Bill Black: New Strategies for Life Insurance in 2022

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listen learn laugh and love every minute

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of the most unique Financial podcast on

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welcome to fun with annuities I'm your

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host Dan the annuity man America's

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annuity agent licensed in all 50 states

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we have a repeat guest on today because

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he is the in my opinion number one

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expert in life insurance in the country

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has over 40 years of experience yes

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that's a 4-0 yes that's four decades if

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you're buying life insurance from anyone

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else please ask him them how many

0:54
decades they have under their belt

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um his name is Bill black he's a

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personal friend of mine he's one of the

1:00
few people in the financial business

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that's actually taller than I am he's

1:03
like six eight I'm six six between the

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two of us when we used to speak it used

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to be an event it's like a WWF event but

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uh we always used to tell people we see

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things better because we're taller and I

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think that's true but welcome back to

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fun with annuities Bill black Superstar

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thank you for having me Stan I

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appreciate it glad glad for you to be

1:23
back now we were talking the other day

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kind of off the Record and I was you

1:27
know asking you about your your

1:28
triathlete stuff he's he's a he's a

1:32
competitive triathlete and I want to

1:33
welcome everybody on the major podcast

1:34
platforms if you're not seeing Bill he's

1:37
spelled he's in shape for the people on

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the fun with annuities YouTube channel

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you can see that he's in shape but he is

1:43
a he is a competitive dude and while we

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were talking about that I said well tell

1:48
me kind of what's new and then life

1:49
insurance industry because you know he

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is the sole person I send people that uh

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our clients of mine are people that

1:56
aren't going to ask about life insurance

1:57
but listen talk to Bill

1:59
tell me Bill black what's new in life

2:02
insurance for the people out there

2:04
well it's interesting that you say that

2:06
you know Stan I was I was thinking the

2:08
other day about

2:09
our iPhones right or I guess our phones

2:12
most people it seems like have iPhones

2:13
sure but you know if you look at the

2:15
younger generation

2:17
what does that mean the old dudes like

2:20
us what is that yeah well you know um

2:23
what's coming back around again on on on

2:25
those streaming channels is clueless

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remember that when she was at High

