Wealth In Overdrive Podcast

10 Reasons People Don't Buy Life insurance

June 06, 2022 Hari Luker Episode 12
Wealth In Overdrive Podcast
10 Reasons People Don't Buy Life insurance
Show Notes Transcript

What are the first words you think of when it comes to life insurance? Most will say death, cost, scam... The list goes on!

However many say these reasons are due to misinformation, bad experiences, or lack of understanding and interest.

In this educational episode, Phil Bodines breaks down the top 10 reasons why people don't/won't buy properly structured life insurance.

He breaks down the myths, misconceptions, concerns and facts and you will walk away either confirming what you already know. Or absolutely shocked at how misinformed you were...

So if what you thought you knew about life insurance wasn't true... When would you want to know about it?

Resources mentioned in the podcast:


This material is for informational purposes only. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sowell Management’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation

Hi guys. And welcome to another episode of the wealth in overdrive podcast you have today, myself and Phil Bottin bill. You happy to be here again? Army always. Yeah, grading. I'm excited to do this. I've wanted to do this for a long time and share with the public, uh, our knowledge and expertise. Yeah. I think what a lot of people may have not known the backstory of the podcast here is what you're about to see if you're watching on YouTube.

Of course, you're able to hear it and still follow through. Um, and he's just audible, like on a podcast. So to speak is Phil has been doing a, probably a nationwide presentation for probably close to 20 years. Um, yeah, probably a little longer than that, but it's also presenting the knowledge he's had for 30 years now.

Every single slide in this presentation and man, that is what 60 slides and don't trust. We're not going to go through every single one and not every single one is used, but the ones that have put in today's presentation that Phil speaks around the country and both to potential clients, current clients and other advisors.

Um, Each has its own kind of presentation built within itself. And the one we're going to hit on today is actually a couple of slides, but hitting on one of the biggest topics that come around, it is 10 reasons why people don't find properly structured life insurance. Now we're not going to go into what life insurance is and specific areas on there.

But one thing we always like to tell people. As you have to look at things, you know, we are required by law to carry insurance on our vehicles. You can't even get a house loan unless you have insurance on a house, but you're not required to carry insurance on our most valuable component, which is ourselves and our family and our kids and things on those lines.

And when that topic comes up, you know, there's always reasons why people don't think that. Need or want to buy in nights. There's a cost involved for life insurance or properly structured life insurance. If you stick her on his podcast, fall enough. So what Phil's going to do here is go through the 10 reasons why, and there'll be nice sort of surprise at the end to challenge you, to see how well you have listened.

So Phil, over to you. Great. Thank you, Harry. Uh, did an interview, uh, via phone with a financial, uh, uh, very popular financial magazine and they asked me the questions. Why don't you think people purchase life insurance or. Why don't people purchase enough life insurance. And so I quickly ran through on that interview.

These are based on over my 30 years of experience. These are some of the reasons and or excuses people do. Purchase properly structured life insurance. So I'm going to go through them real quick with you. Number one, I believe is one of the number one reasons is perception. Uh, people believe or the misbelief.

This is something you buy, you deposited in a safe deposit box there at the bank. It collects dust and it goes to someone else other than yourself. And that couldn't be any further from the truth. In fact, if I were to challenge you with a question, uh, if I could show you how to spend the death benefit for yourself while you're alive, how much would you want?

You'd want as much as you could possibly get. Right. But just in the asking you that one question you changed your perception, the other perceptions are a fill on to all the, this isn't gonna work for me. When in essence, the opposite is true. I can take a 35 year old and a 65 or 70 year old put the same amount of deposit.

And to a properly structured contract and the older person would actually have more money or more cat. Storehouse for themselves for multiple purposes, other than just a death benefit. Because obviously if we put the same deposit in the younger person would have more death benefit and therefore perhaps more expense, um, other reasons, uh, or perception to I'm in bad health.

It's just not going to work. I don't even know if I can get insured because as you know, in order to get. Life insurance. You have to look as good on the inside as you do on the outside, because it requires you to be in good health. If you're not in good health. And if you you're going to tie in the next five to 10 years, obviously the insurance company is not going to issue life insurance, but, uh, those are some of the perceptions that I see that most people have.

So number one would be perception number, uh, The the other, I, I love this. And for those of you listening, I I'm showing up one of my favorite, favorite comic strips. Uh it's it's, uh, uh, a warrior going to battle with a sword in his hands. And at the bottom of the caption, it says, no, I can't be bothered to hear.

