Click below to listen to Episode 98 – Insurance Do’s and Don’ts

Insurance Do’s and Don’ts

Bob's office and meeting area

Learn about the the do’s and don’ts of insurance coverage.

Bob is joined by Ron First of Christian Insurance Services to discuss the do’s and don’ts of the insurance business. Insurance is more than just a requirement. Instead, we need to look at insurance with the entire picture in mind as part of your entire financial plan. Ron covers the most common insurance coverages, like health and auto, while also delving into rarely mentioned areas, like disability.

It’s time to start seeing insurance as future protection for you and your family. There is so much more that goes into insurance than just the best quote that you hear from a cute mascot in a commercial. Yes, paying a good price is always important, but it is even more important that you have a plan that protects you and your family if or when the time comes.

GUESTS: Ron First of Christian Insurance Services
HOSTED BY: Bob Barber, CWS®, CKA®

Mentioned In This Episode

Christian Financial Advisors
[dt_soc_icons soc_icon_gap_between=”4px”][dt_single_soc_icon link=”url:https%3A%2F%2Fchristianfinancialadvisors.com%2F|target:_blank” dt_soc_icon=”dt-icon-website” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.facebook.com%2FHelloCFAdvisors|target:_blank” dt_soc_icon=”fab fa-facebook” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.twitter.com%2FHelloCFAdvisors|target:_blank” dt_soc_icon=”Defaults-twitter” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fhellocfadvisors|target:_blank” dt_soc_icon=”fab fa-linkedin” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][/dt_soc_icons]
Bob Barber, CWS®, CKA®
[dt_soc_icons soc_icon_gap_between=”4px”][dt_single_soc_icon link=”url:https%3A%2F%2Fchristianfinancialadvisors.com%2Fwho-we-are%2Fabout-us%2Fbob-barber%2F|target:_blank” dt_soc_icon=”icomoon-the7-font-the7-login-02″ soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][/dt_soc_icons]
Ron First
[dt_soc_icons soc_icon_gap_between=”4px”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.cinsure.org%2Fteam%2Fron-first-2%2F|target:_blank” dt_soc_icon=”icomoon-the7-font-the7-login-02″ soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.linkedin.com%2Fin%2Fron-first-a9a24069%2F|target:_blank” dt_soc_icon=”Defaults-linkedin” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][/dt_soc_icons]
Christian Insurance Services
[dt_soc_icons soc_icon_gap_between=”4px”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.cinsure.org%2F|target:_blank” dt_soc_icon=”dt-icon-website” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][dt_single_soc_icon link=”url:https%3A%2F%2Fwww.facebook.com%2FChristian-Insurance-Services-1604525739761573|target:_blank” dt_soc_icon=”fab fa-facebook” soc_icon_border_width=”0px” soc_icon_color=”#ffffff” soc_icon_border=”n” soc_icon_bg_color=”#7ac9ab” soc_icon_border_hover=”n” soc_icon_bg_color_hover=”#014a8f”][/dt_soc_icons]

Want to ask a question about your specific situation? Schedule a complimentary 15 minute phone call.

Did you enjoy this episode? Sign up for email updates and never miss an episode.
  • This field is for validation purposes and should be left unchanged.

EPISODE TRANSCRIPT

[INTRODUCTION]

Welcome to “Christian Financial Perspectives”, where you’re invited to gain insight, wisdom and knowledge about how Christians integrate their faith, life and finances with a Biblical Worldview. Here’s your host Christian Investment Advisor, Financial Planner, and Coach, Bob Barber.

[EPISODE]

Bob:
So welcome to today’s podcast. I am so excited to have my Christian brother here. I hear him singing all the time up and down the halls here at our office complex. He is just so fun. Ron First from Christian Insurance Services. Welcome to the podcast, Ron.

Ron:
Thanks so much, Bob, for having me here. I just love teaching. I’m a retired educator. I was a teacher and a principal for 30 years, and that’s like one of the gifts that I have. I know it’s my gift, that and evangelism. So I just love to share and teach.

Bob:
Well, I love your singing.

Ron:
I’m sorry to hear that, Bob.

Bob:
You heard me sing one time. You’re like, okay. I know why you didn’t go into that profession. So, Ron is with Christian Insurance Services. He’s the president and founder of Christian Insurance Services. And Ron, how many years ago has it been now that you started Christian Insurance Services?

