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What Is The Difference Between Life Insurance And Death Benefit


-What is the difference between life insurance and death benefit? There is a huge difference. I need you to stay to the end of the video where I’m going to tell  you, well, most of you think you have insurance. You have death insurance has nothing to do with  benefit. So, specifically, I’m going to talk about what’s the difference between the life insurance  and death benefit?

What is a death benefit and then just in general what’s insurance? Do you have life insurance? Do you have death insurance and in that conversation what’s your  goal? Because I can tell you there’s only one way to do it if you want generational wealth.

So, with me today I’m Jason Henderson he’s a partner in insurance company  and we love the banking and real-life insurance.

 So, we’re going to talk about life insurance  versus the death benefit first Jason and then just life insurance versus death insurance. So,  first question, talk about death benefits, just define that. -It’s simply something that is paid out to your beneficiaries let’s say the insurance is on you when you pass away. It’s something  that is paid upon your debt. -Okay, and so the cash value which is separate speak to that.

-So, the cash value is the amount of cash that you have access to during your lifetime. It’s more of a  living benefit than something that goes only happens when you die and when we talk  about banking we want to be all about the cash value. But the fact that that’s what we can use,  that’s our line of credit, that’s whatever we can write checks against. Whatever you want to  do invest with, that’s the big Kona during your lifetime. -So, explain the real-life insurance that  we’re talking about and those of you that are out there if you want more information you guys  put in the search bar and search for how do you become a bank?

We have a whole video about that. But specifically, for those that are in right now listening talk about just the kind of life insurance we are promoting excited about and you know a lot that are listening are out there  they’re getting that the 15, for $15 a month you get this term insurance which we call death insurance.

Explain the difference. -Okay, so, let me give you an example, you have fire insurance on your home. It only pays out a benefit when there’s a fire.

 You have accident insurance on your car. It only  pays out when there’s an accident. So, when you say death or life insurance yet it only pays when you die,  that’s a misnomer.

It’s been mischaracterized. It truly is death insurance for the fact that  when that event happens is when it pays.

That’s not what we’re talking about this cheap… stuff that’s out there the term insurance is actually the number one most profitable product of  the insurance industry. We don’t want that.

It does fill a certain need and there is a need out there  and you may need that. However, what you really want to get to is whole life insurance, “Oh, no… I don’t want that stuff.

I’ve heard Dave Ramsey tell me that’s a terrible investment blah…” You can go on with it, well guess what? That’s not the case.

-Yeah. -It’s all in the design when whole life insurance is designed for death benefit, you’re right, not good stuff. When it’s designed for cash accumulation. In other words, emphasizing the living benefits so it is truly life insurance. It’s something that gives you a benefit while you’re living.

  Then it’s completely different animal and you need the right kind of contract to make that happen. -So, in real life, insurance let’s talk about the benefits you have at least eight things  mentioned.

I mean, it’s critical that this gets done, right. -Correct. So, number one I’d say as a no  loss provision.

In other words, there’s going to be guarantees that you’re never going to lose money.  -Wow. Yep. -Well, who’s going to guarantee that? Well, guess what?

You have companies that we  work with that you would become a part-owner with that have been around for 130-140 years and have  been profitable every single year and that’s the kind of company that’s backing up that guarantee.

Okay, the second one comes right on the heels of that and that’s guaranteed growth. Not only are they saying you will never lose money. We’re going to guarantee that your money’s going to grow and they’ll do a certain rate and then there’s even non-guaranteed growth. What do you mean by that?

Well, non-guaranteed growth comes from the fact that you are a part-owner of the company.  With ownership comes privileges I own a part of the company and the company’s profitable.  I want my portion of the profits.

Well, that’s where the non-guaranteed growth comes from  as for the fact they don’t know how much they’re going to make in 2022 or 2023. However, I do get  my percentage every single year and like I said a second ago they have been profitable every single  year for 130 plus years in a row.

That’s through the great depression. That’s through the world wars. That’s through um the flu pandemic in 1918. Deaths are up quite a bit this year and they’re  still paying a dividend.

They’re doing it, okay.

So, as part of that you can see number three would be  no risk. Well, nothing has no risk, Jason. Well, as this is about as close as you’re ever gonna get.  There are not companies that are older and stronger and more stout than this. In fact, let me tell you something most a lot of people don’t know about.

The FDIC says that regular banks you know  the FDIC banks they can have three things in their tier one capital gold, treasury bills, and cash  value life insurance.

What Is The Difference Between Life Insurance And Death Benefit

-Yeah. -According to the FDIC they’re equating those three, they’re the  same value. So, I’m saying that is pretty much as low-risk zero risk as you’re ever gonna get.  Let’s talk about something else.

