Speaker 1: Welcome to How's the Money. I'm Joel and I'm Matt,
Speaker 1: and today we're answering a listener's question about life insurance.
Speaker 1: All right, Joel, so you're gonna share share the big news.
Speaker 1: You finally actually closed on new property, right. Yeah, So
Speaker 1: I just bought my first multi family property. So it's
Speaker 1: a duplex. And if you are a member of the
Speaker 1: Facebook group, you probably saw me post recently a picture
Speaker 1: of a nerdy board game and some beers, and so
Speaker 1: that's how my wife and I celebrated this new purchase.
Speaker 1: The finer things in life, right, nerdy board games and
Speaker 1: good beer. But yeah, so we bought in a duplex
Speaker 1: and we're really excited about it. It's my first foray
Speaker 1: into multi family investing. You know, I have three single
Speaker 1: family homes and now this, and man, you know, you
Speaker 1: and I we've talked about it multiple times on the
Speaker 1: podcast already, and uh not to board the heck out
Speaker 1: of people that don't care about real estate investing. But
Speaker 1: I'm super pumped about this, and you know, the numbers
Speaker 1: work out really good. I've got solid tenants in there.
Speaker 1: It's a solid house. So the great thing too, I
Speaker 1: think a lot of people think. And the biggest excuse
Speaker 1: I hear from people who don't want to start investing
Speaker 1: in real estate, And by the way, if you don't
Speaker 1: want to, you don't have to. But the biggest excuse is, oh, man,
Speaker 1: it's gonna be so much work. And there's ways that
Speaker 1: you can get into real estate investing where it's not
Speaker 1: an overwhelming amount of work from the get go. And
Speaker 1: and the property I just purchased, even though it's a duplex,
Speaker 1: it is one of those things it's not necessarily completely turnkey.
Speaker 1: But man, it's not a whole lot of work from
Speaker 1: the get go. And I'm kind of all about buying
Speaker 1: properties that that fit that mold because I still have
Speaker 1: a full time job, in a family and a life. Right,
Speaker 1: that's right. You're not gonna have to do much. I mean,
Speaker 1: the pictures I saw of it, I need to get
Speaker 1: down there and see it in person. But the pictures
Speaker 1: you shared, yeah, like a dope. If I got a vacancy, man,
Speaker 1: put your name in the hat off consider you have
Speaker 1: to fill out in that application. I might call your
Speaker 1: previous lanelords, but I have a feeling you're probably good
Speaker 1: to go. It's been a minute, but I remember his
Speaker 1: name Kip all right, I actually remember his last name too,
Speaker 1: but I'm not gonna say so. You're talking about it
Speaker 1: not being a lot of work, so certainly it's in
Speaker 1: great shape. You're not gonna have to do much for
Speaker 1: off the bat, Like, what are your thoughts as far
Speaker 1: as dealing with tenants, because you're going from even though
Speaker 1: you're only adding a single property, it's got twice as
Speaker 1: many tenants, right, twice as many potential folks that you're
Speaker 1: gonna have to be in touch with and here from,
Speaker 1: collect rent from that sort of thing. Yes, so that
Speaker 1: it's definitely been a consideration, and I'm interested to see,
Speaker 1: you know, how much that increases my workflow on investment properties.
Speaker 1: I don't think it's going to increase my workflow, you know,
Speaker 1: at double the rate, because it is still one building,
Speaker 1: one roof, and and some of those things are in common.
Speaker 1: But you can get down there once and take care
Speaker 1: of multiple problems exactly. So I don't think it's gonna double,
Speaker 1: but I do think it will increase it, And so
Speaker 1: I'm really interested to see how, you know, a duplex
Speaker 1: increases my my workload when it comes to the vestment
Speaker 1: properties or you know, what maybe just it really doesn't
Speaker 1: increase that much, and and and so much of it
Speaker 1: really does come down to the underlying you know, house
Speaker 1: structure of the house, how good or shape it's in,
Speaker 1: you know what repairs. You know, the little things are
Speaker 1: gonna break, right, like a toilet's gonna need a new
Speaker 1: flushing mechanism, or your stove's gonna break or whatever, like
Speaker 1: a fridge is gonna go down. So those things are
Speaker 1: just gonna happen. But you know, the underlying structure of
Speaker 1: the house, man, that's so important to how many calls
Speaker 1: you're gonna get too. So just buying a solid house
Speaker 1: from the get go with good tenants, I mean that
Speaker 1: cures your eels. Yeah, yes, foreside brick, which I'm kind
Speaker 1: of jealous of because I'm looking We're starting to save
Speaker 1: up some money for a pain job on our personal
Speaker 1: house and I'm just not really looking forward to that.
Speaker 1: Like I'm gonna I'm gonna enjoy it because we get
Speaker 1: to choose a new color, which is kind of cool,
Speaker 1: but thinking about wood rot and that kind of thing,
Speaker 1: I'm just like, I just wish it was made of brick,
Speaker 1: Like you don't have to worry about that ever again.
Speaker 1: But I know, I love the way painted wood signing looks,
Speaker 1: but it's got that it's got that classic look. It's
Speaker 1: trade offs for sure. Yeah, but the brick is just
Speaker 1: there's nothing to worry about really, which is really nice
Speaker 1: and right off the bat as well, the property meets
Speaker 1: the one percent rule. We've talked about this before as well,
Speaker 1: which is awesome, man, especially in this in this kind
Speaker 1: of market, right, Yeah, so it's tough to find. And
Speaker 1: you know, there was a question actually on our Facebook group.
Speaker 1: One of our listeners wanted to know, Hey, should I
Speaker 1: should I hold off on buying a house because look
Speaker 1: at where things are within the housing market. It's it's
Speaker 1: crazy out there and it is a hot market. And
Speaker 1: that's definitely true. It's been almost a year since I
Speaker 1: bought my last house. There are few and far between, right,
Speaker 1: I'm not ready to buy like five houses a month.
Speaker 1: I just don't think there are that many good deals.
Speaker 1: But I do think there are deals to be found
Speaker 1: in every market, and so I think it is worth
Speaker 1: considering if you are interested looking now, and if a
Speaker 1: house does meet that one percent rule, which is the
Speaker 1: monthly rent revenue meeting one percent of the cost of
Speaker 1: the house if you can meet that rule. Man, I
Speaker 1: think it's a good move in any market to buy
Speaker 1: a house that meets that rule if it's in good
Speaker 1: condition and you think you're gonna own it for a
Speaker 1: long period of time. So yeah, this duplex for me,
Speaker 1: meets that one percent rule, and I'm stoked about it.
Speaker 1: I think this is gonna be a great place for
Speaker 1: me to own for the long haul. Yeah, man, absolutely,
Speaker 1: it seems it seems awesome. So kind of on the
Speaker 1: opposite end of that, or like in the complete opposite direction,
Speaker 1: getting out we're not spending tons of money on an
Speaker 1: investment property. We were looking at our budget for the
Speaker 1: rest of the year, and you know, just kind of
Speaker 1: like looking at numbers, dude. We actually did the math
Speaker 1: on what it takes for us to like feed ourselves,
Speaker 1: like our family of five, and it only costs us
Speaker 1: one dollar a meal, dude, per person, one dollar person
Speaker 1: per meal. That's like the holy grail of eating costs
Speaker 1: right there. But here's the thing that also includes diapers.
