March 11, 2026

127: The Life Insurance Mistake Almost Everyone Makes

127: The Life Insurance Mistake Almost Everyone Makes

Send a text Life insurance is one of the most misunderstood parts of financial planning. In this episode, Jessica and Brandon break down what life insurance is actually meant to do and why most people think about it the wrong way. Instead of treating life insurance like an investment, it should be viewed as income protection. If your income disappeared tomorrow, would your family still be financially secure? We cover: • Who actually needs life insurance • Why term life insurance works f...

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Season 5

Send a text

Life insurance is one of the most misunderstood parts of financial planning.

In this episode, Jessica and Brandon break down what life insurance is actually meant to do and why most people think about it the wrong way.

Instead of treating life insurance like an investment, it should be viewed as income protection. If your income disappeared tomorrow, would your family still be financially secure?

We cover:

• Who actually needs life insurance
 • Why term life insurance works for most people
 • The real difference between term and whole life policies
 • How much life insurance you should consider
 • Why waiting to buy a policy can cost you more
 • Why life insurance through work usually isn’t enough

If you have a spouse, kids, or anyone financially dependent on you, this episode explains why life insurance is one of the foundational pieces of a solid financial plan.

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Money, relationships, and the mindset to master both. Hosted by financial advisor Brandon and his wife Jessica, The Sugar Daddy Podcast breaks down how to build wealth, unpack old money beliefs, and have real conversations about love and finances. Their mission? To help couples and individuals grow rich in every sense of the word: emotionally, relationally and fina...

Chapters

00:00 - Why Life Insurance Matters Now

03:28 - Insurance As Risk Mitigation

06:33 - Keeping Life Stable After Loss

10:51 - Who Needs Coverage And When

14:40 - Health, Age, And Underwriting Realities

19:20 - Kids’ Riders And Insurability

22:55 - Ads, No-Exam Myths, Real Costs

25:07 - How Much Coverage To Get

29:00 - Review Policies As Life Changes

32:10 - The Hidden Cost Of Waiting

35:03 - Term vs Permanent: What To Choose

40:20 - Commissions, Conflicts, And Red Flags

Transcript
WEBVTT

00:00:00.160 --> 00:00:03.759
Imagine if you and your income disappeared tomorrow.

00:00:04.000 --> 00:00:06.000
What would happen to your family?

00:00:06.240 --> 00:00:16.000
In today's episode, we are having the hard conversation about why you need life insurance and why life insurance is income protection and not an investment.

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Hope you'll stay tuned.

00:00:17.679 --> 00:00:19.359
Sugar Daddy Podcast, yo.

00:00:19.839 --> 00:00:22.160
Learn how to make them pockets grow.

00:00:22.399 --> 00:00:24.640
Financial freedoms where we grow.

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Smart investments, money flow.

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Welcome to the Sugar Daddy Podcast, where we help you build a clear financial plan so you can feel confident and in control of your money.

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If you are an OG listener, thank you for being with us and welcome back.

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And if this is your first episode with us, we hope you'll stay to the end and join us every week because we drop episodes every Wednesday.

00:00:50.159 --> 00:00:52.399
Babe, what are we talking about today?

00:00:52.719 --> 00:00:58.880
Today we are having that fun conversation that everybody loves to talk about life insurance.

00:00:59.200 --> 00:01:09.920
Okay, I feel like we're just complete weirdos because I really like talking about life insurance because I am a planner and I like having a plan.

00:01:10.079 --> 00:01:17.439
But I understand why it's difficult for people to have this conversation and to plan for really what the worst case scenario would be.

00:01:17.519 --> 00:01:23.120
Like some people are just so avoidant that they literally just don't want to have the conversation.

00:01:23.200 --> 00:01:31.439
And I'm like, no, no, we're gonna talk about all the hard things because you don't plan for the emergency in the middle of your house spurning down.

00:01:31.599 --> 00:01:36.159
You plan for it while everything is still intact and calm and peaceful.

00:01:36.560 --> 00:01:42.159
Yeah, I would say it's a couple, there's a couple of reasons why people are kind of hesitant to have the conversation.

00:01:42.319 --> 00:01:52.719
I think one, like you said, some people like literally think that, like, oh, if I talk about death, like superstitious, something's gonna happen to me because I'm talking about it, which you know we don't subscribe to that.

00:01:52.959 --> 00:01:53.200
Yeah.

00:01:53.359 --> 00:01:57.280
And then also on top of that, like to be honest with you, the insurance stuff is a necessity.

00:01:57.439 --> 00:02:00.159
I 100% hard stop.

00:02:00.400 --> 00:02:03.519
If you're an adult and you have certain responsibilities, you need life insurance.

00:02:03.680 --> 00:02:12.960
However, it's not the fun part because the idea is that, like, you know, you're putting money into these different types of insurances, well, that's even just like your car insurance, disability insurance, health insurance, stuff like that.

00:02:13.199 --> 00:02:14.560
Your Apple Care insurance.

00:02:14.719 --> 00:02:14.800
Yeah.

00:02:14.960 --> 00:02:17.520
But you're hoping that you never actually have to use it.

00:02:17.599 --> 00:02:19.680
So people are like, oh, well, I'm throwing away money.

00:02:19.759 --> 00:02:27.840
And I'm like, I can understand where you're coming from because I don't like necessarily paying for my insurance, but I've seen what happens on the other end when you don't have those things in place.

00:02:28.159 --> 00:02:33.680
And I mean, throwing away money is a little extreme because they're protections, right?

00:02:33.840 --> 00:02:44.319
You hope to not have to use your car insurance, but in the event that you do, whether it's your fault or somebody else's, you're glad that you have it because it will cover the things that you need fixed.

00:02:44.400 --> 00:02:50.879
It'll cover your rental car, it'll give you that peace of mind to know that you know you're not going to be without a car for a certain amount of time.

00:02:51.039 --> 00:02:54.479
This is the same, but like to the nth degree.

00:02:54.719 --> 00:02:55.120
Yes.

00:02:55.360 --> 00:02:55.680
Right?

00:02:55.919 --> 00:02:56.159
Yes.

00:02:56.400 --> 00:03:05.039
I mean, I I have a sense of peace thinking about the insurance policies we have in place.

00:03:05.280 --> 00:03:05.759
And that's the goal.

00:03:06.000 --> 00:03:06.800
They give me peace.

00:03:07.039 --> 00:03:07.759
That's the goal.

00:03:07.840 --> 00:03:12.159
Like, so you use insurance policies as a form of risk mitigation.

00:03:12.400 --> 00:03:15.039
So, what are the risks that we're actually trying to cover in the scenario?

00:03:15.120 --> 00:03:20.719
So, you know, for today's episode for life insurance, the main risk that we're talking about is someone passing away prematurely.

00:03:20.960 --> 00:03:24.560
Now, this is, you know, for example, like just use like just Nye's example.

00:03:24.800 --> 00:03:38.000
If I was to pass away tomorrow, obviously that's like the worst thing that can happen, but you also don't want to add a financial burden on top of your family because the income that you otherwise would have been bringing in is no longer there.

00:03:38.159 --> 00:03:38.560
Right.

00:03:38.800 --> 00:03:43.520
And that's the purpose of life insurance in regards to what we're talking about today, mainly.

00:03:43.919 --> 00:03:51.840
Well, and I know that we're gonna get into it, but also not necessarily thinking about it as like the paycheck that's gonna be missing.

00:03:51.919 --> 00:04:05.039
But I like to think of it in a way of in the worst case scenario, trying to keep our life as normal as possible, especially we have children, but this episode also applies if you do not have children.

00:04:05.360 --> 00:04:08.000
But you're you're not gonna rush back to work, right?

00:04:08.080 --> 00:04:15.759
You're not gonna resume your nine to five if something tragic happens and unexpected happens to your partner.

00:04:15.919 --> 00:04:16.160
Yeah.

00:04:16.560 --> 00:04:27.040
And and even, you know, there are we have so many examples of people in our lives getting diagnosed with things that are unexpected and could be terminal.

00:04:27.199 --> 00:04:35.120
And so putting life insurance in place, hopefully while you're young, hopefully while you're healthy, that's the best scenario because you save the most amount of money.

00:04:35.279 --> 00:04:35.600
Yes.

