This Nurse Talks Life Insurance - Ep. 26
This episode is to encourage you to include getting a life insurance policy or updating an existing policy to your resolutions list. Life insurance is a tax-free lump sum payment that goes to your loved ones in the event of your death. Think of it as a financial safety net for your family if you’re no longer around to bring home a paycheck.
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TRANSCRIPT:
Naseema McElroy: 02:58 Happy 2020 y'all! So every year at the beginning of the year, it is a great time to reflect. It's time to express gratitude and a good time to set a goal to be the best versions of ourselves. So, I am popping in your ears today to encourage you to get your life insurance policy updated or to get a new life insurance policy in place. So what is life insurance? Life insurance is a tax free lump sum payment that goes to your loved ones in the event of your death. So think of it as a financial safety net for your family if you're no longer around to bring home a paycheck. So here are two simple steps that you can handle right at this moment. Because if you're anything like me and don't get it done right now, it ain't happening honey. Okay? Plus, the longer that you wait to get a good policy in place, the more expensive the policy will be as prices increase 8 to 10% every year you age. The first thing that I want you to do is find a policy that isn't going to break the bank. So, I encourage you to go through an insurance brokerage company like Policy Genius, they have competitive rates and you can get a quote in a matter of minutes. And you guys, once you get a quote, you don't have to worry about people calling your phone, blowing you up, asking you for policies. So they don't share your information. Everything stays in house. So, Policy Genius is committed to being your one stop shop for life insurance. And that means showing you quotes that you can trust. They're so confident that they can find you the best rates that if you find a lower price for the same life insurance coverage, they'll actually give you $100.
Naseema McElroy: 05:00 All right, so step number one, go to Policy Genius and get a quote right now. Step number two, when you get that quote, make sure that you get 10 to 12 times your income and coverage. So the goal is to leave your family and loved ones in a comfortable position. So if you make $100,000 a year, you should have at least a million dollar policy. All right? And also, and looking at your coverage, you want to make sure that you have term life insurance for 15 to 20 years. So you want to choose a 15 to 20 year term. What you choose in between those periods will depend on how much time you need to have your assets aligned to the point to where your dependents and beneficiaries can live comfortably. So ideally, in this time frame, your house should we pay it off and your savings and investments could be used to replace your earnings.
So any minors that's you're protecting your assets for should then be adults at that point and should no longer be dependent on you. And the other thing I want you to keep in mind when you're looking, they're going to give you a whole list of companies to choose from. Choose the cheapest one. Every insurer that Policy Genius carries are reputable and offer exceptional financial stability. So why pay more for the same coverage, okay? Now that you've got those steps in place, here are some things that you should know when it comes to life insurance. Okay? The life insurance at your job is not enough, okay. Though you may have enough to cover basic funeral cost.
Naseema McElroy: 06:33 The goal for life insurance is to not set your family back financially, so you easily need at least 10 times what your employer is providing. Plus, oftentimes workplace life insurance coverage is not even portable. So oftentimes workplace life insurance coverage is importable, meaning that you cannot take that coverage with you if you leave that job. All right? So it doesn't follow you when you switch jobs. So this can lead gaps in the coverage at times when you need it most. Okay? So I would say 99% of my audience do not need whole life policies. So whole life policies are also known as cash value policies. These are more expensive like many times over, sometimes 20 times over. And I know that this may surprise you because it's often oversold to nurses. So people of lower economic status to black and minority communities as something that wealthy people use as a wealth building tool. So while these products do have a place in the market and you would look at that if you do have a special needs kid or if you've exhausted all of your pretax benefits, this is something that you can use but not chances are that the majority of you guys that won't benefit from this policy.
Naseema McElroy: 07:52 So the good news is is that when you get a term policy in place, you can cancel your whole life policy and use some of that cash value that you get back to go towards your debt elimination or investing goals. So also you should comparison shop for insurance versus what you already have because the same policy can vary in price from insurer to insurer. And you can save an average of 130 some. So, why should you comparison shop for insurance? Okay. So the same policy can vary in price from insurer to sure by an average of $133 a month. That's made you guys, so choosing the wrong life insurance company can cost you over $47,000 over the course of a 30 year policy. And you know that's almost $50,000 I know I can do a lot with that in 30 years. So I pay less than $60 a month for my $2 million in coverage. How much are you guys paying? So regardless of who you choose to go through for your coverage, please make sure that you get an insurance policy in place as soon as possible or your family. Okay. This is a great way to get a quick financial win to start the new year off right. All right. Get your policy in place today.
Naseema McElroy: 09:15 Now, I want to keep that episode short and sweet to make sure that you guys took action today. Getting the right life insurance policy in place for you and your family is one of the most important things that you can do. So please take action. Lesson number one, use Policy Genius to shop the cheapest rates and when they come back with quotes, select the cheapest one. Lesson number two, make sure to get 10 to 12 times your income and coverage and select the term of 15 to 20 years. Lesson number three, over 90% of you guys do not need whole life insurance. And I really want to emphasize this because I know especially in the African American communities, this product has been oversold as a wealth building tool and I just want to demystify that you do not need it. You need a term policy like I explained before, so please don't fall into these traps where usually they're being recommended to you because a person is getting a high commission upfront and they do not serve your financial needs. So this is a good way to kick off 2020 and I hope to help you in making better financial decisions down the line. And I hope that we can learn and grow together over this next decade. Peace y'all!
Naseema McElroy: 10:53 Hey guys, I'm super excited to announce that I'll be speaking at the First Annual Financial Freedom Summit and I want to meet you there. It's going down May 1st to 3rd 2020 in St. Louis. So if you're ready to kick your finances in gear, the mission of the summit is simple, to help you reach the next level in your financial journey, no matter where you are, whether you're thousands in debt, building your first budget, saving six months of expenses or close to financial independence. There's something for you at this event. What's even better is that there'll be 50 plus other financial experts for you to learn from, including my finance besties, Jameela from Journey to Launch and Kiersten and Julien from Rich and Regular. There'll be experts covering nearly every personal finance topic. This is your chance to connect with thousands of other people who have the same interests, goals, and philosophies as you. Not just that, but I'd love to meet you as well.
Naseema McElroy: 11:57 So tickets are going fast, meaning that prices are going to increase soon. I want to make sure you get the biggest bang for your buck better yet, you can use a special discount code to get an even lower price. So use FREEDOM at checkout for 20% off your ticket. That's FREEDOM at checkout. Seriously y'all, I think this event is going to be life changing for so many people. I'm super honored to be part of it. So for more information on this First Annual Financial Freedom Summit, click the link in the show notes. And don't forget to use the code FREEDOM at checkout.
Naseema McElroy: 12:42 You've been listening to Nurses on Fire. If you want to learn more about me or my guests, check out our show notes page. If you found value, please support our show by supporting our sponsors and affiliate also listed in the show notes. If you like what you're hearing, we'd love for you to give us a five star rating and subscribe on Apple, Spotify, Google, or whatever podcast app you're using to stream this show. You guys tell all the nurses in your life to subscribe, and if you know a nurse with a compelling money story and would like me to feature them, shoot me an email at naseema@financiallyintentional.com. All right y'all. Much love and keep them fires blazing.
Hey there I’m Naseema
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