Peachie Thompson 00:00
The way underwriting and the way insurance is priced is, is this way, the healthier you are, the cheaper it is, the younger you are, the cheaper it is. So guess what that means? The other side of the spectrum is when you get some sort of disease, and most of us do, as we age, and as you age, the more premium you'll have to pay. There is no work around that.

Joey Loss 00:25
Yeah, and I think young folks wait for some kind of triggering moment that tells them, okay, now's the time to go get life insurance. You

Joey Loss 00:46
Hey. Peachie Thompson, thanks for coming on the podcast. Hi Joey, thank you for having me. So for those who don't know who you are, can you tell us a little bit about you and how you come to do what you do now? Yes,

Peachie Thompson 00:57
my name is Peachie Thompson, and I am the founder of peach Insurance Services. Peach Insurance Services is a brokerage, a national, independent national brokerage. We work with fee only advisors nationwide. We specialize in life, long term care, disability and annuities. This will be my 27th year in the business. My background is in technical underwriting for over 25 years, and in 2020 I launched peach insurance services to give access to pee fee only advisors clients as it relates to life insurance, long term care, di and annuities,

Joey Loss 01:37
awesome. Well, I know we met two or three years ago now through the Financial Planning Association here in Jacksonville, it's always exciting for planners to find insurance folks who are passionate about the big picture, right? Not just individual products, but really, how does everything fit together? And when we've had the chance to talk, we haven't had a ton of time to talk, which is part of why I wanted you on this podcast. It's very clear that you fall in that camp, that you really want to understand the big picture and what is the right solution for each person. So for listeners to translate some of what she said, she she's an expert in life insurance and disability and long term care, and those are three things I'd love to talk about today, particularly disability and life insurance, because I feel like that's just such a gap, especially for young families, I think they're so focused on other things. If I if I could wave a wand and make every young family in America focus on two things, it would be estate planning and proper life insurance and disability, because I think there's just so many bad stories of what happens if those things aren't paid attention to. Then I think first in line before estate planning would probably be the insurance, because it just has a bigger impact.

Peachie Thompson 02:53
Absolutely and you're absolutely right. I get a lot of younger folks, people, usually it's not foreign to us to see those GoFundMe stories. Not that there's anything wrong with GoFundMe. I believe that it's an awesome, awesome thing that we can crowdsource help for many things. However, when you don't have proper insurance in place. What happens is you become dependent on other people to take care of those things. So I think part of a good planning would be having some sort of insurance in there, just to make sure. You know there. I always say there's, there's two things that are for sure in our lives, right? First is, if you're a good person, you'll pay taxes, right? And then the second is death. We all die. It just, it just depends on the when, so taxes and death. So those are, those are probably the core things that lead into why someone would would get insurance, absolutely.

Joey Loss 04:02
Let's drill into term insurance first. So I love the GoFundMe mentioned. I think that's a great point. You know what? When I see a GoFundMe, a lot of times, it's, it's made from the heart, right, of course, but it also kind of suggests some there's a planning process that wasn't there, correct, right? And what a term life insurance policy can do is preemptively fill that gap, right? And maybe it costs you X amount of dollars a month. If you're in your late 20s or early 30s and fairly healthy, that number is probably going to be less than $100 $100 a month for one to $2 million of coverage for 20 years. And does that seem reasonable? Yes,

Peachie Thompson 04:47
generally, it depends on your underwriting class a healthy person is, is, you know, the way underwriting and the way insurance is priced is, is this way, the healthier you are, the cheaper it is. Yeah. The younger you are, the cheaper it is. So guess what that means? The other side of the spectrum is when you get some sort of disease, and most of us do, as we age, and as you age, the more premium you'll have to pay. There is no work around that.

