the agency brokers but that the

801
00:50:42,020 --> 00:50:45,540
captivity keeps them from even being able to

802
00:50:45,540 --> 00:50:48,740
explain what the competition could be doing,

803
00:50:49,340 --> 00:50:52,780
how they may be able to be better served from a different

804
00:50:52,780 --> 00:50:56,460
organization. And what they're going to

805
00:50:56,460 --> 00:51:00,060
focus on is their benefits, whether they're

806
00:51:00,060 --> 00:51:03,740
greater or their cost is less. They're going to try to sell you

807
00:51:03,740 --> 00:51:07,260
on something like that rather than making

808
00:51:07,340 --> 00:51:10,940
sure that the solution you choose fits your needs

809
00:51:10,940 --> 00:51:14,500
best. Right. So if you do choose to work with a captive

810
00:51:14,500 --> 00:51:18,260
agent for some reason or talk to one, probably the best idea would be to

811
00:51:18,260 --> 00:51:21,630
get more than one person to talk to. So

812
00:51:22,190 --> 00:51:25,990
here come have more than one person to talk to. But yeah, I

813
00:51:25,990 --> 00:51:29,590
do like the broker in general and insurance for that

814
00:51:29,590 --> 00:51:32,670
reason, because you have the, the ability to go to different

815
00:51:32,910 --> 00:51:36,710
insurance companies and, and

816
00:51:36,710 --> 00:51:40,510
just pick and choose what's best for the client. I have generally really

817
00:51:40,510 --> 00:51:43,230
preferred that myself. So that is.

818
00:51:44,110 --> 00:51:47,540
Yeah. And I think a lot of people are intimidated. Um,

819
00:51:47,780 --> 00:51:51,580
you know, I've had people just talked to somebody this morning and, and I

820
00:51:51,580 --> 00:51:55,260
was telling her, hey, have your friend give me a call and

821
00:51:55,260 --> 00:51:58,820
I'll walk her through a couple, you know, different questions and make sure

822
00:51:58,820 --> 00:52:02,540
that whatever, even if she doesn't choose to work with me, the plan

823
00:52:02,540 --> 00:52:06,380
that she picks is the best one for her. And she

824
00:52:06,380 --> 00:52:09,820
said, well, what does that cost? What, what are you going to charge her? I

825
00:52:09,820 --> 00:52:13,220
said, nothing. I'm just out here to do the right thing.

826
00:52:13,920 --> 00:52:17,760
And, you know, that's not how compensation works in,

827
00:52:18,240 --> 00:52:22,040
in our field. That's interesting because I wouldn't even

828
00:52:22,040 --> 00:52:25,560
have thought to that. That would be something people would be confused about. But of

829
00:52:25,560 --> 00:52:29,160
course, if you don't know, you don't know. So there's not a cost to have

830
00:52:29,160 --> 00:52:32,640
you come talk to you. You get paid basically by the

831
00:52:32,720 --> 00:52:36,360
government or the insurance. The insurance companies, you know. Yes, the government

832
00:52:36,360 --> 00:52:40,200
pays the insurance companies to pay you. So. Yes. Yeah. Big, big thing

833
00:52:40,200 --> 00:52:43,760
that we have to say. We are not federal employees. I do not

834
00:52:43,760 --> 00:52:47,450
work for Medicare. Yeah. Oh, yeah.

835
00:52:47,850 --> 00:52:50,810
Because it is interesting. It is, it is like that. Maybe people don't know that

836
00:52:50,810 --> 00:52:54,570
either. So the government contracts with the insurance

837
00:52:54,570 --> 00:52:58,170
companies. Correct. And then the insurance companies deliver the

838
00:52:58,170 --> 00:53:01,810
insurance. Yes. So that the government isn't in the

839
00:53:01,810 --> 00:53:05,610
business necessarily of insurance. They are in the business of paying insurance

840
00:53:05,610 --> 00:53:09,130
companies to make it happen. Is that accurate? That's.

841
00:53:09,130 --> 00:53:11,770
Yeah, that's accurate. When it comes to part C.

842
00:53:12,640 --> 00:53:16,200
Okay. Right. If you are on original Medicare with a

843
00:53:16,200 --> 00:53:19,840
supplement, the federal government pays the

844
00:53:19,840 --> 00:53:23,600
doctor directly through

845
00:53:23,760 --> 00:53:27,560
the Medicare billing, you know, portal

846
00:53:27,560 --> 00:53:31,240
or whatever, however they do that. Right. Okay. And then

847
00:53:31,240 --> 00:53:34,920
what's left over, you turn over to your Supplement company

848
00:53:34,920 --> 00:53:38,250
and they pay the leftover. Okay.