2:29
School in Beverly anyway you know to the

2:31
like the teenagers and the 20-somethings

2:33
and even the 30 or 40s even us right in

2:36
the 50 60 somethings right people aren't

2:38
using their phones today for talking

2:40
what are they using them for email

2:43
checking the weather uh what else are

2:46
you doing right you're you're listening

2:47
to music you got your music on there

2:49
checking the stocks man checking the ups

2:52
and downs exactly you got apps that do

2:54
everything for you oh and every now and

2:57
then you'll make a phone call well you

2:59
know life insurance has kind of gone the

3:01
same way yeah people are not really

3:03
buying life insurance for death benefits

3:08
so much and right talk to an actuary

3:11
they say you know most people don't

3:13
think they're ever going to die and they

3:16
do know tell them you're saying bill I

3:18
got to stop you yeah

3:20
one out of one of us is gonna not get

3:22
out of this world right about that Tony

3:24
Robbins take that Tony Robbins you

3:26
motivational speaker you that's Bill

3:28
black bringing it go ahead bill but what

3:31
so what happens is you almost got to ask

3:34
yourself today oh you've got life

3:36
insurance you have the old kind or do

3:37
you have a new kind and people go what

3:39
do you mean by that well when you have

3:42
the old kind you pay a premium and when

3:44
you pass away they pay the claim okay

3:47
but then you start to think about people

3:49
that don't think they're going to die or

3:51
don't think they're going to die anytime

3:53
soon right we all know people like our

3:56
grandmothers our parents Etc that have

3:59
to have long-term care and now what

4:02
happens is you're using long-term care

4:05
as life insurance and vice versa well

4:07
how right so I've got a client right now

4:09
that let their life insurance lapse

4:12
and he said you know I let my life

4:14
insurance lapse but I need some

4:15
insurance

4:16
and and so we started talking you know

4:18
the other thing that we don't have is

4:20
long-term care the percentage of of the

4:23
people that are going to need long-term

4:25
care somewhere around 60 to 70 percent

4:26
that's right what's long-term care you

4:29
can't do two out of the five six

4:31
activities of daily living what are

4:33
those Bill what are those bill you can't

4:35
feed yourself you can't bathe yourself

4:37
you can't transport yourself you can't

4:39
dress yourself right what's transport

4:41
get yourself up out of the chair and

4:44
walk across the room right

4:46
and hey if you can't do two of the six

4:49
can we just come to the conclusion bill

4:51
that life sucks a little bit it is a

4:54
rough thing right and and so what are

4:57
you going to do well money solves a lot

4:59
of problems and so in this particular

5:03
case we said you know what we're going

5:05
to need to live in a nice facility I

5:08
mean my mother right she she could get

5:11
around like anything and she was like

5:13
95. nice and she had to have some

5:17
radiation on her leg because she had

5:19
these things that kept coming up they

5:20
over radiated her they over radiated her

5:23
to the point where I won't I won't get

5:25
into the gore but she had to go to a

5:27
facility okay that cost her nine

5:30
thousand dollars a month and she didn't

5:32
have long-term care and she was paying

5:34
for it out of pocket that'd be 300 a day

5:36
for all you mathematicians out there it

5:38
was a lot of money so for this

5:41
particular client we said look don't buy

5:43
a long-term care policy why because a

5:46
lot of long-term care Standalone policy

5:48
if you don't use it You've Lost That

5:49
Money number one but number two on a

5:52
long-term care Standalone policy where

5:54
all it covers is long-term care they

5:55
come back and raise the rates on you or

5:58
lower the benefits that's not a good

5:59
deal particularly if they're going to

6:01
lower the benefits on you the cost of

6:04
long-term care just goes up every year

6:05
you're not gonna you're not gaining any

6:06
Grant so for this client we crafted a

6:09
benefit where this policy will pay him

6:11
ten thousand dollars a month and that is

6:14
income tax free

6:15
for 50 months now most people only last

6:20
for long-term care three years

6:22
so that's

6:23
360. thousand dollars well if you're

6:27
paying for ten thousand a month for 50

6:29
months that's 500 000. if you never use

6:32
a long-term care benefit they pay five

6:35
hundred thousand dollars income tax free

6:36
to your heirs if you use two hundred

6:39
thousand dollars of the long-term care

6:40
benefits they pay three hundred thousand

6:42
years so it's a life insurance chassis

6:45
the long-term care benefit is tax free

6:48
and the death benefit to the

6:50
beneficiaries is tax free what am I