Joey Loss 05:17
Yeah. And I think people wait, you know, young folks wait for some kind of triggering moment that tells them, okay, now's the time to go get life insurance, right? And the reality is, the triggering moment is the perfect triggering moment in my perspective. And I'm wondering about yours, is, is probably the least obvious moment there is where you're you're perfectly healthy, things feel fine. That's the moment, right? Because that's when you're going to get the best rate, and that's when you're not putting out other fires, yes, in that moment

Peachie Thompson 05:50
and and you're absolutely right. It should be, that should be the perfect trigger moment. You're young, you have some money that you can you know you're earning some money, and you can pay some premiums, right? You're healthy, that is the best time to get term insurance, in particular or any type of insurance, because it is the cheapest way and cheapest time to get it. So oftentimes, you know, like I mentioned, my background is in underwriting. And oftentimes, what that what that means is this, so really quickly, underwriting dictates costs, and underwriting is actually what the underwriters gives you a risk classification, and that risk classification is associated with the amount of premium that you'll pay, and underwriting is based on your health and your lifestyle and your family history, and, of course, the product that you're buying and so on and so forth. But for the most part, people can control your health, right? You can be you can lead a healthy lifestyle, you can exercise, you can try to eat healthy, you can try not to be overweight. Those kinds of things are controllable. That means you have actually direct control of the premium that you're paying for life insurance. What you don't have control is when you age, right? You can't, because everybody ages, therefore every year that adds Ding, ding, ding, ding, premium dollars to what you pay to the insurance companies. So that said, a lot of people wait for a bad triggering moment. Mostly, I have people come to me and they say, Hey, peachy. Actually, here, here's, here's a quick story. You know, I talk about insurance all the time. I've been doing this since 1997 and and I have a lot of clients that that I talk to, and so on and so forth. When, when 2020? Happened? What happened? What happened? We had this virus, right? That we did. We did not know what what it was. You cannot believe how many people called me and said, PT, that insurance. You've been talking about to me for many, many years. I want that today. Why? That's

Joey Loss 07:58
so interesting. I have not thought about COVID In this context, why

Peachie Thompson 08:01
did they start calling me in 2020, around March, April? Because now their mortality is in front of them. There's this thing. All of those people that I've talked to, young and old, they thought they were Superman, Superwoman, right? Were invincible. Oh no, that's not going to happen to me. So that I had so many people call me and say, peachy, I want that insurance now. Guess what? At that time, the insurance companies also did not know what was going on with with COVID, what COVID was, when it was going to last, what it was doing to mortality and so on and so forth. So they actually put a blanket statement at that time, I remember my inbox was blowing up, and insurance companies were saying, we are not going to insure people who are not 100% healthy, in the sense that if you're overweight, you're not going to get insured. If you're over 65 you're not going to get insurance. If you had some sort of heart disease, some sort of cancer history, you're not going to get insurance. So it was basically, if you weren't a perfect specimen at that point, you weren't getting insurance. And it was, it was eye opening for a lot of people, because, and also, if you recall what I said, I launched peach insurance in 2020 why? Because that was the catalyst. When people I remember coming to me and saying, I need this now. I needed this because I think I'm dying because COVID is was taking a lot of lives at that point. So that was a bad triggering event, right? Don't you think that was a terrible triggering event for people? So in the other part of this is people, even when they apply for insurance, for example, they they get a higher rate. So I have this 20 something year old person that I got super Preferred rates. So I remembered underwriting class. I said is, it's what dictates your cause. So super preferred is the best class that you could get. Then you. Have preferred and you have standard rates, right? So in other words, this is like, well, we can look at it like ABC. So if you get the A rates, you get super Preferred rates. Joey, so super preferred. I got this woman, a super preferred rate, which means she was going to get the best possible rate. She was going to get a cheapest rate for a million dollar, million dollars of insurance. And she was, at that time, 24 years old, so she went through the underwriting process. The underwriting process to take a little bit of time, and we got her super preferred. It was around Christmas time when I got that policy, when it was time for her to pay it, she kept delaying because she was 24 she was young. There was no reason for her, in her mind, to be in a hurry. So this was Christmas, and I said, Listen, let's just, let's just go in and pay for the policy, put it in force. And you know, whatever diagnosis you get between now and the time to term policy is is going to increase, which we can talk about in a little bit. What that means you're set the insurance company cannot rescind your policy or change it or whatever. Well, what did she do? She waited. It was so I pinged her January. Nothing. This February, nothing. March, nothing. In April, I kind of gave up already, right? Okay, you know, I think when she's ready, she'll, she'll, she'll pay the policy in April, I get a frantic call, and she's like, how do I pay this policy? How do I pay this policy now? And I say, wait a minute, whoa. Why are we in a hurry? She says, Well, I just got back from the doctor, and I have been diagnosed with pituitary microdenoma. What it's simple terms, what that is, is just a tumor in her between Terry Glenn, which is right back in the middle of her brain, well, the base of her brain to be technically, wow. So she's 24 years old, and even though it was benign, what did that do to her insurance? At that very moment, I could not. There was no insurance company that would have given her anything, because they don't know. Have to investigate what that pituitary microadenoma was. Was it benign? Was it secreting? Was it messing up with her hormones, in other words, and so on and so forth. Now, so I had to come back and say, Listen, I'm sorry. We can't, we can't pay for the policy because of this new diagnosis. So what we needed to do at that point in time, first and foremost, we lost the super preferred. We lost it at that moment in time, and we lost it for at least 10 years, for 99% of the insurance companies, which means we had to wait for her to have consecutive MRIs that are normal to show that the tumor was benign. It wasn't growing, it wasn't secreting any hormones, and it wasn't messing up with her system whatsoever. Before the insurance companies would actually look at her, we could, at that time, get her insurance, probably in about a year or two from that time, and it would not be super preferred. So what does that mean? Even if we got her insurance two years later from the time she said, Oh, I want to pay for this, it was more expensive. In fact, it three times more expensive because now she was a well, we would call this an underwriting class of standard, which is an average folk most people would be standard because most people have something going on with your health, but she was 24 years old. She had a whole life ahead of her, right? So that kind of, that kind of story, is very common, and that's that's when you get frantic calls as an insurance professional, they have something that was was said to them by their doctor, and they become scared.

