098 Bill Black: Life Insurance Trends - Are Your Affairs In Order?

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welcome to fun with annuities with your

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host me stan the annuity man america's

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annuity agent can annuities be fun can

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contractual guarantees be fun

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absolutely they can find out the brutal

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facts about annuities with no sales

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pitches or high pressure nonsense just

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the brutal and factual annuity truth

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which is all you need to hear

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let's have some fun with annuities and

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let's have that fun start right now

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[Music]

0:39
welcome to fun with annuities i'm your

0:41
host stan the annuity man america's

0:43
annuity agent license in all 50 states

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so glad you joined us on all major

0:47
podcast platforms and the fun with

0:49
annuities youtube channel i'm very happy

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to have a repeat guest on because he is

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in my opinion in my opinion is the only

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one that matters the number one

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life insurance mind in the country has

1:02
been doing it for decades and decades

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and decades i know he looks young to all

1:06
you people looking on the uh fun with

1:08
annuities youtube channel that's because

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he's a triathlete he actually exercises

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so welcome back to fun with annuities

1:15
bill

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black

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appreciate you having me uh stan always

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a pleasure to be here always having fun

1:22
bill and i go way back we've been

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friends for a long long time we used to

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do

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uh large speeches together where we're

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standing in front of thousands of people

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talking about life insurance and

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annuities we had so much fun and the fun

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part about bill and i is bill's like six

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foot eight i'm six foot six so when we

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walk into a room it's like holy crap

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look at those guys man they're huge and

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i always tell people it's just we see

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the markets better we see the door we

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see things better because we're taller

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we don't have any people in our way

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right bill right that's right we can see

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over the crowd

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exactly let's jump right in bill black

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um has forgotten more about life

2:01
insurance than anyone knows and and

2:03
that's saying a lot he had he has a mind

2:06
for life insurance like i've never seen

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and he is the reason and that's the

2:10
reason that every single person that

2:12
says hey stan

2:14
uh who would you recommend for life

2:16
insurance every single person goes to

2:18
bill black and if you're on this call

2:21
you've been you've talked to bill he

2:22
he's just like me he shoots it straight

2:24
he's factual he's not going to bsu

2:27
there's no sales pitches and if bill

2:28
black never sold another life insurance

2:30
policy in the world ever he's going to

2:32
be fine he's been doing this for decades

2:34
and decades and decades in fact he might

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even have the record for his many i

2:38
guess million-tel million dollar

2:40
roundtable awards i mean this guy

2:42
is prolific bill tell me about the life

2:45
insurance industry in 2022

2:48
that's different from 2021 is there

2:50
anything that we're going to see

2:52
marketedly different

2:53
with the products out there

2:55
you know there are there is some

2:57
significant changes that are going on

3:00
so one thing i don't know if you saw the

3:02
other day

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where the president of one america

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came out and one america is a very large

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life insurance company

3:10
and they said that the mortality was up

3:13
40 percent

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in certain age groups if i'm not

3:17
mistaken 18 to 64 in the last year that

3:20
means dying bill mortality means uh

3:23
dying correct

3:24
and if you're an insurance company

3:26
paying out the claims faster than you

3:28
anticipated oops that has to do with

3:30
pricing yes now the other thing that has

3:33
to do with pricing is interest rates

3:37
and so interest rates have gone through

3:39
the floor as we all know

3:41
i had a client's

3:43
statement come across my desk from a

3:45
bank today

3:46
no surprise the bank was paying him

3:49
point zero one percent

3:53
on his cash let's just call it zero

3:55
interest and as you've said many times

3:58
before everything is a function of the

4:00
10-year treasury rate right so when

4:02
rates are very very low

4:04
it's very difficult for an insurance

4:05
company to make money on the

4:08
premiums that they collect and hold

4:10
because

4:11
you know when they when they collect a

4:12
premium they expect to have earnings on

4:14
that money which helps discount the

4:16
premiums they charge

4:18
what does that have to do with anything

4:20
it means that insurance companies are

4:23
repricing their policies

4:26
some companies have totally gotten out

4:28
of the life insurance business

4:30
and then the type of policy that you

4:34
and i used to always

4:37
kind of use as the go-to policy called

4:39
the guaranteed premium

4:41
policy which was a lot like term to age

4:43
100 right

4:45
rock bottom premium the client had a

4:48
significant survivor's benefit but was

4:51
paying very little for it that's what i

4:53
have i've got you know so if i show up

4:55
dead unexpectedly bill then my wife and

4:58
kids have offed me so just remember that

5:00
but yeah that's what i have right level

5:02
term is what we call it as well

5:04
yeah and so you have level term premium

5:07
this level for 10 15 20 or 30 years so i

5:10
was talking to a client just the other

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day and and he said well why is my

5:14
insurance higher than these online

5:16
quotes i could get i said well because

5:18
your term is level till you're 100 years

5:20
of age which is a little bit different

5:21
than i mean you know 20-year level term

5:24
is going to be more expensive than

5:25
10-year level term because you're

5:26
guaranteeing the the rate out for a

5:28
longer period of time and you can

5:29
imagine that a 30-year level term is

5:32
going to be higher than a 10-year level

5:33
term because if you're 35 at the end of

5:35
10 years or 45 at the end of 30 years or

5:37
65 there's a difference in mortality in

5:40
those intervening years

5:41
well

5:42
so you're 35 you're 45 you're 55 and you

5:46
buy a 30-year level term policy that's

5:48
not going to take you to life expectancy

5:50
no

5:51
so if you have a permanent need for

5:53
insurance for example

5:55
estate taxes liquidity for debt

5:58
for family for whatever reason you're

6:01
typically going to need a policy that's

6:02
going to last you longer than those

6:04
level premium periods but you don't want

6:06
to pay a lot more for it hence the type

6:08
of policies we're talking about the

6:10
guaranteed premium universal life which

6:12
we call

6:13
uh

6:14
you know

6:15
as a descriptive name termed age 100

6:18
because you can guarantee that premature

6:20
100 years of age how do the insurance

6:22
companies

6:23
do that well they they do a mathematical

6:26
calculation what do we have to pay out

6:28
what's life expectancy and then they

6:30
discount that and when you are earning

6:32
zero on your money there's not a lot of

6:35
room for discounting so those policies

6:37
are coming off the market

6:39
that is my favorite policy for a client

6:43
for the very reason that it has the

6:45
lowest premium out there you're not

6:47
building cash value in those policies

6:49
so what i say to the insurance company

6:52
is

6:53
forget the cash value cut my premium to

6:55
the bone because if you've got a million

6:57
dollar policy and a 300 000 cash value

7:00
and you pass away your beneficiary gets

7:02
a million dollars if you've got a

7:03
million dollar policy and a 300 000 cash

7:05
value and you borrow out the 300 when

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you pass away your survivor gets 700 000

