Latest / Earn Your Leisure / WHAT'S THE BEST TYPE OF LIFE INSURANCE?

Transcript

WHAT'S THE BEST TYPE OF LIFE INSURANCE? · Earn Your Leisure

• 0:00
  Speaker 1: All right, So we'll just ask everybody just to mute yourself,
• 0:02
  Speaker 1: if you can mute yourself, and then we'll call on
• 0:05
  Speaker 1: people individually. And then obviously you become unmuted when you
• 0:07
  Speaker 1: get called on. But if you're not talking, if you're
• 0:09
  Speaker 1: not called on, please mute yourself. That would be beneficial.
• 0:13
  Speaker 1: All right, Can we can get started?
• 0:15
  Speaker 2: All right?
• 0:16
  Speaker 3: I have been coming to you.
• 0:17
  Speaker 4: I meant yourself.
• 0:17
  Speaker 5: Please, what's going on y'all?
• 0:21
  Speaker 3: Me?
• 0:21
  Speaker 4: Okay, yeah, I can hear you?
• 0:23
  Speaker 5: All right. I had a question about uh, I had
• 0:26
  Speaker 5: a question about life insurance. I know I'm trying to
• 0:29
  Speaker 5: be invested in the stock market, but at the same time,
• 0:32
  Speaker 5: I only have life insurance through my job, which is
• 0:35
  Speaker 5: like maybe about twenty thousand if I pass away. I
• 0:37
  Speaker 5: don't know if you know, if it's on the job
• 0:39
  Speaker 5: or not. But I'm not sure what to get and
• 0:43
  Speaker 5: how to go about getting.
• 0:44
  Speaker 2: You know what I mean.
• 0:44
  Speaker 5: I'm on thirty two and I got a four year old,
• 0:47
  Speaker 5: so I want to make sure she's straight, okay, because
• 0:50
  Speaker 5: I know you said something about don't invest to the
• 0:51
  Speaker 5: stock market and sell you out of day. I got
• 0:53
  Speaker 5: about five thousand credit card there, but I'm working that
• 0:55
  Speaker 5: down as a speech.
• 0:57
  Speaker 1: For sure, we appreciate the question, Troy, I get a
• 0:59
  Speaker 1: pen this pencil broke. Well. The first thing I would
• 1:02
  Speaker 1: say is that group life insurance is what you have
• 1:05
  Speaker 1: at your job. It's always beneficial to sign up for
• 1:07
  Speaker 1: your job's life insurance plan because usually it's like next
• 1:11
  Speaker 1: to nothing as far as the premiums, Like you might
• 1:12
  Speaker 1: be paying like thirty dollars a month or ten dollars
• 1:14
  Speaker 1: a month for your.
• 1:15
  Speaker 4: Life insurance, so it's not that much.
• 1:17
  Speaker 1: Yeah, the risk of war ratio is pretty you know,
• 1:20
  Speaker 1: it's only your favorite as far as that's concerned. But
• 1:23
  Speaker 1: the downside we're having that as your only life insurance
• 1:26
  Speaker 1: is that magnet.
• 1:28
  Speaker 4: Can you just mut it? Can you mute everybody? Thank you?
• 1:30
  Speaker 1: The downside with having that as your only life insurance
• 1:33
  Speaker 1: is that a most of the time it is not portable,
• 1:36
  Speaker 1: meaning you can't take it with you. And also you're
• 1:38
  Speaker 1: limited as far as how much insurance you can get.
• 1:41
  Speaker 1: Usually it's like one or two times your salary, and
• 1:43
  Speaker 1: most of the time it's usually like group term. They
• 1:46
  Speaker 1: don't really give you too many options. So getting insurance
• 1:48
  Speaker 1: outside of that, the first thing that you want to
• 1:51
  Speaker 1: do is figure out you know how much insurance you need.
• 1:54
  Speaker 1: That's that's the most important thing. So how you how
• 1:56
  Speaker 1: you figure out how much insurance you need is a
• 1:58
  Speaker 1: couple of different ways. But you know, one of the
• 2:01
  Speaker 1: quick easy ways to go about it is to see
• 2:03
  Speaker 1: how much money you make and then you either like,
• 2:05
  Speaker 1: you know, ten times that at least ten times that. Well,
• 2:08
  Speaker 1: if you really want to be really aggressive, you know
• 2:11
  Speaker 1: you can twenty times that. So, like, let's say you
• 2:14
  Speaker 1: make one hundred thousand dollars a year, and like I said,
• 2:16
  Speaker 1: everybody's situation is different, but on average you probably would
• 2:19
  Speaker 1: have to ten xta. So that's a million dollar life
• 2:21
  Speaker 1: insurance policy. Right, So now you have to say, Okay,
• 2:24
  Speaker 1: how do I work my way into what's affordable to me?
