November 10, 2021 • 10 mins
Life Insurance expert Jay Veal returns to give us a deep dive on planning for your families futures.
He talks about whole life insurance, death benefits, the issue with gofundme life insurance accounts, and when to start your life insurance.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hey, money Movers, Welcome back to another segment of the
Money Moves Podcast powered by Greenwood. As you know, we
are always passionate about wealth building and legacy, and today
we have j Veal with us and we are diving
into how we cannot only build wealth today but pass
it on for future generations. Jay, Welcome, Welcome, Welcome. I'm
(00:21):
so glad to have you here, and I'm so glad
to have you sharing some knowledge with our Money Move
audience because this is stuff that I really feel like
we don't talk about enough, and it is one of
those things that we need to plan for the future
and not tackle after the fact. As always, today's deep
dive is brought to you by our partners at MasterCard,
bridging the wealth gap together with Greenwood's Okay, Jay, question
(00:53):
for you A couple of easy questions. At what age
should a person start paying for life insurance? And my opinion,
it is my opinion, but I believe you should get
a life insurance policy well into your twenties. You should
start for the policy around that time if you do
get one. However, if you don't, if you missed the
(01:14):
boat on your twenties, definitely want to hit it in
your mid thirties and start paying for that life insurance policy,
you at least have that timeline for that death benefit
to accumulate, and you have at least you can gain
up to a million dollars. So you're talking about timelines here,
So tell us more about this, because you know you're
recommending people starting their twenties, but the thirties is good. Forties?
(01:36):
Is this one of those things where it's never too late?
What if you're in your fifties. If you're in your fifties,
you can still do it. But if you're not gonna
have as big as a death benefit that you're paying
on if something does happen to your to you or
you know your loved ones right at that. So the bet,
(01:57):
the gauge, if you will, is to really start in
that twenty thirty guideline. If you do start in your
forty you can do that. You just reduce your death
benefit by a considerable amount the older you get. So
it's always a rule, right, the younger you are, the
more time you'll have to get a death benefit, and
(02:17):
the more money you can save and have it in vehicle.
So if you die and something happens to you, your
family does not have to scrap up money to get
to the end goal of pay everything off. Okay, so
let's talk a little bit more about this idea of
the converse side, where we're actually preventing for a loved
one has passed away and left us with debt. You
(02:39):
know we mentioned a little bit earlier. You know you're
seeing this um this rise and go fund me accounts
for people trying to get help posthumously once they've lost
a loved one. You know, I really am passionate about
having these conversations now so that we can plan for this,
because it's a tough thing when you lose a loved one,
and so there's a lot of shock. But if we
have these open converse stations, I think we can avoid
(03:01):
um much of this and moving forward. Absolutely, I think
that we started this pandemic, and even right before the
pandemic and conversation about the whole go fund me, it's
go even here. Even in Dallas recently, there's something happened
where women was evicted, but guess what she did? Put
fund me. So when we look at go fund me
(03:23):
that was initially started something to really help fund different
ventures and things that you need to do. It is
not be done and built for life insurance. So we
want to kind of slide away to go fund us
and really look at what is planning, look at for
the foreseeable future in our families on a five, ten, fifteen,
twenty and thirty year basis, and how do we allocate
(03:47):
our beneficiaries in order for them to live based on
what we left behind. Now, mind you, if we do
have a lot of bills, but sometimes it happens in
our in our families, we don't want to get just
half the life insurance. We don't want to get a
five hundred thousand dollar policy when we know we have
more than a million dollars worth of debt with wow
good points, right. We don't want to buy a hundred
(04:08):
thousand dollar policy or two h policy where sometimes people do.
When we know we have a mortgage that's four hundred
thousand dollars, we gotta pay that off. Let's continue to
pay the taxes and pay for any other bills. So
it's very key and important that we look at our
financial profile, maybe get with our certified financial planner, see
how much debt we actually have, our assets and our
(04:29):
liabilities to track those and figure out how much of
a death benefit do we really need? You really need?
