How Much Life Insurance Do You Need?

???? My partner Jason Henderson is here today. We own Insurance Systems together and we're going to talk about three things. How do you determine the right amount of life insurance? I'm going to say it’s based on your age, your health, and a lot of other circumstances. Number two, what are the strategies to yield the best results based on your insurance? Because are you going to use it for a bank? Are you going use cash value? Or you just want the death insurance? Do you want generational wealth? What are your goals? And number three, the biggest mistakes we see people make all the time. A lot of you have a lot of misconceptions you're running around the bathroom called the Internet and getting wrong information. So we're going to talk about how much life insurance do you need as a rule of thumb. To start off, I asked Jason ?what is the right amount for somebody?

???? “You know I really don't like that whole of what you need It is not about that. Why does anybody want only have what you need? Do you only want an in canvas right at what you need or do you want an in canvas that will suffice? And so from this point of view what you need is not everything you want. However, the life insurance industry will grant to you the amount of death benefits based on your age and your income which is considered your human life value. Everyone should be insured up to their human life value, and when you do that you're gonna be in a better situation,” asnwers Jason

How do you determine your human life value? That's an interesting formula.

???? “Human life value, there are underwriting guidelines. Let's just say a 30 year old that's making $100,000 should be insured for $3 million. That's 30 times their gross annual income. It changes their life like a 55-year-old, it'll be 20 times annual income. That's what they consider a human life value. Basically, what type of machine would you need to pay for that would kick off the same amount of income that you're making right now and take care of your beneficiaries going forward?” Jason explains further.

???? I asked Jason to talk about the strategies for not only better life insurance planning, but the minute your kids are born them being tax deductible. You need to employ them, get them brought by a rate. And also, making some huge strides in getting younger folks signing up. How do they use insurance as a planning tool financially?

Jason say, The fact that there are guarantees with an insurance policy, a whole life insurance and you've got to be careful that you're getting the right kind. Those guarantees are something that you can rely on. Absolutely rely on. There's very little out there in the financial industry that actually has guarantees even remotely close to what you have with a whole life insurance cash values in this growth. When you know a certainty, if you will, you can then plan for other contingency plans or do other things. from my perspective, that's really where your planning starts is with something that's certain.”

So those of you that are here, if you have any questions, go tohttps://askoral.com/. And if you've not subscribed to my YouTube channel https://www.youtube.com/user/lorallive/videos, do that right now. Click that notification button. I want your five days a week with you and your family. The earlier you get your family in this conversation, the whole family should be, believe, insured and actually planning like this. And when you put your insurance inside of a trust and you start the whole generational wealth, make sure that you click the link below. We actually have a Gen W course, Jason's been very involved in it, and it will take you through how, what I call the power of five, and how generational wealth is really built. And proper insurance is a huge part of it. So make sure you're here. Also send this video out to five, 10 people that are part of potentially your estate, whether it's your kids, your parents, your siblings, the last thing Jason and I, want is to get a call upon a death that none of this would have up right and now you're going to probate court and losing everything you had. Don't let that happen to you.

So, what are the common mistakes? Jason sees mistakes all the time in the life insurance space and we will start with watch for the people who are just doing this for big commissions. I mean they make a ton of money. I mean I'm looking on the health care side the Medicaid folks making tons of money right now because we're heading into open enrollment, and everybody's getting their health insurance again and it's all commission-based.

Jason adds that, “One of the biggest mistakes people make is they think that they follow a mantra of buy trim and invest the rest. No one does that. The equivalent would be rent a house and invest the rest between your rent and your mortgage payment. Rent your car and invest difference. No one does that. So they think that they can buy a term and invest the difference, it doesn't work, right? Another thing is they don't really see a long-term perspective. Well, I have a 10-year term policy. Well, you should be thinking 40, 50, 60 years in the future. You should be thinking two, three generations down the road. When you think long-term, on the term does not work at all. You've got to have a whole life insurance that is a guaranteed absolute asset that will be there when you pass away. When you start early with this concept, you're basically being able to buy dollars with say an 18 year old you're buying future dollars with eight cents. Well, by the time that you're 50 years, maybe you're buying a future dollar with 30 cents, right, you're still able to leverage your money to future dollars, which are income tax-free dollars that are helpful when you have a trust or you have a large estate or whatever it is. It comes into existence income tax-free, which is a huge benefit. It's the biggest benefit in the whole tax code. All 81,000 pages of tax code, the biggest advantage is the debt benefit associated with the life insurance policy.”

???? Go tohttps://www.insuritysystems.com/, click on the link and what you’ll find over there is, ?not only gifts, but also a schedule where they can make an appointment to talk to Jason and someone senior on our team.

???? Jason tells me there is a link there that goes directly to his calendar. “Any time a time with me and I'll dive in the details. you where you're at, what you can do, what's the best way forward. That's complimentary for going to the website. There's also a report there that you'll find very interesting for the fact that most people have these pre- misconceptions and misunderstandings about life insurance. What most people call life insurance is not life insurance, it's really death insurance, and most people think I want the minimum when in reality you want the maximum, you want your human life value: you want all of it. When you understand what a benefit that is to your beneficiaries, and also what a benefit it can be for in your life, we believe here at Insurance Systems that you should be the first beneficiary of your life insurance policy. And that free report will help you. There's also a free chapter of Laurel's book, and there's a free chapter of another book that we adhere to quite a bit.”

???? I'm also going to give you a link to Gen W https://genwealthconference.com/. So Gen W is our Generational Wealth conference recorded and just it comes with a whole binder and it starts with the first page of “I'm Dead Now,” which is basically the instructions for your heirs on what to do and how generational wealth can actually outlast 2-3 years. which is currently the statistic as most families estates blow up within 2-3 years meaning your grandkids will get nothing.

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