• 2:28
  Speaker 1: So now let's say you decide that you need a
• 2:30
  Speaker 1: million dollars worth of life insurance. You might have one
• 2:31
  Speaker 1: hundred thousand dollars at your job already, so now you
• 2:33
  Speaker 1: need an additional nine hundred thousand. So then the next
• 2:36
  Speaker 1: thing is you know what's affordable as far as premium
• 2:39
  Speaker 1: is concerned. So there's gonna be two types of life insurance.
• 2:42
  Speaker 1: For the most part, you can get term insurance and
• 2:44
  Speaker 1: permanent insurance. Term insurance is going to last the amount
• 2:46
  Speaker 1: of years like ten twenty, and.
• 2:48
  Speaker 4: Permanent insurance is going to last your whole life permit.
• 2:50
  Speaker 1: Permanent insurance has different names, but most popular whole life
• 2:54
  Speaker 1: insurance Universal life insurance. So the difference between term insurance
• 2:58
  Speaker 1: and whole life insurance is that a term in shurant
• 3:00
  Speaker 1: is only going to last for a term ten twenty years.
• 3:02
  Speaker 1: It builds no cash value, like there's no money that
• 3:04
  Speaker 1: you saved while you're paying it. So the benefit is
• 3:08
  Speaker 1: that the premiums are lower. So like let's say you
• 3:10
  Speaker 1: have a million dollar term policy. Depending on your health
• 3:12
  Speaker 1: and your age, you could possibly be paying forty dollars
• 3:14
  Speaker 1: a month for a million dollar term insurance policy. So
• 3:17
  Speaker 1: that's very affordable for most people. But the downside to
• 3:20
  Speaker 1: that is that it's going to run up and most
• 3:23
  Speaker 1: of the time you're not going to die within that term.
• 3:25
  Speaker 1: Like if you're thirty five years old and you're healthy,
• 3:28
  Speaker 1: you are probably going to live longer than twenty years. Now,
• 3:31
  Speaker 1: it's not guaranteed anybody could pass away. They didn't give
• 3:33
  Speaker 1: it a moment, but just.
• 3:35
  Speaker 4: The odds are that you probably.
• 3:37
  Speaker 1: Will live longer than that term, So that means that
• 3:39
  Speaker 1: now you pay premium for twenty years, but you don't
• 3:42
  Speaker 1: get anything back from that.
• 3:43
  Speaker 4: Where a whole.
• 3:44
  Speaker 1: Life policy, the premiums are higher, like let's say a
• 3:47
  Speaker 1: million dollar policy. For a whole life policy, premiums might
• 3:50
  Speaker 1: be six hundred seven hundred dollars a month, So that's
• 3:52
  Speaker 1: that's higher, but it lasts your whole entire life, meaning
• 3:56
  Speaker 1: it's not going to expire, and it also builds us
• 3:59
  Speaker 1: called cash value. Cash value you can kind of look
• 4:01
  Speaker 1: at it like equity in the house.
• 4:02
  Speaker 3: With This episode is brought to you by P and
• 4:05
  Speaker 3: C Bank. A lot of people think podcasts about work
• 4:08
  Speaker 3: are boring, and sure they definitely can be, but understanding
• 4:12
  Speaker 3: a professionals routine shows us how they achieve their success
• 4:16
  Speaker 3: little by little, day after day. It's like banking with
• 4:20
  Speaker 3: P and C Bank. It might seem boring to save,
• 4:22
  Speaker 3: plan and make calculated decisions with your bank, but keeping
• 4:26
  Speaker 3: your money boring is what helps you live or more
• 4:28
  Speaker 3: happily fulfilled life. P and C Bank Brilliantly Boring since
• 4:33
  Speaker 3: eighteen sixty five. Brilliantly Boring since eighteen sixty five is
• 4:37
  Speaker 3: a service mark of the PNC Financial Service Group Inc.
• 4:40
  Speaker 3: P and C Bank National Association Member FDIC Erness What's up.
• 4:48
  Speaker 3: You ever walk into a small business and everything just
• 4:50
  Speaker 3: works like The checkout is fast, the receipts are digital,
• 4:54
  Speaker 3: tipping is a breeze, and you're out the door before
• 4:57
  Speaker 3: the line even builds odds are there using Square. We
• 5:01
  Speaker 3: love supporting businesses that run on Square because it just
• 5:04
  Speaker 3: feels seamless. Whether it's a local coffee shop, a vendor
• 5:07
  Speaker 3: at a pop up market, or even one of our
• 5:09
  Speaker 3: merch partners. Square makes it easy for them to take payments,
• 5:13
  Speaker 3: manage inventory, and run their business with confidence, all from
• 5:17
  Speaker 3: one simple system. If you're a business owner or even
• 5:21
  Speaker 3: just thinking about launching something soon, Square is hands down
• 5:24
  Speaker 3: one of the best tools out there to help you start, run,
• 5:27
  Speaker 3: and grow. It's not just about payments, it's about giving
• 5:31
  Speaker 3: you time back so you can focus on what matters
• 5:33
  Speaker 3: most ready. To see how Square can transform your business,
• 5:37
  Speaker 3: visit Square dot com backslash, go backslash eyl to learn more.
