How To Use Life Insurance AS YOUR BANK (What Your Agent Won't Tell You)

if you touch the money it's not guaranteed to even age 90 I constantly have people reach out to me their 80 years old insurance is done guess who that happens to us coming up on the melanin money show the Agents need to look at themselves as financial advisers and actually have an ongoing relationship how many agents are no longer in the business after a year 90 90% 99% of them you need to ask your agent why are you in this business mhm is this a career for you I want to know if you going to

still be here nobody ever says I want to wake up and be a life insurance agent actually a lot of people look at it almost as a scam what's up family welcome back to another episode of the melan and money show uh so we have another special guest on because you and I have been connected on social for a while while and we've been we've been meaning to you know connect in person been trying to get with you been trying but Hey listen now but now you're here now we're here welcome Lindsay to the show

how you feeling Lindsay I'm feeling great feeling great I'm feeling great feeling amazing always she brought us some gifts y'all you know what I'm saying she she must have thought you know how they say the camera adds 15 lbs yeah sorry I miss just just giving her a hard time you know we just G her a hard time they quality I give her that very quality but n but Lindsay so glad to have you on the show because uh what you do speaking of you know creating Legacy um and transferring wealth right is kind of

the essence right of what you do at the core and so the reason why I want to have you on the show from an objective standpoint is that you know this the concept of life insurance I feel like has just gotten like for lack of better terminology bastardized right it's so many opinions there so much stuff out there right now yeah and so you know I just want to be able to have a really just like uh educational conversation help people understand like like the power of life insurance what it true purpose is how you

can leverage it how you can maximize it what are some of the myths that you hear online that people think about but like let's just kind of get into it but before we do that tell us a little bit about you your back story and how you even got in the space of doing what you do now okay so my I've been in this industry now 14 years I have been a licensed agent since 2010 um funny story on how I got in this business was I used to be in the entertainment business doing marketing

had a styling agency all these different things and I went to Howard and have a degree in finance so I've always been into money how it works um but what ended up happening is obviously when the market crashed and they were cutting marketing out that's the first thing that goes everybody wants sales but they get rid of marketing first and and so I thought that I needed to get into a space that was Recession Proof and finance always is Recession Proof because people always need to check on their finances whether things are going up or

down and that's how I ended up getting into the life insurance a um industry and the thing about life insurance nobody ever says like I'm gonna I want to wake up and be a life insurance agent actually a lot of people look at it almost as a scam but if you really know the industry the financial services industry the most millionaires are made from being in a financial in the financial industry um not I'm not talking about people who own businesses but just people in general who are millionaires and people just don't understand the space

right so I got into this space because I thought that this was going to be a space where I didn't have the clock in I was going to be able to make whatever I wanted to make based off of what I do and I've always been a person I've never had a 9o5 job always wanted to be able to make money based off of what I do um and now after listening to you guys processes and everything and scaling now I'm on something else watch The Master Class want I want something else now but that

is why I originally got into the business got you and so I feel like people understand it at from a conceptual level right life insurance is you get it something happens to you your family's taken care of right so like from your if someone didn't know anything about life insurance and and they're walking into your office and they say hey I've seen all this stuff online about life insurance I I just had a new baby I'm a successful business owner Soul owner I mean Soul a provider for my household I'm married trying to set the

whole whole situation up for you right like what is the conversation that you would have with that person about life insurance and the importance of it and the role that it could play in their life so the biggest thing that I do that I think is probably really different from other agents is I'm going to put this in a perspective that this is going to be a financial tool for your life in in general so first we're going to step back and ask I always ask what's your goals what where are you now and where

do you want to be so I need to know what is it are you planning on starting a business are you planning on investing do you own real estate um are you in debt what does the expenses look like in your household what would you like your kids to do what do you want to leave them behind what's the Legacy you want to want to provide for your family and from there I'm now going to put a strategic plan together because what people don't know about insurance is it's called life insurance because you actually can