Speaker 1: Like we don't separate out our actual food from like
Speaker 1: our grocery runs, right, so like our like our grocery
Speaker 1: budget includes like stuff from the pharmacy. I have your
Speaker 1: profen diapers, trash bags, things like that, just the standards
Speaker 1: sort of stuff, tooth baste, deodorant, and so in reality,
Speaker 1: I think we're eating for actually less than a dollar
Speaker 1: a meal per person. And you might be thinking, we've
Speaker 1: got little girls. I mean, dott is only one years old.
Speaker 1: But have you seen her eat? I've seen her belly. Yes,
Speaker 1: I'm not kidding. I think Kate and Dottie if you
Speaker 1: were to way like the actual amount of food that
Speaker 1: they have, like in a normal meal, like it's just
Speaker 1: a normal portion. But then Dottie goes and eats an
Speaker 1: insane amount of food for a one year old, and
Speaker 1: like you said, it shows dude. That's incredible though, because
Speaker 1: most people that talk about how much you should spend,
Speaker 1: you know, on on meals for your family, the patented
Speaker 1: thought is is that it should be you know, two
Speaker 1: bucks a meal. If you can get it down to
Speaker 1: two bucks a meal per person, you're you're crushing it.
Speaker 1: So even I even saw something posted where they're talking
Speaker 1: about five dollars, like five dollars of dinner or like
Speaker 1: something like that. When sure, if you're going out all
Speaker 1: the time and you're eating out and you're used to
Speaker 1: doing drinks and dropping fifty bucks a night on a weekday. Yeah,
Speaker 1: you're gonna save a lot to it. That five bucks
Speaker 1: makes it sound like you're warm buffet or something like that.
Speaker 1: But that's still a lot compared to our entire family
Speaker 1: eating for five dollars per meal. Okay, so next episode,
Speaker 1: can we cover this in detail, because I really do
Speaker 1: want to get into it. I'm really curious and I
Speaker 1: think it would help a lot of people out there,
Speaker 1: like the meal thing. I don't. Here's the thing with Kay.
Speaker 1: I've talked her about it, and she has more of
Speaker 1: a philosophy on like the way she approaches food and
Speaker 1: the way she cooks. I need to talk to her
Speaker 1: and see if we can figure out some specific like
Speaker 1: tips like do this, this is how it'll save like
Speaker 1: do this, this is how it will safe. Well okay,
Speaker 1: that's that's your homework for this because because we because
Speaker 1: like we have to. You can't just tell everyone in
Speaker 1: the audience like, hey, I we eat for one dollar
Speaker 1: a meal for our family, and that's breakfast, lunch, and dinner,
Speaker 1: right because dinner is usually is a lot more expensive
Speaker 1: like breakfast. You feel you can get away with it,
Speaker 1: you know, eggs maybe, you know, probably eggs and toast
Speaker 1: and some fruit, a little bit of coffee fruit. Yeah,
Speaker 1: you can get away with it. And lunch easy to write,
Speaker 1: a little bit easier, maybe a veggie and some nuts
Speaker 1: or whatever. But dinner, man, how do you get away? Well? See, yeah,
Speaker 1: you say veggie nuts, and I'm like, yeah, that sounds normal.
Speaker 1: But I think for a lot of people they're like, wait,
Speaker 1: I go out to eat for lunch, you know, like
Speaker 1: if you're going out to eat, right, that's that's the
Speaker 1: biggest thing, all right. But so hopefully if it's not
Speaker 1: next episode really really soon, we'll could be able to
Speaker 1: maybe we should just have her on to really be
Speaker 1: able to explain it, because she really does handle almost
Speaker 1: of our grocery budget as well as of the cooking,
Speaker 1: and there's a lot there's a lot of insight there,
Speaker 1: so do I mean the reason I brought it up
Speaker 1: was because we're kind of looking at ways to tighten
Speaker 1: the belt a little bit and I don't think you
Speaker 1: can cut there, yeah exactly, And so I was just like, okay,
Speaker 1: could we go leaner, you know, in our grocery budget?
Speaker 1: And that's why I sat down and actually did the
Speaker 1: math and realized, oh, dear lord, no, I don't think
Speaker 1: we can go I don't think we can like make
Speaker 1: this any slimmer at all, because I think we're getting
Speaker 1: into like third world Russia or something, you know, surviving
Speaker 1: only on like a goat for the years, living in
Speaker 1: the year Siberian Wilderness or something. Yeah. Yeah, and we
Speaker 1: know Kate's got a voice for radio because everyone heard
Speaker 1: that just a few episodes ago when we had Our
Speaker 1: wives on, which was really fun. So that was still
Speaker 1: my favorite episode. I think maybe because they were doing
Speaker 1: all the talking, we're just sort of like cracking jokes
Speaker 1: the whole time, a little bit easier just ask them questions, right, Yeah,
Speaker 1: that was good. Should we get more into the interview
Speaker 1: sort of style that maybe that would be if if
Speaker 1: we're just prepping whoever were gonna have on and they're
Speaker 1: just gonna answer questions and the whole time we're just
Speaker 1: kind of like making jokes and drinking beer. That's a
Speaker 1: good point, you know, that sounds Pretty's pretty nice. I'm
Speaker 1: really good at cracking jokes and drinking beers. But yeah,
Speaker 1: on that note, we'll definitely do something. We do have
Speaker 1: some interviews planned coming up with some people, so I'm
Speaker 1: kind of excited to get into into that part of
Speaker 1: the show. So stay tuned. You know, by the end
Speaker 1: of the year, we'll have a few interview episodes with
Speaker 1: people that are experts in certain fields that were not
Speaker 1: nearly as knowledgeable, and so there should be a learning
Speaker 1: process for you and I and then also for our
Speaker 1: audience at the same time, which is which is fun. Yeah,
Speaker 1: And like Joel said earlier, we're gonna answer a listener's question.
Speaker 1: If you have a question, please right in. You can
Speaker 1: send us a message via the form on our website,
Speaker 1: Poor Not Poor dot com or just shoot us an
Speaker 1: email Poor Not Poor at gmail dot com. We love
Speaker 1: hearing from all your listeners and whether that means just
Speaker 1: sort of chiming in with a recent beer find that
Speaker 1: you've come across in your city or state, but all
Speaker 1: the way down to specific questions on life insurance like
Speaker 1: we're gonna talk about today. I've mentioned this before, but
Speaker 1: having specific questions for us to answer it just feels
Speaker 1: like such a tangible way that we're helping folks. Like Granted,
Speaker 1: I know that every episode we talk about hopefully we're
Speaker 1: helping people, but to answer a specific question. You feel
Speaker 1: like the Rubbers actual meeting the road and we're moving
Speaker 1: somebody forward in their life at least financially, and uh,
Speaker 1: that makes me feel good. And uh, you know, I
Speaker 1: know that you feel the same way. But just getting
Speaker 1: emails from listeners is man like. It like makes me
Speaker 1: smile ear to ear when we get an email from
Speaker 1: a listener and they've learned something, or they have a
Speaker 1: question or they just want to say hi, and it
Speaker 1: just feels awesome, like, Okay, hey, we're meeting the people
Speaker 1: that we're that we're creating this show for and kind
Speaker 1: of creating this community around and so that's just a blastemy.