Joey Loss 13:45
Yeah, that's very interesting. Yeah. I mean, that's exactly why, again, like we still, we got there to that story, which is a great example of talking about, like the triggering moment. The right triggering moment to get coverage is super boring, healthy moment, right? And the reason for that is what you just summarized, which is when you have your health and there's nothing on fire in your life at that time, that's the perfect time to introduce yourself and your health profile to the insurance companies, because they're most likely to rate you in the most favorable way. And if you can lock in coverage, let's say you get approved for a 20 year term policy, right, which is probably a pretty common timeline for someone who's married and just had their first child, right? And they're looking to get some sort of Term coverage so that if anything happens to them, their income is replaced. You know, at least their income is replaced by that policy, the emotional stuff you can't replace, right? That's irreplaceable. Nothing can do that, but at least that burden is not on our shoulders. That's the purpose of a good term policy, and a pretty classic case for getting it. If you go and get that policy for 20 years at that time, and three years later you get that tumor, the insurance company can't come back and say, Oh, we're not going. Do that policy right? Because that you've locked it in for 20 years. That's why you chose that timeline. Had you chosen 10 years, your premium would have been lower. But at the end of that 10 years, if you still need coverage, you got to go get reapproved again. So that's the trade off, that

Peachie Thompson 15:15
that is correct. So you hit any on the hand on that one, and let's see. We can do a little live experiment here. So, yeah, let's do it. I am. I'm going to run a quote for a male who was born in 1979 Okay, a non tobacco user for a 20 year term, and it's going to be for a million dollars of insurance of term 20. And we're going to say this, this male is preferred. Plus, remember Superman rate today, if I said, Okay, we're going to get the cheapest term insurance out in the market for a male was born in 1979 so 4545 46 years old, right? It only costs $993 per year, right? That's the cheapest out there today. Whereas, if I say, Okay, let's make that 1979 make that 45 year old older. Let's make it 1975 so I'm going to put September 1975 same. Everything else is is the same, and that person buys the same insurance, the premium increases from, what did we say, one 983

Speaker 1 16:42
something like that,

Peachie Thompson 16:43
to $1,383

Joey Loss 16:47
then it makes sense, right? I mean, the older you know, adding every year you live, you're a little bit closer to a reasonably presumed demise. I guess it's not fun to think about, but that's what the company is doing the math on, right?

