Recently I met with a couple to discuss their insurance and retirement goals and surprisingly the husband said he didn’t believe in life insurance or leaving money for anyone else to spend when he passed away.
My mind immediately wandered to a meeting I had years ago when I met with a business owner who told me that “Wealth or the absence thereof is a choice.”
Almost 20 years ago when I met with this business owner to go over his business insurance needs (I didn’t sell life insurance at the time), he was happy to get his business insurance sorted out; however he was more excited about meeting with his life insurance agent the following day so I asked him why.
This was his response:
“Many people view life insurance as another bill they have to pay, my family views life insurance as a wealth creation and transfer tool because wealth or the absence thereof is a choice.” He went on to explain what he meant by telling a story of three generations of his family and their philosophy on wealth.
His grandfather borrowed money from the bank and started the business which got passed down through his father to him, and the strategy was simple. His grandfather operated the business, paid down the loan, and bought life insurance with a face value that was over 3 times the initial sum of money he borrowed. When his grandfather passed, the life insurance proceeds were used by his father (who inherited the business) to pay off the loan and expand the business. His father purchased life insurance and when he (the father) passed, the son inherited the business (debt free) plus had the life insurance proceeds, to further expand the business debt free.
In fact some of the proceeds that he got from his father’s policy were being used to open yet another location of his business that I was in the process of insuring for him. Why was he excited about seeing his life insurance agent? Because he was excited not only about expanding the business, he was equally excited about making sure that the wealth his grandfather accumulated and passed down to his generation, will be passed to his own son, who incidentally was seated at the table at our meeting.
I explained to the client who I recently met with and said “insurance is not another bill, it is a wealth creation tool. So not having it means you are comfortable with perpetuating a cycle of poverty and struggle for your family.”
Wealth or the absence thereof is a choice, decisions made today will impact your family for generations to come – We advise you decide!