Ron:
Wow. We started under the offices of CFAA. Then after that, I guess now solo as an entity on its own. We’re going on the 11th year. It’s unbelievable. Solomon says that that life is a vapor. Literally, it’s gone. It comes and goes.

Bob:
Yeah, exactly. A lot of our folks that listen may not have ever heard of CFAA, and that was what we referred to as the Christian Financial Association of America. We were attempting to start a USAA type of movement movement for Christians, but the Lord has something else in mind. Right?

Ron:
Absolutely. Everything works out.

Bob:
Today we’re going to talk about insurance do’s and don’ts. Ron, I got to admit, all these commercials that I see on TV that these insurance companies do, these guys are very innovative. And I remember the caveman commercial. It’s so easy a caveman could do it. I still remember that from Geico, and you’ve got all these different insurance companies and what’s so funny is there’s so many that don’t really have to do with insurance. A lot of them, they get you in on some kind of crazy scene, but then they say give us a call, 15 minutes will save you 15%. And it seemed like to me, that insurance is just so much sold on price versus coverage. And you’ve talked to me a lot about this that we need to be very, very careful about purchasing any insurance in isolation. And so what do you mean by that by purchasing insurance in isolation? I don’t think that means that you should be all alone when you purchase your insurance in your house. You know what I mean? Isolation. What does that mean?

Ron:
One of my favorite scriptures is Luke 14:28. Jesus said, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it, for if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you saying the person began to build and wasn’t able to finish.” When you purchase insurance, you have to see what is the end goal? What are you trying to do? What is the why of why you’re buying insurance? What do you want to accomplish? And for most of us, our goals financially is to possibly retire and to get to that, get to the 30-40 years, you have to build your nest egg. So anything you buy insurance wise is going to impact your ability to develop that nest egg.

Bob:
I have never thought of it that way. I think most people just think of buying insurance as well, this is something I’ve got to do. To drive a car, I gotta have insurance. That’s the law, and just get me whatever coverage will obey the law and be within the confines of that. Have the amount of liability coverage that I need to satisfy that and just give it to me for as cheap as I can. But you just mentioned that it could affect your retirement and affect long-term. That’s interesting. What do you mean by that?

Ron:
Well, look, you mentioned automobile insurance. When you buy automobile insurance and by the way, those commercials are a hoot. I laugh at them. They’re so funny. And they’re designed to get your attention to say that this company X exists, this lizard represents a certain company, but the reality is they don’t teach much. They just get you in there to buy a product, and insurance has become commoditized. When you go to Walmart or HEB or your favorite grocery store to buy something, you’re buying beans and rice. They serve a purpose, but they’re not impacting your longterm goals to build that nest egg.

Bob:
So you purchase insurance as an integral part of a big financial plan then? Is that what you’re saying? It should play all into, I mean, even your auto insurance or your home insurance, life insurance, all that should be part of a financial plan?

Ron:
Absolutely. Let me share a little detail. So your automobile policy has basically four parts. The first part is liability. That protects the third person or the person you injure when you’re negligent. The state requires you to have $30,000-60,000, meaning it’ll pay $30,000 for each individual you hurt and $60,000 for the total accident or aggregate. So, if you’re buying on price and you get the cheapest insurance and you have X amount of assets that you’ve already saved in your IRA or wherever your savings account, right. You hurt someone beyond $30,000 and they have doctor bills that are gonna last for years, therapy, surgeries, et cetera.

Bob:
They’re going to come after all those assets, aren’t they?

Ron:
Now they may not be able to get the assets while they are protected under the qualified retirement plan. But once it comes out of the retirement plan, they can sue for a judgment. And once it comes out, that’s income and that could be garnered

Bob:
Well, but a lot of people don’t have their money necessarily sitting in a retirement plan. I mean, they’ve got some sitting in a retirement plan, but they have a substantial amount sitting outside of a retirement plan. We’ve got a lot of clients that they own a one or two rental homes. So could they even go after those rental homes?

Ron:
Unless those rental homes are constructed and put in a trust, and from a legal perspective, that’s subject to suit. They can’t take your home if it’s homesteaded while you’re living in it. Of course, when you pass away and your assets transfer, if it’s not constructed right by an attorney, that becomes also subject to judgment as well. It can be taken.