use it while you're alive it's not just something where when we die we get paid out right but when we talk about us as a people the problem is the disconnect with life insurance is going to be that they haven't ever received any money before I actually never thought about that that's why that's the disconnect if you think about other cultures they're getting money from grandparents passing away great grandparents passing away we are not receiving the money because we're almost the first generation that's really starting to say let me get this insurance policy and keep

it yeah because we're all also one of the biggest communities to purchase life insurance over five and six times because we keep letting it lapse and so we keep getting less and less of a death benefit because we're getting it at an older and older age and it's costing more and more money so now we really not leaving nothing behind right so what I say to this family that comes into my office is I say we're going to put a plan together and we may not be able to do everything today but we're going to

start the plan and as your income grows we're going going to grow our process we're going to grow the insurance that matches with that and we're going to cover all your goals and make sure that we're creating assets for you and your family while you're alive and when you die yeah yeah and I think that what you just said is remarkable because I don't think I've heard anybody else say that the reason why our culture is so against life insurance because we never received it right right like so we don't have an emotional connection we

don't we don't believe that it can actually work for us and I just for me so my father passed away when I was 16 I'll never forget um he had the life insurance to his job which is a trash plan so it was like $25,000 in life insurance to pay for his funeral and to get split up amongst three siblings right so we got like $4,000 each and I was like my father just passed like a four of I'm do $4,000 you know what I'm saying and so I just realized that the probably reason why

I was jaded um you know to think that life insurance wasn't something that was iMed medely necessary if I would got $100,000 if we would got $100,000 each yeah it would have been a different story imagine getting a million taxfree taxfree a check your bank account might have been at five grand it's at a million and five grand do you understand I think we're not really letting people feel what it would be if this was to happen because I've had people say to me nobody left me anything so I'm not leaving my kids anything and

I'm like crazy what because I don't understand just because you didn't get the feeling why you don't want to leave the feeling behind right so I think that one of the other issues are there's too many people talking about life insurance that are not licensed don't know nothing about it have not experienced receiving the money and they're giving these opinions and people are thinking that they're facts so one of the things cuz I have a mentorship where I Mentor a and one of the things I teach them is listen you want to treat these people

like as if it was your family and so if that's the case you need to make sure that they understand the feeling of what they're doing what this is going to do and so one of the things I think with all of these opinions you got people telling you by term investor rest you got people telling you you don't need insurance you have people saying insurance is a scam all of these things and I you know what I tell them I said guess what that's your family your issues I'm going tell you this when I

pass away my daughter's going to get over $8 million in life insurance money and she also has her own policies that were going to be paid up that my grandkids will receive money for I've used my insurance when I've had hardships I've used my money to renovate my house I've used my money for so many different things she's about to go to school if I need to I will dip into it you understand so I've experienced it so I don't understand what's the scam part about I don't understand why you would tell me to buy

term and invested arest when half half of us are not investing right they're buying the term they're not doing the other side of it so that's why you can't tell our community that because they don't understand investing so even they see all these things about doing everybody can't have a George in their pocket and be able to because that requires minimums and a lot of people don't have $250,000 minimums to dump into an account every year so they got to figure it out themselves and that's where I come in as a life insurance agent as

a broker I come in and I tell them listen we can do all these things that you want to do but it's going to take some sacrifice you have to pay a premium right you got to stop telling me that you want $200,000 in cash value in your policy next year with a $100 budget $1,200 a year 242 years and you won a $200,000 return as a new kid say the math ain't mathing right it's not math I mean George if you know something I me if you know something 1200 all I know is I

don't know about it yeah but here here's what I think the disconnect is honestly Lindsay I think where the disconnect is you know and this is in all of our Industries not just life insurance but and people get on the internet and they'll they'll speak to all these possibilities on what can happen right and so so on the show I would love to break this down but like you hear people say if you get a policy and you structure you get a properly structured life insurance policy but no one ever talks about the proper structure