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so what good is this cash value doing

7:13
cut my premium to the bone i got my cash

7:15
value over here in premium savings and

7:17
stocks funds mutual funds you know side

7:19
investment cds whatever that might be

7:21
then my beneficiary is going to get the

7:23
value of that

7:25
investment account from my premium

7:26
savings as well as the survivors benefit

7:29
from the insurance so

7:31
those policies are endangered due to the

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interest rates uh going down so that's

7:36
the biggest change that's going on

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and it's one of those things where there

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are one or two

7:43
three come there's very few companies

7:44
that are still

7:46
making those policies available but

7:48
they're fewer

7:49
all the time so

7:51
that's that's that is an endangered

7:53
species for lack of a better way of

7:55
putting it got it

7:57
um

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coveted

8:00
i know you've heard of it bill it's this

8:02
little this this little disease out

8:04
there that's that's taking people out to

8:06
the tune at the time of this taping 900

8:09
000

8:10
people in the united states how's that

8:12
affecting life insurance companies bill

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not not much the the thing is that the

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uh

8:19
the mortality from that is not that

8:22
significant of an increase

8:25
it's it's um

8:28
it hasn't been that big of a factor this

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other thing where the mortality is

8:31
increased by 40 can't be explained by

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covid so the question is where are those

8:36
mortalities coming from and it hasn't

8:37
been figured out yet

8:39
is it because of the depression from

8:41
people being locked down that you know

8:43
they say that there's a lot more people

8:45
passing away from

8:47
the lockdown because of depression

8:48
alcoholism drugs opioids opioids yeah

8:51
right yeah fentanyl all of those type of

8:54
things so i was just reading an article

8:56
the other day getting off point but

8:57
between 18 and 45 more people were dying

9:00
from fentanyl than

9:02
covet car accident suicide and something

9:04
else combined so there's a lot of

9:06
there's a lot of factors out there and

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these are all recalculated into

9:11
rates every every year by the insurance

9:14
companies because you know one thing

9:16
about mortality

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it's a pretty exact science you can look

9:20
at a mortality curve and a lot of the

9:22
times at the beginning of the year the

9:23
carriers know what they're going to pay

9:24
out at the end of the year and you

9:26
really kind of want that because

9:29
you don't want an insurance company that

9:32
you're insured with that hasn't done

9:34
their math right and they're not around

9:35
to pay your claim right so that doesn't

9:37
happen in life insurance life insurance

9:39
mortality is pretty well predicted the

9:42
only thing that happens is people end up

9:43
living longer than was anticipated

9:45
because of medical breakthroughs which

9:47
means the carrier can hold onto your

9:48
money longer before they pay it out

9:49
which gives them a premium savings which

9:51
lets them reduce

9:53
what they charge you

9:54
uh as opposed to casualty

9:56
uh which is like what you have for your

9:58
boat your car your house how many

9:59
hurricanes are gonna have this year how

10:00
many earthquakes you're gonna have this

10:02
year how many floods right that's that's

10:03
an unknown variable but mortality it's

10:06
pretty good that's the reason i always

10:08
say life insurance companies have the

10:09
big buildings for a reason because they

10:10
know when we're going to die and as bill

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black said and this is one of the more

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motivating

10:15
things he's ever said to me he's looked

10:16
me in the face at breakfast one time in

10:18
san francisco california

10:20
it said stan one out of one of us is

10:22
gonna die and then he went back and

10:23
started eating his eggs and it you know

10:25
it wasn't a it was an epiphany at that

10:26
point in time but that is something that

10:28
bill always says

10:30
that one out of one of us is going to

10:32
die do you think covet has has

10:35
forced people to

10:37
start looking at their legacy a little

10:40
bit more because of the fragility of

10:42
life do you think life insurance sales

10:44
will go up in 22 because of that type of

10:46
motivating factor

10:48
well it's certainly something that is

10:49
giving people pause right because of

10:52
this because it's in the news all the

10:53
time it is certainly making us face our

10:56
mortality and the question is if i'm not

10:59
here tomorrow

11:00
what's going to happen to

11:01
[Music]

11:03
you know my

11:04
family circle circumstances etc

11:08
and the thing about it is and one of the

11:10
people that we know

11:12
joe uh he used to you know always say

11:14
tell me the day you're gonna die and

11:16
i'll tell you you know

11:17
you know

11:18
when to buy your life insurance right

11:19
being sarcastic because you don't know

11:22
and and you better have that policy in

11:24
place before you die because you know

11:25
how it is if you've got life insurance

11:27
if you don't have a life insurance

11:28
that's when you're going to die well we

11:29
had a call yesterday

11:31
a client 56 years of age

11:34
passed away

11:35
and he was an attorney and his wife is

11:37
just devastated what happened you'll

11:40
never believe it he broke his ankles

11:44
and ankles like plural

11:46
yeah and

11:48
and then he just he just never came back

11:50
from that he wasn't

11:52
one of these big overweight guys either

11:54
and so it's like

11:55
you just never know when it's going to

11:57
happen and

11:58
you know as we get more crowded on the

12:00
freeways you know you can always get

12:02
in a car accident or anything so it's

12:04
really one of those things where people

12:06
are are really starting to realize this

12:08
with this coveted

12:10
issue

12:11
and saying you know maybe i should look

12:13
at at this and and get this taken care

12:15
of

12:16
but the other thing that happens is what

12:18
if you don't pass away

12:20
but you're in a bad situation and had

12:23
another client

12:25
and and and then it happened this week

12:26
and and it sounds like yeah yeah yeah

12:28
you're just saying this

12:29
bill's got so many clients he's seen it

12:31
all

12:32
numerous times so go ahead

12:34
another client that has been my client

12:36
for many years one of my best clients

12:39
and after all these years you know

12:40
they're getting older

12:43
the mrs slipped and broke her hip okay

12:46
now the older you get you know that's

12:49
not necessarily a mortality factor but

12:52
oh boy it's a disability or a long-term

12:54
care factor

12:55
one of the things

12:58
that has not been good in the past is

13:00
long-term care insurance why is that

13:03
well because it's very difficult to

13:04
price the cost of long-term care you and

13:07
i know whatever you're paying this year

13:09
that's all we're going to pay next year

13:10
the year after the year after you've got

13:11
to pay a whole lot more with traditional

13:13
long-term care that is absolutely the

13:16
case right and and tell me how much more

13:18
you're going to pay next year five years

13:20
from now and you got no idea

13:22
so what happens is these long-term care

13:24
companies are coming to you and saying

13:26
oh yeah i know you started off at this

13:28
rate but this year we're going to raise

13:30
your rates 20 and if you don't like it

13:32
that's okay too you can keep paying the

13:34
same rate

13:35
we'll just lower the benefit we're

13:37
paying you and it's like well wait a

13:39
minute you know

13:40
i want a policy that

13:42
uh

13:43
i can rely on the other issue with

13:45
long-term care is you pay those premiums

13:47
if you never need the long-term care all

13:48
that money was gone

13:51
how do we fix that

13:53
it's very easy

13:54
you take a life insurance policy

13:57
and you add a long-term care benefit

13:59
writer on it

14:01
and that long-term care benefit writer

14:03
will pay you depending on how you

14:05
structure the policy one percent two

14:07
percent or three percent

14:10
of the policies face value

14:12
so take an example of two percent

14:14
it'll pay you two percent of the policy

14:16
survivor benefit

14:18
for 50 months

14:21
now 50 months is a little bit over four

14:23
years

14:24
right 12 months a year four years is 14.