About some bright idea. I have a battle to fight again. He's got a sword and there's a person knocking at his castle at the door with a machine gun. And now I just don't want to be bothered with some bright new idea. So I would encourage people going through these, uh, 10 reasons why or 10 misperceptions as to why people don't purchase life insurance.

Keep keeping an open mind because as you know, Your mind is like a parachute. It works better when open. So number two, reason. Number one is perception. Number two is no need. Well, there's a big difference between need versus want and people want. Life insurance when they understand how it works. And with our clients, we want them to be confidently educated.

Uh, by using this financial tool is a different asset class within their portfolio. And then that in it just education in and of itself, uh, brings new meaning. Uh, there are multiple signs. Harry people come into my office. One individual before his butt cheeks even hit the seat of the chair. He said, if this has anything to do with life insurance, We're just going to end this discussion right now.

And I, I knew in the back of my mind, Hey, he probably just doesn't understand. And furthermore, he just doesn't believe that he needs it. So in our opinion, professional opinions, life insurance is a Cornerstore cornerstone. Just the presence of it makes people's lives more prosperous and productive and wanting to go into some of those reasons.

But still on the topic of no need. Uh, there was a Ford's article in March of 2014. Mystery billionaire buys a record breaking $201 million life insurance policy. Now I happened to know who this person is that purchase the life insurance. In fact, I have spoken with a particular underwriter that has. That insurance company has a piece of this policy.

Um, now why would a billionaire need life insurance? Obviously he knows something and his team of advisors know something that not the common folk knows. And by the way, this was considered a Guinness book, a world record.

Biggest largest life insurance policy issued. When I, I know today, um, I've, I've seen policies issued in the upper hundreds of millions, if not billions of dollars on multi-billion dollar family. So. Anyway, why would a billionaire need life insurance? Uh, one of my favorite public articles, I don't know that I enjoy this being a public article and I'll explain why, but.

Football coach, uh, Michigan's football coach, Jim Harbaugh purchases, a $2 million, uh, premium life insurance policy. Um, and you can actually go online and Google Jim Harbaugh's life insurance policy. Uh, he chose of his $7 million per year. Salary. He chose to deposit $2 million per year into that life insurance policy.

Now, do you believe that Jim hardball knew something that not the common folk knew? No. Obviously his advisors did and there's multiple reasons why he did, uh, Anyway, a number one reason people don't purchase is perception. No need three is cost. I mean, let's face it when, when I say the word life insurance, what's the first word that comes to mind.

Well, people say death costs way too much. Well, Cost or it's too. I think it's too expensive. So they buy term life insurance. Uh, what most people don't understand, they're actually for cost a term, life insurance, most advisors, and some of the financial entertainers that you hear out there. They, they talk about one cost of term life insurance, but they're actually four.

When you get below the surface, there's actually. What are the four cause? Well, number one is a given there there's a premium, uh, number two lost opportunity costs on the premium. Now what does that mean? Well, instead of purchasing the term life insurance, you could have deposited the money in an investment, uh, and instead you purchased the term insurance and gave up.

The rate of return that you could have earned on the premium. So, number one, there's a premium cost lost opportunity costs on the premium. And let me ask the audience this, as you get older, uh, determine costs, uh, go up, go down or stay the same. Well, we know the older you get, there's an increase in premium.

In fact, actuary's designed term life insurance policies to self-destruct at some point in time in the future. So, and in fact, uh, Penn state university did a study on. Term life insurance. And in fact, less than 2% of all Alterman life insurance policies sold, ever pay a death claim. So that's a. That can be rather costly.

I mean, for the fourth and last cost of a term life insurance policy is loss of the death benefit. Let me put that in perspective for you here. We're insuring something that's guaranteed to happen. Last time I checked Harry everyone. Everyone on this podcast, that's a hundred percent probability that you were going to face mortality.

At some point in time, we will all will die. That that's a given fact. Um, but let's put that in perspective and let's say. Ew, Ew you in and of yourself, let's just assume that you own a $2 million term policy. Well, we know you're going to lose the premium, given the stats that Penn state university gave us.

We know you're going to lose the premium, the lost opportunity cost on the premium increase of the premium over your lifetime, and then loss of the death benefit. Now, what does that mean? Well, $2 million. Would you, Harry, would you consider that a lot of money? That's a good chunk of change. Yeah. Yeah. If I told you that with distinct probability, you're going to lose your estate's going to lose $2 million in the future.