Well, number four is liquid. I want to have access to my money when  I want it, how I want it. I don’t need some strings attached or someone tell me, “Oh no, that’s not what  you’re gonna do now. You need to wait or you’re not employed now so you can’t have access to it”. No, I want to have that money liquid all the time and that’s exactly what you have.

You have as an owner  you have privileges and you have total rain over what’s happening with the cash values that you  have, that belong to you. Let’s talk another one, there’s tax-free as well as tax-deferred growth.  Now, the tax-free is that we talked about the death benefit yes, there’s going to be a death benefit.

All of that comes income tax-free to your family and truly what you’re doing with  today’s dimes are buying future dollars tax-free dollars. Tax-deferred growth is there’s things well you won’t pay any taxes on it for a very long time.

Now, you get with someone who’s smart  and show you how to do things most likely we’ll never pay tax, however, to be strictly  by the book. We’re going to say tax-deferred growth inside that policy. The dividends I talked  about a minute ago are not taxable they’re not even reportable. You don’t get a 1099 no  one’s coming looking after you. It’s awesome, okay.

 Number six, knowing that you have this cash value  it’s essentially a line of credit.

It’s how much you have in cash value there is what you can use  as collateral for a loan to do whatever. I’ve had clients that have lost their jobs or even quit on someone they didn’t like their bus they walked out and they had a massive mortgage. Guess what? Signature of their name they still get loans against their policies as well to make their  mortgage payments until they got back on their feet.

Absolutely amazing. That wouldn’t happen  anywhere else. That’s what I mean by a line of credit. Another one that high  net worth people really really like here is someone sues someone else and gets a judgment  they’re unable to attach this type of insurance the cash values. Now, it needs to be held right  and there means sometimes there needs to be entities and things to protect that.

So, I know  Scott another one your partners that’s someone that would come into the discussion there, however, you know I know of doctors that have had been sued for malpractice and they don’t  touch this money. The most famous example is O.J. Simpson he was found guilty in the civil trial  not the criminal trial the civil trial and the family never got access to that money for the  fact he hadn’t locked up in this type of insurance domiciled in Florida.

Certain states of course were  better than others Florida was an awesome one.

 As I said a minute ago as far as like a line of credit  it’s collateral opportunity. I can use my contract and get a loan against my policy with the  insurance company. I can also go over to any corner bank anywhere any FDIC bank and they will take my  cash value as collateral for a loan from them and there’s a lot of third-party people out there that  would give me a loan with that as collateral. Remember, the FDIC thinks it’s as good as gold  and treasury bills. -Awesome.

-So, if someone wants to learn more about it what’s the application process  and we’re going to put an application in the description below.

So, talk about the application  process and then we’re going to let them go and get an application and get it out to you.  -Pretty simple. The hardest things are saying, “Okay, have you had cancer? Have you had  you know skin problems?

You have problems with your lungs?”, simple health questions  right to determine where you are. Remember you’re going to be a part-owner of the company. So, the  company wants to survive and to ensure someone that’s going to die next week is not a good risk. -Right.

-So, they’re assessing you as a risk and so a lot of those questions are around there. They even  ask, do you jump out airplanes with parachutes? Are you a scuba diver? Some of those things that  people do are a little bit riskier and that may or may not affect you. Most of the time not.

So, very simple questions nothing rocket science or anything would be difficult. -And at any age? So, I would say those of you that are listening, this is an application for you, your family. See, what  we can do. See, which contracts you can get and we’ll begin getting you on the right track.

So, before I go to this last piece again hit the subscribe button put the notification button on.  I’m here five days a week and every morning you want to wake up with a message from Loral and become financially illiterate. Make that a goal in the next 365 days. Now, let’s talk about the goal  between life insurance and death insurance. So, death insurance just terms insurances all that  stuff that you get pitched every day in ads on TV.

Five dollars for this and twenty dollars for this  and as low as twelve dollars a month you can get you know a five hundred thousand dollar policy  and what if you outlive it? Then you just wasted all that money. There’s a whole way to set up  life insurance for generational wealth. So, what I want you to do is once you click on the link.  I want you to go to my quiz.

I want you to take my financial personality test. Now, this is going to  be a little different because we’re going to send you an application for a free complimentary on me.  I’m going to pay my insurance guy to talk to you about real-life insurance  bank-level life insurance. The insurance that Jason just talked to you about. So, click on  the link, take the quiz, we’re going to send an application and then we’re going to send you  over to have a complimentary conversation about real-life insurance that’s set up for generational  wealth.

Term insurance you can’t do that it doesn’t work that way.

So, don’t go through this whole life  to end up at the end with the death insurance policy. Click on the link, I’ll talk to you tomorrow..

Read More: Financial Literacy: Insurance

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