14:26
why did they put it at 50 months bill

14:28
mean you know the answer but tell tell

14:30
the listener so there's two reasons one

14:32
is because most people don't make it in

14:35
long-term care more than three and a

14:36
half years statistically speaking that's

14:39
about where it is

14:41
and the other thing is

14:43
that this two percent you can turn it on

14:45
turn it off you need long-term care for

14:47
example this client broke their hip they

14:49
might need long-term care for six months

14:51
and they don't need it after that you

14:52
can turn it off right so what happens

14:55
let's say you've got a 500 000 policy

14:59
and your long-term care benefit writer

15:01
is going to pay you two percent of that

15:02
a month for 50 months that is going to

15:05
give you 10 000 a month

15:08
for long-term care in this example

15:10
you might say well gee i don't need ten

15:12
thousand that's fine that's the most you

15:14
can get you can take anything less than

15:16
that for your long-term care needs

15:19
then what happens

15:21
is whatever they've paid you out in

15:22
long-term care

15:23
comes to you tax-free because long-term

15:26
care benefits are not taxable and then

15:29
that also reduces the survivors benefit

15:31
so if you have a half a million dollar

15:33
policy you took a hundred thousand

15:34
long-term care benefits and passed away

15:36
then the balance or 400 000 in this

15:38
example would go as life insurance to

15:40
your survivor and that survivor's

15:43
benefit the life insurance benefit is

15:45
income tax free to the beneficiary so

15:48
this is the way to solve the long-term

15:50
care problems you buy the policy that

15:52
doesn't have an increase in premiums

15:54
doesn't have a decrease in the long-term

15:56
care benefits you're covering two needs

15:59
with one

16:01
policy

16:02
that's the best way to get

16:04
your long-term care needs done and the

16:07
life insurance at the same time

16:08
and in the industry it's called asset

16:10
based coverage meaning that your money's

16:12
not just going down the rabbit hole okay

16:15
and that's that's one of the big things

16:16
about traditional

16:18
long-term care most people think well

16:20
you know i'm not going to do that

16:21
because i'm just going to pay money pay

16:22
money pay money and then if i never use

16:25
it money goes poof what bill is talking

16:27
about

16:28
is controlling the asset and getting

16:30
long-term care

16:31
right

16:32
yep and then you get away from some of

16:34
these long-term care companies are going

16:36
to raise rates lower the benefits or

16:38
what else happens is some of these

16:40
companies have sold their block of

16:42
business

16:43
so you bought a long-term care policy in

16:46
the past with company a and company a

16:48
decides they don't want to be in the

16:49
business anymore they take those

16:51
long-term care policies what we call

16:53
that block of business and sell it to

16:55
company b

16:56
well now you're with company b you

16:58
didn't negotiate for that you didn't

17:00
expect that what's the financial

17:02
condition of company b i mean you get

17:04
into all sorts of other

17:06
concerns it's it's called novation that

17:08
you know you're all of a sudden you're

17:10
you're here but now you're there

17:12
and of and and you didn't have anything

17:14
to say about it because the company just

17:16
sold

17:18
your policy and and if it's a

17:20
not a well-rated carrier

17:23
now maybe your long-term care policy

17:27
is in some form of jeopardy if it's if

17:29
that company's not financially sound so

17:32
there's a lot of issues to be concerned

17:34
about and to be wary of

17:37
now just a reminder who that is we're

17:38
talking to us bill black arguably the

17:40
number one mind in the life insurance

17:43
industry he's one of the top agents

17:45
every single year

17:46
nationally i've been doing this for

17:48
decades and when i say decades i think

17:50
he's on number four

17:52
right now yeah yeah four four four years

17:55
43 years of life insurance experience

17:58
you're not going to find a smarter

18:00
person to either review your policy or

18:03
talk about a new policy or any type of

18:06
situation that either your estate

18:08
planning lawyer brings up your cpa

18:10
brings up bill

18:12
works in conjunction with the top estate

18:14
planning lawyers and cpas in the country

18:16
and we're going to have all of all of

18:18
his information on my site at the

18:21
annuityman.com he's independent just

18:23
like me

18:24
and he's brutally factual just like me

18:26
which is the reason that we get along

18:28
and the reason that i have 100

18:30
confidence in any of my listeners or any

18:32
of my clients calling bill because i

18:34
know he's going to take care of them and

18:37
do the right thing from a fiduciary

18:39
standpoint getting back to covid um

18:42
so you don't think there's going to be

18:43
any life expectancy

18:45
table changes

18:47
because of what's happened

18:50
do you not particularly no

18:52
okay and that's interesting because i've

18:54
heard i've heard otherwise from other

18:56
people

18:57
but what you're saying is

18:58
the pricing that's in place is is is

19:01
dynamic and strong and they're just

19:03
going to absorb this

19:05
i hate to call it a hiccup because that

19:07
sounds like i don't care i do care but

19:09
i'm looking at it from a business

19:10
standpoint so you're saying they're

19:12
going to absorb it

19:13
it is what it is do you think do you

19:14
think life insurance companies will

19:16
improve and get better and look at this

19:18
coveted situation

19:20
and possibly prepare down the road for

19:22
something like this in the future

19:24
i think so i i think this this has

19:27
actually had a bigger impact on uh the

19:29
casualty companies for example the

19:32
lockdown etc

19:33
when some states you couldn't go to work

19:36
you had business business interruption

19:38
insurance

19:39
i can't go to work so there's a

19:41
disability type of a policy or business

19:43
interruption policy that you file claims

19:45
on but one thing you know i want to

19:47
bring up here and change the topic just

19:49
a little bit sure

19:51
you

19:52
uh and i did a podcast in the recent

19:54
past

19:55
a client

19:56
of yours called me

19:58
and one of the things we were doing was

20:00
talking about what is called last to die

20:04
insurance

20:05
now this is a type of a policy that

20:07
covers both

20:09
husband and wife in most instances why

20:12
would you have a policy that covers both

20:14
the husband and the wife

20:16
well typically those type of policies

20:18
are used to pay what is known as the

20:20
e-state tax when we pass away anything

20:23
that is in our taxable estate may or may

20:25
not be subject to

20:27
taxation the other thing was their

20:30
assets weren't that liquid and they

20:32
wanted a joint survivor policy so then

20:35
when the first one passed away the

20:37
survivors still had control of the

20:39
assets and could

20:40
maintain their lifestyle but when both

20:43
of them passed away they wanted to make

20:44
sure there was liquidity

20:46
to spread among their surviving children

20:49
and a lot of times as you and i have

20:51
seen in the past a client might have a

20:53
business and say i'm going to leave that

20:55