How would you feel about that today? Won't be too happy with it. No, that's um, that's a big cost. Uh, that's $2 million. Your spouse or my daughter-in-law. Wouldn't see. That's $2 million. Your kids. We'd never see that's $2 million. Your children's children's children. Won't see. So the repercussions of this decision has an effect, a multiple ripple effect on.

You're a state, not only now, not only during your lifetime, but your children and grandchildren. And so in, in our professional opinion, term insurance is one of the most expensive coverages. However, we believe it's a great term insurance. Uh, it's still good. Um, But if we know at least for a short period of time, I think it's a good short-term strategy.

It's a very, very ineffective and inefficient long-term strategy, especially if you know, a very good probability that you're going to lose the premium. You're going to lose the loss opportunity cost on the premium increase in premium loss of the death benefit. And in fact, we call it term. Uh, if you Harry, if you were go to going to Vegas and you were looking at the roulette wheel and one square is red, and the rest of those squares are black, that's like betting on red, your chances or probability of actually winning that game are slim to none.

And the insurance company knows that. In fact, Warren buffet said this and I, and I quote. You know, never argue with an actuary there it's very probable that's going to happen. And so w one of my mentors gave me this phrase, this very, very powerful phrase, bitterness of poor quality remains long after the sweetness of low price is forgotten.

So. Cost, you know, um, I I've, I've always used this, um, cost is what you pay value is what you get it. Um, and so when it comes to term insurance, yeah, it's great to have that temporary coverage. Um, but again, it's. Very very expensive to own over your lifetime. And in fact, losing the premium, the lost opportunity cost on the premium, the increased costs in three, in the loss of death benefit, that's a 0% rate of return.

Would you agree? Um, 100%. And it's kinda one of those things as well. So I've always had been a big believer of values. You know, cost is irrelevant if the value outweighs the cost. And I think that that's those two quotes go very well. Yeah. Yeah. So number one reason, again, perception too. No need three cost.

Uh, however, Harry, if I could show you that there's truly no cost to life insurance, how much would you want? Let's say that life insurance were free. How much would you want? What'd you what'd you really sit down? Oh, let me hold on, Phil. Let me, let me calculate how much I, no, no, you'd want as much as you could get, but let me prove to you.

There really is no cost. To life insurance. So let's just assume that this particular person is putting in $25,000 per year, a age 45. And we're going to make that deposit over the next 20 years. In other words, we're gonna pause it over 20 years. I have a million dollars into this now, Harry, this works no matter if you're putting $2,500 a year in or.

I have some clients deposit over a million dollars a year and two life insurance, but let's just look at this analogy. We we deposit $25,000 a year into this, and it let's just assume a CD at 5%. Now we know today we can w we can't even purchase a CD anywhere near 5%, but let's just, let's make a comparison.

If I put $25,000 per year into each. After the 10th year, I'd have approximately $274,000 in cash into that life insurance contract and $299,000 in a 5% CD and everybody, oh my gosh, that's a terrible investment. But however, Uh, people forget that we also have with the life insurance that the CD doesn't have is $911,000 of death benefit protection.

Uh, if we go a little bit longer, 20 years, At age 65, this person wouldn't have 734,000 approximately in equity or cash value in the contract. And the CD would have 711. Well, and you know, a 5% CD, a, I don't know if they'll, you know, we still just have a little bit more, uh, but that, that really doesn't make the difference.

However, we do have a 1.36, $5 million death benefit. Tax-free death benefit along for the ride with the life insurance that the CD doesn't have now, here's where it gets. Interesting. Harry. I always said that, uh, there, there are multiple ripple effects when it comes to life insurance, we can make life insurance, do whatever we want it to do.

But in this circumstance, uh, I, I don't believe that life insurance is a good accumulated. Have a wealth. In fact, it's a better preservation of wealth and a different asset class. But if people were to look at it through a different lens and say, you know, what, what kind of distribution could I get from the life insurance?

And look at it from a different perspective, because I believe that life insurance is a better distributor of wealth than it is an accumulator of wealth. And so when we look at. Uh, a different example of, okay. That same contract that we put in 500,000 over that 20 year period, let's take out $50,000 per year of tax exempt income.