• 5:42
  Speaker 3: That's Square dot com backslash, go backslash eyl. Don't wait,
• 5:47
  Speaker 3: don't hesitate. Let's Square handle the back end so you
• 5:50
  Speaker 3: can keep pushing your vision forward.
• 5:54
  Speaker 2: An illegal alien from Guatemala charged with raping a child
• 5:58
  Speaker 2: in Massachusetts, and third gang member from Al Salvador accused
• 6:02
  Speaker 2: of murdering a Texas man of Venezuelan charged with filming
• 6:06
  Speaker 2: and selling child pornography in Michigan. These are just some
• 6:10
  Speaker 2: of the heinous migrant criminals caught because of President Donald J.
• 6:14
  Speaker 2: Trump's leadership. I'm Christy nom the United States Secretary of
• 6:18
  Speaker 2: Homeland Security. Under President Trump, attempted illegal border crossings are
• 6:23
  Speaker 2: at the lowest levels ever recorded, and over one hundred
• 6:26
  Speaker 2: thousand illegal aliens have been arrested. If you are here illegally,
• 6:31
  Speaker 2: your next you will be fined nearly one thousand dollars
• 6:34
  Speaker 2: a day, imprisoned, and deported. You will never return. But
• 6:38
  Speaker 2: if you register using our CBP home app and leave now,
• 6:42
  Speaker 2: you could be allowed to return legally. Do what's right.
• 6:46
  Speaker 2: Leave now. Under President Trump, America's laws, border and families
• 6:51
  Speaker 2: will be protected.
• 6:52
  Speaker 5: Sponsored by the United States Department of Homeland Security.
• 6:54
  Speaker 1: Hey, you have money that grows inside of a policy,
• 6:56
  Speaker 1: and you can actually borrow from that policy down the line,
• 6:59
  Speaker 1: and you can vow from and you can use that
• 7:00
  Speaker 1: money for a variety of different things. You can use
• 7:02
  Speaker 1: that money to pay for your kids college. You can
• 7:05
  Speaker 1: use that money to buy a car, to put a
• 7:08
  Speaker 1: down payment on a home, or anything that you want,
• 7:09
  Speaker 1: you know, start a business, whatever.
• 7:11
  Speaker 4: So it's another form of savings.
• 7:12
  Speaker 1: So from there, so like I said, so from there,
• 7:14
  Speaker 1: you want to see, okay, what's affordable in my budget.
• 7:17
  Speaker 1: And it's always good to work with an insurance agent
• 7:19
  Speaker 1: because the insurance agent will you know, help you with
• 7:22
  Speaker 1: this whole process and just kind of understanding it. But
• 7:25
  Speaker 1: usually you don't want to really go over two point
• 7:28
  Speaker 1: five at the most, probably five percent of your income
• 7:31
  Speaker 1: and insurance premiums. So like, once again using a round number,
• 7:34
  Speaker 1: if you make one hundred thousand dollars a year, two
• 7:36
  Speaker 1: point five percent of that would be twenty five hundred
• 7:39
  Speaker 1: dollars a year. So you know, if you're spending twenty
• 7:41
  Speaker 1: five hundred dollars a year on your insurance, then that
• 7:45
  Speaker 1: should be you know, probably probably what you're maxing out at.
• 7:49
  Speaker 1: So that twenty five hundred would be around two hundred.
• 7:52
  Speaker 4: Dollars a month.
• 7:53
  Speaker 1: That that for most people, that should be affordable if
• 7:55
  Speaker 1: you're making one hundred thousand dollars, not like I said,
• 7:57
  Speaker 1: you can be making one hundred thousand dollars and not
• 7:59
  Speaker 1: have any money, or you can make it one hundred
• 8:00
  Speaker 1: thousand dollars and have you know, ten thousand dollars a
• 8:03
  Speaker 1: month left over if you don't have any expenses at all.
• 8:05
  Speaker 1: Everybody situation is different, but just on average because you
• 8:07
  Speaker 1: don't want to put all your.
• 8:08
  Speaker 4: Money into insurance. You want to do other things.
• 8:10
  Speaker 1: You want to you know, put money into your four
• 8:11
  Speaker 1: one K, put money into your child's account, put money
• 8:14
  Speaker 1: into an investment account, pay off your debt.
• 8:15
  Speaker 4: So the only way to do that is to really,
• 8:17
  Speaker 4: you know, do something that's affordable.