to my son and daughter or my two sons or

20:57
whatever the case may be and one child

21:00
is running the business and one is

21:02
married in another state

21:04
well that doesn't work because you've

21:06
got one son or one one child doing all

21:09
the work for half the pay right i mean

21:11
and they start to resent the sure

21:13
yeah so

21:14
and and this is you know prescient where

21:16
they're going to you know split the the

21:18
life insurance policy cash up between

21:20
the children

21:22
but the the um

21:24
couple called me and they said

21:27
i'm looking at this

21:28
is this premium guaranteed

21:31
and it was with the aaa rated company

21:33
very you know well-rated and today you

21:35
have to get what's called a compliance

21:37
illustration that's about 27 pages long

21:40
with full disclosure and it shows in

21:42
that that it's fully guaranteed this is

21:45
a premium you pay and it guarantees the

21:47
survivors benefit until 120 years of age

21:49
i don't want to live to 120 with this

21:51
policy guaranteed to 120

21:54
and not only is a premium guaranteed but

21:56
that amount of survivors benefit is

21:58
guaranteed

21:59
and she said well you know the last

22:01
person that came here

22:03
i was looking at this and they had this

22:05
one column that said current and another

22:07
column that said guarantee and the

22:09
guarantees went away after like 10 years

22:11
and i said yeah exactly that's why we

22:14
don't market that and i said well to the

22:17
person that this other person that have

22:19
brought it

22:20
what is this where it goes to zero oh

22:22
well the insurance company's going to

22:23
pay the claim

22:24
so why isn't it guaranteed oh well don't

22:26
worry about that uh oh oops what is

22:29
happening today

22:32
going back to zero interest rate that is

22:34
called a current assumption policy

22:36
as long as the illustrated interest rate

22:38
stays in effect

22:41
the policy will you know

22:43
hold up well what has happened is not

22:46
only have interest rates gone down but

22:48
some of those older policies have

22:49
interest rate guarantees in them that

22:51
are three percent maybe four percent and

22:54
the company's not able to earn that how

22:56
do they make up the difference several

22:58
insurance companies increased what is

23:00
known as the mortality charge and so not

23:03
to get too deep into the woods but you

23:05
pay a premium the insurance company

23:07
takes away the cost of the insurance

23:09
they credit you the difference of or

23:11
they credit you interest on the

23:12
difference and then that goes into your

23:14
policy value well if they can't

23:16
guarantee or give you the guaranteed

23:18
interest rate they increase the cost of

23:20
the insurance so what does that mean the

23:21
policy starts to cannibalize itself and

23:24
a lot of people are getting calls

23:27
from the insurance company that says oh

23:28
i know you were paying x in premiums but

23:31
now we need 30 percent more 40 percent

23:34
more maybe a hundred percent more maybe

23:36
you need to pay us twice what you're

23:38
paying and oh yeah because you get older

23:40
every year

23:41
you get one year closer to the end of

23:42
the line your premiums going to be going

23:44
up every year nobody is understanding

23:47
this because they thought when they

23:48
bought that policy

23:50
that that was a premium i mean what do

23:52
you mean you can charge me more there

23:54
are a lot of those out there so the

23:56
other thing that's really important

23:59
is to have your policy

24:01
reviewed and give it a health check and

24:04
and the thing you used to always say

24:06
you're not using the same cell phone you

24:07
were using 10 years ago why do you think

24:09
that life insurance or annuity policy

24:11
you bought 10 years ago was still up to

24:12
date right with technology changes in

24:15
your telephone for lack of a better word

24:17
there are technology changes in life

24:19
insurance and annuities with reduced

24:21
interest rate increased mortality

24:23
charges companies getting out of the

24:24
business ratings of companies

24:26
that you used to think and used to be

24:28
good companies their ratings now perhaps

24:30
are not so stellar

24:32
it's time to open that drawer dust those

24:35
things off and get a review and you know

24:37
how it is we we're brokers we can

24:39
represent any company in the country

24:41
sure we do us a significant analysis of

24:45
those policies and let the numbers do

24:47
the talking if that premium is good and

24:49
and you can't get something for less

24:51
for the same coverage or for what you're

24:53
paying get more coverage there's no

24:55
reason to change and you're going to

24:56
tell them that let me interject real

24:58
quick here

24:59
you're going to tell them that and

25:00
you're going to be honest and you're

25:02
just not going to take the policy and

25:03
try to flip it right churn it you're

25:05
going to from a fiduciary standpoint

25:07
tell them the truth there's no charge

25:09
for this

25:10
you're talking about getting 40 plus

25:12
years of experience to look at your

25:14
policy

25:15
my question to everyone listening is why

25:17
wouldn't you do that right why wouldn't

25:20
you do that bill's got a a big staff

25:22
he's got professionals that support him

25:25
and that they can do the analysis bill's

25:27
gonna gonna look at it every single one

25:29
that comes across his desk

25:31
i'm just telling you if you have a life

25:33
insurance policy and you've lost touch

25:35
with the agent or you just don't think

25:36
the agent

25:38
is as up to speed as bill is which they

25:40
are not

25:41
um

25:42
i would just encourage you to do that

25:44
have him take a look at it i think

25:45
that's one of the best things that he

25:47
does is gives that

25:48
second opinion

25:50
on something that is very very important

25:53
and like he said things

25:54
change and um i think that with the

25:57
clients that called you i think you're

25:59
in the process of helping them out or at

26:01
least explain you explain to them what

26:04
they own which is oh yeah

26:06
yeah

26:08
yes and so this is the thing that you

26:10
want to be able to do

26:12
is to move to higher ground if you have

26:14
one of those policies before you become

26:15
uninsurable and all of this at one point

26:18
in time will become uninsurable right

26:20
you might be the picture of health today

26:23
but one day

26:24
we're just uninsurable and so this is

26:26
this is something to really be concerned

26:28
about

26:29
as men

26:30
uh you know one day we might our

26:32
prostate cancer might show up or

26:35
something else and this is something we

26:37
want to get done before that unfortunate

26:40
day arrives

26:41
that's that motivational side of your

26:43
bill that i love you know one other one

26:45
of us is going to die prostate cancer

26:47
you know things like that that's like

26:48
hey that's life insurance speak that's

26:50
that's table talk for those guys um

26:53
i wanted to ask you about and maybe you

26:55
could cover

26:57
what's called irrevocable life insurance

26:59
trust and the business is islets ilit

27:02
irrevocable

27:04
life insurance trust can you explain to

27:07
the listeners and viewers

27:09
what that is

27:11
where that applies and maybe if it makes

27:13
sense for people to take a look at and

