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Finance BROs Network (FBN)
Economic Empowerment & Self Development Strategies For All
Finance BROs Network (FBN)
101 GUIDE TO GETTING LIFE INSURANCE AND WHY
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Most people think insurance only matters after you’re gone. We take a different path and show how the right policy can protect your home, create options in a crisis, and even help fund the life you’re building right now. From Term Life to Whole Life, Universal to IUL and GUL, we break down the landscape with plain talk so you can match the right tool to the right job and finally stop guessing.
We share why the wealthy discuss life insurance at the dinner table—because life insurance policies can be leveraged while you’re ALIVE. You’ll hear how mortgage protection differs from PMI, how final expense coverage spares families from last-minute fundraising, and why working with a broker opens the market to better fits and prices. We also dig into living benefits that let you access your death benefit during a serious illness, and we demystify annuities as “insurance on your money” that can turn savings into predictable retirement income.
To cap it off, we unpack infinite banking in simple terms: build cash value, borrow against it at low cost, keep your growth compounding, and pay yourself back like a disciplined bank would. Our guiding framework is practical and human: start with what you can afford, think long term over short-term splurges, and treat coverage as an act of love. If you’re ready to replace confusion with clarity and put a real plan in place, hit play, share this with someone who needs it, and subscribe. Leave a review with the topic you want us to deep-dive next.
Learn more about the FBN initiative and get access to all social media platforms at https://linktr.ee/fbnlinks
First and foremost, we want to be clear that what we are sharing with you are strategies and concepts that can be implemented by individuals who understand the logistics of how these techniques work. We are not giving you specific tasks or financial advice. We are simply giving you the three key elements of how to approach such platforms as far as the literal, the mental, and spiritual format needed to be successful with your inspirations.
SPEAKER_04:And this is Michael DePote, the other half. The other half. And we are coming to you with Finance for the Unknown. We're high we're we are honored to be here with you and our present and future wealthians. Welcome, everybody.
SPEAKER_02:Welcome, welcome, welcome. Hey, we're gonna get into an episode this week that's uh obviously very close to both of us.
SPEAKER_04:Both of us, and you'll find out a little bit soon. You'll find out here in a little bit.
SPEAKER_02:You know, we are the finance bros and we always are talking about financial strategies and how to use different financial strategies to not only secure a legacy but build your legacy. And this for myself, obviously, is in in my day-to-day, as Mike and a lot of you know, that we deal in financial services. So, financial services, a big part of financial services and financial planning is life insurance. Right, it's a conversation that nobody wants to talk about, it's a conversation nobody wants to sit down at the dinner table and go over. It's the uncomfortable conversation, and we have the privilege of making that conversation applicable and you know, just something that's make it bearable for people to have. Right, right. And very educational too.
SPEAKER_04:Yeah, yeah. And I want to point out that by saying what you're saying, it's usually for the underprivileged community because the wealthy community don't have a problem. This ain't no problem talking about for them to say that matter of fact, that is topic of choice, Thanksgiving, Chris, Christmas dinner, topic. Okay, what life insurance did you get? Ooh, ah, oh, oh, I compare, I can show you my meta. Oh, I it is exciting subject. Whereas for the UPI community, we've been sheltered, we've been pushed away, cast away from this topic where we should be embracing it. And we're hoping with this uh uh the title of our show, which is one-on-one guide on getting life insurance and why could help you understand why this is so important and why are these wealthy people are at Thanksgiving dinner and Christmas dinner and whatever, whenever talking about this like it's second nature.
SPEAKER_02:Yep, exactly. And we're gonna we're gonna mention a small shift that will is guaranteed to help people's mindset go forward with this conversation. All right. When most people think of life insurance, they think of something that is beneficial when they die. Right, Mike?
SPEAKER_04:Yeah.
SPEAKER_02:For the most part.
SPEAKER_04:For the most part.
SPEAKER_02:People in the know, people who understand financial strategy, they understand life insurance as being a tool that they can use, a financial instrument that they can use while they are in fact alive. Very small, just a little tweak. All right, because nobody wants to talk about dying. Nobody wants to talk about it. Okay, but you but leveraging, which is a very big word with with the with the wealthy, leveraging a financial instrument while you're alive. We're we can all be about that.
SPEAKER_03:That's right.
SPEAKER_02:Okay, so uh Mike, you know, I want to allow him to make a little bit of uh announcement announcement, you know what I mean? And then we'll elaborate on we'll elaborate on this. We're not gonna get too deep in the weed because really each of these specific topics deserve their own episode. We're just gonna give you the foundation, okay? And we can go deep, dive deeper into them, obviously, uh on in for two episodes.
SPEAKER_04:As you know, my brother is a life insurance uh broker entrepreneur, yeah, life insurance agent, financial service guru, and he's been the coach, and he's been doing this for years, and then just watching him and and listening to him and being a part of the conversation sometime. And sometimes he even asked me for my opinion, but guess what? Without a license, I can't do okay, you fill it in. So, guess what your brother did? Your brother went and got his license for doing life insurance. Thank you, brother.