• 8:18
  Speaker 1: So then you can look at the situation from a
• 8:22
  Speaker 1: more educated standpoint to say, okay, this is a man
• 8:24
  Speaker 1: of insurance that I need. This is the budget that
• 8:26
  Speaker 1: I feel comfortable with, and then you can do okay,
• 8:28
  Speaker 1: I'll start off with term and then you know, switch
• 8:30
  Speaker 1: over down the line to the whole life because that's
• 8:32
  Speaker 1: one of the benefits for terms that you can always
• 8:34
  Speaker 1: change over or you can do a combination of both.
• 8:36
  Speaker 4: Like let's say your budget's two.
• 8:37
  Speaker 1: Hundred dollars a month, you can do half of it
• 8:40
  Speaker 1: in term, you can do half of it a whole life,
• 8:43
  Speaker 1: and that way, you know, you still have permanent coverage,
• 8:45
  Speaker 1: but you're not spending over your budget. But that's another
• 8:48
  Speaker 1: thing as well. You can do a combination, so you know,
• 8:50
  Speaker 1: it's it's it's kind of a long answer because it's
• 8:53
  Speaker 1: not like a simple answer to give.
• 8:55
  Speaker 4: It's a lot of different variables that go into play.
• 8:58
  Speaker 1: But that's that's something some of the education that you
• 9:01
  Speaker 1: should have when making a decision about insurance. And if
• 9:06
  Speaker 1: all else fails, just get term insurance because some insurance
• 9:09
  Speaker 1: is better than no insurance. And the most important thing
• 9:11
  Speaker 1: is to protect your family. So you have a child,
• 9:13
  Speaker 1: so that's the most important thing. You can always figure
• 9:15
  Speaker 1: it out later on, but you know, as far as
• 9:17
  Speaker 1: the most affordable option, it will probably be termed. And
• 9:20
  Speaker 1: like I said, you don't want to compromise your death benefit.
• 9:22
  Speaker 1: You want to get the maximum death benefit that you
• 9:24
  Speaker 1: can get. So yeah, that's how I look at it.
• 9:27
  Speaker 5: Oh yeah, most depth, I mean two hundred or even more,
• 9:30
  Speaker 5: even six hundred willing you be killing me in a
• 9:31
  Speaker 5: budget because I don't have a mortgage or I'm not
• 9:34
  Speaker 5: paying rent because I inherited a house in twenty thirteen.
• 9:37
  Speaker 5: So I'm fixing on that. I know how to do
• 9:39
  Speaker 5: construction on the house, so I don't have a mortgage.
• 9:41
  Speaker 5: The house has been paid off. When I'm finished with
• 9:43
  Speaker 5: that house, I'm ringing out and I'm moving back in
• 9:45
  Speaker 5: with either some siblings or my mom or somebody like that,
• 9:49
  Speaker 5: where I'm collecting rent from that, and that could be
• 9:52
  Speaker 5: whatever I profit off that taxes and insurance and everything
• 9:55
  Speaker 5: that could be paying my premee I work. I made
• 9:58
  Speaker 5: sixty thousand lectures I drive. I mean, I'm gonna live
• 10:02
  Speaker 5: below my means, so whatever it is, I appreciate the advice.
• 10:05
  Speaker 5: So I'll Monday, come Monday too that I'll be talking
• 10:08
  Speaker 5: to a service to see what I can get and
• 10:10
  Speaker 5: what's really affordable.
• 10:11
  Speaker 4: All right, well, no problem, all right, all right guys.
• 10:14
  Speaker 1: And then also if I so, especially for the insurance
• 10:17
  Speaker 1: and like retirement questions, if you want so, I still
• 10:20
  Speaker 1: have my financial planning practice.
• 10:21
  Speaker 4: I just I'm not actively doing it anymore. But my
• 10:24
  Speaker 4: dad actually the financial advisor on my sister. So I
• 10:27
  Speaker 4: say that at least once a call.
• 10:28
  Speaker 1: But you know, if you want, I think magnet, if
• 10:31
  Speaker 1: you could just put the information in the chat, anybody
• 10:33
  Speaker 1: can reach out to them and get a consultation if
• 10:36
  Speaker 1: you want some some you know, questions about actually how
• 10:39
  Speaker 1: to implement different things, different strategy. Like I said, you
• 10:41
  Speaker 1: can work with whoever you want with, but it is
• 10:43
  Speaker 1: something that I did for over a decade and still
• 10:45
  Speaker 1: actually end licensed and I still have my practice. I'm
• 10:47
  Speaker 1: just not hands on like me personally, but still kind
• 10:50
  Speaker 1: of oversee the operation. So if you're interested, if anybody's interested, yeah,
• 10:54
  Speaker 1: we can put the information in there and you can
• 10:56
  Speaker 1: feel free to reach out