00:04:36.000 --> 00:05:00.720
Um, but it's it's one of those things where you need to keep your life as calm and peaceful as possible in the chaos and thinking about like the life changes that you would potentially have to make if you didn't have that income coming in or you didn't have that protection to say, you know what, I'm not gonna go back to work for the foreseeable future and I'm gonna work on my mental health.

00:05:00.800 --> 00:05:06.399
I'm gonna make sure that me and my kids go to therapy, I'm gonna take care of the estate, you know, so to speak.

00:05:06.560 --> 00:05:11.439
I mean, there's so much that goes into handling somebody's passing.

00:05:11.680 --> 00:05:16.480
You can't just go pick up and go to the grocery store and like have a normal life after that.

00:05:16.560 --> 00:05:17.199
You just don't.

00:05:17.360 --> 00:05:18.399
Not for a while, anyway.

00:05:18.720 --> 00:05:26.319
And the thing is, you like what I try to do for people is paint a realistic picture when we're talking about putting life insurance in place and how much you should have.

00:05:26.560 --> 00:05:30.800
Because when you're just talking about numbers, that doesn't really, you know, hit with people.

00:05:30.959 --> 00:05:33.759
Like, oh, a million dollars in coverage, two million dollars in coverage.

00:05:33.839 --> 00:05:34.639
What does that no?

00:05:34.720 --> 00:05:42.079
I need to talk about what it's gonna actually look like in the event if, you know, say you're a family of four and one of the uh spouses passes away.

00:05:42.160 --> 00:05:42.959
What does that look like?

00:05:43.519 --> 00:05:48.000
You know, so say you have two individuals, a husband and wife, that are making$150,000 each.

00:05:48.079 --> 00:05:48.240
All right.

00:05:48.319 --> 00:05:50.800
So they're we're equal on paper when it comes to income.

00:05:51.040 --> 00:05:53.600
Like just said, one of them passes away.

00:05:53.680 --> 00:05:56.079
Do you think they're gonna turn around and just continue working?

00:05:56.240 --> 00:06:00.240
Because I've heard people say to me, like, oh, you know, if one person passes, they still make$150,000.

00:06:00.639 --> 00:06:04.160
You know, that should be, you know, a decent amount to help out with, you know, paying bills.

00:06:04.240 --> 00:06:05.839
And I'm like, there's a lot of money missing.

00:06:06.079 --> 00:06:08.480
One, it's half the income missing, but then also not even that.

00:06:08.560 --> 00:06:11.759
Like, you think that your spouse is really gonna go to work the next day.

00:06:12.079 --> 00:06:16.639
And that your kids are gonna be okay to go to school and that life is just gonna keep going.

00:06:16.879 --> 00:06:17.040
Yeah.

00:06:17.120 --> 00:06:30.480
That's the idea is that like in this scenario, you would want to be able to afford a surviving spouse the time to mourn and also take care of the kids without having to rush back to work because of fear of m not having money.

00:06:30.720 --> 00:06:30.959
Right.

00:06:31.120 --> 00:06:36.000
And even if there are no children, take take care of yourself.

00:06:36.240 --> 00:06:36.560
Yes.

00:06:36.720 --> 00:06:43.439
Even if you've I said to uh to a dual-income household with no kids, take care of yourself, take the time that you need.

00:06:43.519 --> 00:06:45.600
And then even just like some of like the detailed stuff.

00:06:45.680 --> 00:06:55.439
Let's say you have a mortgage and the mortgage is in both of your names, you could potentially lose your mortgage because you are no longer you may not no longer qualify for that mortgage as an individual.

00:06:55.759 --> 00:07:04.399
Yeah, there's so many nuances to losing somebody unexpected that you really have to think about.

00:07:04.480 --> 00:07:06.000
And this is for the long term, right?

00:07:06.079 --> 00:07:12.800
If you have, again, let's use the$150,000 income example.

00:07:13.680 --> 00:07:23.519
If you have young children, the idea is how much income would that person have brought in over the next 10, 15, 20 years?

00:07:23.759 --> 00:07:26.399
It's not just let me get through the next year.

00:07:26.560 --> 00:07:26.800
Yeah.

00:07:27.199 --> 00:07:37.120
And so it's really important, and I know we're gonna get into it, but it's really important to also think about the longevity of what that money can do over the years.

00:07:37.360 --> 00:07:37.600
Yeah.

00:07:38.000 --> 00:07:49.120
So and we've had we've both had very recently had people pass away that are our age, unexpected, and have left families behind.

00:07:49.279 --> 00:07:49.519
Yeah.

00:07:49.680 --> 00:07:53.199
You know, and did not have life insurance in place.

00:07:53.279 --> 00:07:56.800
And that's everyone thinks they're invincible until you're not.

00:07:57.120 --> 00:07:59.279
And it honestly causes a burden.

00:07:59.360 --> 00:08:05.920
And you putting term life insurance, all we're talking about today is term life insurance, putting that in place.

00:08:06.319 --> 00:08:09.360
Well, we are going to define the two different kinds, but the main one we're talking about is term.

00:08:09.680 --> 00:08:10.079
Yeah.

00:08:10.399 --> 00:08:15.519
But having that protection is loving the people you care about.

00:08:15.759 --> 00:08:15.920
Yeah.

00:08:16.160 --> 00:08:16.879
Hard stuff.

00:08:17.279 --> 00:08:17.439
Yeah.

00:08:17.519 --> 00:08:18.879
So kind of go into it, you know.

00:08:18.959 --> 00:08:22.560
The first thing that people always want to wonder is who actually needs life insurance?

00:08:23.120 --> 00:08:27.519
You know, for the most part, here we're talking about income protection.

00:08:27.920 --> 00:08:34.000
And, you know, this is for any person that has any form of responsibility or somebody dependent upon them.

00:08:34.240 --> 00:08:37.759
So for example, easiest one to think of is like Jess and I were parents.

00:08:37.840 --> 00:08:41.519
So if something were to happen to us, you we want to make sure that our kids are taken care of.

00:08:41.679 --> 00:08:50.559
But then also, as you said before, you know, if you are married or with a partner that you guys are financially dependent upon each other, you still need it in that scenario, even if you don't have kids.

00:08:51.360 --> 00:08:56.080
Um, now, one thing that you know is kind of can be up and for debate is when you should get it.

00:08:56.240 --> 00:09:01.200
Because think about someone who's maybe 25 years old, single, doesn't have kids.

00:09:01.360 --> 00:09:05.120
And let's just say they don't have any debt, nobody's financially dependent upon them.

00:09:05.279 --> 00:09:08.879
Then what you're actually thinking there is like, well, what kind of life do you want to live moving forward?

00:09:09.039 --> 00:09:21.759
So if you're someone that's like, hey, I do want to get married in the future, uh, you know, with maybe the next five years, I do want to start having kids maybe in the next, you know, five to 10 years, then it can be very beneficial to go ahead and get a policy in place today.

00:09:22.000 --> 00:09:26.720
Reason being is that in order to get a life insurance policy, first you have to be eligible for one, you have to qualify for it.

00:09:27.200 --> 00:09:31.039
So they're gonna take into account your age and your health mainly.

00:09:31.200 --> 00:09:31.519
Yeah.

00:09:31.759 --> 00:09:35.679
Now, one thing that we know is as we get older, we can't predict the future.

00:09:35.840 --> 00:09:43.679
There are things that can happen from a health standpoint that could possibly make you ineligible for a policy or significantly increase the cost.

00:09:43.919 --> 00:09:49.600
And then also as you get older, it doesn't matter how healthy you are, the older you are, the more a policy costs.

00:09:49.759 --> 00:09:53.600
So the cheapest policy that you're going to be able to get is literally today.

00:09:53.840 --> 00:09:54.080
Right.

00:09:54.320 --> 00:09:55.039
As an individual.

00:09:55.360 --> 00:10:06.080
Well, and I want everybody that's listening to pause and just think about your circle, your family, your close friends, and the things that have happened as you've aged.

00:10:06.320 --> 00:10:09.039
I mean, I can say just for myself, right?

00:10:09.200 --> 00:10:15.200
I mean, we got our policies and then I had my thyroid removed.

00:10:15.360 --> 00:10:17.120
Then I had two C-sections.

00:10:17.360 --> 00:10:20.000
Now I've got, you know, some autoimmune things.