SPEAKER_01:Thank you, thank you. That's what's up.
SPEAKER_02:Hey, man, much much respect to you, brother. And I would even say, I would even call this man maybe newly licensed with a five-year internship, right? So, I mean, because you know, and we would this man has been very, very dedicated to the spiritual as far as being a support system for me, because I'm a big, y'all know I'm a big who know people who know me know I have a big heart. Right. Right. So things things hit me in my spirit a lot, right? So whatever, if I ever got discouraged or if I ever got feel like I was going off track, you know, Mike is always good about helping me apply the spiritual, helping me get back to the mental. Okay, why did I start doing this? What what is my passion? You know, why why is this thing so important to me? So, you know, now just seeing him, you know, we're side by side and we can actually go in out there together is uh is a big deal.
SPEAKER_04:Well, you know, it's it's so unfortunate, Anton, that uh when people say life insurance, and obviously, and we're talking to our UPI community, unfortunately, our underprivileged community don't get to understand it. Matter of fact, you go to work, they tell you, yeah, just take this at the job, and you're like, oh, okay. And you're like, you don't really understand what you're getting, you don't know why you're getting it. And this is like they are really sheltering us from it. And a matter of fact, they make life insurance, death benefit, uh uh uh uh such like a bad thing, sort of for us that we just don't want to have to deal with it when it's really wrapped. What they did, what that one percent did is took that negative contact, they reversed it for them and made it something so glorious, so beautiful that we're not gonna share it with nobody. Only only if you got money, you'll know this. But if you ain't got no money, you don't know this. But that's not true. Right. This could help you, me, everybody. And we all should have it because of what they created. We should all have it and we should all benefit from it. Absolutely, absolutely, and and we're just looking and we're gonna keep it simple. Yeah, yeah.
SPEAKER_02:We're talking about typically middle America does not have access to this type of information on a daily basis. It's not readily available unless you're looking for it specifically. But uh yeah, but like Mike said, we're gonna we're gonna graze the surface on it, make it to where, again, we uh obviously we provide fundamentals, encourage curiosity, give you guys enough motivation to do your own due diligence, your own homework, and then obviously go out and find the best fit for you, whether that's you know coming to us for direction or whatever you may do.
SPEAKER_04:So and get it, guys, we're all about training and coaching. So now I have a license to actually help you. Anton has a license to help you. You DM us, you say you want something based on what we're about to go on the one-on-one guide here on what products they are. Just give us a uh hit up, you know, give us a DM, let us know, send us an email, go to our website, hit us up. We can help you. We can help you with this.
SPEAKER_02:Absolutely, absolutely. And keep in mind that this is a this is a small portion of of what we do. I mean, when it comes to Wills, trusts, retirement planning. You know, if you're coming out of a job, typically any life-changing event, which is really what comes to mind when people, you know, when should be thinking about what when they talk about life insurance or financial planning, you know, you just had a kid, you're probably thinking about some of these things. Right, right. Just got married, you're probably thinking about I just got married and re-redid my my whole plan, right? Wife, wife had it all, you know, lately I'm in business with my wife, so my wife's been doing this a lot late longer than even I have. So, you know, this is something we were easiest for for us to talk about, right? If you're about to end your career and you're transitioning into retirement, these are probably some things you should be thinking about. Obviously, if people pass away in the family, now these are some things that you're just thinking about. So these are the times when you start to, you know, want to take a look at things, life-changing uh circumstances or events, right?
SPEAKER_04:So there's about nine, ten products and we're gonna highlight the most uh conducive products that would be something you would consider or be thinking about at in a with an affordable price, and that could secure not only help your family, but help your family maintain and build wealth. So, and again, I say, you know, the the 1% try to hide this, but this is honestly, I hate the fact that we call it life insurance and time. I wish we just called it financial services.
SPEAKER_00:Right.
SPEAKER_04:Because the financial services for anyone and everyone, and maybe we'll recoin it as Finance Bros Network, as financial services that has life insurance as opposed to life insurance with financial services. But we want to make sure that we're echoing this, that it is a financial services that we're trying to get to you that they don't teach you, that you know you're working for a paycheck, you know, and that shouldn't be forever. As long as you're in this earth, working for a paycheck shouldn't be the end all be all of your life. You should work for a paycheck and then let the paycheck work for you. There you go. How about that?
SPEAKER_01:I love that, man. In fact, we should call it leverage insurance. There you go. For living insurance. Living insurance. How about I like that even better? Living insurance. I like that, bro. That's what's up. I like that. Yeah, we we we we recoin things around here. We're gonna make it to where it's attractive.
SPEAKER_04:Thank you, positive, thank you, and and and enduring something you want like a piece of chocolate. I'm telling you, man.