Bob:
So truly insurance should be purchased with a full financial plan in mind is what you’re saying.

Ron:
At the end in mind, what is your plan? When Jesus was talking about the person that builds a tower or a house, you have to know what you want it to look like, and to know what it looks like, you’re going to have the cost of labor, materials, and the same thing goes with building a financial house. The insurance is your foundation for the house.

Bob:
So really, your insurance advisor should be working directly with a financial planner.

Ron:
Oh, that’s the ultimate if you do that.

Bob:
I don’t know many people that do that.

Ron:
No, because they’ve been conditioned by the insurance industry, especially when it comes to automobile insurance to buy insurance as a commodity.

Bob:
In isolation.

Ron:
In isolation. Exactly. Bingo.

Bob:
So when you look at financial planning, I know, Ron, you’ve spoken that there’s three windows of defensive financial planning where insurance comes into this. What are these three windows that you’re talking about?

Ron:
The three windows, you could also say there are three parts of the foundation, either way, but the three things that you have to protect in financial planning is going to be your income. Remember, your greatest possession is the ability to possess good health. Because if you possess good health, you can make income. You can meet your long-term goals for retirement. So protection of income is the first window. The next one is estate or asset preservation. And believe it or not, automobile insurance falls in that category because if you don’t have enough liability and other parts of the four tiered insurance plan, you can lose your assets that you’ve been saving for. And the third window is actually health insurance or long-term care insurance.

Bob:
Yeah. Rachael is a cancer survivor and she’s doing very well now. And most of our listeners have heard me talk about Rachael over the years, but I’ll tell you, I am so glad we had the health insurance in place. I’ve told you we had disability. We had a disability policy for her. And on top of that, I used Christian Healthcare Ministries to cover my deductible. So, when Rachael got cancer and we had to go to MD Anderson, we moved her down to Houston from New Braunfels, which those of you that are listening that are maybe in the Northeast or in California, that’s about a three or four hour drive from New Braunfels to Houston. So, we had to move there, that disability coverage we had for her cause she was not able to work during that time covered all that missed income. And then the health insurance that you did for me, which is an incredible plan that we didn’t have to get approval from certain doctors. You didn’t put me in an HMO, but it was a PPO. So I liked that. And then, that third tier that I had was Christian Healthcare Ministries that took care of the deductible. So, we were at $0 and as you know, we went to MD Anderson for that one year. And then the cancer came back and then we had to have all that surgery. We never even saw the bills. One time Rachael was able to somehow see them. And she said, Bob, this was like over $250,000. And I think about many people, if they didn’t have that good coverage, what they would have missed in income if they didn’t have good enough coverage for health, plus they’d have to come up with a deductible during all that time, and we didn’t have any of that stress.

Ron:
It’s funny you mentioned that. I’m going to digress a little bit and talk about, because you brought up automobile insurance, the third part of your automobile policy, or actually it’s the fourth part, forgive me. It’s actually called medical or PIP. Many people reject it because they’re going cheap. They want to get cheap. It’s so inexpensive to have the medical or PIP. And what that does is that covers first dollar medical if you or anyone in your car is hurt, whether it’s your fault or not. So watch. So let’s say you have a $5,000 deductible on medical insurance. And by the way, that’s pretty common now, anywhere from$ 2,500 to $5,000 or $7,500, and then maybe I’m working with a client right now, we’re looking at a group plan and possibly $12,000 for a family deductible. So just imagine, if you rejected that PIP or medical for the automobile insurance and you get hurt in an accident, you have to come up with the first $5,000 out of your pocket.

Bob:
Or if your family is in an accident and all of you had to go the hospital, that’s $12,000.

Ron:
Right, but if you had PIP, which many people reject because they’re trying to save money on their auto insurance. If they’re hurt in a car accident, right. Albeit, a car accident, they would have that first $5,000 taken care of without having to go into their emergency funds.

Bob:
You got my PIP all covered there, Ron?

Ron:
You’re taken care of.