6:52
missing Bill sounds good so what happens

6:54
is this is a way to cover and so this is

6:58
where I'm talking about nobody's using

6:59
the phone for making phone calls anymore

7:01
this is we're using a life insurance

7:03
chassis to make sure we get long-term

7:05
care without having to have prices

7:07
increased without having to have

7:09
benefits increased with knowing that I'm

7:11
going to get what I pay for because if I

7:13
never use the long-term care it all goes

7:15
to my Air's income tax free as a life

7:17
insurance benefit if I do use it but

7:19
don't use it all the difference goes to

7:21
my errors a long term as a life

7:24
insurance benefit so I'm getting all of

7:27
my uh I I know I know up front what I'm

7:30
paying for and what I'm getting and if I

7:32
don't get it my beneficiaries are

7:34
getting it so no money is left on the

7:36
table the other thing is you're never

7:39
going to pay in premiums what you're

7:41
going to get back in long-term care

7:42
benefits much less long-term care and

7:44
survivors right so that's really the key

7:49
is

7:50
um you know chances are and and here's

7:53
the big myth Medicare is going to cover

7:55
long-term care no

7:56
it's not

7:58
and I have a lot of people that that you

8:01
know believe that and then you got to

8:02
send them the site off of the Medicare

8:04
website that says we don't cover

8:06
long-term care yeah they might cover it

8:07
for 90 days right but you know that's

8:10
what nothing right

8:12
so this is a big thing now another uh

8:16
reason that people use life insurance

8:18
is liquidity so there was um one

8:23
particular client who uh the wife came

8:26
to me and she said

8:27
you know I I had a a broker and you know

8:30
my husband was worth 20 million dollars

8:32
and when he died I said well where's the

8:34
life insurance

8:35
and she said the broker said to me

8:38
what do you mean life insurance you're

8:40
worth 20 million dollars I told your

8:41
husband he didn't need it oh well think

8:43
think about a balance sheet right a lot

8:46
of that is tied up in real estate and

8:48
illiquid assets so life insurance is

8:52
liquidity and so for clients that want

8:56
to leave their spouse or somebody you

8:58
know a certain amount of what income

9:01
typically because we have bills and so

9:04
what you do is you work backwards into

9:06
it how much does the spouse need in

9:10
particular income and then we decide how

9:13
much life insurance is necessary to

9:15
provide that income stream so you're not

9:17
really buying it for the survivor's

9:19
benefit as a lump sum you're buying it

9:22
for the cash monthly income to replace

9:25
the income because a lot of times when

9:27
the the client dies the spouse isn't

9:29
necessarily able to generate the same

9:31
income and and people you know have

9:33
their home their vacation home et cetera

9:35
et cetera all those assets call for cash

9:37
every month let's review place that

9:39
income and that's you know that's

9:41
another reason so we're really using

9:43
life insurance as an income uh

9:45
generation tool in this case as opposed

9:47
to the

9:49
thing now the third thing people use

9:51
life insurance for is term insurance

9:55
right and it's kind of like when I went

9:57
back to the thing earlier is you know do

9:59
you have the old type of insurance or

10:00
the new type of insurance sure the old

10:03
type of

10:04
um term insurance was called Art or

10:07
annual renewable term where you paid a

10:09
razor thin premium in year one it went

10:11
up more in year two up higher every year

10:13
it went up and okay people didn't like

10:16
that so they came out with a level

10:18
premium insurance right 10-year level

10:20
premium 15-year 20-year level premium

10:23
only problem is

10:25
and there's a couple of clients that

10:27
you've referred to me are at the end of

10:29
that level period so what happened that

10:31
premium goes through the roof at the end

10:33
of the level period so what do you do

10:35
Bill black what do you do for those

10:37
people you get it with new uh type of

10:41
insurance where you have temporary term

10:45
or what I call permanent term and what

10:49
the heck do I mean permanent term

10:52
if you have a policy that's a temporary

10:54
term it's got a premium this level for

10:56
10 years 15 years or 20 years sure or

10:58
even 30 years in some cases but if

11:01
you're 40 years old and you buy a

11:02
30-year level Term Policy at 70 you're

11:05
out of insurance you can actually buy

11:07
these policies now that guarantee the

11:09
premium until you're 100

11:11
105 110 years old and it's basically

11:15
term insurance you pay a thin premium

11:17
you're not building any cash value

11:18
you're buying their protection but these

11:21