right like okay well show me don't show me the illustration on the theory because I I actually come I started out in the insurance world I was a top agent for Mass Mutual they still use my name to recruit black people to this day right but my point is it's like if we can just educate people right beyond the sound bites and like hey yes life insurance can be a powerful tool yes you can use life insurance to become your own bank but here is what it looks like because people are so misinformed and they

don't understand and it's not about it's not bad that there are premiums associated with it that there are fees associated with it because that's anything but it's like let's not oversell and under educate right so what I would love for you to do is to break down how the policy needs to be structured right and what it actually looks like to leverage it in real life I love that because you're right people just need to know the steps right so if you are looking to get a become your own bank infinite banking this concept the

first thing you need to understand is it's going to require a commitment right it is life insurance and you must pay for the premium there are two policy types that you can use to do this concept it's either going to be universal life or it's going to be whole life now both of these types have mult multiple variations and some of them are going to get you to your goals faster but again goes back to budget so you're going to first choose either you will or you're going to get a whole life policy okay after

you do that you're going to want to maximize this policy's cash value growth so that you can reach these goals so that means if your premium is let's just say $200 a month maybe you're going to dump in 350 a month because you're trying to maximize the growth in the cash value so that means again more commitment the more commitment you give the more money this policy is going to grow but there is something called a Mech a modified endowment contract so if you go over this number that means the IRS deems this uh T

an investment and it becomes taxable so we want to stay under the mech if you are somebody who is going to use the money if you're transferring wealth and you ain't touching it then it doesn't matter if the policy makes but if you want to use this this policy then you want to make sure we stay under the mech so we're going to do we're going to overfund this policy right under the mech so your insurance agent should be able to structure the policy and be able to make certain amounts of money be able to

be dumped into the policy after that we're going to take money out for things that are going to be an asset this is where people get it wrong big facts you have to take the money out let's say you're purchasing a property that's 50,000 and it may need 20,000 in renovations so you're at ,000 so we borrow 70,000 from the policy and now we sell this policy 6 months later for 150 you need to pay the 70,000 back the goal of this thing is to repeat the process as you keep adding on assets you're you're

growing your assets but your policy is becoming whole yep so you're creating a bank per se but the bank has to be funded yep and so the problem is is people come to me and they say hey I want to create create a bank but I have $50 well your bank is going to be relative to this $50 you have I can't create you a $500,000 bank with a $50 commitment right it has it's relative now the thing that happens in this policy is if you have time which a lot of people everybody we don't

have time everybody wants their money today so if you have time then it will compound year after year and it will look really nice later on it would be too three times what you probably put in um your death benefit will be more than way more than what you put in but not in the beginning yes so there are policies that you can put money in and get 85 to 90% out in year one but what will happen with those policies if you don't put it the money back it will end yeah come and that

money will become a taxable event exactly so you can use the tool immediately and one thing I want to say about that is if you're doing that understand that it's a percentage of the money so you have to have the money yeah so if you needed 100,000 and the percent is 80 80% then you needed to put almost 120,000 in there right yeah I I think the biggest misconception that that caused people to look at life insurance as either a scam or something they don't need is there expecting a miracle and I think if you

adjust your expectations to reality it'll make the reality seem real because people like to your point I want I'll put $3,000 in the policy how do I got $15,000 next year no you don't you would if you put $3,000 in the market today where the real estate invest like you that's not going to happen so I think you just come up with realistic expectations and one thing that we say we joke about but it's real it's real talk like in my opinion don't become don't try to become your own bank until you have money in

your actual bank right like like if you don't got money in your you chase bank account like don't try to become your own bank over here cuz you just prove that you can't even keep money back keep any money in a Sav account getting returned checks okay crazy you're trying to set up I've had people try to set up policies where they're trying to create $100,000 in one year and it's bouncing how do you have a premium for $22,000 a month and it's bouncing something's not right with your financial plan why would you set yourself