SPEAKER_02:And then could keep this in mind. This is why I say, man, this is why I say we could break this up into so many episodes because I have a we have a lot to give them on this stuff, and and I'll I'll hold a lot back, but but just one thing to really keep in mind, you know, when you're talking about your state farms, your farmers, your your your your box stores per se, you know, state farm can sell state farm, farmers can sell farmers, okay? Fidelity can sell fidelity. You guys get the picture, okay? When we when we talk about when we say we're brokers and we have access to an open market, that means we have the ability to bring the client to the marketplace and find the company. Doesn't matter what company it is, we're not biased, right? Okay, to any towards any one company because we don't work for any one company or brokers who have access to the marketplace, we bring the client's needs and their profile to the marketplace, and then we find the company that's the best fit for the best price. Easy. Easy, period. That's suited for you. All right. So that's when you when we say broker, that's what that's what that means.
SPEAKER_04:So so what we're gonna do is again keeping it simple and maybe uh um have you guys really understand what each product is. We're gonna do it as a QA since since since Anton is the guru, and I'm just I'm just I'm just gonna rattle it off and I'll just do a quick synopsis, and he might elaborate a little bit. I might elaborate a little bit, but you know, I'm the apprentice and he's the guru. So I'll do the QA with Anton. So and and then what we're gonna do is highlight what the product is. Anton's gonna give us a quick synopsis of what it is, and then uh, you know, maybe I'll summarize it and then we'll move on to the next product. Is that cool, wealthians? We got that? We good. All right, all right, all right. First and foremost, term life. What is term life insurance, Anton?
SPEAKER_02:All right, so term life insurance basically is a type of life insurance that is for a period of time. That could be five years, ten years, fifteen, twenty, twenty five, thirty years, some even go up to 40 years. But typically when you're buying a house, you're gonna get a lot of mail when you first get into that house, and you're gonna see some things like mortgage protection and life insurance is a type of mortgage protection is a type of life insurance. That's a different, we'll get to that. It's a different topic, but I again just so you know, a lot of times that's what term insurance is used for, is for mortgage protection. Right. Doesn't grow any cash value, right? It has once the period is up, the life insurance is gone. And if you can renew at the time the period that that life insurance ends, it's gonna renew at a higher price. Right, right. So you just have to understand that. And typically it's a 10 to 30 year coverage, typically it's 10 to 30 years.
SPEAKER_04:You really see five and four years, although they do, they do have some of those. Right, right. And it's it's it's really affordable. But you know, uh affordable in the sense is that's like one of the cheapest things, you know. Let's say I I would also suggest it for maybe people who are getting up age, maybe 40 years old or or near near that type of age, 50 years old, and say, you know what, God forbid something happened, you know, I'll have something, you know, for them to have. I I call it their uh going away party. So that's how I call it. It's very cheap, too. So and it's really, really inexpensive. So we we could look at that. So, but that brings on to our next type of product, which is a whole life insurance. So, what's a whole life insurance?
SPEAKER_02:So, I always break life insurance down into term and permanent insurance. So, term obviously we just talked about term. It's a type of term that it's type of life insurance that does expire at some point. Whole life is a permanent type of life insurance, it is designed to last for the rest of your life. There you go. All right, and the premium is set once you set the plan, the premium will never go up, the coverage will never come down, and it's guaranteed to last for the rest of your life as long as you pay your premium. There you go. Right? It does grow some cash value. There you go, that's important. Okay. Uh the the type of cash value that it grows is not as much as some other types of plans because it's a set type of percentage of interest that it will grow in most cases. Okay. But it's designed to be one set premium that you pay forever, and that premium never changes. That's how it's designed.
SPEAKER_04:Right. And God forbid you pass away. You if if you have that premium and it's created a cash value during life, maybe you could take that cash value and do something with it with the whole life. So with whole life insurance, you have that flexibility where before you die, you could do something with some of the money that's going in there. And God forbid you do pass away, then uh there's a benefit with that once you pass away. Okay. So anything else on that, Anton? We good on it? Yeah, yeah. No, that's that's it. That's it. Okay, all right. So we'll go. So now let's upgrade from whole life insurance. The next thing is universal life insurance. And so that's usually referred to as uh uh a universal life, but uh what is a universal life insurance?
SPEAKER_02:Universal life insurance is another type of permanent life insurance which has flexibility. Typically, your whole life insurance is not gonna be much flexibility, just what you guys know that. Universal life insurance will have some flexibility, it will also use some type of interest-bearing benefit to supercharge the cash value that goes that is able to go into the plan. And again, with the flexibility, obviously, you have the ability to put a little bit more money into it, again, essentially overfund it to, I guess, would be to just build your cash value faster, would be your would be your benefit there. Right. But again, it is designed to last for your whole life. There is some flexibility in there, and it does use interest earning strategies inside of the plan to enable your cash value to grow faster if you choose to put extra money into that plan.