Bob:
I wanna make sure, because you just, you look at such details like this, that insurance is something, sorry, Ron, this is something that I don’t like to necessarily buy. It’s a necessary evil. But the thing is, is insurance is only as good as when you need it. And it’s right during that time that you really need it and you think, I thought I was covered for that. And I think many people, they don’t know that they’re not covered. I mean, you’ve shared some stories with me of they’re not your clients where they come to you after the fact, and the lawyer gets involved from an accident and sure enough, they didn’t have the coverage. They were just buying on price. Correct.

Ron:
Absolutely. Yup. And by the way, Bob, you know that PIP that we’ve just mentioned right. That stands for personal injury protection. And it’s the newer hybrid of the old medical coverage on the automobile accidents. Did you know that PIP pays for 80% of lost income if you’re involved in an accident, whether you’re at fault or not? So if you don’t have disability insurance at work, a group plan, or you don’t have an individual plan on your own and you’re in an accident and you can’t work and you’re at fault or whatever, whether you’re at fault or not, it would pick up first 80% up to the limits that you have. It’s so inexpensive.

Bob:
I’m curious what my limits are now. You take care of that, so I haven’t looked at my limits, but hopefully they’re high.

Ron:
Yeah. When have you ever heard this before?

Bob:
Nowhere. Nowhere at all. Have I ever heard this? I have a feeling that a lot of people that are listening to the podcast today are going to go look at what is their PIP on their policies, which you talk about income protection. Oh man. I mean, you turn off the income for anybody, and you think about the income protection we were talking about for retirement. I mean, the income comes from their investments. And if that is attached to the lawsuit because there’s not enough coverage, then there goes away the income. But I know you’d like to talk about income protection. So let’s get into talking about income protection and disability.

Ron:
The first window of the three, right? It is income protection. Again, your greatest asset or your greatest possession is not your car, not your house, not your boat. Your greatest possession is you possess good health because you can work and you can make an income. You can lose your income in three ways. You, the Lord can take you through death. You can lose your income by incapacitation through illness or an accident at work in the car, et cetera. Or unfortunately, you can lose major part of your income by getting divorced, unfortunately, but that’s the reality because many families are two income families. So think about this. Let’s say that there is a young family and both are working and they work for their goals. They want to have children. They may have children. They want to save up for that new house. The loss of one of those incomes, potentially, would wreck everything as far as their plans. That would sideline their plans. Where’s it going to come from if the Lord takes one of the breadwinners, what’s going to happen to the spouse?

Bob:
So you really need to think about there’s disability, but also like you said, death. That comes in under life insurance, correct?

Ron:
Absolutely. Yeah. Life insurance is going to cover the death aspect and then the incapacitation or disability would be disability insurance. And what I find mind boggling, we had this conversation yesterday, Bob.

Bob:
We did. I bet you know where I’m going.

Ron:
Yeah. We got to talk about why people buy life insurance.

Bob:
But they don’t buy disability. Just so y’all know, we lunches together a lot and everything cause I’m on one end of our building and Ron’s on the other end. So, but the odds of someone being disabled are so much greater.

Ron:
It’s four times greater the chance of you being disabled, typically for illness, number one, neuromuscular diabetes can incapacitate.

Bob:
What are those chances? Let’s say before you turned 65 years old between your working years, what are the chances you would become disabled versus death.

Ron:
Oh, significantly. I can go and research it and Google the exact amount, but it’s at least four times greater. And the reason why people don’t buy disability insurance is because they don’t understand it, number one. Number two, they only think of losing income through death. But again, it’s at least four times greater the chance of them losing their income to incapacitation.

Bob:
So, you’re four times greater, more likely to have a disability before 65 than you are to die.

Ron:
Definitely. Definitely. Yeah.

Bob:
I have disability coverage. You helped me with my total insurance needs and you looked at mine, but I have mine through a financial, through what do we call that kind of plan, a co-op?

Ron:
A group plan. You have a group plan.

Bob:
And it’s so inexpensive because I’m not really not at a high risk. I mean, I’m sitting here at a desk, but you know what, Ron, just a couple of weeks ago, I was talking to my painter and he was painting the home that we have down in Rockport for us. And it’s a two story and he was way up there and he was over on the roof and stuff. I said, brother, I sure hope you have good workman’s comp and you have good disability coverage. We had them down and we took care of their family for a week. I continued to work through Zoom and just a precious, precious family. He’s about 38 years old. And he said, yeah, I do have it, but I was like, I’m glad you do because you’re standing on that metal roof, two stories high. But you wonder how many don’t have adequate coverage like that? I imagine his coverage is probably pretty expensive cause that’s in a high risk. Right? But most of us don’t fall in that range.