are guaranteed the company can't come

11:23
back and raise the rate on you or cut

11:24
the

11:26
coverage for you and so if you think

11:29
about it logically if you buy a 20-year

11:31
level term premium you're going to pay

11:33
more than if you buy a 10-year level

11:34
term premium right sure absolutely if

11:37
you buy a 30-year level premium you're

11:39
going to pay more than if you buy a

11:40
20-year level term period Well if you

11:42
buy a premium that's level until you're

11:45
100 it's as I call it term to 100 you're

11:48
going to pay more for that than you are

11:49
a 30-year term but what are you doing

11:52
it's permanent term it is a razor thin

11:54
premium you're not building cash value

11:55
you're paying for the protection and

11:58
it's locked in and guaranteed until that

12:00
point in the future now here's a crazy

12:03
part I can guarantee it that you're 120

12:05
years of age I tell a client I think

12:07
we're overpaying and we guarantee it to

12:09
120 right so let's look at at something

12:12
that's more realistic let's look at

12:14
family history right because that's a

12:17
big indication of real life expectancy

12:19
is so if we've got

12:21
you know parents that are not living

12:23
past 85 okay maybe we want to keep the

12:27
insurance so we're you know guaranteed

12:28
to 90 95. I kind of use 100 as a as a

12:31
starting point because some of these

12:33
Billboards out there that says the first

12:35
person that's going to live to 125 has

12:37
already been born I don't know about you

12:39
I don't think I want to live to 125. no

12:41
that's not going to be pretty right but

12:43
at the same time this is these are the

12:46
tools that are there and and the thing

12:47
that happens for the most part

12:51
and I say the most part I'm going to say

12:52
85 to 95 of the time you should want to

12:55
buy life insurance for the protection to

12:58
to protect your heirs your you know your

13:00
your financial needs okay taxes a lot of

13:04
times when we pass away there are taxes

13:06
that are due death taxes as some people

13:09
call them inheritance taxes estate taxes

13:11
sure they they used to charge us it cost

13:15
us 55 cents on every dollar we had over

13:18
a million now they changed that okay and

13:20
now it's you know tens of millions

13:22
before we pay estate taxes

13:24
but there was a lot of talk about when

13:26
that sun sets they're going to bring the

13:28
estate tax back they will and and and so

13:31
you know another Tool uh that life

13:34
insurance covers is paying the tax now

13:37
that's another reason to have life

13:39
insurance is because particularly as we

13:42
were talking a moment ago the very

13:43
wealthy don't have it all in liquid

13:46
assets they have it in Farmland they

13:48
have it in commercial buildings they

13:49
have right other Investments and okay if

13:52
the real estate market is up when we

13:54
pass away or the stock market's up and

13:55
we can liquidate it

13:57
okay

13:58
but this is Cash you know those estate

14:01
taxes are due in cash in nine months and

14:04
so life insurance is the easiest way to

14:06
buy it or pay those taxes and again you

14:10
know I'll talk to a client and say let's

14:11
say for every million dollars worth of

14:13
insurance you're buying to pay a state

14:14
taxes if you don't buy it that's okay

14:17
when we pass away our errors have to

14:20
come up with a million dollars cash

14:21
within 90 days

14:23
what if I told you

14:25
that I could have you pay 40 cents on

14:28
the dollar instead of the million pay

14:30
400 000 maybe less

14:32
and instead of paying it all upfront in

14:34
cash spread that out over 10 15 20 30

14:38
years what would you rather do well I'd

14:41
rather pay 40 cents on the dollar and

14:42
spread the cost out over 30 years

14:44
exactly and that's what insurance does

14:46
you're never going to pay in premium

14:48
what you're going to pay in taxes or the

14:51
survivor's benefit and you're going to

14:53
pay that premium over a shorter or a

14:55
longer period of time so that that 40

14:58
percent that you pay in premium you're

14:59
going to pay it out over short and so

15:02
tell me the day you're going to die I'll

15:03
tell you the best way to do it right and

15:06
and and so this is the really thing

15:08
we're looking at is

15:10
um cost benefit ratio I'd rather pay

15:13
a couple of

15:15
you know two three four percent a year

15:17
uh every year and pay 40 cents on the

15:20
dollar rather than pay 100 some of the

15:22
dollars so that's another reason you

15:25
know to use life insurance and ladies

15:27
and gentlemen we are talking to bill

15:28
blackfeet in my opinion the top expert

15:30
in life insurance in the country as more

15:32
there can't be many more people with him

15:35