You know that's a great point because you obviously don't
want to pay for pay for more than what you need,
but you also want to be comfortable. And you know
if you have extra dollars to contribute to a bigger
life insurance UM plan, then you know this is maybe
where you should put that money. But I think the
(04:50):
key is again, over and over, we love to encourage
our Money Moves audience to have a three hundred and
sixty degree view of financial planning and this include so
many different facets from life insurance to real estate to
UM investing. Do you have any other tips for us
that can really help us consolidate that information and continue
(05:11):
to build legacy for our families for generations to come. Now,
one thing with whole life insurance is that you provide
that lifelong coverage and that includes your investment opportunities or components. Right,
give the cash value of the policy more fruition. Right,
worrow that money from that whole life insurance policy if
you want to invest in real estate and make more
(05:33):
money while you sleep. If you who okay, you guys,
J is dropping some gems here because you're glossing over it.
But he's talking about how you can use a whole
life insurance policy and you can actually borrow off of
it to make other investments. So this is perfect. This
is what we like to talk about on money moves.
You gave us a perfect example of how you can
(05:53):
make your money move for you. Absolutely, and now mind you,
it is gonna be a little bit more expensive. I'll
put it out there. I know that my my whole
life policy is gonna roughly be about six a month,
being thirty dollars or so a month for a term
life insurance policy for a set period of time, but
(06:13):
value and if you want to, you can borrow from
the cash value. You don't have to, but you can
take it and repay it back if you wanted to.
So in all cases you have more flexibility to not
only repay your policy as a loan if you want to,
to yourself with interest, but you'll reduce your death benefit
(06:33):
and you can surrender that policy if you need to
and no longer have that coverage, but the premium that
you pay remains the same as long as you live,
and that death benefit is guaranteed. Now, think about this.
If you can invest your money better, then you buy
a cheaper life insurance policy per term, and that lets
you invest in what you have paid for for a
(06:54):
whole life insurance policy as well. Got it. I understand
the difference between term and whole now, but this whole
piece um the fact that I can borrow off this
is really fascinating as well. Can you tell us about
the differences and how I make this decision? Just one
cost more than the other. A recent I had a
term life insurance policy that I actually transitioned and converted
(07:16):
over to a whole life insurance policy. I was paying
thirty or something dollars a month from my term life
policy a while back, but I made a conversion to
a whole life insurance which is roughly six hundred and
six fifty a month in my particular situation. Because that
cash value accumulates faster and it's more of an accelerated growth,
almost like in the stock market when you see money
(07:38):
exponentially grow. The whole life insurance is similar in action
when it comes to building money. And so when you
provide that lifelong coverage and uh, it's part of the
cash value that's taxed. The third, and it is more expensive.
But at the end of the day, if you look
at the long term of it, you will say, you
know what, I'm glad I put all that money up
(08:00):
front on the front end, so on the back end,
my family is good and I don't have to worry
about anything. Now, you talked about borrowing money against it
for those real estate adventures or anything else that you
want to do anything, right, if you don't repay that policy,
you know, with interest on a loan against it against yourself.
If you will, you won't have to worry about, you know,
(08:22):
paying that back. But you can reduce the death benefit
as you go along if you decide to do that,
but you'll no longer have that coverage at the end
of the day. That premember remain the same for as
long as you live, and at the end of the
day that death benefit is guaranteed versus with the term
you don't have that particular benefit. Got it? Got it? Okay?
So that was really enlightening because again we're talking about
(08:46):
building legacy not just in this lifetime, but for the
generations ahead of us. Jay, thank you so much for
those words of wisdom. Can you please tell our money
Moves audience where they can reach you. Absolutely, Guys can
find me on and on Instagram or as we say,
I g um at I n c CEO dot the Tutor,
and also at the j vial brand. You can find
(09:08):
me at that platform and anywhere else. If you use
Google or whatever you decided to do, you could find
me on those platforms. Thank you so much for tuning
in Money Moves audience. If you want more or a
recap of this episode, please visit the Bank Greenwood dot
com website and check out our blog. There very special
(09:38):
Money versus Moves. We won't even do the bare minimum
to help me get that in order. This feels really
telling of the marriage I just entered into or am
I just overreact? Good feem kind of fun, spice right,
and a celebrity guest. You won't want to miss the beautiful,
amazing and wildly talented Nika King. Somebody will always be
(09:59):
a produced always gonna be a producer trying to get
in your paints. The cast and couch is real. Money
Moves is an i Heeart radio podcast powered by Greenwood
Executive produced by Sunwise Media, Inc. For more podcasts on
i Heart Radio, visit the i heart Radio, app, Apple Podcasts,
or wherever you get your podcasts from.