Speaker 1: Only if you start the email with Matt and Joel
Speaker 1: we love you guys so much. We love the podcast
Speaker 1: and we've written reviews. Yeah, or I was like, oh, hey,
Speaker 1: Matt and Joel hated that last episode that we were
Speaker 1: just deleted immediately. If that's what happens, I actually delete
Speaker 1: those from the inbox before you get to them. So
Speaker 1: oh that's why I'm only happy when I see the emails. Yeah,
Speaker 1: I'm protecting you, all right. Onto the beer for the day.
Speaker 1: Uh odd thirteen brewing out of Lafayette, Colorado, And can
Speaker 1: I say, Matt, I had this a couple of weeks ago,
Speaker 1: already know I love it, but let's crack it and
Speaker 1: have it together. I have missed drinking I p A s.
Speaker 1: We have had an I PA in a while, and
Speaker 1: I was especially bummed that we weren't drinking in I
Speaker 1: p A a couple of weeks ago. On there's all
Speaker 1: these stupid holidays, but when I saw that it was
Speaker 1: national I p A Day, I was kind of bombed.
Speaker 1: I didn't have an I p A Meverridge. That's a poor,
Speaker 1: not poor fail right there. Although all those holidays they're
Speaker 1: getting ridiculous. They're out of hand. How many holidays can
Speaker 1: there be? And who gets access to create these holidays?
Speaker 1: It's it's just getting utterly ridiculous. So, without doubt, this
Speaker 1: is a hazy New England style I p A. It
Speaker 1: looks awesome and those juicy notes just smack you right
Speaker 1: in the nose as you open the can. You don't
Speaker 1: even have to pour it out for to get that. Yeah,
Speaker 1: it happened. Right when I cracked the can, I could
Speaker 1: smell it and I started pouring. So we're talking about
Speaker 1: the visuals here, right, and so the beer almost looks
Speaker 1: like orange juice. It's got that nice solid orangey beer
Speaker 1: color that you see from New England. I p a s.
Speaker 1: But then, also, do you want to mention the can
Speaker 1: because this is the sort of most unique looking beer
Speaker 1: can I think I've ever seen, you know, describe it. Yeah,
Speaker 1: So author team makes some really good beers, and I've
Speaker 1: actually really gotten to go to their brewer before, and
Speaker 1: it's great, and their cans all kind of have like
Speaker 1: superhero themes, and so this one has like it's straight
Speaker 1: up looks like a like a comic book. Yeah, it's
Speaker 1: just like an alien superhero in some sort of intergalactic
Speaker 1: intergalactic space space fight laser laser scene. Yeah, so I
Speaker 1: think he's gonna win and dominate human kind or something
Speaker 1: like that. But ODS teen seriously makes some of the
Speaker 1: best beers I've ever had. I've kind of been obsessed
Speaker 1: with them ever since my buddy Carl sent me one
Speaker 1: one beer by them, and actually got this beer from
Speaker 1: Carl doing a beer trade in person, which, by the way,
Speaker 1: is the way to go if you're meeting in another city,
Speaker 1: bring beer trade with somebody and make sure to fly
Speaker 1: southwest because you get a check bag for free. So
Speaker 1: that's what I'm talking about. Fly Southwest, make those beer
Speaker 1: trades happen for frizzle. But this beer is I just
Speaker 1: had a sip in dude, incredible. Yeah, this is up
Speaker 1: there with trillium. This brothers, this is really really good. Man.
Speaker 1: Let me the best way that these New England styles
Speaker 1: are described or juicy, like these juicy dry hopped I
Speaker 1: p A s. I mean, they have a lot of
Speaker 1: hot presents, but at the same time there they just
Speaker 1: have a lot of fruit, a lot of fruit notes,
Speaker 1: a lot of fruit flavors, whereas like the West Coast
Speaker 1: I p A have those resine kind of piney flavors
Speaker 1: and this is all happy fruit in your face. Yeah,
Speaker 1: this is awesome. I wish I had more of this. Yeah,
Speaker 1: thanks Carl for doing that beer trade with me. And
Speaker 1: anybody makes it out to Colorado, there's a bunch of
Speaker 1: your breweries to visit, but put Odd thirteen on your
Speaker 1: list because Odd thirteen makes d delicious beers. We're gonna
Speaker 1: take a quick break, but right after that we're gonna
Speaker 1: get to Josh's questions about life insurance. So let's get
Speaker 1: in the topic of the day, Matt, and the question
Speaker 1: we are answering today is from a listener named Josh
Speaker 1: about life insurance. Yeah he read in last week, and
Speaker 1: his question is I have a fifteen year term policy
Speaker 1: because my plan is that I will be able to
Speaker 1: be self insured by two or so when the policy
Speaker 1: is up. Is that a good move or should I
Speaker 1: try to get a longer term policy? Also, what age
Speaker 1: should I make sure I get a policy before? Is
Speaker 1: there a certain age where if I apply for a
Speaker 1: policy it will be significantly more expensive or is it
Speaker 1: all health based? I turned thirty five today, so it
Speaker 1: has me thinking about getting old. Well, Josh, uh a
Speaker 1: late happy birthday to you. I hope it's going well
Speaker 1: for you man. And yeah, you're old, dude. I mean,
Speaker 1: I don't know what I would do if I was
Speaker 1: that old. But also too man, you've got a two
Speaker 1: million dollar policy. Good for you because that, I mean
Speaker 1: that tells me you've got uh that you're making a
Speaker 1: good amount of money, So it didn't come Yeah, man,
Speaker 1: keep it up, and that you're insuring yourself. Well. So
Speaker 1: let's get into the nuts and bolts. I think there
Speaker 1: are a lot of things to cover in this question,
Speaker 1: because you know, there's a question of is term life
Speaker 1: insurance the best way to go? How long should you
Speaker 1: be insured for? And you know, kind of what what
Speaker 1: the purpose is. That's kind of one of the questions
Speaker 1: that he's asking here too, what's the purpose behind term
Speaker 1: life and how long do I need it for? And
Speaker 1: so and so let's get into each of those kind
Speaker 1: of one by one. We'll kind of walk through with
Speaker 1: Josh and hopefully you know, have a good answer, you know,
Speaker 1: not just for your question but for a lot of
Speaker 1: folks out there listening that are in their twenties and
Speaker 1: thirties in particular, but even if you're older and you
Speaker 1: don't have life insurance, these are good questions to wade
Speaker 1: through to kind of figure out, you know, whether you
Speaker 1: need life insurance and if you do, what kind of
Speaker 1: life insurance and how you should go about insuring yourself
Speaker 1: and so we'll kind of walk through the process. Yeah,
Speaker 1: so specifically, Josh asks, is that a good move where
Speaker 1: you know, should I try to get a longer term policy?
Speaker 1: You know, he's only got a fifteen year because he's
Speaker 1: planning to be self insured. He's planning to be essentially
Speaker 1: financially independent by the time that plan expires, and to
Speaker 1: that we would say, yeah, man, it's a great move.
Speaker 1: You know, we don't know what your expenses are, but
Speaker 1: I assume that two million fits with your lifestyle and
Speaker 1: with your income and your expenses um. But in general,
Speaker 1: having a level term life insurance is the simplest and
Speaker 1: most affordable way to go. It makes the most sense.
Speaker 1: You're able to lock in that premium every single month
Speaker 1: and it's never gonna change. You're gonna pay that for
Speaker 1: the entire length of that policy. And that's a rarity,
Speaker 1: you know, it said to know that, like, Okay, this
Speaker 1: payment is never going to change, and I know that,
Speaker 1: like if I were to die, you know, pass away early.