849
00:53:38,490 --> 00:53:41,770
So I appreciate you if I'm confused about that.

850
00:53:42,170 --> 00:53:45,530
I imagine maybe someone else is, because, you know, I'm really so. No,

851
00:53:45,770 --> 00:53:49,210
I'm just kidding. Yeah, that's. That's good to know.

852
00:53:49,290 --> 00:53:53,090
So, A, again, is the hospital and the government

853
00:53:53,090 --> 00:53:56,610
would directly pay that bill. And then B, is the doctor, and the government would

854
00:53:56,610 --> 00:53:59,770
directly pay that bill with Medicare supplement.

855
00:54:00,650 --> 00:54:03,950
Medicare Advantage plan or supplement plan plan would

856
00:54:05,550 --> 00:54:09,390
tell me if I'm right. So that the part C Medicare Advantage plan

857
00:54:09,550 --> 00:54:13,150
would be the government paying the insurance company who pays the claim.

858
00:54:13,790 --> 00:54:16,670
Yes. Accurate. Yeah. So it. It

859
00:54:17,390 --> 00:54:21,230
in. In a Advantage plan, if you're not with

860
00:54:21,390 --> 00:54:24,910
original Medicare anymore, you've joined an Advantage plan,

861
00:54:25,950 --> 00:54:29,350
the federal government pays them a monthly stipend

862
00:54:29,350 --> 00:54:32,990
essentially for each of their members. And

863
00:54:32,990 --> 00:54:36,750
so then when you go to the hospital, it's up

864
00:54:36,750 --> 00:54:40,430
to that insurance company to pay that claim. And here's

865
00:54:40,430 --> 00:54:44,150
one piece that it really makes me like

866
00:54:44,150 --> 00:54:47,830
Advantage Plans from an outside perspective. I'm

867
00:54:47,830 --> 00:54:51,510
obviously not in Medicare as a recipient or a

868
00:54:51,510 --> 00:54:55,270
beneficiary, but one of the things

869
00:54:55,270 --> 00:54:58,870
that I have seen, which with some of my own clients, is

870
00:54:58,870 --> 00:55:02,070
that the Advantage Plan, that they are

871
00:55:02,150 --> 00:55:05,910
incentivized to keep you healthy. They are more

872
00:55:05,910 --> 00:55:09,630
profitable as a company if you're not going into the

873
00:55:09,630 --> 00:55:13,189
hospital, you know, every other week

874
00:55:13,430 --> 00:55:16,470
because your health is so poor. So they do

875
00:55:16,630 --> 00:55:20,230
supplemental benefits that are there to help you

876
00:55:20,230 --> 00:55:23,350
be healthy, help you be happy, taken care of.

877
00:55:25,150 --> 00:55:28,790
That way you're not having to use the healthcare

878
00:55:28,790 --> 00:55:32,590
system excessively. And they make, you know, they don't

879
00:55:32,590 --> 00:55:36,310
make more money off of you if you, you know,

880
00:55:36,310 --> 00:55:40,110
they're. If you're. Yeah, right, right. Because,

881
00:55:40,110 --> 00:55:43,670
like, here's your stipend. So, like, they're. They wanted to. And isn't. Silver

882
00:55:43,670 --> 00:55:47,150
sneakers. Is that Nationwide? Yeah. No.

883
00:55:47,230 --> 00:55:50,990
So, like, that's an example. That is. Surprised I know

884
00:55:50,990 --> 00:55:54,550
about that. That's one of those little benefits that most Advantage

885
00:55:54,550 --> 00:55:58,150
plans have. A gym, free gym program

886
00:55:58,630 --> 00:56:02,350
where you can go in and get your. Get your workout

887
00:56:02,350 --> 00:56:05,990
on, get healthy, take classes, and you're not even

888
00:56:06,070 --> 00:56:09,910
committed to just one place. You can go nationwide or just

889
00:56:09,910 --> 00:56:13,270
across town to a different one if you want to try it out. Yeah.