After that policy is guaranteed paid up and let's take $50,000 of income from the 5% CD. Well, If you see here in these columns, lo and behold, we put in 500,000, but between ages 65 and 90, we've distributed 1.25, zero million dollars. In other words, we've taken out a lot more than we've put in. Uh, we still have a approximately $185,000 in equity and over $550,000 of death benefit.

Uh, wow. You, you got 'em more than you actually put in and in this circumstance, uh, not only did you take out approximately three times. What'd you put in, is there a cost there, Harry? Absolutely not. You actually got more out of it than you put into it. And by the way, that's tax exempt. That's Phantom income.

That's non-reportable income. Um, We still have more in death benefit than the deposits that we made. Uh, but look at the CD column. Uh, we took out $50,000 from that and lo and behold at age 83, 84, we we've run out of money now. How can that be? So, um, how in the world can a life insurance contract.

Outperform and outspend a CD at 5% every given year. Well, the answer to that is, is clear. It's it's it's written in the tax code is because, and I'll give you the clue, uh, When you take the $50,000 of income, you're actually borrowing against the contract. You're not taking the $50,000 from the contract as you do with the CD and the CD, you take $50,000 out of the account.

It is gone. It no longer earns interest versus the life insurance. If it's designed properly. I borrowed $50,000 against the contract. Um, and. It's still in my contract, still earning the same interest in dividends. So I explain that difference. Uh, especially if you had a home equity in your house, can you borrow $50,000 from the equity in your home?

And the answer to that is no, you can only borrow the equity again. Your home, the money actually comes from the bank, which is the same circumstance that is happening here, uh, with the life insurance contract. So it's a very, very meaningful resource for income. Um, so given that circumstance let's, let's apply, um, The yield that we would need to get in a taxable account to net that 50,000, you would need 55, 70 $5,000 a year of income and a taxable investment to equal that $50,000 of tax-free income from the contract at a safe withdrawal rate of three and a half percent.

You need over two, uh, and a half. Million dollars close to $2.14 million in investments to produce $75,000 per year of income in order to accumulate 2.14 million in investments from age 45 to 65, while saving $25,000 a year, you need a guaranteed rate of return of close to 13% each and every year. Um, that's the.

Equivalent taxable equivalent yield of life insurance, not bad. Would you agree Harry? 100%. I'll take that all day long. Yes, absolutely. So really, um, there is no cost you're just exchanging money or. Taking money from one pocket put into another pocket, but can you borrow from a life insurance? No. Remember you can only borrow against the money is actually coming from the insurance company against the death benefit and the cash value in the life insurance contract.

So you're, you're actually spending your death benefit $9 for dollar. Um, Against your life insurance policies. So you're using leverage to your advantage. And let's look at the tax code when borrowing against the inside bill up, it says the amount borrowed is considered. A transfer of capital is not subject to taxation.

The ability to borrow against a life insurance policy means that the interest income that is supposed to be building up to fund that benefits can instead be a source of untaxed. Current income. The inside buildup will never. Be taxed. Thus policy holders have the use of tax-free income for purposes other than insurance.

Because again, you don't need it at the expense of reduced death benefits for your beneficiaries. I had an accountant give me this, uh, over 18 years ago, changed my life, changed my perspective, everything when it comes to life insurance and for the analyticals, uh, we have six bullet points in the tax code that, uh, For the accountants and the attorneys that are looking at this, these are all the IRS section codes and, uh, the definitions of.

Taxation and non tax benefits of life insurance, which is very, very powerful to understand. So perception, no ne costs, other people, high commissions, all Phil, you know, life insurance is so high in commissions. Uh, depends on the design of the, of the contract. And I, Harry, I will give you this, uh, over. 90 95% of the contracts I see in the marketplace.

I, I would never purchase. Um, in fact, the way we design, we design the contracts for our clients and it can be 80 to 90%, less and fees when designed for maximum, efficiently efficiency, fifth reason why people don't purchase life insurance. Number five bad investment, Harry, I, I got a notice here about seven minutes ago.

This is going to end. So can we splice these two together and just pick up? So what do I need to do? Can you see, can you see the time opinion, the corner of your screen? I got six minutes left, so you can either talk for six minutes or we can just restart it now. Um, let, let me, let me, I'll finish this screen slide and we'll do.

The fifth reason why people don't purchase life insurance. Oh, bad investment. Um, and we hear it all the time. You read about it, ask your neighbor about it. Cause they're they're experts. They'll they'll know. Um, Counts attorneys, all the financial entertainers. Yes. That it's a bad investment. It's terrible.