Ron:
Correct. Depends upon if you work in an office. It would be a significantly less expensive, but the best place to start with disability is if you work for a firm or a school district or any entity, if they have a group plan, that’s typically the best place to start.

Bob:
So is that optional with most companies that people work for? That’s an option they can pick or is it automatically included or do you know the answer to that question?

Ron:
It depends upon what the employer wants to play, but typically it’s going to be paid by the employee, and it’s discounted because of the group, the large numbers that are involved in the business or the co-op and the price is significantly lower. Now, the problem with group disability is that typically you can only get 60-65% of your pay.

Bob:
But that is considered tax free pay isn’t it? Or is it?

Ron:
It is income.

Bob:
But I’ve heard if you pay for disability with pre-tax dollars, then you have to pay tax, if you pay with it with post tax, after tax dollars, it comes tax-free.

Ron:
That would be correct. Yes. Yeah, that’s correct.

Bob:
That’s what we do. We made that decision when Rachael and I bought disability years ago to pay for it with post-tax dollars so if we ever did have that time, and that time did come along, so it came under those stats that you’re talking about. We wouldn’t have to pay tax because then you’re adding insult to injury. I mean, you’re already down and out. You don’t want to have to pay more tax on it.

Ron:
May I say this, the problem with the group insurance, disability insurance, again, typically 60-65% is what’s going to be paid out if you’re incapacitated after a certain point, but you’re still missing a 30, 35% gap. So if you work for certain organizations like especially private industry, you can buy an individual to cover that gap.You can’t do it. If you work for what we call a FERPA organization. The acronym is actually Family Educational Rights and Privacy Acts – school districts, college. Typically, you can’t do that, but if you work for a private organization, you can buy an individual policy to put on top of your group policy that will cover that would cover 30-35%.

Bob:
Okay. Gotcha. All right. So we’ve talked about disability life insurance. Would you recommend for life insurance, it goes back to the old school, and I know you you’ve been selling life insurance for what? 25, 30 years.

Ron:
35 years.

Bob:
I think you kind of started off with this buy term, invest the rest. So do you always recommend that somebody buy just a term policy? It is so inexpensive. I mean, when you’re younger, gosh, you can get $500,000 of coverage for just pennies on the dollar.

Ron:
It goes back to starting with the end in mind. What are you trying to accomplish? If you’re trying to accomplish income protection, typically for, I would say 95% of the public, term insurance is the way to go, but that term product has to fit into your financial plan, right? That’s going to cover you during, typically, your peak earning responsibility years, 20 to 30 years. So, you can develop those assets so that by the time you hit 30 years, you can step out of it. You don’t want to be insurance rich. You want to be cash rich or investment rich. Right?

Bob:
So the insurance is just to cover you until – it’s kind of like flipping over to insurance. Like I’ve heard you say it’s kind of the foundation, because until you get your assets up there, the insurance is covering you.

Ron:
Absolutely. Yeah. Okay. I will say this though. Now with the onset of new fangled hybrid long-term care products, they’re built on a whole life chassis, life insurance chassis. In that case, I highly recommend it. But again, this takes a finesse and planning, and typically that’s going to come between ages 45 to 55. So after you step out of your term product, now you want to protect your, not your income. You want to protect your nest egg, and that’s why you’re going to buy long-term care insurance.

Bob:
You and I’ve talked about this long-term care. I mean, you’ve been talking to me about it a long time and the long-term care. It kind of fits in this gap. Right? I’ve heard you mention that if you’ve got more money, I mean, you’ve got 5 million plus or 10 million plus, you’ve got enough that’s going to generate and what the cost of the long-term care is going to be. And then you have those on the lower scale that maybe they just have $50,000 or a hundred thousand in savings. Do they necessarily need longterm care or does longterm care fit more like in that middle ground where so many retirees fall between that half million and one and half million dollar mark.

Ron:
I would even, say maybe $250,000-300,000 to the high point.

Bob:
All right. And why is long-term care needed so much? I mean, I hear it all time, but give us some stats.