890
00:56:13,510 --> 00:56:17,190
That's awesome. I know my mom, she must be on. I don't even know. I

891
00:56:17,190 --> 00:56:20,370
don't handle her insurance, but an Advantage plan because she said

892
00:56:20,770 --> 00:56:24,370
that sometimes she'll get bonused, you know, a little bit of money for doing

893
00:56:24,370 --> 00:56:28,130
certain activities. They'll just send her a little bit of money and

894
00:56:28,130 --> 00:56:31,770
stuff. So. So that's her little flex card. And many of the

895
00:56:31,770 --> 00:56:35,530
insurance companies will give you extra money on your

896
00:56:35,530 --> 00:56:38,850
flex card for doing routine

897
00:56:38,850 --> 00:56:42,610
preventative stuff like oh, did you get your mammogram done? Oh, did you get

898
00:56:42,610 --> 00:56:46,120
your flu shot? Here's $50. You know, go

899
00:56:46,120 --> 00:56:49,240
spend grocery store, have fun. Get some Oreos.

900
00:56:49,960 --> 00:56:53,640
Get some Oreos. That's not, not

901
00:56:53,720 --> 00:56:57,000
there's, that's not healthy. We're not, we're not.

902
00:56:57,880 --> 00:57:01,599
Yeah, the, the, those little

903
00:57:01,599 --> 00:57:04,760
like boosts have less

904
00:57:05,000 --> 00:57:08,840
restrictions on what you can. What you can get with it.

905
00:57:08,840 --> 00:57:12,570
Yeah, just do, do the thing that want you to do to stay

906
00:57:12,570 --> 00:57:16,290
healthy and then you have some spending money kind of thing. Yeah, exactly.

907
00:57:16,850 --> 00:57:20,570
Well, this was an enormous amount of good information. And I

908
00:57:20,570 --> 00:57:24,050
know you're licensed in a few states beyond Nevada,

909
00:57:25,410 --> 00:57:28,890
California, Texas and Florida. Is that correct? That's

910
00:57:28,890 --> 00:57:32,730
correct. I like to say I'm coast to. Coast, coast to

911
00:57:32,730 --> 00:57:36,530
coast, proud of myself, remembering. And then you know, in

912
00:57:36,530 --> 00:57:40,110
any other state that you're in the, there are people to help you with

913
00:57:40,110 --> 00:57:43,870
this. Exactly. And this is one thing that I, I'd

914
00:57:43,870 --> 00:57:46,510
love to leave your audience with is that,

915
00:57:47,870 --> 00:57:51,390
you know, ask a lot of questions, visit

916
00:57:51,390 --> 00:57:54,110
with a broker, see if you like

917
00:57:55,230 --> 00:57:58,910
their personality. If you think, is this person going to return your

918
00:57:58,910 --> 00:58:02,630
calls when you have a question. Because we are

919
00:58:02,630 --> 00:58:04,830
compensated to service our clients.

920
00:58:06,520 --> 00:58:10,160
Don't be afraid to sound stupid. I

921
00:58:10,160 --> 00:58:13,800
love answering those questions. And if you're trying to work with

922
00:58:13,800 --> 00:58:16,760
somebody and they're not trying to be overly helpful like that,

923
00:58:17,560 --> 00:58:20,960
go find someone else. There's somebody out there who wants to do an

924
00:58:20,960 --> 00:58:24,760
excellent job to make sure you're taken care of the best way

925
00:58:24,760 --> 00:58:28,480
possible. And if it doesn't cost you anything out

926
00:58:28,480 --> 00:58:32,100
of pocket, you might as well take their services and, and

927
00:58:32,100 --> 00:58:35,740
be well informed and taken care of. Yes,

928
00:58:35,740 --> 00:58:39,460
for sure. That's such good advice and such

929
00:58:39,540 --> 00:58:42,820
great information. So Sandra, thank you so much for coming on today

930
00:58:43,380 --> 00:58:46,980
and I appreciate you as a human and I appreciate you coming on. So

931
00:58:47,220 --> 00:58:50,980
yeah, this was awesome. Thank you, Mary. Yeah, you're welcome.

932
00:58:51,140 --> 00:58:52,420
All right, see you everybody.

933
00:58:54,980 --> 00:58:58,790
Thanks for joining us on Healthy Happy, Wise Wealthy. If you believe in

934
00:58:58,790 --> 00:59:02,550
stories that inspire and uplift, then please like

935
00:59:02,630 --> 00:59:06,350
share and subscribe. And if you know someone who should be a guest,

936
00:59:06,350 --> 00:59:09,670
go to healthy happy wise wealthy.com

937
00:59:09,990 --> 00:59:13,829
no ands, ifs or buts about it. And also follow

938
00:59:13,829 --> 00:59:17,190
us on socials the same ealthy Happy, Wise wealthy

939
00:59:17,350 --> 00:59:21,110
Until next time. You all have a wonderful week

940
00:59:21,350 --> 00:59:23,190
and keep on keeping on