I always come back with compared to what, well, what would you compare life insurance to? Because when coordinated and integrated with other asset becomes a cornerstone of wealth building and a financial strategy, which in our opinion is always better. Uh, strategy is always better and the strategy always trumps the product.

So if I can come up with a more efficient or effective strategy, That financial strategy cannot be credited with achieving its full potential without a death benefit at maturity. And so let's most people that I ask Harry, uh, well, what do you believe is the best investment? Oh, it stocks it's bonds. Uh, but a lot of people just say real estate.

So in what I. I just compare real estate to life insurance. Uh, but more importantly, what I think is most efficient let's coordinate and integrate cash value, life insurance. To purchase real estate and have them work. We know we're going to have a more productive outcome if we add the two together, but let's look at the benefits of both sides.

So let's say the real estate value 750,000 there's equity of two 50, uh, and the real estate. Well, the seven 50 is the death benefit of the life insurance contract and the cash value would be the equity, but, um, Let's compare the benefits. You know, we, we want all the bells and whistles, right? We we'd love to buy things that give value.

And so real estate is illiquid. Life insurance is liquid real estate. There's market risk, no risk with life insurance. Uh, Ray to return on both ends. Uh, uh, I tend to believe you're going to get a much higher rate of return on real estate. Then you would life insurance. Um, but again, we, we would want to coordinate them together.

In fact, I, I truly believe the best investment is really investing in yourself, uh, in your own business. Uh, Next best investment we believe. I mean, real estate. I agree with people. Um, number four real estate is taxable. Uh, any income received from real estate is taxes. Ordinary income life insurance is taxing.

Um, with real estate there's property taxes, you've got insurance cash value life, no property taxes. Uh, real estate is non-guaranteed life. Insurance has guaranteed backs as one of the few assets that I can talk about and use the word guaranteed. And I don't lose any of my licenses. Um, there's maintenance when it comes to real estate, no maintenance on life insurance.

Uh, real estate is public. No. Public obligations with life insurance. In fact, when you take loans against life insurance, it doesn't show up on a credit report that that's, it's private. That that's, that's awesome. Number nine with real estate, you have tenants and that can cause a problem. Uh, life insurance, no, no tenants.

Um, so.

Point that I want to make. There is with life insurance, we avoid the three T's of real estate. Harry, what are the three T's we avoid taxes, toilets and tenants, you know, there there's, there's no such thing. Um, as. Passive income. There's nothing passive about real estate. Trust me, especially when you have taxes, tenants, and toilets.

So with life insurance, we avoid those three treaties. So what we're on the topic of bad investment? Uh, what are these four pictures have in common? Well, the left-hand. Top side of the slide is Disneyland. Right? Top hand corner is JC penny lower left is pampered chef and lower right is McDonald's what all these have in common?

Well, they had access to capital, uh, to start their businessmen. When needed and access to capital is extremely important. In fact, Walt Disney wrote in his autobiography, uh, he went to everyone. He, he went to banks. Uh, you went to his friends, went to family and lo and behold, he, uh, he borrowed a hundred thousand dollars again.

His cash value life insurance. When Disneyland opened in 1955. My question to the audience is this what's the rate. If life insurance is such a bad investment, what was the rate of return on Walt Disney's life insurance policy? Uh, it's probably incalculable, uh, Also Doris Donnelley, uh, and the inventor of pampered chef and 2002 Warren buffet from Berkshire Hathaway paid approximately $1.2 billion for her company, which was founded in 1980.

How did she get pampered? Chef started. She borrowed just $3,000 against her life insurance. My question to the audience again, is this, what's the rate of return. If again, if life insurance is such a bad investment, what was the rate of return on Doris Donley's life insurance contract? Um, because honestly there are multiple rates of return on a life insurance policy.

Most people just focus on the internal rate of return. What about the external rate of return? Uh, Doris Christopher's life insurance contract, uh, and, and my practice, I think one of the most coolest things I'd ever seen, and my client gave me permission to use this after their four daughters, that they had God, uh, share with them.

Hey, we want you to adopt, um, to. Little girls from Haiti and, uh, which are now 14 and nine years old, but they borrowed $50,000 against their life insurance policies for the adoption process to adopt two little girls. And I can assure you, um, that's the joy of their life today? Um, unexpected obviously, but the.