Hey, money Movers, Welcome back to another segment of the
Money Moves Podcast powered by Greenwood. As you know, we
are always passionate about wealth building and legacy, and today
we have j Veal with us and we are diving
into how we cannot only build wealth today but pass
it on for future generations. Jay, Welcome, Welcome, Welcome. I'm
(00:21):
so glad to have you here, and I'm so glad
to have you sharing some knowledge with our Money Move
audience because this is stuff that I really feel like
we don't talk about enough, and it is one of
those things that we need to plan for the future
and not tackle after the fact. As always, today's deep
dive is brought to you by our partners at MasterCard,
bridging the wealth gap together with Greenwood's Okay, Jay, question
(00:53):
for you A couple of easy questions. At what age
should a person start paying for life insurance? And my opinion,
it is my opinion, but I believe you should get
a life insurance policy well into your twenties. You should
start for the policy around that time if you do
get one. However, if you don't, if you missed the
(01:14):
boat on your twenties, definitely want to hit it in
your mid thirties and start paying for that life insurance policy,
you at least have that timeline for that death benefit
to accumulate, and you have at least you can gain
up to a million dollars. So you're talking about timelines here,
So tell us more about this, because you know you're
recommending people starting their twenties, but the thirties is good. Forties?
(01:36):
Is this one of those things where it's never too late?
What if you're in your fifties. If you're in your fifties,
you can still do it. But if you're not gonna
have as big as a death benefit that you're paying
on if something does happen to your to you or
you know your loved ones right at that. So the bet,
(01:57):
the gauge, if you will, is to really start in
that twenty thirty guideline. If you do start in your
forty you can do that. You just reduce your death
benefit by a considerable amount the older you get. So
it's always a rule, right, the younger you are, the
more time you'll have to get a death benefit, and
(02:17):
the more money you can save and have it in vehicle.
So if you die and something happens to you, your
family does not have to scrap up money to get
to the end goal of pay everything off. Okay, so
let's talk a little bit more about this idea of
the converse side, where we're actually preventing for a loved
one has passed away and left us with debt. You
(02:39):
know we mentioned a little bit earlier. You know you're
seeing this um this rise and go fund me accounts
for people trying to get help posthumously once they've lost
a loved one. You know, I really am passionate about
having these conversations now so that we can plan for this,
because it's a tough thing when you lose a loved one,
and so there's a lot of shock. But if we
have these open converse stations, I think we can avoid
(03:01):
um much of this and moving forward. Absolutely, I think
that we started this pandemic, and even right before the
pandemic and conversation about the whole go fund me, it's
go even here. Even in Dallas recently, there's something happened
where women was evicted, but guess what she did? Put
fund me. So when we look at go fund me
(03:23):
that was initially started something to really help fund different
ventures and things that you need to do. It is
not be done and built for life insurance. So we
want to kind of slide away to go fund us
and really look at what is planning, look at for
the foreseeable future in our families on a five, ten, fifteen,
twenty and thirty year basis, and how do we allocate
(03:47):
our beneficiaries in order for them to live based on
what we left behind. Now, mind you, if we do
have a lot of bills, but sometimes it happens in
our in our families, we don't want to get just
half the life insurance. We don't want to get a
five hundred thousand dollar policy when we know we have
more than a million dollars worth of debt with wow
good points, right. We don't want to buy a hundred
(04:08):
thousand dollar policy or two h policy where sometimes people do.
When we know we have a mortgage that's four hundred
thousand dollars, we gotta pay that off. Let's continue to
pay the taxes and pay for any other bills. So
it's very key and important that we look at our
financial profile, maybe get with our certified financial planner, see
how much debt we actually have, our assets and our
(04:29):
liabilities to track those and figure out how much of
a death benefit do we really need? You really need?