with his type of experience over 40

15:37
years what's the actual year bill is 40

15:39
40 or something 40

15:42
yeah it's going to be 44 next January 44

15:45
years of experience next January has

15:47
forgotten life insurance people will

15:50
ever know in their lifetime will have

15:52
his um contact information on the site

15:54
as we always do you can contact him

15:56
direct he is like me he's an absolute

15:59
straight shooter and Truth teller he has

16:01
a fantastic staff concierge service

16:04
first class start to finish there's no

16:06
high pressure what you're hearing from

16:09
Bill and the Cadence of the way he talks

16:11
and presents is exactly how it will be

16:14
when you call him so if you hesitate to

16:16
call you're making a mistake I would

16:18
encourage you if you have a life

16:20
insurance policy of any type let him

16:22
review it let him see if there's any way

16:25
to mathematically and contractually

16:27
upgrade you he'll tell you if you can't

16:29
and he'll tell you how to make lemonade

16:31
if you can't get out of it but he is my

16:34
go-to source for all things life

16:35
insurance and I think he's talking about

16:38
a subject that all of us need to need to

16:41
think about is long-term care but the

16:43
other thing Bill mentions to me all the

16:45
time is you know life insurance is the

16:48
best return on investment you'll never

16:50
see I use that all the time to stand

16:52
that's witty no that's Bill black that's

16:54
what Bill black told me a long time ago

16:55
it's the best Roi you can ever get on

16:59
any investment problem is you're going

17:01
to be dead and death is not a good

17:03
strategy am I correct bill that's that's

17:05
true

17:07
would like to stay around as long as

17:09
possible it's just not going to happen

17:10
death is a one-time strategy so maximize

17:13
it right but that's why we need Bill

17:15
black so when you do when your Learjet

17:17
does hit the mountain

17:19
you've covered the income needs for your

17:21
heirs you've covered the taxes for your

17:23
heirs it's a lump sum tax-free and

17:26
keyword probate free

17:28
transfer of wealth and this is

17:32
um it's not throwing money down a rabbit

17:34
hole life insurance I believe I I love

17:37
life insurance I have a ton of myself

17:39
um you know so if my daughter's if you

17:41
see them you know racing their dual

17:42
Lamborghinis down I-95 you know that

17:45
they offered me and so you may want to

17:47
turn them in but uh but you know my my

17:50
family is going to benefit from life

17:53
insurance and I credit bill black

17:54
because he hit me over the head with it

17:56
for so many years and I listened to his

17:58
presentations and he is 100 percent

18:01
correct what are you seeing out there

18:03
bill with the FED raising rates it tell

18:06
tell the people how how chairman Powell

18:10
time this taping chairman chairman

18:11
Powell is running the fed and Missy

18:13
Ellen's you know squawking in the

18:15
background how is that affecting

18:17
positive or negative life insurance

18:18
products works

18:20
well there's a couple of things that

18:22
have happened so we're starting to see

18:24
interest rates rise and some of our

18:27
policies uh that clients have are

18:30
dividend paying Whole Life policies now

18:33
they pay a dividend

18:34
and those dividends look wonderful in a

18:37
falling interest rate environment what

18:40
of course why because what does an

18:43
insurance company do right they take

18:45
your premiums they invest them in bonds

18:48
and those bonds a typical bond has a

18:51
30-year maturity and we have what is

18:53
called a laddered bond portfolio where

18:56
bonds are coming due every year right

18:59
and the bonds they bought 30 years ago

19:01
were coming due now well when they

19:03
bought those bonds every time they

19:05
renewed them and had to reinvest them as

19:07
interest rates were dropping but still

19:10
their Blended rate was higher because

19:12
yeah they're investing some at a lower

19:13
rate today but they still have some

19:15
older bonds that had a higher rates and

19:17
so you would see dividends that might be

19:19
four four and a half five percent look

19:21
good when interest rates were zero now

19:24
as interest rates are starting to climb

19:25
before five six percent they still have

19:28
those old Bonds on the books that they

19:30
were buying at the lower rates so it's

19:32
going to take them longer to crawl out

19:34
of that hole so these dividend paying

19:36
Whole Life policies their dividends

19:38
aren't going to look so great anymore

19:41
and so what's happening is the newer

19:44
type of uh policies right going back to

19:46
you got the old time for the new type

19:48
are actually tied to the index the

19:51