up for something for $2,000 a month and you don't have money in there at least for at least for 6 years yeah right yeah right for two why would you set yourself up for a plan like that and so I think the other issue is you have agents and you know a agent is like a client in the beginning they don't know just like the client don't know I tell I'm telling you when I train agents in the beginning no seriously they don't understand the products either they're learning too and that's I think that's the

problem with the industry though you no no offense to the life insurance companies but like the you don't need uh education to sell life insurance you need to get your life you need to get your license right but then when you start with the company you just go out and start selling they should make a requirement for you to understand the policy inside and out so they do have a process where you got to go through but you know how that is you just got to learn enough for you to be able to pass this

test and then you're good but that's not reality when you go out and you talk to clients you're going to deal with something different with each client so only experience can teach you that that's why it's very when I started out I had a mentor out the gate and he was a multi-million dollar agent and he taught me so much that the company never taught me to this day the companies have never taught me and I'm a broker so that's why I've set up the mentorship because the game that I give these agents they don't

learn it at the company and so now they're able to do a better job with their clients and be able you have to educate the client because you know the thing what I like for instance me personally I'm not a u a UL lover because I don't like the unknown yeah me neither right I'm a whole life person but I'm not pushing you on pushing that on you as my client as my client I'm telling you facts whole life is a guaranteed death benefit can have dividends fixed premium UL is a flexible premium no guaranteed

death benefit no dividends so I'm telling you facts both of them you can overfund both both of them can be for retirement both of them can do everything if you structure it that way the issue is I don't want the unknown or the non-g guaranteed death benefit I don't want the UN unknown of not known what the cost of insurance is right as a client you really don't know that yeah so when I sell you a ul and I'm telling you and I don't do this but agents do this they sell you a ul and

they're going to tell you you're going to have $200,000 a year in retirement and guess what retirement comes you don't even have $50,000 a year you know why cuz you didn't put in the extra money the cost of insurance raised the index didn't perform like it said it was going to perform the illustration was on 8% and it performed at 3% so I'm not dealing with that okay but that if you're if you go online that's all you see I retirement I is the best I but the client doesn't understand the micromanagement that needs to

happen to have an iul you need to know the Target Premium you need to overfund that Target Premium because the years that the index don't do good guess what you didn't make enough interest to build that policy to keep it and index the index universal life only guarantees you to age 90 if you don't touch the money yeah if you touch the money it's not guaranteed to even age 90 right okay so I constantly have people reach out to me they're 80 years old insurance is done I've been they they'll tell me hey I've been

paying on it for 40 years that's why we think it's a scam cuz guess who that happens to us you know why cuz our agents are not keeping up the problem is a I think that agents need to look at themselves as financial advisers and actually have a ongoing relationship you want the ongoing premium for your client because every time they pay their premium you get your Kickback but you don't want to you don't want to treat them as a client so George if you're if you had a client that was had a retirement goal

and they were behind their retirement goal you would hit them up you know yearly like hey your retirement goal was this we based it off this performance performance is down so if you want to keep the same goal you need to invest this amount more but the agent doesn't go back and at all but but this is why how many agents are no longer in the business after a year 90 90% 99% of them let tell you when I got into this business I started my training with 626 agents do you know that was in

February do you know that by time I took the test in October it was eight of us do you know by time it was the next year in 2011 it was two of us it's still only two of us out of that entire group so what that shows you is you might have wrote them business you wasn't even in the business a year so it's key for you to have when when you're a client yep you should absolutely say why are you in this business you need to you need to ask your agent why are

you in this business is this a career for you right it I want to know if you going to still be here how long have you been in this business do you even understand the three types of insurance do you have insurance do you have the policy that you're trying to sell me this is another thing and that and see that was a I started out with New York Life right and New York Life one of the things you know that's a lot of people that don't look like us work for New York Life and