The access to capital was there extremely important. So again, number one reason why people don't purchase. Life insurance, uh, perception two is no need. Three is cost fours, high commissions, five bad investment, six media, um, misinformation from TV, newspaper articles, the internet. Obviously we know that everything that we see on the internet is true.

And in fact, you can find something bad about a mother Teresa on the internet. If you, if you look hard enough, But a lot of fake news and the marketplace. Oh, I, you know, I have a wealthy uncle that told me, you know, not to do this, um, But more importantly, let's focus more on media and we couldn't find a better picture than, than this, uh, the suit, the arm NGO, uh, and in fact, offer a website.

She said, I hate whole life insurance. I hate to a pretty strong word. Uh, then we have this guy, this guy here, uh, the, the, the Dave Ramsey's, uh, you know, And in fact, he tweeted, uh, saving only a hundred dollars per month from age 25 to age 65 at 12% growth. And no one in my industry has ever figured out where or how he's getting 12% growth, but Hey, everyone would meet a millionaire.

I let me share this with you. If I tweeted that being a registered. Advisor. If I tweeted that, first of all, I'd be warned by the securities and exchange commission and or FINRA. Second thing that would happen if I T if I tweeted that same phrase again, I'd be fine. Third time I tweeted that phrase of losing my license.

Now, how can.

Being their personal opinion, not their professional opinion. Um, and

again, They're not professionals. They're financial entertainers. Uh, I don't know if I would do. Just about anything that Suzy, Norma, in fact, you know, Dave Ramsey, I think he's pretty sharp. Uh, I would pay attention to about 40 to 50% of what he says. You know, if you're, uh, a train wreck financially, you need to get out of debt.

I think he's a good source to go to, but the blanket statements he made, aren't just necessarily. Aren't necessarily true. So be very, very careful where you get your financial information from now. Who would you rather do? You know, some of the most important decisions that you make when it comes to finance these two individuals or this guy, this financial ed Slott CPA named the best source for IRA advice by wall street, journal past chairman of the New York state secure society, a CPA's estate planning committee and editor of the IRA planning section of the CPA journal.

And. He quotes and I quote him saying this. The single biggest benefit in the federal tax code is the income tax exemption for life insurance. Not me. That's saying that it's him. Life insurance should be the bedrock of any serious financial retirement or estate plan. In fact, we believe it should be the foundation and the foundation is the most important part of any structure.

So who would you rather listen to him or the ones on the previous slide? The Susie Armando, the Dave Ramsey. What about this guy? Dr. Wade fowl. We call him the professor. Uh, of our industry, he's actually professor of retirement income planning, the American college college, um, he quotes to reduce volatility and manage sequence of returns, risk.

It's sensible to have other assets available outside the financial portfolio to draw from after a market downturn, I recommend using. Properly structured cash value, permanent life insurance as a reserve. I'd rather listen to this guy than the two financial entertainers we spoke about previously. So number seven, the other reasons people don't purchase, I believe is a lack of understanding things, you know, that, you know, uh,

And honestly, some things in life are true, whether you believe, believe it or not, uh, things you think, you know, that just aren't. So then things, you know, um, things, you know, that just aren't so, yeah. Um, And obviously when you look at a life insurance illustration, illustration, it's just mass confusion.

This, this is basically what most people see and I get it. It is very confusing, a lot of moving parts and it takes an expert, an expert to disclose and or to explain how these things work. Uh, number eight, fear of the unknown. Why? You know, I get this question all the time. Why isn't everyone doing this?

Well, those who understand do, uh, and, and that's why. We confidently educate our clients into using this properly structured tool number nine. And I know we're getting to the end. Number nine, a lot of people just think it's too good to be true. And that that's a misconception. I think a lot of people talk themselves out of.

Um, something that could be very, very good and prosperous and productive realize because they have this misstatement and their Maya is just too good to be true. And, you know, they, they, they just, they're just not on board. Last, but not least 10th reason people don't purchase and let's go through, uh, the previous nine one is perception, no need costs, high commissions, bad investment, uh, media, uh, lack of understanding, fear of the unknown too.

Good to be true. Number 10 and last but not least, I think misrepresentation. Um, there are a lot of advisors out there. I really don't believe they know what life insurance is, how it's structured. Uh, and they're basically out there misrepresenting what, what it is, so what it is and what it isn't honestly.

And so we developed on our website, you go to Phil bodine.com. You hit resources. I'd encourage you to watch 10 minute lesson on life insurance and what we, and how we believe life insurance should be structured. And it's one of multiple structures that we designed for our clients, but I believe you'll know more in that 10 minute lesson than most financial advisors that are in the marketplace.