Speaker 1: This is sort of a morbid topic, right, Yeah, it is. Yeah,
Speaker 1: I feel like it's worth like mentioned anything. Hey man,
Speaker 1: we're all gonna die, you know, so, but you know
Speaker 1: that if if that's gonna you know, if that does happen,
Speaker 1: that this is how much you'll get you'll get paid
Speaker 1: out in term life insurance, like you said, is kind
Speaker 1: of the best way to go because you know how
Speaker 1: much you're gonna pay over the next fifteen years in
Speaker 1: Josh's case, twenty years in my case. But you know,
Speaker 1: however long of a term you take out, you're paying
Speaker 1: the same monthly payment every month and no surprises, you
Speaker 1: lock it in. That's I think it's amazing. And there
Speaker 1: are other types of insurance, right that can just balloon,
Speaker 1: or you're insured can tell you, hey, your premiums just
Speaker 1: are rising for the next year, and they might continue
Speaker 1: to escalate at a ridiculous rate. But when it comes
Speaker 1: to term life insurance, you're locked in at the same
Speaker 1: rate every year. Good to go. So to give you
Speaker 1: listeners a feel for, I guess what the average policy
Speaker 1: out there roughly goes for. If you're if you're a
Speaker 1: thirty five year old male or female, you're looking at
Speaker 1: a round paying thirty five a month, and that comes
Speaker 1: out to about four d and twenty a year for
Speaker 1: a twenty year term policy for half a million dollars
Speaker 1: worth of coverage, which is awesome. Yeah, that's great, that's great. Right. Yeah,
Speaker 1: you know, like think about it, like half a million
Speaker 1: dollars and you're paying thirty five bucks. I mean, that's
Speaker 1: less than the cost of pretty much any utility that
Speaker 1: you have, you know, that's like a couple of pieces. Yeah,
Speaker 1: so that's a good number to kind of go on, Uh,
Speaker 1: you want to find a policy in this price range.
Speaker 1: If you are thirty five years old, male or female,
Speaker 1: you're likely going to pay roughly thirty five dollars a month,
Speaker 1: and that's for non smokers, and that's for nonsmokers, healthy lifestyle. Right.
Speaker 1: Then if you wait, if you delay to buy that policy,
Speaker 1: you we'll talk about this a little bit more further
Speaker 1: down to you're gonna pay two and a half to
Speaker 1: four times that much. You know, the older you get,
Speaker 1: like when you get to age fifty, you're roughly gonna
Speaker 1: pay two and a half to four times as much.
Speaker 1: And so yeah, buying your term coverage earlier on in
Speaker 1: life is a good way to go. It's specifically term life.
Speaker 1: You know, there's other insurance products out there. Uh, the
Speaker 1: most popular, other one that maybe you've heard of, his
Speaker 1: whole life. We're only are going to talk about term
Speaker 1: life because for n and a half percent of you
Speaker 1: out there, that's the only thing you're gonna want to consider. Ever,
Speaker 1: and we're not going to spend a whole lot of
Speaker 1: time on why whole life stinks, but really quickly we
Speaker 1: will say term life is so much better than a
Speaker 1: whole life, and it's because term life is really only
Speaker 1: in actuality a life insurance policy, and whole life insurance
Speaker 1: is a combination life insurance policy and investment. And the
Speaker 1: problem with that is it separating them is the most
Speaker 1: efficient way to do them, and buying life insurance and
Speaker 1: an investment at the same time it's just a terrible idea.
Speaker 1: And the biggest reason is because the commissions are sky
Speaker 1: high on whole life insurance. Yeah, man, it's right. So
Speaker 1: anytime you hear somebody trying to sell you whole life,
Speaker 1: it's because they make a lot of money, a ton
Speaker 1: of money on that, and they don't make hardly any
Speaker 1: money on selling term life policies. And so that's a
Speaker 1: huge reason that those plans are so aggressively pushed. And yeah,
Speaker 1: it kind of goes back to knowing where your investments
Speaker 1: are as well. And when you buy a whole life
Speaker 1: policy like that, and your funds kind of get commingled
Speaker 1: with your insurance and you can't really wrap your hands
Speaker 1: around it. What's what? Who knows? Yeah, that's not the
Speaker 1: position that I want to be in when it comes
Speaker 1: to my investments and looking ahead, And like I did
Speaker 1: with recently just budgeting, Like you want to be able
Speaker 1: to look at some solid numbers and know like, this
Speaker 1: is what we do, this is what we have coming up,
Speaker 1: this is what we can count on. And when you're
Speaker 1: co mingling your insurance with investments, I don't like it
Speaker 1: just gets it's a harry. Yeah, And you know we're cheap,
Speaker 1: but we also kind of want the best thing possible, right,
Speaker 1: And the great thing is you can be cheap and
Speaker 1: get the best thing possible. So we talked last week
Speaker 1: just a little bit about these new fidelity investment funds
Speaker 1: that are zero commission, zero fees, which is amazing. And
Speaker 1: then these term life policies that we're talking about are
Speaker 1: almost in the same boat. You know, there's very very
Speaker 1: few commissions, very few fees charged on these things. They're
Speaker 1: both really cheap, but they're also actually the best thing
Speaker 1: for are you at the same time. So it's just
Speaker 1: perfect blissful marriage where you if you separate them, you're
Speaker 1: gonna get the best of both worlds, and if you
Speaker 1: try to combine them, you're gonna get screwed. You're gonna
Speaker 1: get in the worst of both words. Exactly. Yeah, So
Speaker 1: avoid that. Yeah, and part of Josh's question too, was,
Speaker 1: you know, I've got this fifteen year policy, whereas a
Speaker 1: lot of people get a twenty year policy or a
Speaker 1: thirty year policy. But the reason, and Josh seemed to
Speaker 1: have a really good reason to get a fifteen year policy,
Speaker 1: was that he would be self insured fifteen years from now.
Speaker 1: And so that brings us to our next point. The
Speaker 1: whole point of life insurance is to have that insurance
Speaker 1: until the point that you can be self insured and
Speaker 1: to replace your income in the case of untimely death.
Speaker 1: So it's not to have an investment vehicle, and it's
Speaker 1: not to have this thing that lasts for fourty or
Speaker 1: fifty years. It is this thing to get you from
Speaker 1: an insurable need right now until the point that you
Speaker 1: don't have an insurable need. So I love that Josh,
Speaker 1: he's thinking about it in just the right way. Another
Speaker 1: way to to think about being self insured because that
Speaker 1: sounds kind of like, well, how do I self insure myself?
Speaker 1: Like do I have to like write something down on paper?
Speaker 1: Like No, it's just not like a formal thing or
Speaker 1: a step that you go through. It's essentially becoming financially independent.
Speaker 1: And so the amount of money that you have your assets.