SPEAKER_04:And that that that just uh we will just kind of slide over to one of the type of universal life that is very popular, and you might be seeing it on TikTok, Instagram, and uh a lot. It's called IUL. What is an IUL?
SPEAKER_02:Yeah, it's index universal life insurance. So basically, this is a type of permanent life insurance policy that uses index indexing strategies. Index, when you think of an index, think of your SP 500, your NASDAQ, yep, stock market, your Hang Sang, different type, and there even are different types of indexes inside these accounts a lot of times that companies like Fidelity and Morgan Stanley will partner with some of these life insurance companies for in order to, you know, make the plan more attractive and earn higher returns inside the plan. So, where if you have an index universal life insurance policy, remember the three ways that money grow. We broke this down in other episodes. If you guys go back, there's fixed, there's variable, and there's indexed. Fixed is uh, you know, a very slow rate of return, doesn't always outpace inflation. Variable is up and down in the market, it can fluctuate, it can be volatile, and then index is when the market's up, you're up. When the market's down, the floor's zero, and then the insurance company insures your floor at zero so you never lose money in that account. So you're talking about indexing, you can always go up, but you don't go down. Does that make sense? So your index universal life insurance policy is that same strategy inside of a life insurance policy where you can have lots of flexibility. These plans can be they have to be properly structured, properly funded, and given time to mature. You guys don't forget the rules, okay? A lot of agents will try to design these. Well, and I don't even want to go into all that. Yeah, don't let me go into all that. Just know this properly funded, properly, properly structured, properly funded, and given time to mature. Okay. You'll be happy with that rule if you follow that rule. And I have no I have no problem saying that because you know, just ask anybody who's got one with me. All right. And so using that strategy inside of the life insurance policy gives you an opportunity to overfund it over the amount that you've set to put in for yourself so that your cash value can supercharge and grow over time, and you can have it, have access to it to do, you know, whatever you might want to do.
SPEAKER_04:And and imagine, ladies and gentlemen, that's one of the reasons why all these social media people or people that's going on social media advertising index universal life, because it has that flexibility, right? And and we did our last episode, we spoke about, you know, investing into crypto, investing into uh uh um um uh what what's the stock? Fiat uh um fiat. The fiat into uh Um, what do you call it? Fractional. There you go. That's the word I'm looking for. The fractional stocks investment. So maybe you want to upgrade and look at uh a you know uh index universal life IUL to invest in um that might work for you. And and again, the fractional and the crypto, it's it's a little bit of money, but maybe you have a little bit more money that you can invest into something where, as Anton would say, it will never go down, it'll always go up. If the market is going up, your money will go up. But if the market is going down, it'll bottom out and it won't it won't take away money from the floor zero.
SPEAKER_02:Yeah, you won't earn that euro, but you won't lose that euro. Yeah, right. You'll have you'll still have obviously there's a cost of insurance. You are buying life insurance when you get an IUL, so you have to consider the cost of insurance, all right? But as far as what you're have that's going into your account that's growing interest, when the when the market's down, you don't lose anything on that. And and one more universal life guaranteed universal life. Yeah, guaranteed universal life. And I want to say this about the IUL. The uh one biggest reason why it's so powerful, and I say the word leverage insurance, because the reason why the wealthy use this tool, have used it and leveraged it for so long is because when you fund this thing properly and they're designed properly, the wealthy will actually utilize this plan while throughout their life. And when you borrow from your cash value, you borrow the insurance company's money.
SPEAKER_01:Right.
SPEAKER_02:So if you have a hundred thousand dollars worth of cash value in your account and you borrow$50,000, you borrow$50,000 from the insurance company's money, not from your money. Your$100,000 in cash value is still earning interest as if you've never removed a dime. Name an investment that does that.
SPEAKER_04:I don't know. Exactly.
SPEAKER_02:Except for that one, right? So now we'll get into G U Land. So, yes, what's what's guaranteed? Guaranteed universal life is uh again, it's a permanent life insurance policy. It's guaranteed to last until for it's designed to last for the rest of your life, okay? And to keep the cost low. Right. All right, so where you're paying more money into a universal life and an index universal life because you are trying to earn that cash value, all right. With a guaranteed universal life insurance policy, it's designed for you to put in one set premium and have the policy last forever, but keep the costs probably a little bit lower than a traditional whole life policy would be. Right. All right. So not gonna see a lot of cash value in that because it's not built, it's not for that. Right, right. It's built sometimes. There's no cash value. Right, exactly. It's just built to last for the rest of your life. Life, right? And keep the cost down.
SPEAKER_04:And it's just a little cheaper than the whole life. Right. So that's the difference. So I know we're getting complicated with a new different subject. That's why you need to call it. That's what you call it.
SPEAKER_02:Yeah, try not to talk too much, trying to keep it very simple. Yeah, they all deserve their own episode, right? Really do, right? So there's there's that.