00:10:20.159 --> 00:10:26.159
We know people who've been diagnosed with lupus, with MS, with um, you know, autoimmune things.

00:10:26.320 --> 00:10:29.759
And it kind of, you kind of wake up and it came out of nowhere.

00:10:29.919 --> 00:10:35.679
And once you have that on your record, getting that life insurance policy is going to cost you more.

00:10:35.840 --> 00:10:49.519
So yeah, when you're 25, the last thing on your mind, unless you've been having these conversations with your family, is I want to spend, you know, 30 or 40 extra dollars a month on life insurance, whatever it might cost based on that age and your health rating.

00:10:49.759 --> 00:10:51.840
But that's really the best time to get it.

00:10:52.000 --> 00:10:57.039
Because listen, shit happens when you get older and like your body is not the same.

00:10:57.200 --> 00:11:01.600
And we all know people who have had even cancers pop up.

00:11:01.679 --> 00:11:03.759
You know, I know several people with thyroid cancer.

00:11:03.840 --> 00:11:07.679
I know several people who've gotten breast cancer before they turn 35.

00:11:07.759 --> 00:11:10.559
I mean, y'all, we all know somebody.

00:11:10.720 --> 00:11:11.039
Okay.

00:11:11.279 --> 00:11:14.799
So it's also very affordable when you're when you're younger.

00:11:14.960 --> 00:11:16.720
When you're young and healthy, it's very affordable.

00:11:16.799 --> 00:11:16.960
Yeah.

00:11:17.120 --> 00:11:19.600
Now, the key is, like I said, making sure that you have the right kind of policy.

00:11:19.759 --> 00:11:33.679
But the idea is that you want to try to put these things in place when you can and not necessarily waiting until you need them because at that point in time, it may be significantly more expensive or you may not qualify because of things that have happened from a health standpoint.

00:11:33.840 --> 00:11:34.080
Right.

00:11:34.240 --> 00:11:37.519
Now, one thing also, for example, like we have policies on our kids.

00:11:38.000 --> 00:11:51.039
Now, the reason that we have policies on our kids is because it has a writer on it, which is an additional feature of the policy that allows them to get additional life insurance as an adult without having to go through medical underwriting.

00:11:51.200 --> 00:11:57.919
So we've already ensured that they're going to be able to get a certain amount of life insurance regardless of what happens to them from a health standpoint.

00:11:58.240 --> 00:12:00.000
So it ensures their insurability.

00:12:00.240 --> 00:12:00.559
Correct.

00:12:00.720 --> 00:12:00.960
Right.

00:12:01.200 --> 00:12:12.559
Which is another form of protection because again, we cannot predict the future and heaven forbid something happen, and then they, you know, have a spouse and get and have children, et cetera.

00:12:12.720 --> 00:12:16.240
We want them to have these protections in place.

00:12:16.480 --> 00:12:30.000
And so it's it's the really thinking about the long term while also understanding that life happens, it's unpredictable, and we need to put these protections in place when we can.

00:12:30.159 --> 00:12:35.840
I mean, I was even talking to my brother about it, uh, because I know that he doesn't have life insurance.

00:12:36.159 --> 00:12:40.000
And, you know, he's kind of of the mindset of, well, I'll just wait.

00:12:40.159 --> 00:12:41.360
I'll wait until I'm married.

00:12:41.440 --> 00:12:43.279
I'm wait until I'll have children.

00:12:43.519 --> 00:12:47.120
And I'm like, Boo-boo, you are about to be mid-30s.

00:12:47.360 --> 00:12:49.519
Like, get it now because you're just getting older.

00:12:50.000 --> 00:12:51.039
Get it now while you're healthy.

00:12:51.200 --> 00:12:56.720
Get it now while you're lean and fit, you know, get it now before you have something that pops up.

00:12:56.960 --> 00:13:02.000
And, you know, he tried to battle me on it, but hindsight is always 2020.

00:13:02.080 --> 00:13:10.159
And we know plenty of people that are like, man, I should have done this five years ago when I you've had people that have gone through underwriting.

00:13:10.559 --> 00:13:33.600
They have reached out, they're like, we're ready, they've gone through underwriting, have gotten, I'm assuming, you know, good ratings, maybe a good price, and then never moved forward and then came back, you know, four or five years later, and now the policy is two, three times, or they've had some sort of health issue, and now it's like, ooh, this is gonna cost you a lot.

00:13:33.919 --> 00:13:37.679
Yeah, because I mean there's a lot of things that, you know, I don't think a lot of people realize.

00:13:37.840 --> 00:13:42.639
Like the biggest aspect of the cost for life insurance policy is the medical underwriting.

00:13:43.279 --> 00:13:46.399
And that could be from like your current, you know, physical shape.

00:13:46.559 --> 00:13:49.679
It can also be from different medical things that you've had happen in the past.

00:13:49.840 --> 00:13:56.320
I mean, even now, you know, from like, you know, things are showing up in regards to mental health aspects as well.

00:13:56.559 --> 00:14:06.799
So you know, even just things like ADHD, you know, showing up on life insurance underwriting, and you know, make that that could be a reason for different cost when it comes to certain individuals.

00:14:06.960 --> 00:14:14.240
So that's why I'm saying, like, normally as you get older, you don't necessarily get healthier per se for most people.

00:14:14.480 --> 00:14:14.639
Yeah.

00:14:14.799 --> 00:14:17.279
So it's like go ahead and put it in place, you know, while you can.

00:14:17.679 --> 00:14:19.039
Well, and even if you do, right?

00:14:19.120 --> 00:14:27.279
Like if you're like on a health journey and you've lowered your cholesterol, you're, you know, you had high blood pressure, now you don't, or you've lost weight.

00:14:27.360 --> 00:14:28.960
Like those are all positive things.

00:14:29.039 --> 00:14:29.679
But guess what?

00:14:29.759 --> 00:14:31.519
You can't change your age.

00:14:31.600 --> 00:14:31.840
Yeah.

00:14:32.000 --> 00:14:33.120
It's only going to go up.

00:14:33.360 --> 00:14:34.159
And that's automatically.

00:14:34.480 --> 00:14:39.120
And to be honest, like, you know, like there's a difference that kind of jumps for you know normal intervals.

00:14:39.200 --> 00:14:44.080
So like in your 20s, going through your 20s one year, two years in your 20s isn't a huge difference.

00:14:44.559 --> 00:14:46.159
Makes a difference like when it hits the 30.

00:14:46.240 --> 00:14:49.120
Then, like the few years in between in your 30s, not a big deal.

00:14:49.200 --> 00:14:50.480
Then you see a jump at 40.

00:14:50.639 --> 00:14:50.799
Yeah.

00:14:50.960 --> 00:14:52.559
So get it before those miles.

00:14:53.840 --> 00:14:58.960
Now, somebody, like for example, someone who doesn't maybe need life insurance, if you're wealthy.

00:14:59.600 --> 00:15:02.320
So like you could technically self-insure if you're wealthy.

00:15:02.480 --> 00:15:05.840
Yeah, but the wealthy still use life insurance.

00:15:06.159 --> 00:15:06.320
Yeah.

00:15:06.399 --> 00:15:06.559
Okay.

00:15:06.720 --> 00:15:10.080
So I was gonna say, because it's literally a way to pass down wealth.

00:15:10.480 --> 00:15:20.879
I'm just saying, like, you know, from a monetary standpoint, as far as like somebody being dependent upon, um dependent upon you from a financial standpoint, if you have enough wealth to leave behind, you don't necessarily need one.

00:15:20.960 --> 00:15:24.080
But like I said, they still have life insurance policies for specific reasons.

00:15:24.320 --> 00:15:24.559
Yeah.

00:15:24.720 --> 00:15:35.360
But I mean, for the for the normal person, and if we're thinking about black and brown communities, a lot of times that's where the generational wealth is lost, right?

00:15:35.519 --> 00:15:44.960
You have somebody, maybe they were first-time homeowners in their family, somebody passes away, the mortgage was set to auto-pay, nobody has access to it.

00:15:45.120 --> 00:15:48.720
Now we can't cover it because we're missing one person's income.

00:15:48.879 --> 00:15:51.679
And then now that house is in for foreclosure, right?