Speaker 1: If all that combined, you're able to you know, if
Speaker 1: you stopped working or if you disappeared off the earth. Uh,
Speaker 1: if you're able to maintain the same amount of cash
Speaker 1: flower that you were as if you were still working
Speaker 1: your self insured, you're able to provide that income for
Speaker 1: your family where you did not be there. And that's
Speaker 1: what that means. That's all that means. And yeah, and
Speaker 1: ultimately that means that you need to have a net
Speaker 1: worth that surpasses probably the value of the policy that
Speaker 1: you're in. So in Josh's case, in fifteen years, he
Speaker 1: wants to seek to have a net worth of two
Speaker 1: million or more because if he doesn't hit that, if
Speaker 1: he thinks that's his insurable need right now, and fifteen
Speaker 1: years from now, it will likely still be his insurable need,
Speaker 1: right Like, that's how much he's gonna need for his
Speaker 1: family if he passes away, He's gonna want to have
Speaker 1: a net worth that's two million dollars or more, you know,
Speaker 1: by the time that policy expires, so that he doesn't
Speaker 1: have to buy another one. So that's how you can
Speaker 1: know whether you need life insurance or not. Do you
Speaker 1: have enough sitting there in investments in your bank account,
Speaker 1: in your overall net worth, that would be equal to
Speaker 1: or more than the value of the policy that you'd
Speaker 1: be taking out. And if so, you're self insured, you're
Speaker 1: good to go. You don't need to buy life insurances.
Speaker 1: Right Otherwise, just view it as sort of like this
Speaker 1: gap coverage. It covers between now and until you get
Speaker 1: to that point. It's just this in between interim thing.
Speaker 1: Don't think of it as something that you will always have.
Speaker 1: So think about it almost like car insurance, right, You're
Speaker 1: you want to have it around until you know that
Speaker 1: you could pay out of pocket to replace your vehicle yourself.
Speaker 1: That's when you would be self insured when it can
Speaker 1: came to car insurance because that car value will continue
Speaker 1: to drop. Maybe initially you're like, right when you first
Speaker 1: get it, you may not be able to cover replacing
Speaker 1: that vehicle because you know to in fifteen grand. Maybe
Speaker 1: you don't necessarily have that sitting around, so you're gonna
Speaker 1: offer full coverage. As the value of that vehicle continues
Speaker 1: to drop, you are going to get closer and closer
Speaker 1: to being able to be self insured. And that's the
Speaker 1: point at which you want to consider dropping your collision
Speaker 1: coverage on your currenc. What's the point of having that
Speaker 1: when you've got that amount of money sitting in the
Speaker 1: bank where you can go out and buy a car
Speaker 1: the very next day. Yeah, because if you're paying an
Speaker 1: extra six dollars a year, let's say for that collision coverage,
Speaker 1: but your nine seven day will is worth, you're throwing
Speaker 1: away money, right, So there's some good calculations that you
Speaker 1: can run to kind of figure out if you can
Speaker 1: be self insured when it comes to owning your car.
Speaker 1: We're not going to go through those right now, but
Speaker 1: that's just kind of a good example. I think you
Speaker 1: get to a certain point with your car's value or
Speaker 1: it makes sense to not have full coverage. And it's
Speaker 1: the same thing with life insurance, because you are hoping
Speaker 1: to build your assets over the life of your term
Speaker 1: policy and hopefully by the time it expires, you have
Speaker 1: the hit financial independence or the point where your net
Speaker 1: worth is worth more than the policy that you took out,
Speaker 1: and then you don't have any need for it anymore. So, Joel,
Speaker 1: what about you, guys personally? You want to share what
Speaker 1: kind of life insurance you have? Yes, that sweet whole
Speaker 1: life policy that you have no way man term life
Speaker 1: all the way. And so yeah, we have a twenty
Speaker 1: year term policy on both my wife and die and
Speaker 1: that's for two and fifty thou dollars, which in a
Speaker 1: perfect world is probably a little bit less than it
Speaker 1: should be. But the reason that I felt comfortable getting
Speaker 1: a smaller term policy than most people should probably get
Speaker 1: is because of the rental income that we make, right,
Speaker 1: and so that kind of covers a lot of the
Speaker 1: monthly costs associated with running our family. And that's why
Speaker 1: I felt comfortable having just a quarter of a million
Speaker 1: dollar policy on both my wife and I. I think
Speaker 1: for most people, you know, making a decent salary, they're
Speaker 1: probably gonna want to look at a half million dollar
Speaker 1: policy minimum. But for us, yeah, we have that that
Speaker 1: slightly smaller policy that I think still works for our family. Yeah.
Speaker 1: So I think it's cool that you both have a policy.
Speaker 1: Is that what you said? You said you and you
Speaker 1: and Emily both have to fifty yep, And so I
Speaker 1: think that that's that that's very huge. Yeah, and then
Speaker 1: that's nice, is what I'm saying, because we don't have that.
Speaker 1: Oh really, well, let's say this. I want to ask
Speaker 1: you about that too, but really quickly for folks that
Speaker 1: are are married, especially with uh one of the where
Speaker 1: one of the partners stays at home, I think it's
Speaker 1: important to kind of discuss how you divvy up life
Speaker 1: insurance for that. And so some people think that, you know,
Speaker 1: a stay at home partners shouldn't have as much life
Speaker 1: insurance or should have no life insurance. And man, I
Speaker 1: don't know. I just know that if something were to
Speaker 1: happen to my wife, right, if the worst thing were
Speaker 1: to happen, right, she's gone, and I'm left left um
Speaker 1: with kids and trying to support support our family as
Speaker 1: a single dad. You want to be able to buy
Speaker 1: a new wife, right, which is approximately a quarter of
Speaker 1: a million dollars. Uh No, which hopefully I would not
Speaker 1: be buying a wife, but uh but I would. I
Speaker 1: would need to run the house, right, and I would
Speaker 1: need to get help. And and Emily doesn't make an
Speaker 1: income staying at home, but she certainly provides so so
Speaker 1: much for our family that without her we would be sunk,
Speaker 1: and and it would cost so much money to to
Speaker 1: run our house, um without And you know that that
Speaker 1: annual survey comes out about what a stay at home
Speaker 1: mom should actually be paid and it's you know, probably
Speaker 1: accurate in a lot of ways that to grow and grow, right, Yeah, yeah,
Speaker 1: I mean going back to what we're talking about at
Speaker 1: the beginning there, I was talking about how little we're
Speaker 1: able to spend on our grocery budget every month. I
Speaker 1: feel like that would immediately double if I was in charge.
Speaker 1: Can can give so much time to that or and
Speaker 1: she's got skills, she just knows how to do it.
Speaker 1: And again to talking about kids, childcare is expensive and
Speaker 1: I think for a lot of folks that kind of
Speaker 1: when it comes down to, if you have a spouse,
Speaker 1: a non working spouse, you may not need a life
Speaker 1: insurance policy on them because unfortunately, if if that person
Speaker 1: were to die, it may not change your expenses that much,
Speaker 1: right if they're not earning an income. However, kids completely
Speaker 1: change that. If if you have kids at home and
Speaker 1: essentially they're doing a job for free, uh they're not
Speaker 1: getting paid um you know, monetary wage, and at the
Speaker 1: same time, they're saving your household a ton of money.
Speaker 1: And so if you have kids, I think that's definitely
Speaker 1: a time to consider getting a life insurance policy on
Speaker 1: your spouse. For for the spouse that might be staying home. Yeah,
Speaker 1: the pendulum would shift really quickly, right, You're expenses would
Speaker 1: go up, and you'd have to also have spend more
Speaker 1: for childcare, and most likely I'd be working a lot
Speaker 1: less as well, and so I would see my income
Speaker 1: probably drop as well because of the added to responsibilities.
Speaker 1: Not to say that that's not something that you'd want
Speaker 1: to do in that situation. Again, these are sad discussions
Speaker 1: right right right that we're joking about, But at the
Speaker 1: same time, that's I think, I think that's the truth
Speaker 1: of it. All Right, So where do your where does
Speaker 1: your family line up life insurance policy wise? What do
Speaker 1: you guys got Yeah, so we've got nothing on Kate.