27:14
get a quote yeah

27:16
so what happens is

27:18
an irrevocable life insurance trust or

27:22
eyelid as you

27:23
you know say the acronym is exactly what

27:25
that is

27:26
is to many people kind of scary it's

27:29
irrevocable once i create this i can't

27:31
get anything back well that's the whole

27:34
idea

27:35
so because you can't get it back so to

27:38
speak you really don't want this

27:41
trust in most cases to own anything

27:44
other than a life insurance policy now

27:47
why do you want an insurance trust to

27:49
own a life insurance policy

27:51
well because anything you own

27:54
or control

27:56
is included in your taxable estate

27:59
so to make life simple if we have a net

28:02
worth of zero just to make it simple

28:05
except we own a life insurance policy on

28:07
our life

28:08
for a million dollars when we pass away

28:11
our taxable estate is worth one million

28:13
dollars so whatever the value of that

28:16
life insurance policy that you own it

28:18
increases your taxable estate by that

28:20
much which could make you have to pay an

28:23
estate tax

28:25
well

28:26
what people will do is they will have

28:28
this life insurance policy owned by a

28:31
trust when you die you don't own the

28:33
policy the trust does so that policy is

28:36
now not included in your taxable estate

28:39
and so let's say that the beneficiary

28:41
that you have

28:43
is two children right now they could own

28:46
that policy themselves

28:48
and

28:50
that would be out of your estate but a

28:52
lot of times we'll have a client say

28:55
well you know what it's not my two

28:57
children that i'm worried about it's who

28:58
they married because when that policy

29:00
pays out to them i'm i'm worried about

29:02
their spouse getting their hands on that

29:04
money and anticipating it so the life

29:06
insurance policy held by the trust when

29:09
the when the insured passes those

29:12
proceeds pay to the trust then the trust

29:15
has to dole out the money according to

29:17
the terms of the trust and so that's a

29:19
layer of protection

29:22
uh to make sure in in certain instances

29:24
that that money doesn't get

29:26
lack of a better word wasted dissipated

29:28
etc so that's one reason to have an

29:31
insurance trust the other reason is what

29:33
happens when you have multiple

29:35
beneficiaries if you've got four five

29:38
six seven beneficiaries children

29:40
grandchildren a combination thereof

29:43
it then becomes kind of cumbersome to

29:45
have a policy owned uh by one person and

29:49
and and which is not the insured and

29:53
then have seven beneficiaries because if

29:55
if i've got a policy on my life

29:58
and i name somebody else's the

30:00
beneficiary that's not my spouse

30:02
it could possibly be subject to a gift

30:05
tax

30:06
and and that's another reason to have

30:08
the policy on buying insurance trust now

30:10
that's a whole different

30:12
issue and sometimes it will be and

30:14
sometimes it won't be so it's not in all

30:16
cases

30:17
but what happens is you've got one

30:18
person that's insured and you've got a

30:20
couple of children a couple of

30:21
grandchildren

30:22
and maybe you write it so that you're

30:24
going to cover grandchildren that you

30:25
don't even know about because they

30:27
haven't been born yet right

30:29
so you could leave something let's make

30:31
life simple and say you've got a son and

30:32
a daughter and you leave it to your son

30:34
and your daughter 50 50 per stir piece

30:38
well what does that mean the 50 when you

30:40
pass away goes to your son the other 50

30:42
percent goes to your daughter if one of

30:44
them pre-deceases you

30:46
if it goes per sturbies it still goes

30:48
let's say in this example the sun passed

30:50
away it goes to his family

30:53
her stir piece or by stripes which means

30:55
it goes to

30:56
his family equally so you might have a

30:59
son he might have a son a daughter a

31:01
wife right so they wouldn't share in

31:03
that or it would go per capita which

31:06
means if the sun passes away first then

31:08
all of it goes to the daughter this is

31:10
all addressed in the trust so

31:14
these are the reasons to have a trust

31:16
owned that policy keep it out of your

31:17
taxable estate less cumbersome how those

31:20
funds are dispersed etc so what you've

31:23
got to be careful of

31:25
is how much your your premium is because

31:28
you have certain gifting

31:30
limitations and so the gifting limits

31:33
are a function of how many beneficiaries

31:35
they are there are etc so most of the

31:38
time that's not uh

31:41
a problem but it's still something that

31:43
has to be

31:44
considered and and

31:46
thought out so that's why you would have

31:48
a trust on the policy and i'm smiling as

31:51
you're talking because i know people are

31:53
saying wait a minute

31:55
i didn't know life insurance could be

31:57
this comp not well just complex or

31:59
customizable is i guess a better word

32:02
so you know what i would encourage you

32:03
to do is approach bill and i with a

32:06
specific situation

32:08
and let us work on it we've done things

32:09
in the past where a person wanted to

32:12
you know buy a

32:13
life insurance policy but didn't want to

32:15
worry about the premium so what you do

32:16
is you buy an immediate annuity we can

32:18
shop all carriers for that to fund the

32:21
life insurance policy or we can set it

32:23
up joint life with a spouse so it funds

32:25
the life insurance policy

32:27
and the spouse is the the beneficiary of

32:29
the life insurance policy

32:31
but if it's joint life on the immediate

32:32
annuity the income continues for the

32:34
wife and she gets the lump sum

32:37
i'm throwing out just a couple of ideas

32:40
that we can

32:42
we can do and all this is contractually

32:44
guaranteed and all of this is

32:46
customizable to fit the specific goals

32:49
for your

32:50
specific situation there's not a one

32:53
size fits all and we don't look at any

32:55
of this as one size fits all it's about

32:57
what you are trying to achieve in a lot

33:00
of cases

33:01
you work very hard you've scrimped

33:04
you've saved you've checked the boxes

33:05
you've planned

33:07
but at the end of your chapter two of

33:09
your life

33:10
there's one more layer of planning in

33:12
order to pass the money on and all this

33:14
hard work the way that you want it to be

33:17
passed on

33:19
can you add to that bill

33:20
yes the other thing that

33:23
some people use life insurance is as an

33:26
asset class

33:28
so you'll look at a person's net worth

33:31
and they might be worth millions of

33:32
dollars

33:34
okay but it's not in liquid investments

33:36
and so when the spouse passes away the

33:39
rainmaker a lot of times the spouse

33:40
can't generate the same income sure i've

33:42
had clients tell me look i'm worth 10 15

33:45
20 30 million dollars whatever that

33:46
number is

33:48
i don't need life insurance fine tell me

33:50
where your assets are the value of their

33:52
business the real estate their business

33:54
sits on their vacation home

33:56
their artwork their jewelry their house

33:58
all of these assets call for cash every

34:00
month you've got to make the mortgage

34:02
payment the property taxes etc

34:04
life insurance is liquidity

34:06
and so okay but you know what i can