so one of the things they would say is everybody needs to buy a million dollar whole life but you know a million dollar whole life I was 27 at the time I think it was maybe like $600 $700 a month and at the time I was like I can't afford that I'mma buy a million dollar term for now but after being in the business for two years they were like you got to get your million dollar whole life like what you doing so I finally you know brought into the million dooll whole life but most

agents are not making enough and and don't get me wrong a lot of Agents it's very easy to make minimum six figures in easy that's easy you don't have to do anything but they're not doing nothing they're not even making that and so because of that of course they can't afford a million dollar policy you understand so how you going to sell it right how you going to sell it you you don't even have yourself you don't believe in it yeah obviously yeah you know what I'm saying it's like so many real real realtors that

don't that they don't even own they real estate right they don't even own homes they telling you you got it's your your your home is your biggest investment okay bro where yours at hey aren't you tired of buying courses in those emotional states when you want to get a result but then you actually don't do anything with the course do you know on average the completion rate for a course is about 2% but here's the thing it's not entirely your fault the problem is you buy the course but you don't have access to the source

who actually created it see that's why we're doing something different with the Mel in the millionaire Club you're not just going to get access to courses you'll get access to the people who created it so you can get your questions answered cuz it's not just about learning it's about taking that that information so you can start earning so the Mel and the millionaire Club is going to give you access to courses but not just that it's an entire University of information we have Financial flick we have all uh hundreds of previous recordings but more than

that y'all we have an amazing community of people just like you who trying to become a first generation millionaire so like G said like you can survive without Community but you can't Thrive without community so this is the place you need to be right 100% because here's the thing if it was just about information we'd all be billionaires with six-packs so that's why every single Monday we're going to going to set the tone for your week with melan and millionaire Mondays where our entire Community is going to meet up the energy is going to be

H we're going to set the intention for what we're going to execute on so we can move the needle forward and Carter I and the rest of our team can keep you accountable that's enough information you see the rest in the club all you got to do click the link below sign up and start your journey to your first millionaire year let's get it man let's go yeah so it's very and part of is on the consumer to ask those questions right when you work with uh accountant you need to ask them the questions that

you need to know are they gonna actually to be a good accountant if you're working with a financial advisor ask them the question so I think it's is across the board that um both sides have to take responsibility because we don't we can't if we want to build generational wealth we cannot continue thinking the way that either our parents did or the generations before them that everything is a scam because it didn't work for you you think investing is a scam because your family never reaped the benefits of investing right so like I think it's

up to us or because you lost your money you think it's a Well you a lose it but you P your money out at the wrong time when the person Whois you told you not to do it or or listen to somebody on the internet who told you to buy uh uh some crypto that you didn't know about yeah and you lost it or buy n or Worse buy nft um or something so what is what is the one of one of the most impactful stories you can remember uh from somebody that benefited from life

insurance so I got this client and I always use this story because I think he did exactly what the model of create your own bank is okay which you don't see too often um had a client 5 years into the policy he reaches out to me he's like hey Lindsay you know I'm trying to I've been driving a truck for another company all these years and I want to get my own truck how do you think I could get the money and I was like he's he's asking me because my clients I build relationships with

so they call me for everything for a cake they called me so I was like you don't need a loan from the bank I said did you check your policy to see how much you know how much money that you've built in your policy I said you have a pretty sizable policy how much do you need for the truck so he's like I just need 15K and I was like oh okay let's take a look so we look he has about 22,000 in the policy he borrows the money he buys a truck couple months later