Speaker 1: Thinking about through this is actually going to probably change
Speaker 1: that here shortly. Part of me thinks that, like, Okay,
Speaker 1: I'm just gonna like really buckle down and go crazy
Speaker 1: if something were to happen to Kate. But I think
Speaker 1: that's probably like the last thing that my girls would need.
Speaker 1: I just want to stop talking about this morbid time.
Speaker 1: But that being said, so I've got a you also
Speaker 1: don't know your reaction, right, you don't know your reaction
Speaker 1: in the case something like that happens, and obviously you're
Speaker 1: gonna need to take some time, you will probably lose
Speaker 1: some income, you're gonna be you know, grieving, and so
Speaker 1: I think, men, yeah, that's that needs to be some time,
Speaker 1: the very least completely. So I think, yeah, that's definitely
Speaker 1: something you need to look into. So what do you have?
Speaker 1: What we do have is that so I got a
Speaker 1: twenty five year policy several years ago, um and it
Speaker 1: was a twenty five year term policy for a half
Speaker 1: a million dollars and we pay right at four hundred
Speaker 1: bucks annually. And so I got that when I was
Speaker 1: pretty young. It was after we had purchased a home,
Speaker 1: we knew we were going to start a family soon.
Speaker 1: Is something I kind of wanted to get taken care
Speaker 1: of before you're in the haze. You're in the fog
Speaker 1: for a year with a new baby. And so I'm
Speaker 1: pretty sure I've got around seventeen years left on that policy,
Speaker 1: which honestly, I think is like the perfect amount of
Speaker 1: time for me to be able to self insured. In
Speaker 1: that period of time, I should be able to be
Speaker 1: self insured. I should be able to be financially independent,
Speaker 1: or at the very least, if something were to happen
Speaker 1: to me, Kate would be pretty set, you know. Again,
Speaker 1: like you said, with the income generating assets that we
Speaker 1: have with the real estate that in conjunction with the
Speaker 1: sort of lump sum that gets paid out there in
Speaker 1: an untimely death, I think she'd be fine. We can
Speaker 1: get to this a little bit later on, but I
Speaker 1: can get another policy if I wanted to, But I
Speaker 1: think more of a party might be to go ahead
Speaker 1: and get Kates on a policy, because yeah, I'm pretty
Speaker 1: sure I'm gonna need that help, and Josh didn't. But
Speaker 1: hopefully he learns from this conversation between you and I
Speaker 1: that he probably needs to consider, you know, if he's
Speaker 1: married that he and he would be right if he's
Speaker 1: if he has a life insurance policy and he's not married,
Speaker 1: we'll get to business second. As a single person, you
Speaker 1: don't need to have life insurance, like you're not insuring
Speaker 1: for anybody else in all likelihood. But so Josh, you're
Speaker 1: likely married, if you have kids, you also need to
Speaker 1: consider getting a policy on your wife, because if you
Speaker 1: know you were to lose your wife, you run into
Speaker 1: all these issues that Matt and I are discussing. So
Speaker 1: it's really important to maybe you need a lesser policy,
Speaker 1: maybe you need a five dollar or a million dollar
Speaker 1: policy on your wife. But maybe instead of getting another
Speaker 1: policy for yourself, because it sounds like you're in a
Speaker 1: pretty good position, consider shopping for a policy for her.
Speaker 1: That'd be the that'd be the thing I would recommend
Speaker 1: to you right now. Yeah, I like it, And real
Speaker 1: quick back to you know, the single people. If you
Speaker 1: are single, living alone, nobody depends on you for income.
Speaker 1: The income is is ultimately used by you for you.
Speaker 1: There's no one else that's relying on you in any way,
Speaker 1: form or fashion. You don't need life insurance and so
Speaker 1: you know, I know a lot of single people think that,
Speaker 1: you know, how do I need life insurns to cover
Speaker 1: for my funeral or something like that. I mean, in
Speaker 1: all likelihood hopefully you know a small amount of savings
Speaker 1: will will cover that. So I wouldn't recommend getting you know,
Speaker 1: all out term life insurance policy or you're paying a
Speaker 1: month for you know, a policy that's way bigger just
Speaker 1: just for that. Yeah, man, don't worry about it. You
Speaker 1: know a lot of times people worry too specifically about
Speaker 1: their debts. No one's gonna get that debt unless someone
Speaker 1: else's name is on that debt. Right, So, if you
Speaker 1: have a mortgage, uh, and a partner you know specifically
Speaker 1: again go back to like a spouse or a partner,
Speaker 1: but if their name is on that mortgage, then yes,
Speaker 1: they're gonna be responsible for them. But if your name
Speaker 1: is the only name on that mortgage, if your name
Speaker 1: is the only name on those credit cards or your
Speaker 1: student loan, if you pass so to those debts, uh,
Speaker 1: and they just get written off essentially is how it works.
Speaker 1: So don't worry about that. Don't think that you're parents
Speaker 1: or you know, your siblings or somebody else is gonna
Speaker 1: get stuck with that debt. That isn't something that actually happens.
Speaker 1: They'll be fine, they'll be sad you're gone. Yeah they will.
Speaker 1: They will, we all will be. And so so no
Speaker 1: policy needed unless you have people that depend on you
Speaker 1: for that income. Okay, so we're gonna get to the
Speaker 1: part two of Josh's question here in a second, but
Speaker 1: first roll, let's take a break, and now we're moving
Speaker 1: on to part two of the question, which was also
Speaker 1: what age should I make sure I get a policy before?
Speaker 1: Is there a certain age where if I apply for
Speaker 1: a policy, it will be significantly more expensive or is
Speaker 1: it all health based and so that Josh, don't worry
Speaker 1: about it. It's not like car insurance where once you
Speaker 1: hit twenty five, you know, like the price is gonna
Speaker 1: drop off all of a sudden. It's not the opposite
Speaker 1: of that when it comes to life insurance, because it's
Speaker 1: like eminently provable that your knucklehead before twenty five and
Speaker 1: you're gonna like start reckoning to I mean that's I
Speaker 1: got into like three REX before the and I haven't
Speaker 1: gotten into one since. So yeah, yeah, same here man.
Speaker 1: In college, I was I think I was brain damaged.
Speaker 1: I mean they say it because like that like especially
Speaker 1: is in a cortex, like isn't fully well? Is it
Speaker 1: male specifically that the like the brains don't fully developed.