SPEAKER_04:All right. So now something you you mentioned in the beginning is mortgage protection insurance.
SPEAKER_02:Right, right. Now, mortgage protection, a lot of people talk about mortgage protection a certain way. I like to talk about it the way I talk about it. So you you know, you may you may be accustomed to other styles, and that's fine, you know. But mortgage protection insurance is essentially the way I talk about it, is a term life insurance policy. Okay. You go and you get a house. Typically, you're gonna get a 30-year mortgage, right, Mike? That's correct. Okay, and you're gonna have something called PMI, which you have to have.
SPEAKER_04:They give you no choice, especially for the underprivileged community, because the wealthy don't know what PMI is because they never used it. Right.
SPEAKER_02:It's basically mortgage insurance that protects the bank. The bank, not you, not you, okay? You default on that bad boy. You think they're gonna lose out? Absolutely not. Nope. All right, they're gonna get their money, it does not protect your family, okay? So while you pay PMI to protect the the bank's investment, you are purchasing a mortgage protection life insurance policy to protect your investment, your family. Okay, so that's typically when you see these letters in the mail when you just buy a house, hey, come get mortgage protection for a dollar a day or whatever they might call it. It's actually a term life insurance policy, and typically it would be for 30 years, which will be the length of your loan. And you can get we can get real into the woods about this. There's decreasing terms and cash back, life insurance, term policies where at the end of the term you get all your money back, or as the years go by, the the the amount of death benefit goes down to adjust with the mortgage. You can get all in the weeds about it, but that's essentially what it is. And again, call us, talk to us, we'd be happy to dig deeper with you.
SPEAKER_04:And and just think about this strategy. It just is a quick strategy just to think about because most of our UPI community, we're gonna get into a home that we have to pay PMI because most of the time PMI is, I think, 20 or above uh down payment that you would have to put on a house that you won't need to have PMI. So what a but the PMI doesn't last forever. The PMI could last two years or or three years or something of that nature.
SPEAKER_02:Until you have a certain amount.
SPEAKER_04:Or until you have a certain amount of equity, and then you could ask for the PMI to be removed. But guess what? That money you were paying for the PMI, let's say you don't you don't have the mortgage protection, you should get it right away. As soon as you get the house, you should get it right away. But let's say you're tight, you're already paying PMI, you got a new home, you're paying for new firms, you're paying for all this. But let's say that two years go by, you're able to uh figure out how to drop this PMI. But you're so used to paying this certain amount. How about looking at mortgage protection? Now you're protecting yourself that God forbid anything happens, that the house will be paid. So why not convert or take those funds that was going into PMI into the mortgage protection? So now you're actually protecting yourself. And obviously, if you got it from the beginning, yeah, uh now it's less that you have to pay. So just so just think about it that way. It's a it's a quick little strategy, something to think about. Maybe you have PMI right now, you're about to get rid of it. It's like, oh man, Finance Bros Network mentioned something about mortgage protection. We're here, we got you. Just give us a call. We're here, we got you. Hit us up with the DMs, we got you.
SPEAKER_02:Yeah, if you want to go talk to the two ferry body, that's fine too. Go talk to Santa Claus, whoever, but we we we're letting you know we just education is here for you. Right. More than welcome to do your due diligence, but we want to make this attractive so you guys feel comfortable reaching out. Right.
SPEAKER_04:Okay, so the next type of type of insurance you might hear people talk about is final expense.
SPEAKER_02:What is final expense? So final expenses typically it's basically a whole life insurance policy between$5,000 and$30,000. Sometimes you may see them go up to$40 or$50,000, but it's a smaller end uh whole life policy. All right, it's final expense. It's just it's for what it is. It's it's to cover final expenses. You know, a nice funeral, maybe live a little bit of extra money to the family. Typically, these are marketed towards senior citizens who are on a budget and you know want to just get something to make sure that you know they're not uh having to do a GoFundMe or a fish fry or something like that. If God forbid they were to pass away.