standard of course 500 is a typical

19:54
index in which it's tied so if the

19:57
market goes up you participate in that

19:59
gain if the market goes down you don't

20:02
take a loss you just start even with the

20:04
board and so those are called indexed

20:07
policies and people say well how can

20:09
they do that without you know it's got

20:11
to be on the scope of this podcast but

20:14
it's they do it with options so instead

20:16
of crediting you interested they buy

20:17
options on the market similar to the

20:19
next annuities but yeah right a little a

20:22
little bit more complex yeah and so this

20:24
is what's happening and then when you

20:26
look at the stock market historically

20:27
okay we got beaten up yesterday okay we

20:30
got beaten up all this year the worse

20:33
are clients going to do in that

20:34
environment is stay even with the board

20:36
sure when the market goes up they're

20:38
going to get a gain and so people are

20:39
starting to say you know what really

20:41
long term the market outperforms these

20:44
four and five percent returns why don't

20:46
we start using these index type of

20:49
policies but what's the downside can't

20:51
the annuity can't the life insurance

20:53
company change the rules wouldn't the

20:55
policy fees eat that up in in some cases

20:58
yeah so one of the things that happens

21:01
is life insurance is a little bit

21:02
complex because you do life insurance

21:05
isn't free there's a cost of insurance

21:06
there's a cost of administration Etc So

21:09
when you buy the policy you have to sign

21:12
what is called a compliance Ledger

21:15
on that ledger they have a set of tables

21:18
that's called the guaranteed that is

21:20
your worst case scenario so assuming

21:24
they charge you the maximum cost of

21:26
insurance from the very first day that

21:28
policy was purchased and they credited

21:30
you the least amount of return they put

21:33
on that policy how does it look that is

21:36
what you want to make sure lasts until

21:38
100 years of age or whatever your target

21:40
was like we're talking a moment ago age

21:42
95 age 125 h100 whatever as long as it's

21:46
guaranteed

21:47
the the the the rest of it is just gravy

21:50
if you get more than that so when the

21:52
market does perform better than zero

21:55
those CR those earnings tend to be

21:57
credited to you sure and uh you're going

21:59
to end up being being okay so that's

22:01
really what you want to look at like any

22:03
business decision what's the worst I can

22:05
do if I can live with that everything

22:07
else is fine so these are the type of

22:09
things you want to look at in fact one

22:11
of your referrals

22:12
um they sent me their policy the

22:14
guaranteeds ran out at age 83. sorry

22:17
that's before life expectancy sure and

22:20
so what we're doing is we're bringing

22:21
that to Higher Ground where we guarantee

22:23
the worst case scenario to age a hundred

22:26
everything else is just you know gravy

22:29
and and it will in my opinion perform

22:32
better than the minimum worst case

22:35
scenario but if it doesn't they still

22:38
have coverage until

22:39
I'm going to tell you I have been doing

22:42
this a long time I have referred bill

22:45
so many people I have yet to have one

22:48
person say that was a bad experience he

22:50
is he is the best

22:53
can you walk you know they're going to

22:55
talk to you they're going to call you

22:56
they're going to send you their policies

22:57
and and then they say to you Bill let's

23:00
move forward can you kind of walk

23:02
through from a 30 000 foot view what

23:05
that process looks like for people I

23:07
don't want people to think this is just

23:08
cumber you're gonna you're not gonna

23:10
plop a bunch of paperwork in front of

23:12
them tell tell

23:13
the listeners and viewers how that works

23:16
with with your organization and the best

23:20
staff on the planet in life insurance

23:22
how does that work so there's two ways

23:25
it works if we're going to buy term

23:27
insurance uh there's a simplified

23:29
process now where we get a little bit of

23:32
information you sign off on it and then

23:35
the insurance company that gives the

23:36
insurance company the authorization to

23:38
call you gather your information gather

23:40
your medical records order the exam the

23:43
exam is done in a and scheduled at the

23:46
time and place convenient to you and

23:48
paid for by the insurance company so you

23:52
sign off on a ticket as we call it then

23:54
the insurance company calls you ask you

23:56
all the health questions get your doctor

23:58
information all the doctors you've seen

24:00
in the last five years gathers your

24:01
medical records does the analysis and

24:04
then comes back to you with the offer if

24:06