You know that's a great point because you obviously don't
want to pay for pay for more than what you need,
but you also want to be comfortable. And you know
if you have extra dollars to contribute to a bigger
life insurance UM plan, then you know this is maybe
where you should put that money. But I think the
(04:50):
key is again, over and over, we love to encourage
our Money Moves audience to have a three hundred and
sixty degree view of financial planning and this include so
many different facets from life insurance to real estate to
UM investing. Do you have any other tips for us
that can really help us consolidate that information and continue
(05:11):
to build legacy for our families for generations to come. Now,
one thing with whole life insurance is that you provide
that lifelong coverage and that includes your investment opportunities or components. Right,
give the cash value of the policy more fruition. Right,
worrow that money from that whole life insurance policy if
you want to invest in real estate and make more
(05:33):
money while you sleep. If you who okay, you guys,
J is dropping some gems here because you're glossing over it.
But he's talking about how you can use a whole
life insurance policy and you can actually borrow off of
it to make other investments. So this is perfect. This
is what we like to talk about on money moves.
You gave us a perfect example of how you can
(05:53):
make your money move for you. Absolutely, and now mind you,
it is gonna be a little bit more expensive. I'll
put it out there. I know that my my whole
life policy is gonna roughly be about six a month,
being thirty dollars or so a month for a term
life insurance policy for a set period of time, but
(06:13):
value and if you want to, you can borrow from
the cash value. You don't have to, but you can
take it and repay it back if you wanted to.
So in all cases you have more flexibility to not
only repay your policy as a loan if you want to,
to yourself with interest, but you'll reduce your death benefit
(06:33):
and you can surrender that policy if you need to
and no longer have that coverage, but the premium that
you pay remains the same as long as you live,
and that death benefit is guaranteed. Now, think about this.
If you can invest your money better, then you buy
a cheaper life insurance policy per term, and that lets
you invest in what you have paid for for a
(06:54):
whole life insurance policy as well. Got it. I understand
the difference between term and whole now, but this whole
piece um the fact that I can borrow off this
is really fascinating as well. Can you tell us about
the differences and how I make this decision? Just one
cost more than the other. A recent I had a
term life insurance policy that I actually transitioned and converted
(07:16):
over to a whole life insurance policy. I was paying
thirty or something dollars a month from my term life
policy a while back, but I made a conversion to
a whole life insurance which is roughly six hundred and
six fifty a month in my particular situation. Because that
cash value accumulates faster and it's more of an accelerated growth,
almost like in the stock market when you see money
(07:38):
exponentially grow. The whole life insurance is similar in action
when it comes to building money. And so when you
provide that lifelong coverage and uh, it's part of the
cash value that's taxed. The third, and it is more expensive.
But at the end of the day, if you look
at the long term of it, you will say, you
know what, I'm glad I put all that money up
(08:00):
front on the front end, so on the back end,
my family is good and I don't have to worry
about anything. Now, you talked about borrowing money against it
for those real estate adventures or anything else that you
want to do anything, right, if you don't repay that policy,
you know, with interest on a loan against it against yourself.
If you will, you won't have to worry about, you know,
(08:22):
paying that back. But you can reduce the death benefit
as you go along if you decide to do that,
but you'll no longer have that coverage at the end
of the day. That premember remain the same for as
long as you live, and at the end of the
day that death benefit is guaranteed versus with the term
you don't have that particular benefit. Got it? Got it? Okay?
So that was really enlightening because again we're talking about
(08:46):
building legacy not just in this lifetime, but for the
generations ahead of us. Jay, thank you so much for
those words of wisdom. Can you please tell our money
Moves audience where they can reach you. Absolutely, Guys can
find me on and on Instagram or as we say,
I g um at I n c CEO dot the Tutor,
and also at the j vial brand. You can find
(09:08):
me at that platform and anywhere else. If you use
Google or whatever you decided to do, you could find
me on those platforms. Thank you so much for tuning
in Money Moves audience. If you want more or a
recap of this episode, please visit the Bank Greenwood dot
com website and check out our blog. There very special
(09:38):
Money versus Moves. We won't even do the bare minimum
to help me get that in order. This feels really
telling of the marriage I just entered into or am
I just overreact? Good feem kind of fun, spice right,
and a celebrity guest. You won't want to miss the beautiful,
amazing and wildly talented Nika King. Somebody will always be
(09:59):
a produced always gonna be a producer trying to get
in your paints. The cast and couch is real. Money
Moves is an i Heeart radio podcast powered by Greenwood
Executive produced by Sunwise Media, Inc. For more podcasts on
i Heart Radio, visit the i heart Radio, app, Apple Podcasts,
or wherever you get your podcasts from.
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