SPEAKER_04:So unfortunately in our community, that is popular, right? That's a huge thing. People open up GoFundMe out of it because they didn't expect this person to pass away. People have fres fries. I've heard of fish fries, you know, just to raise money to bury somebody. Right. Like that's so crazy. And it but it is becoming such a popular or such a normalized, I should say not popular, my bad, normalized things in our community. And it's it's not right, it's not fair when we could look at final expense, and like we said, um it is especially catered to seniors. So, you know, uh my dad just passed away our RIP to my dad, you know, but we had that final expense, and guess what? It helped with his uh burial uh or or funeral or uh services and all that, and we it was it was good to have it that uh myself and my siblings didn't have to come out of our pocket in order to to cover the services. So think about it. A lot of you uh out there, a lot of uh UPIs out there, you have elderly parents, you have elderly people in your family. Think about who's gonna be responsible, God forbid. You know, they're getting to that point in their life. That's that's what life is all about. We we start somewhere and we end somewhere. So that's our reality. We can't we can't sugarcoat that. Yeah but how much is gonna affect you, or how are you gonna deal with it if you don't have something in place? You just like, all right, if it happens, it happens. And that's that's that might even put you more in the bind. Why would you put yourself in that situation? And the people who understand is maybe you don't have it, maybe think about your daughter, your son, the seniors out there, think about your daughters, your son. Do they have the ability to take care of your final, you know, resting, whatever you're gonna uh, you know, have done with yourself, whether you bury cremation or whatever it is. Can they do it? Can your uh can your son, daughter, niece, nephew, anybody, aunt, brother, sister, can they bury you the way you need to be buried? And maybe for a small amount every month that you put in, it'll cover that for peace of mind for them. Oh, grandpa got this, so let's just tap into that, make sure he has uh uh a peaceful final resting scenario. Make sense? Yeah, yeah. All right, brother. So, but then now we jump into something that a lot of people don't know about, and it again, it is for people who's accumulated money, and maybe you're about to retire, or maybe you have a nice lump or something that comes in. I want to call I want to point out this product called annuities.
SPEAKER_02:What is an annuity, Anton? So annuity is insurance on your money. Okay, that's basically what it is. You got insurance on your car, got insurance on your house, got insurance on your on your life, as we're talking about now. This is insurance on your money. Typically, people who are coming out of a job have money in a 401k. And when they come out of their job, a lot of people roll that money out of their 401k into some type of an account.
SPEAKER_00:Right.
SPEAKER_02:Okay, it's not always an annuity because maybe they don't know about that, but an annuity and essentially is insurance in your money, it's an opportunity to roll a lump sum of money into an account that is a contract with an insurance company that will either guarantee that to turn that lump sum into a lifetime paycheck, or it will turn that that lump sum into a lifetime income for that individual. And it also, unlike old annuities, and though it used to be a bad word back in the day, it does have a death benefit. So if you pass away before that money's gone, it will go on to your family insurance company does not keep it. So the the point I want to make this definitely deserves its own episode, by the way. For sure. Because that's a very, very brief explanation, right?
SPEAKER_04:And and and a lot of us were working for somebody and we've been working loyal for them for years, and maybe we we got to a point to retire, or we're jumping from job to job and we're passing on 401k. So this money is accumulating, this money accumulating, but it gets to a point where okay, what do I do with this money if if it's not in favor of 401k? You can't keep it in the 401k forever. The whole point of 401k is you're you're working for somebody, they're contributing the same thing you're contributing into a retirement plan. But once you retire, what do you do with that money? Do you spend it? No, put it in something where the money is working for you. You know, we talk about money constantly moving. That's what we were talking about in our last episode. Money, money has to move, money. Has to move. So now you got this all this money, you gotta put it somewhere where it's gonna move, where it can make money for you, where it's paying you maybe something monthly that almost duplicates what you were getting paid. So your lifetime, your lifestyle doesn't change because now you put this money somewhere where it's kind of maybe giving you the same type of check that you would have been gotten if you were working. So just think about that with the annuity. Here's a a tool that won't put me in a bond where thinking about where I'm gonna get this money. Uh-uh. Take that money, put it in that annuity, and now it's generating uh a residual for you or check for you every week or every month, whatever, biweekly, however, you you want to get paid from it. So it's a it's a good tool for if you're transitioning over from stop working the rest of your life to something else, and maybe you could also use that money to start something new. Who knows?
SPEAKER_02:You know, so yeah, and and everybody's different. So please do your due diligence. When we sit down with everybody, we look at their financial situation, and we do not recommend them to everybody. It has to be a good fit. All right. There are different types of annuities. There are fixed annuities, there's fixed index annuities, there's my they call them migas, multi-year guaranteed annuities. Okay, so uh you have different strategies inside these plans that can work for you. You just need to understand which is again what is the best for you. Right.
SPEAKER_04:So okay, so that brings me to insurance with living benefits. Now that sounds pretty cool. What is that about?
SPEAKER_02:So living benefits. Typically, when you talk about mortgage protection, this is going to be a term life insurance policy with living benefits. Because if you get sick or you can't work all of a sudden, you need access to these benefits while you are alive, not after you die. That's why we call it life insurance. I wish they would call it death insurance. Right, right. For the ones that that only apply to when you pass away. Right. Because life insurance actually can be used while you are still living. There are living benefits. If you can't perform rule of thumb is if you can't perform two of the six activities of daily living, okay, for a period of 60 to 90 days, depending on what it is, okay, then you will have access to an advancement of that death benefit. Let's say it's a million dollars, okay, round figure. All right. If you can't there's six activities of daily living are bathing, eating, transferring, which is going in and out or out of a car or here or there to A to B, all right. Continence, which is controlling your vowels, and then toileting, and then there's did I say that's eating already? Bathing. I said eating, bathing, transferring, continence, toileting, one more. And there's one more. I guess visual scene. No, no, no, no. It's it's it's eat it's eating, bathing, transferring, um showering. Showering. I said bathing. I said bathing. Okay. Well there's there's there's that's that's a six right there. Right, right. Alright, so and then if you can't perform two of those things for a period of 60 to 90 days, there's chronic, critical, and terminal illness. A chronic illness means that you'll probably never get better. Okay. You're you're actually no a chronic illness means that you're the condition, you can still live with it, but it's gonna affect you probably for the rest of your life. Yeah. Okay. So if that's what's going on, then what happens is usually you'll get two percent of the death benefit every single month up until the policy's exhausted. All right. So if it's a million dollars, it'd be two percent of a million dollars for usually it's four years that that benefit will go for. Okay, but you get a you get a paycheck.