Peachie Thompson 17:00
That's exactly right. That's exactly right. The closer you are to getting older, the closer you are to what we call your life expectancy. Yeah, right. As an average life expectancy, you are closer to it. So to your point, it's not only that once you lock in your rate today, as a, let's say a 45 year old male, and you develop something in the next three years. You got cancer, or actually, forget about the next three years. Let's say you paid for your premium today, and then you develop something tomorrow, tomorrow, then insurance company, let's say it's cancer. God forbid, is cancer. The insurance company cannot change it. If it's a 20 year term, you're 20 year premium. If it's $1,000 today, every year, it's $1,000 for the next 20 years, even if you develop cancer tomorrow. Yeah. And actually, the worst in the best case scenario. I shouldn't say best case scenario. You know, like Joey, I do this insurance so much. I kill so many people in my example. So I apologize to your listeners. Say you died tomorrow. You paid your insurance and put policy in first today, and you had a million dollars of insurance. You only paid one year. You paid the $1,000 you died tomorrow, guess how much your beneficiary gets? Still a million, a million dollars, tax free goes to your beneficiary. That's how it works. Pretty straightforward, yeah.

Joey Loss 18:38
And if I can add some color to this. So for those who've been listening enough to hear me harp on estate planning stuff, you know, if you set this up, which, in many cases I would, if you set it up the way I'm about to say, which, in my opinion, for most cases, with the family, is the right way. So you've got a young married couple, you have one or more young children, and you have a term policy in place, one of the spouses passes away, you can have that money go straight to the beneficiary, the surviving spouse, right, which is probably the most common. But another option, and this is something that I talk about with everybody, is you can have it go into a trust that is created on the death of that first spouse. And the reason you might do that is to have that money be protected from any future spouses your surviving spouse might have, right if it's in this irrevocable trust outside of your estate, outside of their estate, it's in this protected vehicle right now, there's some trade offs there. There's a whole bag there. I'll do another episode on that with an estate attorney, which will happen pretty soon in March. But the idea here is, again, you're just going back to the idea of creating something that helps take care of what you're no longer there to take care of yourself. That's what this is about. So, yeah, the triggering we talked about the triggering moment. It we talked about factors that can influence premiums. So age health, we talked about different durations of policies. Can we talk a little bit about disability coverage? I know this is another area you specialize in.

Peachie Thompson 20:21
Yes. So disability insurance is very different than life insurance. The term life insurance that we talked about that is money for your loved ones when you pass away, when you pass away, tax free money goes to your beneficiary on the disability insurance piece if you are disabled and cannot perform your job, therefore your income is affected, the insurance company will give you money for yourself so you're still alive, right? You don't have to die for that one too to have the better the claim to be approved. It's the opposite. It's actually now we're talking about your morbidity. So the money that the insurance company will give to you will basically help with paying for bills, for your mortgage, for your food, for electricity, your car, it's for you. So disability insurance is what what you would get to protect your income. And most people get disability insurance during their working years. And most policies that we write are up to age 65 and we can get longer than that if you decide you want to be working longer. And there's a lot of intricacies as far as how insurance, disability insurance is priced. However, the very core that we talked about on the term on the life insurance side is also applicable. So disability insurance is underwritten in a way that it takes into consideration your health, your lifestyle and your your most importantly, your income, how much you make and your work, what you do for a living. So now, in addition to the underwriting classes that dictate how much premium you pay, it also will take into consideration what kind of job you do, for example, which is more likely to get disabled an executive or a financial planner who's normally meeting with clients in front of computers or having conversations, lunch, dinner or whatever, or someone who is oil drilling out somewhere in the ocean, right? So those are two very different professions.

Joey Loss 22:55
Absolutely. Yeah, that makes sense. And yeah. And the reality is, you know, in a disability situation, in some ways, that is the more expensive of the two, especially if you're talking about the sole breadwinners income, right? In a single income household, disability coverage gap on that person is even more important than in a dual income household, because if, if you have a household that depends on, let's say, $100,000 of income from one of income from one spouse, or two or 300 that doesn't matter the number, but that that one person's income is there and that goes away. Yes, there's some federal disability benefits. Maybe there's some policy that's had at work, and different workplaces are better than others, right? It's fortunately or unfortunately the way things work. Or, you know, if you tend to be in more of a white collar profession, it's more likely that your workplace is going to offer some sort of workplace disability coverage. That disability coverage is going to have some pretty hard caps. You know, might be capped at 60% somewhere between 60 and 70% that seems to be the standard. Additionally, if your employer pays for part or all of it, then part or all of the benefit that you receive is going to be taxable as well, and that tax piece is a huge consideration, yeah, because for that, for that $100,000 income household, if the benefit is, let's say, 60% and it's employer paid, well, that sounds not too bad, right? They're going to get 5000 a month, but they're going to get taxed on that 5000 a month because it's employer paid. And so that 60,000 is really more like, I don't know 40,000 was that 3000 and change a month? That's a big difference, right? I mean, that's two car payments, different,