I seen he put the money back because you know we see you could see people's cash value um and then he purchased another one and he now has a full on multi-million dollar truck business he has brought over 15 trucks and it started from a life insurance policy that he honestly was just getting to protect his family MH he really wasn't even getting it for the cash value purposes and he was like linday you don't understand how you changed my life and it's something so simple and I was like I'm happy that you trusted in

me to have a conversation with me before you was about to do something for your business because he might have went to the bank yeah yeah and then paying the bank back interest and you know and wouldn't had possibly had the same result mhm yeah so what do you say to people who say why would I save money in the cash value life insurance policy when I could save money in the bank oh I hear that all the time so first of all it's two sides life insurance is a dual product one is protecting your

family so if you died is the bank account going to pay the death benefit to your family no it's going to pay exactly what you have in it so if you have $100 in it your family's going to get that $100 but that $100 that you've been putting in your life insurance policy might be a $100,000 policy or might be a million dollar policy if it's turned so I would say one that doesn't provide any protection but two you get M compound interest in your life insurance policy in the bank even if it's a high

yield and we're talking now you might get 4.5 some what is the average Insurance on a whole life policy right now with average oh right now it's about 6% most of the companies are doing about 6% 6 Pointes they typically try to adjust and correlate with with just rates in the market say I say rates in the market I mean like the interest rate market like no so typically the interest rate is really based on the financial status of that company which is why you want to be with a better life insurance company rather than

one that's not doing so well because they they're not going to have the same rate um so typically you do it does matter in Insurance what company that you're with because the return could be different okay okay got it so the average uh return is about 6% um the the max you're going to get in a high interest savings account prob right now is like maybe 3.7 maybe four if yeah mean you have you could have some high yield savings accounts might brush up against four and a half but now the interest rates are going

to be moving another Direction prob do you know if the the interest rates are locked on the policy like somebody get a whole life policy does the interest rate adjust based on interest rates no it it adjusts but um even I'm going to say since 2010 the lowest I've probably even seen was about four like in the earlier years even since 2010 I got my first policy in 2011 when I got in Industry uh it was like the lowest I saw was like 4 four yeah I haven't seen under 5% I mean maybe 2014 like

it's been pretty steady in the six and you know in that range of 6.1 6.2 um so yeah I would say it's pretty steady and and here's because I used to be against it for a while I actually got my first like cash value policy last year um because and you didn't go through me I didn't know you back then now I know you um but I think it's it's really helpful for people who can't take risk I know a lot about finances so I don't care if the market goes down 10% I'm not going

to sell my investment so I would rather have the upside the market going up 30% like it did last year but for people that can't take the downside they also should not try to enjoy the upside because they're going to just take their money out at the perfect wrong time so I think for people who know they can't take risk a life insurance policy could be a good vehicle for them to park money in because they get the guarantee they get the Guaranteed Rate it's very stable yeah yeah like you know if you if you

want if you want guarantees you have to pay for that and which means you won't have the upside right but then you at least protecting your money so I think there is a place for it I don't think there like some people like all either all in on life insurance or all against life insurance I think it's a it's it's a necessary tool in your financial plan I personally don't think is the only tool that should be in your financial I think that's and I think that's the issues with most agents right so it's like

you for example we first met you know you out the gate say hey this is what I do this what I don't do this why I want to connect and collaborate right some agents try to will try to fit a square peg into a round hole and tell you it's the only thing you should only have life insurance is better than every other investment um and to someone who doesn't know the financial markets or whatever they're just going to believe that right um and so I think the best world is where you understand that it's

not it's not either or it's both and thank you thank you that's exactly what I was thinking and I was going to say that because I hate the fact that people feel like they need to choose it's not life insurance or an investment account it's both you know it's not a real estate investment or a business it could be both and I think that if we can understand that you got to do what's best for you if you don't like real estate then maybe you don't get involved in real estate but life insurance is a

way for you to leverage your money it is a stable uh it's pretty much a stable policy obviously you know in life insurance there are policies that are actually in the market like the v um and that is in mutual funds and you can actually choose mutual funds so you but it has a downside you know but it does still have the insurance protection but I think that if you're an investor and you're okay with doing the market then you don't need to really mix your insurance in that you can just get your insurance for