34:08
invest the money and do better than the

34:10
life insurance i could share with you uh

34:13
an analysis i did for a client

34:16
put it up on the screen if you wanted me

34:18
to but you do on these analysis on these

34:22
an irr which stands for internal rate of

34:25
return

34:26
and whatever the premium stream is

34:29
you can calculate in any particular year

34:32
how much money you would have to earn

34:34
after taxes say that again

34:38
taxes taxes to beat the life insurance

34:42
right and a lot of times it at life

34:44
expectancy

34:46
the irr on these policies is four five

34:49
percent

34:50
which means let's say that you've got a

34:52
30-year life expectancy you're going to

34:55
earn four percent or five percent every

34:57
year after taxes if you're in a state

34:59
like california you've got to earn 10 a

35:02
year on your money every year for the

35:04
next 30 years now if you can do that

35:06
you're probably in the wrong business

35:08
you should probably be running a hedge

35:09
fund taking 2 and 20 right and so

35:12
like i always say you know tell me the

35:15
day you're going to die i'll tell you

35:16
exactly the rate of return you've got to

35:17
make on those premiums to beat the life

35:20
insurance and so there's a whole thing

35:22
about looking at life insurance as a

35:24
separate asset

35:26
and looking at that as a rate of return

35:28
because if i if i show you an

35:30
illustration

35:32
where the life expectancy is four

35:34
percent after taxes uh

35:36
you know

35:37
um

35:39
it's kind of hard to say you know what

35:42
that's not a good deal because if i

35:43
could guarantee you four percent a year

35:45
for the next 20 years

35:47
you you you wouldn't be able to get to

35:49
everybody after taxes of course and i

35:52
always tell people you know

35:55
life insurance internal rate of returns

35:57
the best internal rate returns you're

35:59
ever gonna you're never gonna see and

36:01
you're never gonna see it because you're

36:02
dead okay so you just have to understand

36:05
going in that

36:06
um life insurance is a good deal but but

36:09
it is i agree with you looking at it as

36:12
a as an asset class i think is unique to

36:15
a lot of people

36:16
um

36:18
but i think life insurance is in the way

36:20
just like annuities uh issued by life

36:23
insurance companies by the way are in

36:25
the way of the demographic tidal wave of

36:27
10 000 plus baby boomers turning age 65

36:30
every single day and when you do that or

36:32
you approach that or you're past that

36:35
you're thinking about lifestyle and

36:37
legacy primarily

36:39
and you know that that comes into the

36:42
annuities for lifestyle and life

36:44
insurance for legacy and life insurance

36:46
does have arguments for for lifestyle as

36:49
well if you use that

36:51
for long-term care etc i really

36:53
appreciate you going through the

36:54
irrevocable life insurance trust because

36:56
i want to put that

36:57
in people's back of their head

37:00
another thing we've covered in a

37:01
previous podcast but i want to go back

37:03
to it because there's a lot of sales

37:05
pitches out there

37:07
with unqualified

37:09
life insurance agents that don't know

37:11
what they're talking about

37:12
and they're talking about

37:14
um

37:15
policies that they say it's tax-free

37:18
income but me and you both know that's a

37:20
loan

37:21
on the policy

37:22
can you explain to people this this

37:25
strategy and sales pitch by the way has

37:27
been around bill has it been around 30

37:29
years they just keep renaming it and we

37:31
don't want to name we're not going to

37:33
name the people out there promoting it

37:34
under a specific name

37:37
but i want you to cover that

37:39
that product

37:41
blow it up factually and then pivot and

37:43
say but this is where it might fit

37:46
yeah so there are times the

37:49
nothing

37:50
is the silver bullet

37:52
there's nothing out there that is always

37:55
the right answer or always or never the

37:58
right answer

37:59
so

38:00
give you an example there are some

38:02
policies out there that have what is

38:03
called high cash value one of the things

38:06
that people don't like about permanent

38:08
insurance is you pay a pretty hefty

38:11
premium

38:12
and you don't have any value for three

38:13
years

38:14
and you know what this is very

38:16
unpalatable

38:18
but these policies are still sold

38:21
where oh look you know eventually you'll

38:24
build up this cash value eventually

38:26
it'll give you tax-free income is it

38:28
tax-free

38:31
yes and no well how can you say yes and

38:33
no

38:34
well because that cash value that you've

38:36
paid in you've paid in with after tax

38:39
dollars

38:40
so you can access part of it by what is

38:43
known as withdrawals to bases

38:45
you take money out of that policy's cash

38:48
value and it's not taxable if it's basis

38:50
because you're getting your own money

38:51
back it's no different that if you buy

38:55
a piece of real estate for ten thousand

38:57
dollars and sell it for ten thousand

38:58
dollars there's no gain if you buy it

39:00
for ten thousand sells for a hundred oh

39:02
yeah there's a ninety thousand dollar

39:04
gain there so in these life insurance

39:06
policies

39:07
let's say that you borrow your basis or

39:09
the money you put in out every time you

39:12
borrow from it or every time you

39:14
withdraw from it your cash value is

39:17
earning less because you've taken money

39:19
out of the policy so it's earning less

39:22
but they are still nicking you for the

39:24
cost of the insurance okay

39:26
and then what happens is if there is

39:29
cash value in excess of your premiums

39:32
you can get that all tax-free they tell

39:34
you

39:35
by borrowing against it

39:37
fair enough and they say the word

39:38
tax-free income it's not

39:41
it's a loan every single loan that you

39:44
get it's a i'm going to say it really

39:46
slow loan

39:49
it's not tax free income period

39:52
it's it it's coming to you without a

39:55
1099

39:56
but they are charging you interest on

39:59
that loan if you don't pay the interest

40:01
out of pocket or in cash as it's called

40:05
how is the loan interest paid they take

40:08
that from your cash value too

40:10
so if they're charging you five percent

40:12
interest and you take out

40:14
you know ten thousand dollars at the end

40:17
of the year you know you've got ten

40:18
thousand five hundred dollar loan

40:19
because of the because of the interest

40:22
now what happens is every year that you

40:25
take out that loan

40:27
your loan balance increases hence the

40:30
amount of interest that they're charging

40:32
you increases and then eventually that

40:35
policy can get what we call in our

40:37
jargon upside down

40:39
that means that you've borrowed more

40:41
than is in the policy

40:43
or you've borrowed so much

40:46
that now the interest that is uh being

40:49
charged on your loan every year is

40:51
finally going to cannibalize your policy

40:54
well okay so what i'll just let the

40:56
policy go uh it's not that easy

40:59
because now when that policy lapses

41:03
there is an

41:04
uh an outstanding loan

41:07
well so hot let it go

41:09
okay that's a forgiven loan that is

41:11
taxable as ordinary income

41:15
that's the problem well

41:18
wait a minute if it's a life insurance