SPEAKER_00:Right.
SPEAKER_02:All right, that'll pay your medical bills or whatever. If it's a million dollars, that's something like that's something like$24,000 every month until it's gone. Yeah. All right. And then there's critical illness. If it's a critical illness, still again, two of the six activities of daily living, but you're you're you're just never going to re recover from it. It's just gonna affect you for, you know, for the you know, till until you're until you're not here anymore. Right. All right. And then you can advance up to 90% typically of your death. This can vary based on situations, the based on the severity of the condition, and all this stuff. There's a lot of things that that that apply, but typically it's not up to 90% of your death benefit while you're still alive. So if it's a million dollars, it advances to 900,000. And then if it's a terminal illness, doctor says, Hey, you know what, you won't be here in 12 months. All right, you gotta you're it's a death sentence, basically. Then there are cases where you can advance the entire death benefit while you're alive, go live out your dreams, pay off your all your bills, and all that stuff. And and those are your living benefits, basically. Right.
SPEAKER_04:All right, and then not much to talk about. That is pretty much self-explanatory, so as as Anton said. So just just think about it if it's something that you feel that you need or that that you were thinking about that. Oh, dressing, putting your clothes on. Oh, sorry. There you go. Okay, that's one of the that's the six. We got the six.
SPEAKER_00:Yeah.
SPEAKER_04:So so so pretty much that's what it is. And the last thing we're gonna talk about, it's again, it's this one you definitely need to sit down and talk to somebody about, but we're just gonna mention it because you know what, the TikToks, the the Instagram, social media world, they're always talking about it, but we want to just give you the FBN um uh um explanation on it so that way you know that it is available, it's out there, and it's infinity banking. Infinity banking, yeah. Infinite banking.
SPEAKER_02:Yeah, it's but it's basically using life insurance as a financial instrument to uh build wealth and leveraging that insurance company to do your whether do do you know, accomplish goals and do things maybe in business or in life that you want to do to make your money work for you. It's a way to leverage an insurance company to do that, i.e., when we talked about the concept of having cash value in an index universal life insurance policy or a whole life insurance policy and accessing the cash value, but using the insurance company's money while our cash value still earns interest uninterrupted, that is an that is a strategy of infinite banking. Banking basic inf inf it's infinitely going. Your money's uninterrupted, you're utilizing the insurance company's money. There is things you want to consider and keep in mind, like paying yourself back because you are the bank now, okay? And if you're borrowing money from yourself at a low interest rate, you still are borrowing money and you want to pay yourself back so that you can benefit from that, right? Right. But we can go into that on a on a whole another episode again.
SPEAKER_04:And and again, the uh the reason why we mentioned it is uh people talk about it all the time. All the time. It's be on bank, be on bank. You like be your own bank. What does that mean? What does that mean? But guess what? We're here at Finance Broad Network. We're not gonna get into the weeds or how what does that mean? But basically it means what it says. You're creating a financial situation where if you need to buy a car, you need to invest in a business, you need to uh uh invest in property or buy a house or something. You are now the bank because of what you structured, you're able to borrow that money from yourself instead of going to the bank. Right, exactly. It's that simple. So we can alone you don't have to qualify for it. Alone, you don't have to qualify. There's no qualification except for filling out a form and say, I need to borrow against this because you have this much money in here, and over the years it's built up to this, and then you're like, okay, all right, now I want to buy this car. Typically, now to buy a car, eight to ten percent interest. Why would you do that? You know, when you when you borrow against yourself, you might be paying one one to two percent interest.
SPEAKER_02:Yeah, which to pay yourself back, right? Right. And keep in mind you do there is some qualifying for life insurance. Obviously, it's life insurance, so you know, consider your health and all that stuff. So, and we won't get into all that right now. Right, right. It is it is something that you do want to consider.