And so I hope this has been very helpful, very useful. I hope you can apply it. Uh, obviously theory and application are two different things. So we encourage you to, you know, you might, after watching these 10 reasons, you might have more questions than answers, but, uh, we encourage you to tap into us as resources and we're, we're here for you.

Uh, we want to help, um, And, uh, we, we want to show you how to bring this financial tool up alongside. Everything else that you have in your financial life and allow us to prove to you and have a constructive conversation as to how this can make life even, even better when you agree. Oh 100%. And I think it's when people actually sit down and go through these slides, um, sometime, or most of the times when people first get introduced to this, maybe you just the seminar or maybe to you, they might not be aware that it kind of might take a little turn towards life insurance itself.

But for I, well, I probably sat through 15, 20. Uh, presentations myself, not including how many of you know, we've recorded and watched and edited along those lines. And the response has always been the same. And it's always on the positive side of things, either additional questions or wanting to take action, but I've never seen a negative turn around unless they just come in so against something or so.

You know, I don't need to help my, my wife dragged me here or my spouse's ID. And I think you hit the nail on the head with a couple of specific areas on there is the lack of an understanding and misrepresentation of it primarily. And then you kind of always bring it to the point of, um, you don't know what you don't know and why isn't everybody doing it.

And you always tell them because. Those understand do so when it comes to the 10 minute lesson, lesson, life insurance, I will put a link down in every channel that you're either watching or listening to songs. So just click that and go straight to Phil's website. And then you are able to watch that for 10 minutes and there'll be resources around that also to educate yourself further and realize why this is a true foundation for so many to build on at the same time.

But for those that are interested when it comes to. Um, the seminar and discovering more. What we encourage you and challenge you to do is at the start of every seminar that Phil gives, there is a questionnaire that gets given out and there's a famous story. And well, maybe Phil, you can, you can tell it better than me about when you gave the quiz in front of 400 other.

Uh, yeah, I, I spoke down in Marco island, Florida to over 400 advisors and I, I gave them the quiz, um, on a 400. Advisers, not lay people, but advisors, there were only 16 that got a hundred percent right on just our true false questions. I mean, you, you, at least out of 50, 50 chance of getting the question answered correctly, but yeah.

Um, We use it as a learning tool and yeah. Larry or Harry, I BR I thank you for making it available to our audience on our website. It's been a work in progress where we got there and that's, um, one thing I got, I got a question for that as well. When you gave that presentation after the fact, and they realized how many were wrong, did you still get challenged on answers or is everyone pretty accepting that now you've explained it as like, okay.

That makes sense. No. Yes. Um, a lot of, uh, uh, oh, that's awesome. Thanks. I said, no, no, no. It's just semantics in those two. And I, wasn't trying to trick you there. As, as I said before, some things in life are true, whether you believe them or not. And so sometimes I come conventional wisdom, especially when it comes to advisors.

You know, impart new information that Hey. They just, they didn't know. And I believe that that people want, and including advisors, they want to solve a problem before they pursue an opportunity. And so we just want to solve problems for our client, especially the problems that they don't even know exist or know existed.

So. Yeah. So for those that want to see this quiz for themselves, we actually just made this live on the website also. So you can also go to Phil bottin.com forward slash quiz. If you're on the website for a couple of seconds, it's probably going to jump up in front of you anyway, just to take a look at that, um, you can go to.

And throw the question, see how you do. Um, and at the end you also then have an opportunity to sign up for the actual seminar itself. It's about an hour and a half long. Um, it starts out from the bike six all the way from the actual concepts and builds all the way into strategies at the same time at the end.

And of course you get the opportunity to. To retake the quiz and see how you did at the end. In fact to the quiz actually gets given in the seminar as well. So Phil, anything else you want to add onto the. No. Good, good, good class. Good class today. Absolutely, man. Well, as always, it's a pleasure hanging out.

Um, I, we appreciate you guys hanging in here till the end. If you'd like to like comment, share in any way whatsoever in whichever platform you're in. And most importantly, the most, you know, the most special thing that you can meet. Is sharing this with a friend or a family. And of course, if you guys want to reach out with any questions, put them in the comments below or in the comment box on Phil's website, and we'll be more than happy to, uh, get back with you guys.

So again, we appreciate the time and we'll see in the next episode,