41:19
policy i thought i thought i didn't have

41:20
to pay it the theory is if you pass away

41:24
let's just say that you've got a million

41:26
dollar policy and your loan outstanding

41:28
is six hundred thousand dollars with

41:29
interest and everything they pay you a

41:31
million dollars stan but oh wait a

41:33
minute you owe us 600 so here's the net

41:35
400 000 that's how it works but because

41:38
life insurance is income tax-free

41:41
they're paying that loan back you know

41:43
internally before you get your money

41:45
with the tax-free death proceeds so the

41:47
400 you get is tax-free and that's why

41:50
they tell you it's tax-free income

41:52
but it's tax-free as long as you die on

41:55
time as long as the policy doesn't go

41:57
upside down as long as the policy you

42:00
know earns the rate of return it's

42:02
projected to earn as long as it doesn't

42:04
build it what if it doesn't what if it

42:06
goes upside down now what

42:08
well you're going to either have to pay

42:09
in enough to keep that policy going

42:11
until you pass away or that loan is

42:14
going to become taxable in the year the

42:16
policy lapses

42:19
and that can be a big number and i just

42:21
want to tell listeners and viewers with

42:23
annuities in life insurance if a sales

42:25
pitch comes to you and it sounds too

42:27
good to be true it is every single time

42:30
without exception there are no

42:31
exceptions do not allow

42:34
a life insurance person to pitch a life

42:37
insurance policy as an income

42:40
product it's not

42:42
it you're taking loans out so they can't

42:46
they just can't make that comparison

42:48
well let me let me ask you something

42:51
if you were going to buy an investment

42:53
today

42:54
what's the first thing you look at

42:56
charges costs okay

42:59
do you know when you pay a premium for

43:00
life insurance what i want is the

43:02
protection

43:04
if i pass away i want my beneficiaries

43:07
to get the policy proceeds fair enough

43:09
okay that's why we owe my life insurance

43:11
number two it's liquid

43:13
but you know what i don't want to do i

43:14
don't want to pay more than i have to

43:16
for that i'd like to get a million

43:18
dollar policy and pay one dollar for it

43:21
now i know that's an exaggerated example

43:23
but i don't want to pay 900 000 for it

43:26
because i've got this shiny you know

43:28
thing called cash value on it that's not

43:30
doing me any good you're not building

43:32
cash value in your car insurance or your

43:34
home insurance or your boat so why is

43:36
the life insurance okay so

43:38
where am i going

43:40
with this is when we buy this coverage

43:44
we want to make sure that we're getting

43:46
it for the right price and the lowest

43:49
uh outlay now

43:51
the other things that you're talking

43:53
about is the income etc when you buy

43:55
those high cash value policies there are

43:58
loads that are coming off every premium

44:01
sometimes it's a five percent premium

44:03
load then it's a mortality cost and load

44:06
meaning expense that's what that means

44:08
right right i'm talking in jargon but

44:11
you can have of the the money that

44:13
you're quote quote investing

44:16
you can have five seven nine percent of

44:18
that come off the top

44:20
before it goes into the

44:22
before it goes to work for you

44:25
in fees

44:26
and are you going to buy any other type

44:28
of uh

44:29
investment that is going to have

44:32
7 8 10

44:34
probably not probably not so

44:37
this is this is another thing to be to

44:39
be thinking about it's really what is

44:41
this costing me

44:43
and what is the what is the alternative

44:46
and once again if you have happened to

44:48
fallen for this sales pitch

44:50
have bill look at that policy see if

44:52
there's something better that he can do

44:54
and do a a possible transfer um he'll

44:58
look at all options bill i got a kind of

45:00
a weird question i wanted to ask you

45:02
because everyone's talking about crypto

45:03
but if people understand what crypto is

45:05
it rides on top of what's called

45:07
blockchain technology and blockchain

45:10
technology is a legitimate technology

45:12
um crypto gets all of the um

45:15
publicity but it's just it's riding on

45:17
top of blockchain and blockchain's legit

45:20
what are the applications that you see

45:23
or don't see

45:25
for blockchain in the life insurance

45:27
side

45:29
have you thought about that yeah you

45:31
know not not a lot really i haven't seen

45:34
any in in just me i haven't seen

45:37
anything that has blockchain

45:39
tied with life insurance right now

45:40
they're still looking at us dollars to

45:42
pay the premium

45:44
and

45:45
i haven't seen any any

45:47
type of premium that you can pay with

45:49
crypto well encrypt i'm talking about

45:50
correctly but i'm talking about the

45:52
underlying administration using

45:53
blockchain not not you not talking about

45:55
crypto talking about the administrative

45:57
side of

45:59
of life insurance companies i know some

46:00
are trying to go into that arena have

46:03
you

46:04
heard a lot of whispers about that are

46:06
they just getting started into that

46:08
technology for getting crypto for a

46:10
second yeah they're just getting getting

46:12
started they're using a lot of the you

46:14
know the blockchain is their way now

46:16
that they're going to use it to

46:18
protect

46:19
uh from

46:21
hacking and identity theft etc they

46:23
think that's what they're uh going you

46:26
know every time an insurance company or

46:29
any financial institution

46:32
plugs a hole

46:34
they've got to be right every time all

46:36
these hackers have to do is be right one

46:38
time and we hear stories all the time

46:40
about how people are getting in and

46:42
stealing people's financial information

46:44
from their bank or anything right and so

46:47
i was talking to the head of

46:51
the

46:52
cyber security one time and they said

46:54
you know we think blockchain is going to

46:55
be the answer to solving these issues

46:58
but you've got to be careful when you

46:59
send out an email today that has

47:01
anything in it because

47:03
but by the time it gets from the sender

47:05
to the receiver

47:07
18 people could have looked at it and

47:09
said oh look at all this type of goodies

47:11
in here that's why everything is coming

47:12
secure now where you got to download it

47:14
etc and while it might be a pain in the

47:16
neck it's a lot better than logging on

47:18
one morning and saying where's the money

47:19
in my bank account

47:21
i agree i was riding down the road in

47:23
the stan mobile the other day and i

47:26
heard a radio ad

47:28
about this guy and and i won't mention

47:31
his name because they're doing a good

47:32
job marketing good for them

47:34
um and it says you know this guy has

47:36
diabetes and this you know he's a life

47:38
insurance agent he has diabetes and he's

47:40
overweight but he can get you life

47:42
insurance

47:43
and i'm sure you've heard those ads and

47:44
people have heard those ads and and

47:46
respect to the company underlying that i

47:48
don't know anything about him i just

47:49
heard the ad and i wanted to talk to you

47:50
about it for people out there with

47:53
underlying conditions like that

47:55
what is this company

47:57
pushing people toward and