00:15:51.840 --> 00:15:51.919
Yeah.

00:15:52.240 --> 00:15:55.919
I mean, there's so many like things that can be going down a different path when you're talking about.

00:15:56.159 --> 00:16:03.600
Well, but but I'm what I'm saying is if you're really thinking long-term and trying to also help set your family up.

00:16:03.919 --> 00:16:05.200
But we want to stay on.

00:16:05.360 --> 00:16:10.399
You're going deep down towards more like estate planning, legacy planning, stuff like that.

00:16:10.559 --> 00:16:13.200
We're just gonna stay on the high-level aspect of life insurance.

00:16:13.360 --> 00:16:13.840
I hear you.

00:16:14.080 --> 00:16:14.240
Okay.

00:16:14.720 --> 00:16:18.480
I'm just listening no more GoFundMe funerals.

00:16:18.720 --> 00:16:19.759
Yes, I agree with you.

00:16:20.080 --> 00:16:20.399
No more.

00:16:20.480 --> 00:16:21.360
Like, enough.

00:16:21.679 --> 00:16:22.240
Stop.

00:16:22.480 --> 00:16:22.720
Yes.

00:16:22.960 --> 00:16:23.279
Stop.

00:16:23.600 --> 00:16:24.639
Get your life insurance.

00:16:24.799 --> 00:16:25.600
Okay, next.

00:16:26.000 --> 00:16:32.080
But um the next thing that people kind of go into is what type of life insurance do I actually need?

00:16:32.720 --> 00:16:36.639
And this is where it, you know, life insurance gets a bad rap.

00:16:37.440 --> 00:16:38.000
IULs.

00:16:38.480 --> 00:16:40.799
Just any all right, so there's two main different types.

00:16:40.879 --> 00:16:44.159
There's two, you know, term life insurance and permanent life insurance.

00:16:44.240 --> 00:16:53.279
And then there's various types of permanent life insurance where like most people heard it, it's referred to as like whole life, like you said, IULs, VULs, there's a bunch of other ones out there, okay?

00:16:53.919 --> 00:16:59.840
But as a high-level overview, as far as the term insurance, term insurance is exactly what it says.

00:17:00.000 --> 00:17:02.559
It is put in place for a certain term period.

00:17:02.720 --> 00:17:19.119
That could be 10 years, 20 years, 30 years, whatever it may be, but it's designed to replace your income in those high-risk years, which is like your prime earning years where you haven't maybe acquired a bunch of wealth because you're still in your, you know, early stages of your career, maybe, or middle stages of your career.

00:17:19.279 --> 00:17:22.960
But the idea is that it's either use it or lose it.

00:17:23.200 --> 00:17:27.119
So you have the policy in place for say a 20-year term and you're paying for it.

00:17:27.200 --> 00:17:30.319
And the amount that you're paying for those 20 years is the same every year.

00:17:30.960 --> 00:17:36.160
And the idea is at the end of the 20 years, you hopefully didn't use it, obviously, but you don't have anything left over.

00:17:36.400 --> 00:17:38.960
Which is why people are like, then I just threw my money away.

00:17:39.200 --> 00:17:41.519
It's kind of like you're rent, you're it's kind of like you're renting.

00:17:41.680 --> 00:17:41.920
Yeah.

00:17:42.160 --> 00:17:43.519
It's the equivalent of renting.

00:17:43.599 --> 00:17:53.759
But the idea here is that it's a very low-cost way to cover a high risk because term insurance costs significantly less than permanent life insurance.

00:17:54.319 --> 00:17:58.480
And most people should just have term insurance insurance, to be honest with you.

00:17:58.640 --> 00:17:59.839
Most people should have term insurance.

00:18:00.160 --> 00:18:06.640
Well, and you would say that if you're looking at getting one policy, it should be like your first policy should be term insurance.

00:18:06.799 --> 00:18:08.799
100% should be a term insurance policy.

00:18:08.960 --> 00:18:14.720
And that's where the issue comes because then on the opposite side, you have permanent life insurance or a whole life insurance.

00:18:14.799 --> 00:18:16.960
And it's just like it sounds permanent.

00:18:17.119 --> 00:18:19.759
It is something that's going to be with you through the rest of your life.

00:18:19.920 --> 00:18:25.920
And at the end of the day, when you do eventually die, your beneficiaries will receive a payout as a death benefit from your policy.

00:18:26.160 --> 00:18:35.039
Now, while you're alive, a permanent life insurance policy, like a whole life policy, does actually grow a cash value in it that you can't access while you're alive.

00:18:35.440 --> 00:18:44.720
But the biggest thing I want to, you know, kind of put a disclaimer on is that too often the issue is that whole life policies are sold to individuals who need a term policy.

00:18:45.119 --> 00:18:48.640
Which is where the scammy part and the bad reputation comes in.

00:18:48.880 --> 00:18:49.039
Yes.

00:18:49.119 --> 00:18:50.319
And I see it all the time.

00:18:50.480 --> 00:19:02.720
And that's where the you know, that's where people get upset because, you know, I've seen people that are, you know, 30 years old and they have a$200,000 whole life insurance policy when really what they should should have gotten is a million-dollar term policy.

00:19:03.839 --> 00:19:07.519
And that's where people are like, oh, whole life's a scam, whole life this and that.

00:19:07.759 --> 00:19:10.319
Then also it's also often portrayed as an investment.

00:19:10.559 --> 00:19:11.279
And it's not.

00:19:11.440 --> 00:19:12.559
It's not an investment.

00:19:12.720 --> 00:19:15.759
You do not use a whole life policy as an investment.

00:19:16.079 --> 00:19:16.319
Okay.

00:19:16.559 --> 00:19:22.559
And that's the issue that I think most people run into is that whole life is not, it's not a scam.

00:19:22.880 --> 00:19:26.559
You just use the wrong product in the wrong situation.

00:19:26.720 --> 00:19:30.799
And that's Well, but is that because people get paid more?

00:19:30.960 --> 00:19:35.920
The person selling gets paid more selling a whole life policy than a term policy.

00:19:36.160 --> 00:19:36.400
Yes.

00:19:36.640 --> 00:19:38.559
And we've said this on a ton of episodes.

00:19:38.880 --> 00:19:44.799
But I'm going to preface this is that I think also too is that you have individuals that maybe don't have enough knowledge and understanding.

00:19:44.960 --> 00:19:47.359
So they're being taught this thinking that they're doing the right thing.

00:19:47.440 --> 00:19:52.480
So it's not always not always that the person's trying to scam you over and make more money.

00:19:52.640 --> 00:19:58.640
They may genuinely think that they're helping you and they just don't have enough knowledge to understand that what you actually really need.

00:19:58.799 --> 00:20:02.640
Now, also, sometimes people come to you and just say, I want this.

00:20:03.039 --> 00:20:05.519
I've had people come to me and say, Hey, I want this.

00:20:05.599 --> 00:20:06.480
I want a whole life policy.

00:20:06.559 --> 00:20:06.799
I want this.

00:20:07.200 --> 00:20:07.759
I read about this.

00:20:07.839 --> 00:20:08.400
My cousin told me.

00:20:08.640 --> 00:20:09.920
I don't, I was like, that's not what you need.

00:20:10.000 --> 00:20:10.559
Well, I want this.

00:20:10.720 --> 00:20:12.880
I'm like, I'm not going to give you that because that's not what you need.

00:20:12.960 --> 00:20:13.839
And I've had to do that.

00:20:14.000 --> 00:20:16.160
But like, I have a little bit more knowledge.

00:20:16.559 --> 00:20:17.920
It could be both ways.

00:20:18.079 --> 00:20:18.720
It could be both ways.

00:20:18.880 --> 00:20:20.640
It could be someone who's just trying to make more money.

00:20:20.720 --> 00:20:25.440
And it could also be someone who, you know, just doesn't have enough uh knowledge and understanding.

00:20:25.680 --> 00:20:26.000
Yeah.

00:20:26.240 --> 00:20:30.400
Well, and just for anybody listening, two things that I'll say on this.

00:20:30.640 --> 00:20:32.480
And we've said this before.

00:20:32.720 --> 00:20:42.079
Anytime you're working with a financial advisor, somebody who's selling you insurance, you should always feel comfortable asking what you're making on this.