Speaker 1: I wouldn't put it past us. Yeah, I don't know
Speaker 1: if my brain is fully developed even now. But I
Speaker 1: look back now there's things I asked myself, like what
Speaker 1: was I thinking slash doing completely? So yeah, there really
Speaker 1: isn't a magic age like there is with car insurance
Speaker 1: to get a term life insurance policy, but typically the
Speaker 1: longer you wait to get a policy, the more it's
Speaker 1: going to cost you likely an average of eight to
Speaker 1: pump every year that you wait. You might also have
Speaker 1: to go through a more thorough health exam the older
Speaker 1: you get. So if you are purchasing a term life
Speaker 1: insurance policy in your twenties or early thirties, it's gonna
Speaker 1: be cheaper and a little bit easier when it comes
Speaker 1: to the health exam. And if you wait longer, you know,
Speaker 1: it's probably gonna be a little more in and the
Speaker 1: rates are going to go up. What do you mean
Speaker 1: by intrusive health examgle You know they put the glove
Speaker 1: on and you know how it goes from there. Um, yeah,
Speaker 1: I will say so. The health factors, you know, fitness
Speaker 1: and dangerous hobbies, those are things that way into the
Speaker 1: underwriter's algorithm, I guess pretty heavily, so disc off, I'm fine,
Speaker 1: but skydiving not so good, right exactly. But luckily those
Speaker 1: are things that we have control over, you know, like
Speaker 1: your general state of health. Awesome, you know you can
Speaker 1: do something about that same thing with dangerous hobbies. There
Speaker 1: are things that you can't control quite as much, like
Speaker 1: your your health, family health history, or even like pre
Speaker 1: existing conditions. Certainly you don't have control over those things,
Speaker 1: but it's worth mentioning, worth knowing as you're sort of
Speaker 1: deciding whether to kind of hold off and put off
Speaker 1: getting a life insurance plan or if you're going to
Speaker 1: go ahead and get one now. Yeah. And the cool
Speaker 1: thing when it comes to health insurance exams, Matt, you
Speaker 1: and I, when we both got our policies, it's it's
Speaker 1: changed a lot. And so you know when Emily and
Speaker 1: I got our policies and nurse came to our actual
Speaker 1: yas I was gonna say, because uh, nurse came to
Speaker 1: my house like on a weird because I'm hanging out
Speaker 1: my living room and she's got all of your nurse gear. Yeah,
Speaker 1: they like draw your blood. They're like staring you down,
Speaker 1: you know, like poking you in the face stuff like
Speaker 1: that just makes sure you're healthy. And uh, I didn't
Speaker 1: get poked in my face, so that was just me okay. Uh.
Speaker 1: The cool thing is that a couple of companies have
Speaker 1: developed something called instant term now that they're able to
Speaker 1: finalize coverage without the need for a medical exam. The
Speaker 1: cool thing is, you know, they're asking you a bunch
Speaker 1: of questions to find out your health history, and then
Speaker 1: they're looking at a combination of that and your medical records,
Speaker 1: and they're able to determine, you know, kind of what
Speaker 1: rate you should be insured at based on those things.
Speaker 1: That's kind of cool and two of the best companies
Speaker 1: to get quotes at in general, but that actually do
Speaker 1: this kind of instant term process where you don't actually
Speaker 1: have to have a nurse come to your home. Our
Speaker 1: companies like have in Life and Policy Genius, and so
Speaker 1: we'll have links to those two companies in the show
Speaker 1: notes on our website. But if you kind of want
Speaker 1: the the easy ticket to get in term life insurance, man,
Speaker 1: those are two companies I would recommend shopping with. Okay, then,
Speaker 1: so our advice to you would be to get some
Speaker 1: level term life insurance as soon as you have an
Speaker 1: insurable need. Once you are financial really obligated, and then
Speaker 1: you have family members who are counting on you to
Speaker 1: pay that financial oblication, you want to take care of
Speaker 1: them if you aren't there to work and earn money
Speaker 1: to pay that financial obligation. So say you have a
Speaker 1: partner and you have a mortgage, that is a time
Speaker 1: when you're gonna want to consider getting life insurance. Say
Speaker 1: you have kids. They're all dependent on you, whether they're
Speaker 1: solely dependent on you, if your spouse is not employed,
Speaker 1: or even still if you're both employed, You're gonna need
Speaker 1: some extra coverage there when it comes time to kind
Speaker 1: of sort out your finances after you've passed. And so,
Speaker 1: say you're a co host of a craft beer and
Speaker 1: money podcast and your wife doesn't have life insurance, you
Speaker 1: should really consider getting some life insurance for her, right
Speaker 1: because we are bringing in a bank and Uh, I
Speaker 1: know that if I were not able to podcast anymore,
Speaker 1: that Kate would be really hurting when it came to
Speaker 1: her grocery budget. It's true, man, it's true. Another thing
Speaker 1: I wanted to address really quick, Matt, is you know
Speaker 1: life insurance through work. A lot of people are offered
Speaker 1: life insurance through their employer and they think that's the
Speaker 1: best place to get it, right. It's the easiest place, right.
Speaker 1: You just kind of click something every year during open
Speaker 1: enrollment and you get more life insurance. Well, the thing is,
Speaker 1: life insurance through work is actually much more costly when
Speaker 1: you factor it out, uh than getting a term life
Speaker 1: insurance through say a site like policy genius dot com.
Speaker 1: So we would say, shop the open market, don't get
Speaker 1: the life insurance provided to you through work, and most people,
Speaker 1: you know your employer is gonna offer you a small
Speaker 1: amount for free, So take that, right, take the free
Speaker 1: life insurance. But anything on top of that, you're gonna
Speaker 1: want to shop on the market. And the one caveat
Speaker 1: to that is if you have real health problems that
Speaker 1: would prevent you from getting a decent rate on the
Speaker 1: open market, then it might actually make sense for you
Speaker 1: to get an insurance through your employer. If you can't
Speaker 1: shop the open market and get the good rates, that's right,
Speaker 1: you might just have a dangerous hobby that you just
Speaker 1: can't kick. In that case, keep that nine of five.
Speaker 1: It's like, sorry, Joel, you're playing too much Settlers of
Speaker 1: Catan and we're worried about risk injuries. So yeah, mean
Speaker 1: that's right. And that also makes me think of getting
Speaker 1: an additional plan sort of like you said, uh, sometimes
Speaker 1: that's referred to as layering um, and that's definitely something
Speaker 1: that you can do. So say, like in our case,
Speaker 1: we got a policy several years ago, and if Kate
Speaker 1: and I sat down and decided that the coverage that
Speaker 1: we have isn't quite enough and that we don't really
Speaker 1: feel comfortable with what we have anymore, Well, I can't
Speaker 1: get another another policy and sort of you know, layer
Speaker 1: that on top to kind of sort of fill that gap,
Speaker 1: sort of fill that need and get us to where
Speaker 1: we are comfortable. Doesn't mean you need to totally trash
Speaker 1: the existing policy that you've been paying into, and chances
Speaker 1: are you're gonna want to keep that around because you've
Speaker 1: locked in a nice low premium for however many years,
Speaker 1: and so layering is definitely something you want to consider.
Speaker 1: And yeah, so gooding back to Josh's specific question, right, like,
Speaker 1: that's that actually might be the perfect solution for him,
Speaker 1: is to to do the layering and get a small
Speaker 1: policy that extends for longer than his current policy. So
Speaker 1: let's say he's not fully self insured in fifteen years, right,
Speaker 1: he doesn't have that two million dollar net worth like
Speaker 1: we talked about earlier, but he's most of the way there.
Speaker 1: He still feels like he has an insurable need. Well,
Speaker 1: if at the age of thirty five, which is which
Speaker 1: is how old he is right now, he decides to
Speaker 1: take out a twenty five year fioud dollar policy, well
Speaker 1: that that might kind of be that perfect layering that
Speaker 1: he needs. It doesn't add much monthly expense to pay
Speaker 1: those premiums, but it gives him kind of that ability
Speaker 1: to not rush quite as hard to make sure that
Speaker 1: he's financially independent fifteen years. He gives him like a
Speaker 1: little more leeway. So you know, that's a good good
Speaker 1: way to do it, is to do kind of some
Speaker 1: layering like you talked about. I think it's a great
Speaker 1: solution in the case you feel like you need more
Speaker 1: after you've taken out kind of an initial policy and
Speaker 1: you feel like it's not enough. Yeah, man, I like that.