48:01
what's your opinion on because most

48:03
people look at the stats um a lot of

48:07
people have underlying conditions the

48:08
majority of this country is deemed

48:10
overweight and or let's just call it

48:12
gravitationally challenged as a

48:14
politically correct i made that up

48:16
um

48:17
what are they pushing on this radio ad

48:20
for people with diabetes and overweight

48:22
what are they selling

48:23
so here's the situation the way we look

48:26
at it

48:27
is

48:28
a lot of people think oh i've got this

48:30
particular morbidity or mortality factor

48:33
i'm uninsurable

48:35
and quite frankly

48:37
most of the time these people are not

48:39
uninsurable

48:41
they just have some thought that because

48:43
i've got type 2 diabetes or because i've

48:46
got type 2 and a heart attack or you

48:48
know whatever the

48:50
issue or combination of issues

48:52
is or are they think that they're

48:54
uninsurable as a result of that

48:56
and the fact is that they're probably

48:59
not totally uninsurable not sure there

49:01
are conditions that make us uninsurable

49:04
sure but many people have the belief

49:05
that they are uninsurable and they're

49:06
not

49:07
now they might not be

49:10
insurable at preferred rates

49:12
but they're still insurable okay so

49:15
somebody might be rated which means

49:18
they're priced up a little bit but that

49:20
just means their life expectancy because

49:22
of their mortality issues is shorter

49:25
than someone of their

49:26
age so to give you an example

49:29
if you're a smoker age 50 you've got the

49:32
same life expectancy as a

49:35
non-smoker

49:37
age like

49:39
38 right and so there's there's i mean

49:43
i think i said that wrong if you're if

49:45
you're a non-smoker age fifth anyway you

49:48
know what i'm saying is there's things

49:49
that

49:50
they price it in they they look at the

49:52
smoking right right and so you can say

49:55
the same thing about diabetes heart

49:56
issues etc etc so one of the things that

49:59
we do is we are

50:01
not writing just one company because one

50:03
company can't be all things to all

50:04
people

50:06
and so some people

50:08
use cigars some people use pipes some

50:12
people dip to

50:14
cigarettes how about their face

50:16
vaping is are they starting to price in

50:18
vaping yes oh yes and so

50:21
one of the things that happened is there

50:23
are some companies that if you have

50:24
nicorat

50:26
gum if you have a patch you get a

50:29
tobacco user rate

50:30
other companies you get a non-tobacco

50:33
user rate unless you're smoking

50:35
cigarettes and so it's things like that

50:39
that you've got to know so that you can

50:41
put the client with the right insurance

50:43
company at the right price why would you

50:44
put a person that has a patch

50:47
and and have them tobacco rated when

50:49
another company of equal stature would

50:51
give them a non-tobacco rate so it's

50:53
different things like that some

50:55
companies look at high blood pressure

50:57
and high cholesterol is as

51:00
hold on here or other companies go oh

51:02
it's under control with medication they

51:04
see their doctor every six months

51:05
standard rating

51:07
this is

51:09
this is why you want to be able to shop

51:11
it out to the market so if you think

51:13
about a life insurance application

51:15
what's the difference between company a

51:17
and company b's application quite

51:18
frankly it's the way the questions are

51:20
laid out the logo at the top of the page

51:21
right so we'll have a client fill out

51:24
one application take one exam but they

51:26
sign an authorization that allows us to

51:28
shop with the multiple different

51:29
carriers so we're going to start with

51:30
the one that we think we're going to get

51:32
it issued with

51:33
but for whatever reason if it comes back

51:35
and says we're going to give you this

51:37
offer and we think we're entitled to a

51:38
better offer we've got that sheet that

51:40
allows us to shop it out to these other

51:42
companies

51:43
and we do that for what reason to give

51:45
the client the best rate that's what

51:47
it's all about if that sounds eerily

51:48
familiar that's how we do it as well we

51:50
shop all carriers for the best

51:52
contractual guarantee for your specific

51:54
situation bill does

51:55
the exact same thing bill we've kind of

51:57
run out of time but as i do with all of

51:59
my celebrity guests

52:01
i give them one last mic drop moment

52:05
so you can tell the people just this

52:07
really neat thing to remember on the way

52:10
out

52:11
as they listen to the final part of this

52:13
podcast so what is that mic drop moment

52:16
comment bill well that one mic drop

52:18
moment is one uh

52:20
policy that was purchased many years ago

52:23
doesn't mean that it's still

52:25
in the you know same situation that you

52:27
thought it was back then things change

52:29
interest rates change mortality changes

52:31
companies ratings change

52:34
it's it's just for peace of mind get a

52:36
health check and a review on that policy

52:38
the numbers will speak for themselves

52:41
if you've got a cpa we're always happy

52:43
to review our findings with you and the

52:44
cpa but really the numbers do the

52:47
talking two and two is going to be four

52:49
it's never going to be six

52:50
and so it's it's just one of those

52:52
things where you look at it and you say

52:54
you know what we're doing great here

52:57
i can't improve it stay with what you've

52:59
got somebody did a good job for you

53:01
or conversely it might be wait a minute

53:04
there's there's there's a better way to

53:06
do this and

53:08
and a lot of times uh

53:11
you know you'll be glad you did because

53:12
of the fact that

53:15
it just gets it

53:17
it's just an improvement you're just

53:18
like you're starting your mortgage yeah

53:20
you're maximizing the situation using

53:22
the the number one in my opinion the

53:25
number one life insurance expert in the

53:28
united states

53:30
bill black thank you so much for joining

53:32
us i really appreciate you being here

53:34
and

53:35
i appreciate all of the viewers and

53:37
listeners

53:38
on the number one annuity podcast on the

53:41
planet and it just happens to be called

53:43
fun with annuities and i will see you

53:46
next week

53:52
thanks for listening to fun with

53:53
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53:55
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53:58
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54:00
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54:03
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54:06
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54:08
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54:13
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54:15
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54:19
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54:21
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54:23
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54:26
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54:28
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54:31
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54:41
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54:41
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54:45
[Music]

54:56
you