00:20:42.240 --> 00:20:50.720
So if you're considering a term policy and a whole life policy, you should feel comfortable saying, hey, what's your commission going to be on this policy versus this policy?

00:20:50.880 --> 00:20:57.599
And if the person that you're working with is not willing to give you that information, that's a red flag, first off.

00:20:57.920 --> 00:21:02.640
Second of all, any insurance product that you have, somebody's getting paid commission.

00:21:02.799 --> 00:21:10.160
So your car insurance, your homeowner's insurance, your valuable property insurance, anybody who's selling insurance is making a commission.

00:21:10.319 --> 00:21:16.799
What I will tell you is that we are not keeping our lights on with your term life insurance.

00:21:17.039 --> 00:21:17.279
No.

00:21:17.759 --> 00:21:29.119
So if you are concerned about like lining somebody's pockets because, you know, that's how they No, you're you are not keeping our lights on with your term life insurance that you need to get for your family.

00:21:29.359 --> 00:21:30.799
So I don't even get that out of your mind.

00:21:31.039 --> 00:21:32.079
I don't even really track that.

00:21:32.160 --> 00:21:37.920
Like as far as like when I'm taking into account my income, like I don't that's not what I'm tracking because it's not it's not a ton.

00:21:38.160 --> 00:21:38.319
Right.

00:21:39.200 --> 00:21:53.839
So just, you know, if you are if you're a person for some reason, whatever trauma you've had in your past with money, you need to get that out of your mind because nobody is driving around in a Lamborghini off of your term life insurance policy.

00:21:54.000 --> 00:21:54.480
So Yeah.

00:21:54.559 --> 00:21:59.759
And like I said, often the problem is with that is that the whole life policy is sold to someone instead of it actually.

00:22:00.160 --> 00:22:01.359
Of being what they really need.

00:22:01.599 --> 00:22:07.039
Now, like I said, there are definitely scenarios where a permanent life insurance policy 100% makes sense.

00:22:07.200 --> 00:22:10.799
But for the vast majority of people, a term policy is what you need.

00:22:11.119 --> 00:22:19.359
And don't in most cases, because I know you love it, depends, but in most cases, you don't need to get a whole life policy before you have a term policy.

00:22:19.599 --> 00:22:20.000
Correct.

00:22:20.240 --> 00:22:22.319
So also the order of operations matters.

00:22:22.799 --> 00:22:25.519
You should definitely get a term policy beforehand for most people.

00:22:25.839 --> 00:22:29.279
Can we just briefly go back and talk about underwriting?

00:22:29.440 --> 00:22:38.640
Because I think that might be, you know, you see a lot of commercials right now of like you can get this much insurance for$30 a month with no medical exam.

00:22:39.519 --> 00:22:41.599
Is it one of those like you get what you pay for?

00:22:42.000 --> 00:22:42.720
Well, it's not even that.

00:22:42.799 --> 00:22:43.680
Like it's what would you say?

00:22:43.839 --> 00:22:51.680
It all depends like one, it depends on age, um the amount that you're applying for.

00:22:52.319 --> 00:22:55.759
And then also they're gonna pull your medical history first.

00:22:56.079 --> 00:23:01.359
So if they see something in your medical history, even though it says no medical exam, they're still gonna pull your medical.

00:23:01.920 --> 00:23:14.640
No medical exam means that they're not gonna, you know, do so what we consider a medical exam is that they're not gonna necessarily have you draw because sometimes you have to have a um somebody come out and draw blood and take a urine sample.

00:23:14.880 --> 00:23:28.000
But they're saying no medical is that they're gonna still pull your medical records because the company, but y'all have seen the commercial still applying for a life insurance policy.

00:23:28.480 --> 00:23:28.559
Yeah.

00:23:28.799 --> 00:23:31.200
So they're going to pull your red, that's they're going to pull your medical records.

00:23:31.440 --> 00:23:32.480
Fair minimum, they're gonna see that.

00:23:32.960 --> 00:23:33.279
100%.

00:23:33.519 --> 00:23:37.759
Well, that I think that's a good call out because I don't know that most people would have assumed that.

00:23:37.920 --> 00:23:47.759
They see, oh, I can download this app, apply for life insurance, it's gonna cost me$30, you know, a month, and I'm gonna have the protection that I need without a medical.

00:23:48.240 --> 00:23:57.519
And like I said, I mean, like the way that they're basing it off of is for the most people, for the majority of people that are looking to actively get a life insurance policy, they're not gonna fall in that bracket.

00:23:57.759 --> 00:23:57.920
Right.

00:23:58.160 --> 00:24:04.400
Because they're normally quoting someone that's probably like they're basing that probably off of someone in their early 20s who's a completely healthy fit.

00:24:04.720 --> 00:24:07.039
But the people in the commercial look like they're mid-40s.

00:24:07.279 --> 00:24:14.079
It's I can tell you, like, I'm telling you, like, as a like, you know, has this, like, you know, it does this for a living.

00:24:14.240 --> 00:24:21.119
If you're in your 40s, and even if you're the fittest, healthiest person, and you're looking to get a million, two million, it's not gonna be 30 bucks.

00:24:21.440 --> 00:24:21.759
Right.

00:24:21.920 --> 00:24:22.240
Okay.

00:24:22.559 --> 00:24:23.599
Well, I think that's a good thing.

00:24:25.039 --> 00:24:26.480
But also, like, they could also be misleading.

00:24:26.559 --> 00:24:28.319
They could be saying that it's a 10-year term.

00:24:28.720 --> 00:24:29.039
Yeah.

00:24:29.279 --> 00:24:42.799
So, like I said, you got to take some nuance there in regards to what it actually is that's your they're specifically selling to you, because you'd be very surprised that once you go through some of those, you're like, oh, I have all these additional requirements now because you don't fit into that box that they were talking about.

00:24:43.119 --> 00:24:44.319
That it's gonna be the easiest way to do that.

00:24:44.559 --> 00:24:48.400
And then you're like, wait, they said$30 on the commercial and now it's 160.

00:24:48.640 --> 00:24:49.039
Yeah, you're not.

00:24:49.119 --> 00:25:04.160
I mean, like I said, like if you're my someone that's my age, 42 years old, about to be 43, and you could be the top, you know, 1% of health-wise, and you're getting, say, a million, two million dollars, and you're gonna probably get it like a 20-year term.

00:25:04.720 --> 00:25:05.920
It's not gonna be 30 bucks.

00:25:06.079 --> 00:25:06.240
Yeah.

00:25:06.400 --> 00:25:07.279
I can tell you that already.

00:25:07.599 --> 00:25:10.000
Well, let's talk about the 1 million, 2 million.

00:25:10.079 --> 00:25:14.240
How do you decide how much life insurance you should have?

00:25:14.559 --> 00:25:20.720
And and I know we've talked about this, but go ahead and address the people who are like, Well, I'm already overinsured.

00:25:21.119 --> 00:25:23.519
Well, okay, so first of all, you can't be overinsured.

00:25:23.599 --> 00:25:25.039
It's literally impossible.

00:25:25.440 --> 00:25:30.559
Reason being is that an insurance company at the end of the day is still a company trying to make money.

00:25:30.720 --> 00:25:34.640
And they're not going to insure you for more than what they deem you to be worth.

00:25:35.039 --> 00:25:35.440
Worth.

00:25:35.680 --> 00:25:39.119
And your worth for in their eyes is based upon mainly age.

00:25:39.359 --> 00:25:42.000
So you have life expectancy and current income.

00:25:42.799 --> 00:25:45.119
So, you know, that's what they're gonna base it off of.

00:25:45.200 --> 00:25:51.519
So they're not gonna like if they deem you to be worth, you know, two million dollars, they're not gonna give you a policy for four.

00:25:51.680 --> 00:25:51.920
Right.

00:25:52.160 --> 00:25:53.279
That's not just not how it works.

00:25:53.440 --> 00:25:53.599
Yeah.

00:25:53.759 --> 00:25:55.039
So you can never be overinsured.

00:25:55.279 --> 00:25:55.920
But people say that.

00:25:56.240 --> 00:25:58.960
Now you could be more insured than you care to pay for.

00:25:59.519 --> 00:26:00.240
Oh, sure.

00:26:00.400 --> 00:26:00.640
Okay.

00:26:00.880 --> 00:26:01.759
And that's really what it is.

00:26:02.000 --> 00:26:05.440
Yeah, like I don't want to pay for this policy, so I'm gonna get less than what's recommended.

00:26:05.680 --> 00:26:05.839
Yeah.

00:26:06.000 --> 00:26:08.400
So, like, and there also could be some nuance in regards to it.

00:26:08.480 --> 00:26:13.440
So, for example, like um, what are your actual financial responsibilities?

00:26:13.599 --> 00:26:21.359
You know, having one kid as compared to having four kids, it's gonna make a difference in regards to maybe what the amount of life insurance that you need.

00:26:21.440 --> 00:26:23.279
So, there is some individual aspects there.

00:26:23.440 --> 00:26:31.759
I would say for like, you know, say your 30-year-old who's not married, doesn't have kids starting out with, maybe you're looking at 10 to 12 times your income to start out with.

00:26:32.000 --> 00:26:32.240
Okay.

00:26:32.400 --> 00:26:32.559
All right.

00:26:32.720 --> 00:26:35.839
That's kind of like the base level of like 10 times, 10 to 12 times.

00:26:36.240 --> 00:26:44.720
However, at that age of 30, you could technically, depending on like your income and your situation, you might be eligible for up to like 25 to 30 times your income.

00:26:45.039 --> 00:26:49.680
Oh, which if you can get that while you're young and healthy, again.

00:26:50.160 --> 00:26:50.799
But it also depends.

00:26:50.880 --> 00:26:54.480
So you and the thing is like you can't just take life insurance in one silo.

00:26:54.559 --> 00:26:57.200
Okay because you want to do the financial planning aspect and look at everything else.

00:26:57.359 --> 00:27:02.000
So for example, like think about it this way if you most people are on a fixed income, a fixed budget.

00:27:02.400 --> 00:27:12.480
So if you're allocating all this excess, so let's say you have your this 30-year-old who's not married, doesn't have um kids, and they're trying to get 30 times their income, which they could be eligible for.

00:27:12.880 --> 00:27:14.319
Do they necessarily need it at that point?

00:27:14.480 --> 00:27:22.400
Because maybe that money that they would otherwise be allocating towards that life insurance policy, some of that would be better investing more into their 401k plan or an IRA.

00:27:22.559 --> 00:27:22.720
Okay.

00:27:22.880 --> 00:27:26.400
So just because you're eligible for it based upon your situation doesn't mean you necessarily need it.

00:27:26.559 --> 00:27:26.799
Okay.

00:27:27.039 --> 00:27:35.920
Which is why it is important to talk to somebody about which you're probably not gonna get when you sign up for uh life insurance through an app.

00:27:36.720 --> 00:27:41.279
I honestly I've never gone through one, so I'm not gonna like get on this soapbox and say that it's incorrect.

00:27:41.359 --> 00:27:41.839
I don't know.

00:27:42.160 --> 00:27:43.119
But maybe talk to somebody.

00:27:43.359 --> 00:27:52.160
Yeah, I think I think it's worth having a conversation because as I said before, like I when I put life insurance in place, I get a commission from the life insurance company.

00:27:52.319 --> 00:27:55.920
So I don't get any money per se from you sitting and talking to me about it.

00:27:56.079 --> 00:28:00.880
Now, like I said, you have to be with a reputable person who's you're really looking to do and put in place what's best for you.

00:28:01.039 --> 00:28:01.119
Right.

00:28:01.279 --> 00:28:05.119
But you can 100% benefit from talking to an individual that has the expertise.

00:28:05.200 --> 00:28:05.440
Yeah.

00:28:05.599 --> 00:28:08.880
Because, you know, and that also, like I said, it changes with your individual situation.

00:28:08.960 --> 00:28:17.279
So, like, say the 30-year-old, now moved you up to 40 and you're married and you have kids, you might be you're still eligible for possibly, you know, 20 times your income.

00:28:17.440 --> 00:28:21.119
And that might make sense in that scenario because you have more people that are financially dependent upon you.

00:28:21.200 --> 00:28:23.680
And also you might be bringing in more money, you have more responsibilities.

00:28:23.759 --> 00:28:29.200
Now you have a mortgage, you might have, you know, other, you know, still student loans and stuff like that.

00:28:29.359 --> 00:28:35.519
I mean, student loans would go away, but uh but it's one of the, you know, the death that we always just pop in our mind.

00:28:35.599 --> 00:28:39.519
But um you have a mortgage and everything else that you have to help out from a financial standpoint.

00:28:39.680 --> 00:28:40.799
So it really depends.

00:28:40.960 --> 00:28:44.079
But 10 to 12 times your income is like where it starts.

00:28:44.160 --> 00:28:49.119
And then the nuance comes as you as an individual, what your specific needs are.

00:28:49.440 --> 00:28:57.839
So, and what I'm hearing there is you might need to look at your life insurance and your coverage as your life progresses.

00:28:58.160 --> 00:29:03.359
Oh, what oh, it's yeah, it's that it's never something that you're just gonna set in place to like 30 and forget about and be done.

00:29:04.079 --> 00:29:08.480
Because you're gonna have to, you know, reassess your situations as you progress through the different stages of life.

00:29:08.880 --> 00:29:10.720
And potentially your beneficiaries.

00:29:10.880 --> 00:29:16.240
We just released something about, you know, hey, maybe you were married, now you're divorced.

00:29:16.319 --> 00:29:21.599
You might want to update that beneficiary, or you went from not owning a house to owning a house.

00:29:21.759 --> 00:29:23.599
Well, that's a much bigger expense.

00:29:23.759 --> 00:29:28.720
You might need to increase your life insurance then, going from one child to multiple children.

00:29:28.880 --> 00:29:33.200
All of those life stages warrant a review.

00:29:33.440 --> 00:29:47.039
And also, here's the thing, too, is that like, here go where it can be beneficial, where you actually have someone like a financial planner, life insurance agent that you build a relationship with, and they actually keep in contact with you because they also know when you have these stages change.

00:29:47.119 --> 00:29:55.279
So, for example, I have, you know, friends of mine that have gotten divorced multiple times, and I know this obviously because they're friends of mine, and I'm like, hey, we need to change our beneficiary.

00:29:55.359 --> 00:29:56.400
You're no longer married to this person.

00:29:56.559 --> 00:29:58.240
And though they would not have thought about that.

00:29:58.559 --> 00:29:59.039
Exactly.

00:29:59.279 --> 00:29:59.599
Yeah.

00:29:59.920 --> 00:30:06.960
So it's helpful sometimes to have someone that is reaching out to you with those touch points to make sure that, you know, do we need to update anything?

00:30:07.119 --> 00:30:08.240
Has anything changed?

00:30:08.400 --> 00:30:10.559
Because your income, right?

00:30:10.640 --> 00:30:18.559
Like as we're aging, we obviously in most cases hope that our income is also increasing year over year.

00:30:18.720 --> 00:30:28.960
And so if you put a policy in place in your late 20s, early 30s, and now you're mid forties and you've, you know, increased your income significantly, that matters.

00:30:29.119 --> 00:30:29.359
Yeah.

00:30:29.519 --> 00:30:36.640
And so all of those things need to be taken into account when you're thinking about, you know, when to put it in place and then when to update it.

00:30:36.799 --> 00:30:42.559
And that's not to say, I mean, you're not recommending that people update their life insurance on an annual basis or anything.

00:30:42.880 --> 00:30:43.599
No, no, no, no, no.

00:30:43.680 --> 00:30:48.640
Not making necessary changes to your life insurance, but just making sure that changes that there's there's nothing we do need to change.

00:30:48.880 --> 00:30:53.759
It's like for example, like, you know, as I said, like having one kid and say you're renting.

00:30:54.240 --> 00:30:59.200
Now a year passes or a year and a half passes, now you have an another kid on the way and you just bought a house.

00:30:59.359 --> 00:30:59.440
Yeah.

00:30:59.680 --> 00:31:01.599
You have more of a f financial responsibility.

00:31:03.680 --> 00:31:03.920
Yeah.

00:31:04.640 --> 00:31:04.880
Okay.

00:31:05.519 --> 00:31:20.400
I think too, one time you and I feel like this kind of pulled on the emotional heart strings of the reality of what could happen in the event that you don't have life insurance, right?

00:31:20.480 --> 00:31:34.319
So if we're thinking about maybe a stay-at-home mom, usually the mom is the one who stays at home if you're in like a a singular income household, the husband unexpectedly, you know, passes away.

00:31:34.559 --> 00:31:36.079
There's no life insurance.

00:31:36.240 --> 00:31:38.160
So how do you afford where you're living?

00:31:38.319 --> 00:31:41.119
Now you might need to change where you're living.

00:31:41.279 --> 00:31:45.920
That's going to then potentially change where your children are going to school.

00:31:46.079 --> 00:31:54.240
Now they have to not only grieve the loss of a parent, now they're having to assimilate into a new environment, meet new teachers, make new friends.

00:31:54.319 --> 00:31:56.480
Like, I mean, you might have a completely different life.

00:31:56.559 --> 00:32:00.480
Say these kids are involved in activities that cost money, now they're no longer a part of the soccer team.

00:32:00.559 --> 00:32:02.880
They're no longer they're no longer a part of the dance team.

00:32:02.960 --> 00:32:07.920
Like those are, I mean, and and I don't think that most people think about those details.

00:32:08.079 --> 00:32:18.720
But if you can the point is, if you cannot afford your life the way it is right now without life insurance, then you need life insurance.

00:32:19.039 --> 00:32:19.599
Well, like that's it.

00:32:24.160 --> 00:32:30.319
Obviously, outside of me not being here and having to deal with that, I don't want anything else in your life to change.

00:32:30.720 --> 00:32:31.039
Right.

00:32:31.200 --> 00:32:32.160
Unless I want it to.

00:32:32.720 --> 00:32:33.200
Yes.

00:32:33.440 --> 00:32:34.000
Yes.

00:32:34.960 --> 00:32:36.000
Absolutely.

00:32:36.319 --> 00:32:36.640
Yeah.

00:32:36.799 --> 00:32:43.039
Now, kind of moving into, we also like to like I like to point out with individuals the hidden cost of waiting.

00:32:43.279 --> 00:32:44.480
Because that's the biggest thing.

00:32:44.640 --> 00:32:46.079
People want to wait, wait, wait.

00:32:46.240 --> 00:32:49.200
If I can go back in time, I and I got and we got our policies.

00:32:49.359 --> 00:32:52.559
I was in my early 30s when we got our uh our larger ones.

00:32:53.039 --> 00:32:59.359
And I would go back, I mean, I wish I would have gotten, you know, even a few years earlier in my, you know, mid to late 20s.

00:32:59.519 --> 00:32:59.920
Yeah.

00:33:00.160 --> 00:33:04.400
And the like I said before, waiting costs more.

00:33:04.559 --> 00:33:07.119
Even if you're healthy, it's going to cost more.

00:33:07.279 --> 00:33:13.359
Now, for example, if you're 27, you wait to 28, is it going to be a significant difference just from an age standpoint costs?

00:33:13.440 --> 00:33:13.680
No.

00:33:13.839 --> 00:33:15.440
But technically it is going to cost you more.

00:33:15.599 --> 00:33:24.160
And then you also living up open the possibility of anything that changes in your health that could potentially increase the cost or make you ineligible altogether.

00:33:24.319 --> 00:33:24.799
Mm-hmm.

00:33:25.680 --> 00:33:28.240
Well, and thing, y'all, things happen, right?

00:33:28.400 --> 00:33:30.480
You know, these autoimmune things pop up.

00:33:30.640 --> 00:33:41.519
You could be, I mean, even getting into an accident, having, you know, surgeries, things like that are all going to weigh into your overall health rating or eligibility.

00:33:41.599 --> 00:33:41.759
Yeah.

00:33:42.079 --> 00:33:49.279
And so those are the things, you know, every every day that we make it another day, something terrible could happen.

00:33:49.359 --> 00:33:50.559
And that's just the reality.

00:33:50.720 --> 00:33:54.240
I mean, gosh, I saw something, you know, we had this like Snow Mageddon.

00:33:54.640 --> 00:34:03.839
I saw an article in from Charlotte where dad was sledding with his kids and got like run over by an A T V.

00:34:05.279 --> 00:34:06.400
Like accidents happen.

00:34:06.880 --> 00:34:14.000
You know, like you don't think that you're gonna go out with your kids and go sledding during like a a snow storm or whatever.

00:34:14.159 --> 00:34:16.320
It wasn't a snowstorm, but you know, like we were all out for shift.

00:34:16.559 --> 00:34:17.360
And that's what I want to point out.

00:34:17.519 --> 00:34:19.760
The term insurance is not because you died of old age.

00:34:19.920 --> 00:34:20.079
Right.

00:34:20.400 --> 00:34:21.679
It is the premature death.

00:34:22.079 --> 00:34:22.239
Yeah.

00:34:22.480 --> 00:34:24.159
That's what the main thing that is covering.

00:34:24.239 --> 00:34:27.840
It's not covering the 87-year-old man who passes away.

00:34:27.920 --> 00:34:28.960
No, that's not what we're talking about.

00:34:29.039 --> 00:34:32.239
We're talking about the 45-year-old dad who was in a car accident.

00:34:32.400 --> 00:34:38.480
We're talking about, you know, the 35-year-old mom who same idea.

00:34:40.239 --> 00:34:41.519
I mean, and that's the reality.

00:34:41.599 --> 00:35:03.360
And no, we don't want to pay for it, but when, if and when that policy ever needed to be enacted, I know that we nobody would ever regret whatever the cost is to then get an influx of money that can give you and your family peace and support to handle what you need to with the time that you need.

00:35:03.840 --> 00:35:10.639
And also at the end of the day, like the way that life insurance fits into your bigger financial picture is that it's honestly the foundation of it.

00:35:11.519 --> 00:35:16.960
Majority of anything else that you're doing from a wealth building standpoint is a long-term play.

00:35:17.119 --> 00:35:20.880
It's not going to be tomorrow, it's not going to be next week, it's not going to be next year.

00:35:20.960 --> 00:35:22.719
It's going to be years in the making.

00:35:22.960 --> 00:35:29.920
However, these things can completely demolish that financial plan, can happen today, can happen tomorrow.

00:35:30.000 --> 00:35:33.119
And that's the idea behind, you know, life insurance that you're putting in place.

00:35:33.199 --> 00:35:34.400
It's a foundational block.

00:35:34.559 --> 00:35:44.159
And to be honest with you, if you are an adult with certain responsibilities and you don't want believe in putting life insurance in place, I don't want to work with you.

00:35:44.400 --> 00:35:50.400
I strongly dislike individuals that don't take care of their family and the needs that come with that.

00:35:50.559 --> 00:35:54.159
If you don't want to take care of that responsibility, don't have kids.

00:35:54.320 --> 00:35:55.440
Don't have a wife.

00:35:55.679 --> 00:35:58.159
I'm I've just I've Yeah, you get very fired up.

00:35:58.400 --> 00:36:00.880
Because I've met Which Brandon doesn't get fired up about much.

00:36:01.280 --> 00:36:04.559
Because I've had a few encounters with, you know, um men.

00:36:04.639 --> 00:36:12.239
And it's not really, I've normally it's not women, it's men who are like, oh, you know, I don't, I'm, I'm just gonna get this small policy, or I don't, I don't I don't need anything at all.

00:36:12.480 --> 00:36:13.039
She'll be fine.

00:36:13.199 --> 00:36:14.000
And I'm like, I'm good.

00:36:14.079 --> 00:36:14.800
We're not working together.

00:36:15.119 --> 00:36:16.880
You can get a policy through somebody else.

00:36:17.119 --> 00:36:20.079
Because like, that's just irresponsible and selfish.

00:36:20.239 --> 00:36:20.639
Mm-hmm.

00:36:21.280 --> 00:36:22.320
That's really sad.

00:36:22.400 --> 00:36:32.320
Like, if you, as a spouse, as a parent, the one thing you should always want to do is to make sure that if you are not around, your family is still taken care of.

00:36:32.559 --> 00:36:35.599
Now, there's something completely different if we look at the numbers.

00:36:35.679 --> 00:36:40.559
And in your financial situation, you can't afford the full amount that you probably should have.

00:36:40.639 --> 00:36:41.519
That's a different scenario.

00:36:41.679 --> 00:36:44.079
I'm talking about better to have something than nothing.

00:36:44.480 --> 00:36:45.679
But I'm talking about, yes.

00:36:45.760 --> 00:36:48.320
And that means even more so that you need the life insurance in some aspects.

00:36:48.639 --> 00:36:48.880
Exactly.

00:36:49.119 --> 00:36:52.800
Because you, you know, but I'm talking about people where we've looked through the numbers.

00:36:52.880 --> 00:36:54.559
They I've gone through their entire budget.

00:36:54.639 --> 00:36:57.199
They have the money to put towards it, they just don't believe in doing it.

00:36:57.360 --> 00:37:01.039
I'm like, I can't, I can't understand that.

00:37:01.599 --> 00:37:05.119
Let's talk about people who get life insurance through work.

00:37:05.599 --> 00:37:11.119
Typically, those are, you know, maybe one to three times that person's salary.

00:37:11.519 --> 00:37:13.119
It's a good start, never enough.

00:37:13.360 --> 00:37:13.599
Okay.

00:37:13.760 --> 00:37:24.559
So even if you have it through work, you should have a supplemental well, because once you leave, most of the time, I mean, maybe you can port that policy, but most of the time it's like you leave the company, you leave the policy.

00:37:25.199 --> 00:37:30.639
So I one, I would always say like most employers have one times your salary as the base, and you don't even have to pay for that.

00:37:31.039 --> 00:37:33.599
So you should 100% take advantage of that because you're not paying for it.

00:37:33.760 --> 00:37:33.920
Yeah.

00:37:34.079 --> 00:37:36.960
Now, sometimes they allow up to three times.

00:37:37.039 --> 00:37:40.000
Um I've even seen up to three times your base and not at the pay for that.

00:37:40.159 --> 00:37:43.440
Well, sometimes it depends on what level you are in the company.

00:37:43.599 --> 00:37:44.000
Correct.

00:37:44.239 --> 00:37:50.000
So But often it's either, you know, completely uh paid for or highly subsidized.

00:37:50.159 --> 00:37:53.920
So I always say, like, hey, let's go for like the place where we can get the least expensive first.

00:37:54.079 --> 00:37:54.880
Let's start there.

00:37:55.280 --> 00:37:59.599
But three times your salary, even five times your salary is not going to be enough normally.

00:37:59.840 --> 00:38:00.159
Right.

00:38:00.400 --> 00:38:01.840
So that's a good place to start.

00:38:02.000 --> 00:38:05.599
And as just pointed out, like it is a policy that's tied to your employment.

00:38:05.760 --> 00:38:11.599
Now, sometimes if you were to leave that employer, it can be called what's called portable, but then also the price increases with that.

00:38:12.079 --> 00:38:13.920
Because it's no longer subsidized by your employer.

00:38:14.159 --> 00:38:14.480
Correct.

00:38:14.639 --> 00:38:23.280
So it might just be, you know, go ahead and get the policy that you have through your employer, but then also have an individual policy that has no depending upon where you're employed and it's your own policy.

00:38:23.840 --> 00:38:24.000
Yeah.

00:38:24.239 --> 00:38:27.840
You can also also do a lot more customization on individual policy.

00:38:28.000 --> 00:38:31.599
A policy through your employer is the vanilla basic, and everyone's getting the same.

00:38:31.679 --> 00:38:31.840
Yeah.

00:38:32.000 --> 00:38:38.480
You can do a lot more customization, a lot more additional features on the term policy when you have an individual policy.

00:38:38.719 --> 00:38:38.960
Yeah.

00:38:39.280 --> 00:38:39.599
Okay.

00:38:40.480 --> 00:38:40.880
All right.

00:38:40.960 --> 00:38:43.840
So get what you can through work, but it's not enough.

00:38:43.920 --> 00:38:46.719
So definitely supplement with an outside policy.

00:38:47.599 --> 00:38:51.679
There is a cost to waiting, so don't wait.

00:38:52.239 --> 00:38:59.119
And really the call to action is if you do not have life insurance, you need it.

00:38:59.519 --> 00:38:59.840
Yeah.

00:39:00.159 --> 00:39:04.000
So, you know, you could reach out to Brandon.

00:39:04.239 --> 00:39:06.639
And like I said, I mean, e reach out, you could reach out to me.

00:39:06.719 --> 00:39:08.960
And I mean, even bare minimum, I don't care.

00:39:09.039 --> 00:39:14.639
Hop on the website so at least like um one of the websites that give you a quote so you can at least get an I start to get an idea.

00:39:15.039 --> 00:39:20.719
Like even bare minimum of that, I think it could, you know, be very beneficial to reach out and talk to an individual.

00:39:20.880 --> 00:39:22.639
But sometimes that could be the barrier for people.

00:39:22.719 --> 00:39:25.519
Like they're just nervous to talk to a person and they much rather do it online.

00:39:25.599 --> 00:39:27.119
I'd much rather you get something than nothing.

00:39:27.440 --> 00:39:32.079
Do you have any suggestions on where if somebody's not gonna like reach out to you to do it?

00:39:32.639 --> 00:39:34.639
Ethos is the one that you know most people are familiar with.

00:39:34.719 --> 00:39:36.400
Now I've never-commercials.

00:39:36.639 --> 00:39:37.760
No, I've personally never gone through it.

00:39:37.840 --> 00:39:41.679
So I'm not this is not an advertisement for ethos, is we're not getting paid from them.

00:39:41.840 --> 00:39:43.119
I've never personally done it.

00:39:43.840 --> 00:39:49.280
I've never personally done it, but they are one of the major ones out there where you can hop online and you kind of find that out.

00:39:49.679 --> 00:39:53.760
And honestly, what they're doing is they're getting your information and then they're just connecting with other carriers.

00:39:54.400 --> 00:39:54.800
Yeah, they're carrier.

00:39:54.960 --> 00:39:56.079
They're connecting with other carriers.

00:39:56.159 --> 00:39:56.960
That's really all they're doing.

00:39:57.280 --> 00:39:57.760
Oh, yeah.

00:39:57.840 --> 00:39:58.079
Okay.

00:39:58.239 --> 00:39:58.400
Okay.

00:39:58.639 --> 00:40:01.280
So you might as well just reach out to Brandon.

00:40:01.440 --> 00:40:03.440
Yeah, because Ethos themselves is not a life insurance company.

00:40:03.840 --> 00:40:04.559
Oh, interesting.

00:40:04.719 --> 00:40:05.519
So they're a broker.

00:40:05.679 --> 00:40:06.000
Yeah.

00:40:06.239 --> 00:40:07.119
Oh, interesting.

00:40:07.360 --> 00:40:07.679
Okay.

00:40:08.159 --> 00:40:11.840
Well, thank you for having the hard conversation with us today.

00:40:12.000 --> 00:40:20.079
We know some of these necessary conversations are not comfortable for many people to talk about, but they are necessary.

00:40:20.400 --> 00:40:23.920
It's part of adulting, it's part of taking care of your responsibilities.

00:40:24.000 --> 00:40:30.239
And so look at the policy that you might have through work, but understand that that is not enough.

00:40:30.480 --> 00:40:33.679
And reach out to Brandon, take a look at Ethos.

00:40:33.840 --> 00:40:45.440
And if you don't have life insurance, let's make sure that that is something that gets added to your to-do list and is at the very top because it is important and it is the right thing to do.

00:40:47.599 --> 00:40:49.440
All right, share this episode with a friend.

00:40:49.599 --> 00:40:54.079
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00:40:54.159 --> 00:40:57.119
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00:40:57.199 --> 00:40:58.559
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00:40:58.719 --> 00:41:00.079
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00:41:00.159 --> 00:41:04.480
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00:41:04.559 --> 00:41:07.440
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00:41:07.599 --> 00:41:08.880
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00:41:09.119 --> 00:41:14.480
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00:41:14.719 --> 00:41:16.000
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00:41:16.159 --> 00:41:17.039
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00:41:17.360 --> 00:41:18.960
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00:41:19.440 --> 00:41:21.679
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00:41:24.480 --> 00:41:26.480
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00:41:27.119 --> 00:41:29.039
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00:41:29.199 --> 00:41:32.000
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00:41:32.159 --> 00:41:40.239
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