Peachie Thompson 24:38
yes. And actually, when we do what I would call private disability insurance, because I get that question all the time, they come to me and they say, well, I already have group di group disability insurance. Why do I need to get my own private disability insurance? First and foremost, I. It's great you have group di right if you do for through your employer, but what happens if you quit your job, or what happens if you get fired or when you retire? So some some policies are portable, per se, up to a certain number of years when you retire, but if you get fired, then it's done right the moment, the day you get fired. Today, it cease to exist. Or if you quit, you decide you want to move on to another company. So that's one of the reasons that you want to get a private disability insurance, apart from your employer, it's because private di is portable. Doesn't matter you own it, therefore you can take it wherever you are, right? And it's based on your current profession, right? So that's usually how you would get your policy. It's also, like said, cheaper when you're younger and you're healthier, and it works concurrently with your group insurance, meaning you can have both at the same time, so you don't have to pick and choose. You know, you're not just because you have group insurance. Work doesn't mean that you can't get insurance outside of your work. In fact, you should, because they work together. We take the we I mean, the insurance company would actually take into consideration how much group insurance you have, and with that, how much is the maximum they can give you outside of your employer's group insurance, in addition to Joey's point, the taxation part, So I'm not a CPA or anything, right? Neither of us, I don't think. But when you do your private insurance, because you are paying it with after tax money, you are paying for it already with money, you can then get the group di benefit tax free, right? So that's yours. So that's a huge difference for a lot of folks. That needs to be understood, because once you start doing the calculation, the taxes needs to be factored in, and otherwise it's it eats up into your now I'm going to, you know, say, investments or or assets or whatever, and as part of big planning, right? So the DI once your income is not coming in, guess where you're going to take your money from to pay for living expenses, just to live. Where are you going to take it from,

Joey Loss 27:43
right? Yeah, and that's, you know, the point of all of this, this whole conversation, of why this is so important, is we're trying to plug the holes at the things that can really gut the plan. Right? Your way, people spend years and years decades. Everybody spends decades building to the point of financial independence, and it really takes only one super unfortunate event to completely derail that. And you hope you know the the painful thing that's really hard to swallow about insurance is you pay it for a long time, and you hope you never use it right? You kind of win either way. You know, you don't. You don't want to win by getting disabled. So disabled, you can never work again, right? That's not really, you know, I'm sure there's some unique cases where somebody's like, not really that disabled, but it works out. But, you know, the fraud detection, let me just say, in the disability world, is very effective, like, it's very hard to pull that off, and that would never be part of a financial plan. But I'm just saying, for anybody who's hearing this and thinking that that's not really how it works and but what you're trying to do is, you know, the trade off is, I don't know, for a good disability policy, I would imagine it's somewhere between three to 5% of income for a specialized you know, let's say you're a surgeon, and you make 400,000 a year. You know, a disability policy is a good one bone occupation, meaning the second you can't be a surgeon anymore. Specifically, coverage kicks in. It's not that you can't work at any other place, right? If you can't go scan books at the library, you know that's it's not like you can't you have to be unable to do anything right, own occupations a little bit more specialized. It means you can't be a surgeon anymore. That kind of coverage is probably going to cost, what, upwards of seven to 10,000 a year for that person because of their income. But the trade off is they're securing the fact that they won't have to draw down on the retirement they've been working so hard to build in the event something takes away their ability to be a surgeon.