SPEAKER_04:So that's about nine or ten different products for the for the life insurance. So we just wanted to put it out there. So again, maybe no one ever told you. I know they don't teach this in school for sure. So and and it is what the wealthy people use to leverage their money. It's what the wealthy people use to have tax benefits. It's what the wealthy people use to uh do business, to uh to grow their money, to make sure they have money every month and not depending on people. All these different types of products, one way or the other, can help you while you're living. It's not only after you're you pass away that it'll be a benefit to your family, which is also very important. You want to make sure your family is okay. But there are products here that could help you while you're living. So and and we just wanted to make sure we convey that message to you. And we're we're both licensed insurance uh um brokers, and we can sound good, don't we? Yeah, it's it sure sounds good. We're both licensed and we both have the authority and the ability to help you. And and what I always want to project as I grow into um this business, I want to uh uh to make sure people know I'm a trainer, I'm an educator, education first, because in the back end is where the help comes in. Yeah, okay, so I did my job and now you're making money, we're making money, we're all making money. That's great. But education first, you need to know. Don't don't take it from any, hey, I can make this happen. Hey, yeah, so tell me how. Well, don't worry about it. I know what I'm doing. No. Ask all the questions, maybe some questions you didn't ask. We we let you know those answers for some of the questions you didn't ask. You're like, oh man, I didn't think about to ask that. That's what we're here for. So we just want to make sure that we are here for you for that. Absolutely, brother.
SPEAKER_01:So I love it, man. Hey, get into the breakdown. Now's the breakdown.
SPEAKER_04:You see how quick that was, ladies and gentlemen? All right, so the breakdown is a lot longer. Yeah, easily. That's good. We did good. I like it. All right, all right. So the literal, the literal is start with what you can afford, even if it's 20 or 40 bucks a month that can protect you and your family. So start with what you can afford. That's the literal. So we're not saying to go out there and try to make some money, start with what you can afford. The mental part of this is build a mindset of long-term stability over short-term comfort. UPIs, you know what I'm talking about. That money here, you want to go to that concert. You wanna you see that money, you wanna go pick up that that big TV or that you want you wanna get that new car real quick. That's short term. Mentally, think about the long term. You wanna be on this earth for as long as you can in a stress pre stressless peaceful environment. Did I say that right? Yeah, yeah.
SPEAKER_03:That's good, brother.
SPEAKER_04:So that's your mental. That's your mental, and that's how you gotta think about it. All right. Go ahead, hit them up with the spiritual and spiritual real easy.
SPEAKER_02:Life insurance is an act of love. All right, it's not for us, it's for the people we care about at the end of the day. All right, yes, we can use it while we're living. Yes, there's great financial instruments inside of life insurance that can allow us to leverage the insurance company and do what we want to do with our goals and and things like that, and building building wealth and passing that wealth on. But essentially at the end of the day, when we're no longer here anymore, uh it's not for us, it's for uh it's for them, it's for the people that we care about.
SPEAKER_04:There you go. There you go. That's and spiritually, that's what we need. All right, and here's the t-shirt. You insure your phone, insure your life too. You're more valuable. Way more. I sure hope so.
SPEAKER_01:I sure hope we feel that way. So that's put that on the t-shirt when you get your insurance. You a lot more value. You cost way more than that phone. You worth way more than that phone. You are way more than the uh phone is not gonna replace your income.
SPEAKER_04:There you go. If you ain't here no more. So, so at the end now we'll we'll just jump right into the best practice. The best practice is from our parallel.
SPEAKER_01:One of my favorite things.
SPEAKER_04:From the beginning to end, and and it just gets you thinking about everything, and hopefully they'll say, oh, okay, let's when did they talk about that?
SPEAKER_02:Yeah, everything in here you can go back and get a glimpse of and get a whole load of. Exactly. And listen to.
SPEAKER_04:So listen to. So we'll let's start it off. The best practice is whatever, uh, whether it's Trump or anyone else in office, you are the president of your pocket. The wealthian policy is what matters most for your future, and don't forget it. Wealthians, the way you move today is how you will slay tomorrow. Yeah. Maybe with digital currency. Because, ready or not, here it comes. So learn it and embrace it because it is uh the future of our finance. Or you can jump into something that's more regulated and you can trust like finance uh fractional stocks. So either this or that, wealthians don't spend it, invest it. And with some money coming in, get a life insurance policy that can grow the money or benefit your family on maintaining a wealthian status.
SPEAKER_01:Like butter like gold.
SPEAKER_02:I love it, brother. All right, brother. Pleasure to be in uh it's I'm grateful to be in business in life with you, man. I don't always say that, but you know, you know I'm you know I'm all spiritual, bro. There you go. There you go. Hey y'all, we love you. Thanks for tuning in. Don't forget we're we are broadcasting simulcast simultaneously. So what you're seeing here, you can also listen to on the podcast. All right. So obviously come check us out. Don't forget, right here on our home on HHN TV, but also don't forget to come check us out. All our social media podcast platforms, Apple, Apple Podcasts, iHeartRadio, Spotify. You know, y'all can make sure you come check us out. And as usual, Mike. I appreciate you. And you already know we'll see you at the bank. All right. All right, y'all. Peace, yeah. Take care.