your stable side you can have your invest your brokerage account or your manage funds over here I don't think you need to choose one or the other I think it's it's a a bold yeah I think one of the best illustrations of having both is the buy borrow die strategy have you heard about this okay yeah so it's like you if you say say you buy a bunch of real estate you buy you know a million dollar my bad y'all um I sh that was coming um say you buy a million dollars worth of real

estate right and then over your lifetime let's say you pay down half of it by by the time you're like 60 you can then borrow against the $500,000 equity in your property and you can live off that $500,000 taxfree and then you use some of that money that you borrowed against which is taxfree to fund a life insurance policy of a million dollars right then when you die first of all so you lived off that $500,000 let's say for the last 10 15 years of your life and then when you die the life insurance policy

that you pay for your kids get that million dollar life insurance policy they could take that million dollars pay that property off now you just pass down a million dollar property to your kids and you got to live off the equity taxfree so it's a strategy that um you buy the real estate you borrow against the equity and then when you die you use life insurance to pay off the to pay out the um debt on the real estate property it could be a good way to use life insurance but also still stay a real

estate investor so you can have the best of both worlds definitely I think a lot of Real Estate Investors don't really like it it's one or the other they like insurance or they don't they like it and they're using it or they don't like it because they feel like they can make so much more money in real estate and so they don't really feel like well I don't need it my my when I die my kids are going to get the house the only thing that I say to that is you know real estate is

a process it depends on the market at that moment it you may not be able to sell today you don't know and still taxes got to get paid mortgages got to get paid everything still has to get paid um while they're figuring out this process right depending on if you have a trust or a will or whatever um it takes some times and I do feel like having some I always tell my Real Estate Investors have some cushion life insurance money to be able to leave to your family while they figure out if they're keeping

it selling it because when people in distress situations they make crazy moves and they lose money so if they have the life insurance to hold them over while they're figuring out because just because you have money don't mean that your family members can afford the taxes and everything else that's going on with the properties when you pass away so I do feel it's a safe haven but of course in that case you don't have to get cash value life insurance you could get a guaranteed U M and pay it's way cheaper and you know and

you'll cover whatever needs you have if you don't really need the cash asset 100% 100% what is one of the biggest like I want to say horror stories but like situations where it's like man a family just didn't have this in place and it just really really like made it really hard for them right because they didn't listen to you or you just learned about it on the back end kind of convicted you even further as to why people have to have life insurance as a part of their strategy well a really sad situation this

happened early on when I was in the business and um made me really tell people about not waiting yeah it was a family they were both doctors Mom and Dad they had um three children and they were about to go on a vacation and that for a while I had been talking to them and they wanted to get the insurance money wasn't an issue they both was making over a million dollars a year but it was just a time thing it was a getting to do it and it's a putting it off cuz you think

I'm good um they were in their 30s and they you know obviously a lot of people passed away in a car accident they went away on a road trip and both of them died wow guess what kids kids wasn't with them they just the parents went and the kids was in private school all these things you know how it is living at that that lifestyle level they had no insurance they didn't have a will they didn't have a trust they had nothing put together yet they thought they had time and this is the key issue

and guess what everything changed for that family they were reaching out to me the the family because they we had been in talks for a while we didn't sign any paperwork funny thing is before they left I said you know we had already discussed what we were going to do and they were like what sign we get back and I was like well you know you guys can sign before you go but this was before we had eabs oh okay so I had to physically go and see them and so I was like you know

I could come over there you guys can sign so at least if they give you the first payment if they would have died the insurance company would have had to pay that money out they were both getting a $2 and5 million policy and so long story short they didn't sign so I didn't have their first payment so it was nothing I can do but those kids you know they ended up having to go live with the sister mind you the sister has no money they so just because like I tell you just cuz certain family

members are doing well doesn't mean all the rest of your family members are doing well and those kids took a complete turn for where they lived you know they lived in a nice neighborhood they were in a all of that gone nothing yeah I think the reality that people don't want to face is that when somebody dies you have enough pain to deal with you don't want to have money financial distress right be one of those things that that ends up you have to think about imagine being that child yeah yeah I mean you spoke