Ron:
Oh my gosh. The cost of health insurance, of long-term care insurance, while you’re disabled could be anywhere from $$50,000 to 75,000, depending upon the venue, whether it’s it’s home service, where they come to your home and take care of you, or it’s a semi-private nursing home or room, or a private room could be anywhere from $50,000 to 75-$85,000 a year.

Bob:
So that can really eat into your savings quickly, into your retirement plan.

Ron:
Absolutely. Where’s that money going to come from?

Bob:
Yeah, but the cost of long-term care can be kind of expensive, can’t it?

Ron:
Long-term care insurance is commensurate to age. It’s predicated on morbidity. Morbidity meaning how long are you going to live in an incapacitated state where you can’t perform two or more ADL’s.

Bob:
Is there a perfect age to buy long-term care?

Ron:
Typically. And this is how I typically construct my portfolios, defensive portfolios for my clients. Typically, and I’m going to be very general now, anywhere from 20 to 45 or 50, your insurance, your life insurance, is going to cover your income there and your disability insurance. And then after you’ve finished that, assuming you’ve been investing the difference in an IRA, 401k, whatever, then you’re going to step out of that and you’re going to move into a long-term care product. So I would say to overlap maybe 45-60, 65 to purchase.

Bob:
Plus, your health is good during a time when you’ll qualify, right?

Ron:
It’s why 45 and 50 is a very pivotal age.

Bob:
Insurance companies are real funny about that. They don’t like to underwrite you when you’ve had a lot of health issues.

Ron:
Yeah. They know the morbid ages are typically from 45 and up and as you start getting older diabetes, neuromuscular issues. So they’re way ahead of us. They’re sharp.

Bob:
Well, that’s why the insurance companies are made of marble and granite in their high rises and our homes are made of sticks and stones.

Ron:
And they’re the biggest buildings downtown. Yeah.

Bob:
They know what they’re doing. I forgot to say, one thing I wanted to say, as far as life insurance protection, I’ve had so many people ask me over the years, how much life insurance do I recommend? I will tell you, I’ve always recommended basically 10 times income. So, we’ve got a breadwinner, they’re making a hundred thousand a year, multiply times 10. That’s about what they need. Can you speak into that? Do you recommend that same amount or is it more or less, what do you think?

Ron:
Typically, when I sit down with my clients, I want to know what their long-term goal is. I want to start with the end in mind, their midterm, and their short term. I know that Ramsey and other type of Crown Financial, they recommend if you’re going 10, 10 years of gross income, but that doesn’t factor in inflation, of course, as well. So I don’t believe in one shoe, one size fits all.

Bob:
It comes back down to the financial planning.

Ron:
Exactly. And that’s where the power of a financial planner or an experienced insurance professional can sit down and look into and incorporate every aspect of protecting so that you can save to get that nest egg.

Bob:
So Ron, we’ve covered a lot today. We’ve covered income protection, disability. In the beginning, we started talking about auto insurance. I think you shed a lot of light on the auto insurance because everybody has to have that and it’s pushed the most on TV and all the commercials and just, oh, people are not covered. I mean, my own daughter that was living in California. And now she’s back in Texas. Thank goodness. But she was getting a quote on a policy out there cause you weren’t licensed in California and we tried to get her to find somebody independent. I mean, the coverage was terrible. It was like $5,000-10,000, like Jaeci, this is not going to work. We got her with another major company that’s nationwide to help her with that coverage. And now she’s back in Texas getting her citizenship back here. She’s a Texas citizen, but anyway we’ve covered a whole lot. Is there anything that we’ve not covered today? We could go on and on and on and on. I know you and I like to like to talk this financial planning game so much, but for those that are hearing this podcast, what would you recommend to them? Cause we’ve got a lot of listeners that are out of state too, and you’re licensed in Texas, right?

Ron:
Oh, we do business in Florida, South Carolina. We insure life, disability, and long-term care in every state but in New York, my home state.

Bob:
I could never tell by your accent. It’s funny. When you come into the office and you get Ron on one side and he’s talking with that New York accent and you got me on the other side, I talk with my Texas accent. What is going on here? Ron and I have known each other a long time and we are great brothers in the Lord. Okay. So, any last words that you would just like to spill your heart out to help people? Cause I know you’re all about helping people.