it's a more permanent type of a policy

24:08
then there is an e-application

24:11
everything's electronic today you just

24:13
DocuSign it sure and then same thing

24:16
um an exam is scheduled at a time and

24:18
place convenient to you they'll come by

24:19
your house at eight o'clock on a

24:20
Saturday morning if you want it uh or

24:23
five o'clock in the afternoon you know

24:24
whatever time is good for you schedule

24:25
through our office pay for by the

24:27
insurance company gather all of the

24:29
medical records and when I say gather

24:31
our side of the table gathers all the

24:33
medical records sure and and pay prepays

24:36
for those so the doctor's just like in a

24:38
HIPAA form send it all to the insurance

24:39
company they do their analysis and they

24:42
come back with their offer the key here

24:44
is

24:46
that we don't take any money

24:50
until we have the policy

24:54
offer

24:55
in our possession we communicated to you

24:58
and you're happy with it so that way you

25:01
don't have any skin in the game you

25:03
don't have anything on the table if

25:06
you're serious

25:07
we will run you through the analysis

25:10
process and then and only then if you're

25:12
happy to pay now how do you get paid

25:14
bill a lot of people tell me you never

25:17
pay us I don't think it's a secret we

25:19
get a commission on the sale of the life

25:20
insurance that's where we get paid just

25:22
like annuities it's built in yeah that

25:25
comes out of the premium so if you pay a

25:27
premium for every dollar you pay sure

25:29
you know part of it goes to the cost of

25:30
insurance part of it goes to the

25:32
acquisition cost part of it goes to sure

25:34
you know the reserves for paying future

25:36
claims Etc it's all baked in and so will

25:40
you be brutally honest with people I

25:41
know this answer but I'm asking anyway

25:44
someone can't qualify dreaming this

25:46
can't get there what's not going to

25:48
happen you're going to be brutally

25:49
honest and not waste their time correct

25:51
well yeah I mean we have clients that

25:53
come to us and the first thing we do is

25:55
we you know what meds are you on do you

25:58
have any adverse health history et

25:59
cetera et cetera Etc and then you know

26:02
some people come to us and they say I'm

26:04
just uninsurable and we can still get

26:06
them insured some people come to us and

26:08
say you know what I'm uninsurable and I

26:09
say yeah I think you are

26:11
um and so it really is a function of you

26:15
know what exactly is the situation and

26:18
the reason I say that is we are Brokers

26:20
we can write any con company out there

26:23
virtually any company sure and

26:27
not all companies are all things to all

26:29
people so one company will look bad on

26:32
people that are diabetics other people

26:34
will say oh well that's you know the A1C

26:37
levels aren't that bad some companies if

26:40
you so much is take Nicorette gum you're

26:43
a smoker other companies will give you a

26:46
non-tobacco rate as long as it's

26:48
anything but a cigarette right so you

26:51
can dip you can smoke a cigar you can

26:53
smoke a pipe what's vaping doing right

26:56
now yeah vaping is still a non here's

27:00
the thing you're still going to get a

27:02
non-tobacco rate as long as when you

27:04
take your exam and they do the you know

27:06
the bodily fluids test sure as long as

27:09
the nicotine is zero and that's what

27:11
it's going to be if you smoke like one

27:13
cigar a week on the golf course or you

27:16
know something like that yeah you're

27:18
going to get a non-spoke rate but you

27:20
got to own up to it you got to say yeah

27:21
I smoke a cigar I smoke it you know I go

27:25
to the club and vape and that cool right

27:27
right and even believe it or not even

27:29
marijuana isn't looked at like it used

27:31
to be like you know

27:33
that and the other yeah and so you know

27:37
things are getting a little bit more

27:40
um modern you know up-to-date whatever

27:44
you want to call it sure and so as long

27:46
as you just disclose it it's not a

27:49
problem

27:50
it's just not a problem

27:52
so a couple more questions before we

27:55
kind of close it all out and I'm so glad

27:56
that you joined us obviously we're going

27:57
to have Bill's information on the site

27:59
so you can contact Tim direct if you

28:01
don't want to do that and just call me

28:03
I'll then I'll email you as information

28:04
whatever it takes

28:07
anything else new out there bill that's

28:10
um in your 40 plus years of experience

28:12
that's

28:13
getting your attention

28:16
yeah the um one thing that's getting my

28:19
attention is that the changes in these

28:21
interest rates right

28:23
and so what happens is we've had a zero

28:26