on you know your your father passing away but losing both of your parents and having to leave your home leave your school not be in those activities no more as a child that's like the end of the world and now the kids don't believe in life insurance because right they it didn't help them out so why like how do I know they probably think well they were talking to somebody about life insurance but it never got set up so life insurance is a scam and it it is perpetuates the cycle that we were just unfortunately

talking about so um I I just think it's something that people need to really take a good look intoe like I'm in my 30s I got my policy last year because I thought I had thank God I have some time but I think the time piece is something that people just need to understand that soon as a child is born they should get insurance but the parent has to know that soon imagine so I want to give you guys an example of a policy I did for somebody recently and this child is going to be

so set Beyond set now it depends on the kind of commitments you can make but this particular person I gave a 5-year-old child it's a million doll policy the annual premium on the policy is 7,300 but it's a 15year pay so the parents only paying it to 15 so by the time this child is 20 it's going to be paid up it's going to be done yep the parent is going to pay about $110,000 over the course of this 15 years okay but by time this 65 has $2.8 million in the cash value mind you

the parent paid $1,000 okay by time this child is 85 it has $4.2 million in cash value with a death benefit of $5 million so what it essentially did was the parent is leaving a legacy to the grandkids right of $5 million the child will be able to taxe money5 from $0 ,000 of a commitment that was made years ago but in addition to that this is why time really wins in life insurance because you have all of this time now the child by time this child is sturdy can buy I think it was about

$400 or $500,000 in there by time they kid was like 30 um and so it almost anywhere they can definitely put a down payment on some sort of home yeah right so you're going to put your kid in position to be able to have the down payment as you guys know the average family that's what they struggle on when they're trying to purchase a purchase a house is the down payment that and the credit but I'm not going to be in debt because I have this policy I'm also not going to not have the down

payment because I have this policy do you have to borrow do you have to have credit to borrow get your life insurance policy no there no credit check right so these are the things if this kid wants to start a business so there's so many things just because this this parent committed to this now everybody can't commit to that am out because that's like seven something a month right but even if College all the time divide it by seven though and say you going to do $100 divide all those numbers I did by seven it's

still of a significant amount of money yeah right but you just have to have the foresight have to have the literacy and the commitment to be willing to do it I mean I feel like we talked a lot about the power of insurance and how that can create generational wealth if you know what to do with it which I think is a perfect segue to you know the question we like to ask all of our guests on the show so with all that you've seen and you know what people the power people people have been

able to leverage life insurance the things that they've been able to do with it how they're planning to create generational wealth what does being a melan and Millionaire mean to you from your lens I feel like that means for me to be able to have a chance that wasn't really given to me as a child it it's something that now with the knowledge that we're able to to gain today um that we really didn't have access to when we were younger because our parents kept finances a secret and now I feel like the information is

out here and so now I'm able to really have way higher expectations of what it is that I want to do yeah with my finances could go how far I can scale um and the chance that my child is now going to have because I'm so much smarter than maybe what my mother was and not to say it like that cuz she's a smart woman but just being literate and and having access to information yep I feel like now we have we have hope right like what Miss B said we have hope yeah that we

didn't have before big facts okay yeah like they say if if if you didn't come from a good family let a good family come from you oh I love that and we we truly live in a great society when a man or woman plants a seed for a tree whose shade they'll never sit under that part you know okay Hey listen hey somebody put a beat on somebody put a beat on now Lindsay uh it was a pleasure uh getting I mean getting to connect this way right not only getting to connect but also having

you on the podcast to finally shed some light on this thing is actually supposed to work U I think this will open up a lot of people's eyes to not be intimidated by life insurance not be afraid of it understand how it can be a tool while you're actually living when you use it the right way so guys make sure that you subscribe to this our Channel leave a comment let Lindsay know that it was a fire episode go follow her tap in with her and um also tune in to the next one