Transcript

Mike:

Today, we are gonna talk about what do you do about healthcare expenses later in life? I know it’s kind of a downer topic, but I promise you you’re gonna learn a lot here. The longer you live, the more you use the healthcare system, right? Cuz our bodies break down and Hey, what’s H happening to those healthcare costs over time. You like boom, going up like crazy. Once you hit age 65, then you hit Medicare and Medicare. I gotta tell you. It’s like the best health insurance program. There is you get a ridiculous amount of coverage for very little premium. I mean, I’m telling you right now, like I think as I’m recording this how Medicare costs you, you know, like 150 bucks a month give or take, then maybe you get a supplement and a drug plan. And when all said and done, you might be spending call it two 50, $300 a month.

Mike:

My father-in-law he had like triple bypass surgery and I think it costs him like 50 bucks or something or a hundred bucks with. Cause it’s just ridiculous how much you’re protected. I mean, it’s awesome. It is awesome. Financially. It’s like a big Ponzi scheme, but you know, our government can do that, but there is a big, big area, a huge gap that Medicare does not cover later in life. And this gap that studies tell us this big gap, it happens you 70, 70, 0, 70% of people I’m talking about the need for long term care. Now again, I just said long term care, like no, no, I don’t know. No, Mike, I don’t wanna talk about it. I know. I know, but Hey, we gotta be adults here. Let’s talk about it. So what is long term care? Now I know what you’re thinking. You’re thinking as soon as I say that, what are you thinking?

Mike:

Like my mind? I think about my two grandmothers, right? My two grandmothers, both of them had Alzheimer’s. They were in nursing homes at the end of their life, like seven, eight years, the last two, three years of their lives in both cases. Like they didn’t know anybody. I’m sure you’re probably like me. You hear that phrase long-term care. And that’s what you think of. I’ll bet that, you know, multiple people, family members, friends, neighbors, where they’ve blown through a huge portion of their savings, maybe all of their savings, trying to pay for care. Something you need to understand. Most long-term care in is not delivered in a nursing home. It’s delivered at home or assisted living. And I don’t know about you, but someday if I’m lucky enough to live long enough where I, my body starts breaking down and I need care, Hey, I don’t wanna go to no nursing home.

Mike:

I wanna be at home. And the question is Medicare. It does doesn’t pay for any of this stuff. So how are you gonna pay for it? Number one, number one, you can just use your own. You just ignore the whole problem. You just ignore it. Ah, it’s not gonna happen to me, you know, or, or if it does, you know, I’ve got a gun and I know where to use it. I’ve heard that before. Of course, at that point you might have Alzheimer’s you don’t remember where you put the gun or the ammo point is you could just ignore it, right. Be an ostrich, bury your head under the sand. And when the time comes, if you need care, Ugh, you just gotta pay for it outta pocket. And that’s an option, right? An is do nothing. But if you wanna pay attention, you wanna transfer some of that risk to an insurance companies.

Mike:

Three ways, three ways you can transfer risk to an insurance company. Number one, traditional long-term care insurance. Hey, let me give you a little secret here. Traditional long-term care insurance insurance companies. They don’t wanna write it at all. Cuz they lose money. They hate losing money. They hate it, right? So you gotta watch out for that. You know, it’s, it’s really hard to qualify for premiums are going up and once you have it, they keep checking premiums up every year. Not really the direction people are going anymore. Number two, this is very popular where I’m about to share life insurance. A lot of people are using life insurance contracts because you can use the death benefit in a lot of these contracts also as a long term care benefit. So imagine this, you go out, you buy a $500,000 life insurance contract. You make premiums that are guaranteed to never change over your lifetime.

Mike:

It’s always the same. And then you’ve got a $500,000 death benefit. If you do not need term care, that death benefits paid to your beneficiaries, surviving spouse, family, charity, whoever, but what if you do need long term care? Well then you can use that 500,000 to pay for your care. Let’s say you use 200,000 of it. Where’s the other 300,000 go Hey to your beneficiaries. And it’s beautiful. It’s all tax free. And then finally number three. So one traditional long-term care. Nobody really uses it anymore. Two life insurance with long-term care benefits, very popular and three, there are different annuities out there by insurance companies where those annuities have long-term care benefits to them. And the longer you hold the annuity, the bigger the benefit gets traditional life insurance annuities, or what’s the number four away. Yeah. Bear your head in the sand. Ignore the problem and just say I’ll pay out of pocket now. What’s right for you. Depends on your situation. You need to think that through carefully, make sure you share this with your friends. If you found it helpful, talk to again on our next video.