Speaker 1: All right, man. Let's get back to this beer Odd
Speaker 1: thirteen Brewing Intergalactic Juice Hunter, and it's called Juice Hunter
Speaker 1: because it is a juicy double I p A. It's
Speaker 1: so good man, Yeah, man. I don't know what to
Speaker 1: say except for, you know, when I had this beer
Speaker 1: with Carl at the podcast conference that I went to.
Speaker 1: We had it actually right after we had a beer
Speaker 1: called Hetty Topper, which if people don't know about that,
Speaker 1: it's one of the best beers in the country. It
Speaker 1: was like one of the original New England style I
Speaker 1: p A. S right, yep, And I like this one more,
Speaker 1: and I still do. This is the freaky conlicious, So,
Speaker 1: having not ever had a heady topper, I'll just go
Speaker 1: ahead and agree with you. I really like this as well.
Speaker 1: I'm still not sure about the the kind of the
Speaker 1: graphic novel comic book artwork. Did you ever get into
Speaker 1: like Marvel and d C? No, the comics. Do you
Speaker 1: even see like the comic book movies? No? I hate them? Dude,
Speaker 1: do you really? Yeah? You gotta you gotta watch a
Speaker 1: couple of them. I hate superhero movies, and plus, like,
Speaker 1: how many Spider Man's can you make? Really? Well, really,
Speaker 1: I'm not saying I want to watch another Spider Man,
Speaker 1: but evidently Infinity War, which sounds kind of ridiculous. That's
Speaker 1: like they all come together, all the superheroes. Dude, I
Speaker 1: don't even know what movies are out anymore. Like, seriously,
Speaker 1: I couldn't tell you one movie in the theaters. It's ridiculous. Well,
Speaker 1: if you want to see a superhero movie while you're
Speaker 1: drinking Intergalactic Juice Hunter, watch Infinity War because evidently it
Speaker 1: was awesome. A I'm assuming there's a Star Wars and
Speaker 1: the Harry Potter is done, so that's all I know,
Speaker 1: did shut up? Don't you talk about about Harry Potter.
Speaker 1: I love Harry Potter, but it's just done. It's not
Speaker 1: in theaters anymore, right now. I love Harry Potter. Is good.
Speaker 1: I can get on board with that. Dude in any
Speaker 1: depressing indie movie that's up for best picture, I'm up
Speaker 1: for that. But now, man, I don't do superhero movies. Yeah.
Speaker 1: That being said, I'm totally cool with them putting that
Speaker 1: on the can, because, dude, you can put anything on
Speaker 1: the can. Can just be a blank can or just
Speaker 1: like a stick figure drawing of like a guy porn
Speaker 1: hops into a giant brewing that. Yep, I'd be fine
Speaker 1: with that. Literally, anything on the can. If the beer
Speaker 1: taste is good, it doesn't matter, I will drink it. Yeah.
Speaker 1: One of the best I p a s I think
Speaker 1: I've had, gosh man like to date, you know, like
Speaker 1: the juice, the hops, the kick, like that hoppy kick.
Speaker 1: It's all there. I miss I p as. Has been
Speaker 1: so long since I've had some good I p a s.
Speaker 1: Thank you for bringing this down, man, No problem, buddy,
Speaker 1: all right, so real quick, let's go over just a
Speaker 1: couple points of the need to knows about term life insurance.
Speaker 1: Based on Josh's question, the first thing is only consider
Speaker 1: a level term life insurance policy. Josh, you're already on
Speaker 1: the right track. You mentioned how you've got a fifteen
Speaker 1: year policy term life. That's what you want. Only consider that.
Speaker 1: Keep in mind that the point of life insurance is
Speaker 1: to have insurance until the point that you can be
Speaker 1: self insured. Once you're financially independent and you don't need
Speaker 1: that insurance to to be able to pay off your
Speaker 1: debts and to support your family, then you don't need
Speaker 1: to have that insurance policy anymore. So the fact that
Speaker 1: you've got a fifty year policy because you're planning to
Speaker 1: be self insured within that period of time, I love it, man.
Speaker 1: That's great. Yeah. And people will try to pitch you
Speaker 1: on a lot of different names of life insurance, but
Speaker 1: really the best, the cheapest, the one that you want
Speaker 1: to look at is term life insurance. It's got the
Speaker 1: least amount of commission, the best bang for your buck. Yeah,
Speaker 1: and you want to make sure that it's going to
Speaker 1: cover any insurable need that you have. So if a
Speaker 1: two million dollar policy is going to cover your family
Speaker 1: in the event of your untimely death, then that's great.
Speaker 1: And for me and Matt, you know, we have lower
Speaker 1: amounts because of how our investments are structured, we don't
Speaker 1: feel the need to ensure for quite as much. So
Speaker 1: it really depends on your individual situation. What you're insurable
Speaker 1: need is. And once you assess that, you can decide
Speaker 1: the term length and the amount that you need to
Speaker 1: be insured for and as far as the win So
Speaker 1: when should you buy level term life insurance? Well, as
Speaker 1: soon as you have an insurable need um meaning if
Speaker 1: you have family or anyone that is dependent on you
Speaker 1: in your income that you bring to the table, you
Speaker 1: want to have some life insurance. Yeah, and you want
Speaker 1: to make sure you shop just like you shop for
Speaker 1: anything else, right, to get the best price. Well, term
Speaker 1: life insurance. You want to shop with reputable companies, but
Speaker 1: you want to get the best price, right, And so
Speaker 1: we would recommend shopping at websites like haven life dot
Speaker 1: com and policy genius dot com. We'll have those linked
Speaker 1: for you in the show notes. And policy Genius in particular,
Speaker 1: you know, pitt some of the major companies against each
Speaker 1: other bidding to offer you the lowest cost term life
Speaker 1: policy possible. And lastly, Josh in your situation, Man, it
Speaker 1: sounds like you're covered really well. But the one thing
Speaker 1: you might want to consider it is what Matt kind
Speaker 1: of talked about at the end is layering, right, and
Speaker 1: so maybe adding a smaller policy that covers you for
Speaker 1: a little bit longer term just in case you feel
Speaker 1: you're feeling a little bit uncomfortable about meeting that fifteen
Speaker 1: year window to be financially independent where your net worth
Speaker 1: is actually going to be more than the term policy amount.
Speaker 1: And honestly, I think any listen I can kind of
Speaker 1: take comfort from that. Right. Being able to have the
Speaker 1: option to layer it means that you don't have to
Speaker 1: get it exactly right. Uh the very first time. You
Speaker 1: can sort of switch it up. You can change things.
Speaker 1: So all that being said, if you have an assurable need,
Speaker 1: go ahead and get life insurance. It doesn't have to
Speaker 1: be perfect. Having something is better than nothing because you
Speaker 1: want to have that in place, no doubt. Thanks everyone
Speaker 1: for listening. Our home on the web is how to
Speaker 1: Money dot Com. Check it out. We'll have our show
Speaker 1: notes up for this episode, and hopefully you found this
Speaker 1: episode helpful. If you found it randomly, be sure to
Speaker 1: check us out on Apple podcast where you can subscribe
Speaker 1: and you can get all the new episodes as they
Speaker 1: are released until next time. Buddy, Best Friends Out, Friends Out,
Speaker 1: WHOA shot that one across the table? There