Ron:
Yeah. I’m an educator at heart, 30 years, public school education. And I love teaching the word now and I would say this, “Why purchase this? Why not purchase this?” You have to think with the end in mind. Again, it goes back to what, what the Lord taught his disciples and count the costs and plan. And there’s wisdom in a multitude of counselors. We have, again, been so indoctrinated with these fun commercials. They’re not for us, those commercials. They’re for the insurance company. It’s not to teach. I had a plumber over to my house recently. And he had to put in – the thermostat blew out on one of my water heaters in the house because of the freeze we had. It went bad. So I had the part, it was covered under warranty. And I was so taken by this plumber because what he did was he could have just come in and put the part in and said, here you go, $500. No, I’m just kidding. But no, seriously, he was very, very, fairly priced. But he endeavored to teach me and share with me why he was doing what he was doing. And you want to know something? That man, he scored points on my, and I’m a pretty critical guy. I have high expectations, but I want to tell you, that’s what it’s all about. Become a lifelong learner. Solomon said above all else, get wisdom. Get knowledge. Ask why you buy the things you buy.

Bob:
Right. Good point. Good point. So when it comes to insurance, you’ve got to buy it with the end in mind, not just today, just because it’s required of you. Think about if you need that insurance, is it going to be there for you? Is that coverage going to be there for you? And if it’s not going to be there for you, which we’ve seen examples of it not being there at the time they thought it was going to be there for them, it barely covered them. So don’t buy insurance on price, buy it on coverage.

Ron:
Yeah. I mean, my mind is going as a teacher. Now I’m thinking of examples. This last freeze we had, I mean, most water claims are going to be paid, but hidden water seepage is not paid in most policies. Most people don’t know that about their home insurance. Most people don’t know that they buy a policy and they have a claim. They pay their typical 1% deductible. And all of a sudden, they say, why am I not getting a brand new roof? And they come to me complaining and they’re angry at that insurance company. The insurance company did nothing wrong. They stuck to their contract, but the people bought on price and they bought a name peril policy. Or they bought a policy that’s depreciated claim settlement instead of a replacement and all of a sudden they’re angry. Hey, buyer beware. They didn’t do their homework.

Bob:
So Ron, at the conclusion here, would you mind giving out your phone number and giving out your website address so that that people can contact you so they can make sure that they’re covered correctly? So when that time comes along, they don’t have to worry about that. Like I said, when Rachael had her cancer and she couldn’t work and we had that deductible that was covered in the health plan, you had us covered. So would you mind doing that? Just giving your phone number and information of how to get ahold of you?

Ron:
Sure. Yeah. It’s Christian Insurance Services. For short, you can, you can Google or just type in www.cinsure.org and our phone number (830) 515-5430.

Bob:
And the website address is Cinsure. Okay. C I N S U R E

Ron:
Even Christian Insurance Services. It’ll come right to us.

Bob:
Ron, thank you for being on the podcast today.

Ron:
My pleasure.

Bob:
Yeah. And hopefully you’ve enjoyed listening to Ron and my conversation. He is a true brother in the Lord and I love him dearly. I love his family. You love my family. I can’t wait to be in heaven praising the Lord together, brother.

Ron:
Hallelujah. Maranatha. Come Yeshua.

Bob:
Oh yeah. He’s a messianic Jew too. So I need to let you know that. He’s got the double blessing. That’s going to do it today for today’s podcast. Hope you enjoyed.

[CONCLUSION]

That’s all for now.

We invite you to listen to all of our past episodes covering many financial topics from a Christian Perspective. To make sure you don’t miss any of Bob’s upcoming episodes you can subscribe to Christian Financial Perspectives on iTunes, Google Play Music, Spotify, or Stitcher. To learn more about integrating your faith with your finances, visit ciswealth.com or call 830-609-6986.

[DISCLOSURES]

Investment advisory services offered through Christian Investment Advisors Inc dba Christian Financial Advisors, also known as Christian Financial Advisors, a registered investment advisor. Comments from today’s show are for informational purposes only and not to be considered investment advice or recommendations to buy or sell any company that may have been mentioned or discussed. The opinions expressed are solely those of the host, Bob Barber and his guests. Bob does not provide tax advice and encourages you to seek guidance from a tax professional. While Christian Investment Advisors believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability.