What Is The Difference Between Life Insurance And Death Benefit

What is the difference between life insurance and death benefit? There is a huge difference. I need you to stay to the end of the video where I'm going to tell you, well, most of you think you have insurance, you have death insurance. Has nothing to do with benefit. So specifically, I'm going to talk about what's the difference between the life insurance and death benefit? What is a death benefit? And then just in general, what's insurance? Do you have life insurance? Do you have death insurance? And in that conversation, what's your goal? Because I can tell you there's only one way to do it. If you want generational wealth. So with me today, I have Jason Henderson. He's a partner in insurance company. And we love the banking and real life insurance. So we're going to talk about life insurance versus a death benefit first, Jason, and then just life insurance versus death insurance. So first question, talk about death benefits. Just define that. It's simply something that is paid out to your beneficiaries. Let's say the insurance is on you when you pass away. Something that is paid upon your death. OK. And so the cash value, which is separate, speak to that. So the cash value is the amount of cash that you have access to during your lifetime. It's more of a living benefit than something that goes. Only happens when you die. And when we talk about banking, we want to be all about the cash. But the fact that that's what we can use, that's our line of credit, that's whatever we can write checks against, whatever you want to do, invest with. That's the big kahuna during your lifetime. So explain the real life insurance that we're talking about. And those of you that are out there, if you want more information, you guys put in the search bar and search for how do you become a bank? We have a whole video about that. But specifically for those that are in right now, listening, talk about just the kind of life insurance we are promoting, excited about. And, you know, a lot that are listening are out there. They're getting that 15 for $15 a month. You get this term insurance, which we call death insurance. Explain the difference. OK, so let me give you an example. You have fire insurance on your home. It only pays out of benefit when there's a fire. You have accident insurance on your car. It only pays out when there's an accident. So when you say death or life insurance, you only pays when you die. That's a misnomer that's been mischaracterized. It truly is death insurance for the fact that when that event happens is when it pays. That's not what we're talking about. This cheap, cheap, cheap stuff that's out there. The term insurance is actually the number one most profitable product of the insurance industry. We don't want that. It does fill a certain need, and there is a need out there. And you may need that. However, what you really want to get to is whole life insurance. Oh, no, no, I don't want that stuff. I've heard Dave Ramsey tell me that's a terrible investment. Blah, blah, blah, blah, blah. You can go on with it. Well, guess what? That's not the case. Yeah, it's all in the design. When whole life insurance is designed for death benefit. You're right. Not good stuff. When it's designed for cash accumulation. In other words, emphasizing the living benefits. So it is truly life insurance. It's something that gives you a benefit while you're living. Then it's a completely different animal. You need the right kind of contract to make that happen. So in real life insurance, let's talk about the benefits. You have at least eight things mentioned. I mean, it's critical that this gets done, right? Correct. So number one, I'd say as a no loss provision. In other words, there's going to be guarantees that you're never going to lose money. Wow. Wow. That. Yeah. Well, who's going to guarantee that? Well, guess what? You have companies that we work with that you would become a part owner with that have been around for 130, 140 years and have been profitable every single year. And that's the kind of company that's backing up that guarantee. OK, the second one comes right on the heels of that, and that's guaranteed growth. Not only are they saying you will never lose money, we're going to guarantee that your money is going to grow and they'll do a certain rate. And then there's even non guaranteed growth. What do you mean by that? Well, non guaranteed growth comes from the fact that you are a part owner of the company with ownership comes privileges. I own a part of the company and the company's profitable. I want my portion of the profits. Well, that's where the non guaranteed growth comes from. As for the fact they don't know how much they're going to make in 2022 or 2023. However, I do get my percentage every single year. And like you said a second ago, they have been profitable every single year for 130 plus years in a row. That's through the Great Depression. That's through the World Wars. That's through the flu pandemic in 1918. Deaths are up quite a bit this year, and they're still paying a dividend. They're doing it. OK. So as part of that, you can see number three would be. No risk. Well, nothing has no risk, Jason. Well, this is about as close as you're ever going to get. There are not companies that are older and stronger and more stout than this. In fact, let me tell you something most a lot of people don't know about. The FDIC says that regular banks, you know, the FDIC banks, they can have three things in their tier one capital gold, treasury bills and cash value life insurance. Yeah. According to the FDIC, they're equating those three. They're they're the same value. So I'm saying that that is pretty much as low risk, zero risk as you're ever going to get. Let's talk about something else. Well, number four is liquid. I want to have access to my money when I want it, how I want it. I don't need some strings attached or someone telling me, oh, no, that's not what you're going to do now. You need to wait or you're not employed now. So you can't have access to it. No, I want to have that money liquid all the time. And that's exactly what you have. You have as an owner, you have privileges and you have total reign over what's happening with the cash values that you have that belong to you. Let's talk another one. There's tax free as well as tax deferred growth. Now, the tax free is that we talked about the death benefit. Yes, there's going to be a death benefit. All of that comes income tax free to your family. And truly what you're doing with today's dimes are buying future dollars, tax free dollars, tax deferred growth as there's things. Well, you won't pay any taxes on it for a very, very long time. Now you get with someone who's smart and show you how to do things. Most likely will never pay tax. I want to be strictly by the book. We're going to say tax deferred growth inside that policy. The dividends I talked about a minute ago are not taxable. They're not even reportable. You don't get a ten ninety nine. No one's coming looking after you. It's awesome. OK, number six, knowing that you have this cash value, it's essentially a line of credit. It's how much you have in cash value. There is what you can use as collateral for a loan to do whatever. I've had clients that have lost their jobs or even quit on someone. They didn't like their boss. They walked out and they had a massive mortgage. Guess what? Signature of their name. They still get loans against their policies. Well, to make their mortgage payments until they got back on their feet. Absolutely amazing. That wouldn't happen anywhere else. That's what I mean by line of credit. Another one that high net worth people really, really like here is someone sues someone else and gets a judgment. They're unable to attach this type of insurance, the cash values. It needs to be held right. And there needs sometimes there needs to be entities and things to protect that. So I know, Scott, another one of your partners, that's someone that would come into the discussion there. However, you know, I know of doctors that have had been sued for malpractice and they don't touch this line. The most famous example is O.J. Simpson. He was found guilty in the civil trial, not the criminal trial, the civil trial. And the family never got access to that money for the fact he had a locked up in this type of insurance domiciled in Florida. Certain states, of course, are better than others. Florida was an awesome. As I said a minute ago, as far as like a line of credit, it's collateral opportunity. I can use my contract and get a loan against my policy with the insurance company. I can also go to any corner bank anywhere, any FDIC bank, and they will take my cash value as collateral for a loan from them. And there's a lot of third party people out there that would give me a loan with that as collateral. Remember, the FDIC thinks it's as good as gold and Treasury bills. Awesome. So if someone wants to learn more about it, what's the application process? And we're going to put an application in the description below. So talk about the application process and then we're going to let him go and get an application and get it out to you. Pretty simple. The hardest things are saying, OK, if you had cancer, if you had, you know, skin problems, you have problems with your your lungs, simple health questions, right, to determine where you are. Remember, you're going to be a part owner of the company. So the company wants to survive and to ensure someone that's going to die next week is not a good risk. Right. So they're assessing you as a risk. And so a lot of those questions are around that. They even ask, do you jump out of airplanes with parachutes? Are you a scuba diver? Some of those things that people do are a little bit more risky. And that may or may not affect you. Most of the time, not. So very simple questions is nothing rocket science or anything would be difficult. And at any age. So I would say those of you that are listening, this is an application for you, your family, see what we can do, see which contracts you can get. And we'll begin getting you on the right track. So before I go into this last piece again, hit the subscribe button, put the notification button on. I'm here five days a week and every morning you want to wake up with a message from Laurel and become financially literate. Make that a goal in the next 365 days. Now, let's talk about the goal between life insurance and death insurance. So death insurance is just term insurance is all that stuff that you get pitched every day in ads on TV. $5 for this and $20 for this and as low as $12 a month. You can get, you know, a $500,000 policy. And what if you outlive it? Then you just wasted all that money. There's a whole way to set up life insurance for generational wealth. So what I want you to do is I want you to click on the link. I want you to go to my quiz. I want you to take my financial personality test. Now, this is going to be a little different because we're going to send you an application for a free complimentary on me. I'm going to pay my insurance guy to talk to you about real life insurance, bank level life insurance, the insurance that Jason just talked to you about. So click on the link, take the quiz. We're going to send an application and then we're going to send you over to have a complimentary conversation about real life insurance. That's set up for generational wealth term insurance. You can't do that. It doesn't work that way. So don't go through this whole life to end up at the end with the death insurance policy. Click on the link. I'll talk to you tomorrow.