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Life insurance isn't my wealth building strategy, it's my wealth preservation strategy

I never took life insurance serious. I was always kind of a good idea to have. Something to maybe entertain. But when I had a son it became as important as any other bill. I had to make sure that that part was handled.

Last year, shortly after my son was born I picked up a ten year term policy with a half million dollar face value. This was before we bought our home so half million seemed like enough. Then when we bought our home I had to reevaluate my entire financial picture. (You should constantly be reevaluating your financial picture as life events happen and you make major purchases).

I contacted my insurance agent @btinsuranceceo on twitter, and told him I wanted to increase the face value to one million. I also wanted to extend the term because now the 10 year term was a 9 year policy. He worked some numbers and I was able to get the policy for $50 a month. One million dollars in life insurance for $50 a month.. Insane.

But the thing is, I hope I never have to use the policy its just insurance. When you get insurance the goal isn't to cash in on it, its to preserve your asset. Your life is an asset.

The point of this post is that I didn't get life insurance as a come up. A lot of people think that life insurance is how they get the millions. No, life insurance protects your millions.

If we look at your entire financial picture as a pyramid, at the base is life insurance and then you stack properties, stocks, vehicles etc on top of that.

Why? Because you don't want to die and then force your family to liquidate your assets to pay your debts. You don't want to die and the family has to sell your home because they can't maintain it or afford to pay for the mortgage and taxes.

Worst case scenario for me is I die before we pay off the home, then the insurance pays off the home and my family has a paid off home to live in. Then they also get my entire stock portfolio and property portfolio. That is how you pass on wealth. The death benefit is not the come up people think it is, especially if you leave them money only and no income generating assets. That is money soon gone.

So that is also why I didn't care about whether it was a whole life policy. A comparable whole life million dollar policy would have cost way more and wont be necessary because if I live long enough the home will be paid off and ill be leaving millions anyway.

So I challenge you to take in information and make your own decision. Learn about insurance on your own not from sales people.

At these numbers it just doesn't make sense to not have a policy in place. Get serious. Hit up @btinsuranceceo and make sure you tell him Todd sent you.

Have a great Turo Tuesday!

(PS: its Turo Tuesday... this means the $150 Turo Boss course is on sale for just $50 ... use code "nipsey" or click the link below)...

Turo Boss Sale

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I HELPED HIS TURO BECOME PROFITABLE.

I HELPED HIS TURO BECOME PROFITABLE.

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