interest rate environment for a long

28:28
time it's very difficult for anybody to

28:31
make money in a zero interest rate

28:33
environment if your whole business model

28:36
is a function of

28:39
investing in interest bearing Securities

28:41
and what I mean by that is an insurance

28:43
company just can't go out and invest the

28:45
money any way they want to they are

28:47
regulated by Insurance Commissioners and

28:50
generally speaking uh insurance

28:53
companies are the ones that buy Bond

28:56
issues sure mortgages you know this is

28:59
all interest rate driven stuff typically

29:01
not in the stock market because

29:04
you know you have big ups and downs in

29:06
the market so because of these recent

29:09
zero interest rate environment a lot of

29:11
these type of guaranteed policies have

29:13
actually been pulled by the insurance

29:15
companies okay a lot of insurance

29:18
companies have merged with other

29:20
companies so when I got into this

29:22
business we had thousands of companies

29:24
there are fewer now just like the

29:27
banking industry and so it becomes a

29:30
different world to navigate we used to

29:32
have term insurance

29:34
that was convertible what does that mean

29:37
you have term insurance it's temporary

29:39
but you know what now I'm uninsurable

29:41
well I've got this term policy they will

29:43
let me turn it in for a permanent policy

29:46
at the rate classification that the term

29:49
policy was issued in other words you had

29:52
a Term Policy it was issued 15 years ago

29:54
and now you're uninsurable for whatever

29:55
reason they let you convert that Term

29:58
Policy to a permanent policy at a

30:00
preferred rate

30:01
at the rate at your current age that's a

30:04
big benefit sure a lot of term policies

30:07
today don't have conversion features

30:09
anymore so you got to look at this stuff

30:11
very carefully it's all a function of

30:13
zero interesting no people don't have to

30:15
look at it they need you to look at it

30:16
well there you go I mean they they can

30:19
give it give your policies to Bill and

30:21
let him review them and in let me tell

30:24
you he's gonna if you have a good policy

30:26
he's gonna say hey great you're you're

30:28
fine he's not going to try to flip

30:30
everything I mean he's just not he's

30:32
going to tell you

30:33
the truth which is the reason he's on

30:35
the podcast one last thing bill because

30:37
we got to run

30:38
um my mic drop moment I do this with

30:40
every single guest as you know you've

30:42
done it before and you are phenomenal

30:45
so you might be prepared I don't know

30:46
mic drop moment Bill black and 54321 go

30:51
one out of one of us isn't going to get

30:53
out of here alive so planning like

30:56
anything else is Paramount if we don't

30:58
have a plan there's one for us it's

31:00
probably not the one we want yes and so

31:03
the whole thing is to look at this as

31:06
you know what is it that I'm trying to

31:07
accomplish and how do I accomplish it at

31:09
the best price and the best for my

31:12
family and my my set of circumstances

31:14
and like anything else uh you know a

31:17
second opinion is great happy to give

31:20
you a second opinion and as you said if

31:22
something is good which which happened

31:24
to me the other day the client sent me

31:25
something particularly a Term Policy

31:27
sure you know what if you can't get a

31:28
better price stay with what you have and

31:30
and there's no reason to change it and

31:33
and you know a lot of people say to me

31:35
how did you pick this company well first

31:37
of all we won't write a company unless

31:39
it's a rated or better sure number one

31:41
number two because we're Brokers we can

31:43
look at all the companies and and find

31:45
the best rate based on the client's

31:47
circumstances and then when we buy these

31:51
policies for our client or acquire these

31:53
policies

31:54
you know there's a lot of things behind

31:55
the scenes that people just don't think

31:57
about 10-year level premium

32:00
well some companies have a 10-year level

32:01
premium but it's only guaranteed for

32:03
five years huh you mean you can raise

32:05
that rate in the sixth year yeah we

32:07
won't write those policies we won't let

32:09
our clients walk away so these are all

32:11
the like little things behind the scenes

32:13
that are just like traps that you know

32:16
we help navigate that so um you get what

32:19
you're expecting that's exactly right

32:21
that's Bill black he is the guy when it

32:24
comes to life insurance I appreciate him

32:26
joining us I appreciate everyone on all

32:28
the major podcast platforms that join us

32:30
every week and on the fun with annuities

32:31
YouTube channel

32:33
I will see you next time take care

32:39
[Music]