Peachie Thompson 29:53
That is, that is correct. That is actually one of the biggest thing that I see. Is when you mentioned. Own occupation is that people say, Well, what if I can still work? But it's not what I was doing. So that's why it's important for for anyone to have a knowledgeable financial planner and insurance person that understands how you can design these policies because there are many ways to design them. One of them is to not have that own occupation. And what that does is the opposite of what you just described, Joe, is if you are actually able to work in another profession, not a surgeon, let's say you become a singer, right? But you're still making less money than you were when you were a surgeon. That policy is not going to pay. Whereas, if you have that own occupation, writer in your policy, then if you were a surgeon, then you got disabled, then you can no longer be a surgeon, but you decided you were an awesome singer and started singing, but started making only a quarter of what you were making, because you're not that great of a singer, apparently, right then your di is still paying enum, and we can design it that way, the difference, or not the difference actually the full amount of what you were approved for for your disability insurance. In other words, whatever that benefit amount was that you covered when you were a surgeon, so then you can sing away for as long as you want and no longer come surgeon, right?

Joey Loss 31:37
And for listeners, listeners who you know, heard a couple episodes, know that we try very hard. Adam and I at strive us. We try really hard to know where our boundaries of knowledge stop. And I think our job as financial planners is to have the conversations about, okay, here are the potential risks, right? So we would identify that okay, the income or the this financial plan is really dependent on this income continuing for X number of continuing for X number of years. Well, if there's no meaningful disability coverage in place, or we know that this person's in a specific occupation that makes 10 times more money than they make doing anything else that they're prepared to do, well then we can just wave the flag of hey, it's time to bring in peachy. Or anybody that's a disability expert to dig into all the different ways we might structure a plan, and PG and the outside company would provide the policy because we don't sell them ourselves, but that's what that relationship looks like. There's no kickbacks in any direction. It's just all part of serving the client and protecting the plan right. My interest is in I want to help keep that plan as solid as possible, and for transparency purposes, a part of our compensation is based on our ability to bring in the right resources to help make that happen, right? But at the end of the day, we just want to help you as well. But I know people care about incentives and how everything fits together and that and that makes sense, really, but bringing in an expert like PG, who can go much farther into the weeds of, how do we structure this strategy the right way for this particular situation? That's why we bring in you, yes,

Peachie Thompson 33:10
and you know, thank you for mentioning that. I believe that a lot of field planners should, should be very clear with because I get asked this, oh, does my planner get paid? When? When you get paid? No. Fee only. Planner, for example, trust me to be their insurance person, just because they know that I can help their client, I have the same amount of care that they do my fee only planners like you, for example, you don't get paid when the disability insurance or term insurance that is put into place, and it's merely a a relationship, a service that you you provide, you find the right person to help your client with these things. And to your point, yes, we can definitely dig much deeper into these products, these strategies, to complement your plan. It's not so much. It shouldn't be a competition, per se. It needs the any of the insurance that you put in place, or we put in place should be complementing the financial plan that the planner actually puts together for the client, right?

Joey Loss 34:26
And that can evolve over time. And one of the things that my wife and I did, I always try and talk about our situation, because I think there's a lot to glean from it, and I know more about it than any other so for our life insurance situation, we have $2,000,000.20 year term policies in place for each of us. I got a preferred rating, which was great, right? I have very cheap coverage. My wife's coverage was a little bit more because she unfortunately had, like, some appointments seven years ago where it looks like there might be a condition and there was no condition. She's perfectly healthy. But to your point. About 10 years, they've got an elephant's memory when it comes to that kind of stuff, so we pay about double for her premium, which is unusual, because when it comes to life policies, men are more likely to die to women at the say, all else the same as far as the insurance companies are concerned. So it's typical for a male's coverage to be higher than the female, but with all that said, when we looked at all the policy options and we saw quotes from different companies, what we ended up going with, and I'm not going to say the company was not the cheapest of the options, but what we liked about the option was that we could adjust the coverage amount over time without penalty or going through underwriting, and we could adjust it downwards, right, which we thought might be applicable in our situation and other situations that may not be applicable. But for ours, we thought, you know, we think 20 years is going to be long enough to cover the worst case scenario where we want to fill a gap, but should we want to decrease that sooner and pay a little bit less in premium? We're willing to pay two or three extra bucks a month each for the for the option to do that. And so that's what we did for our situation. And and then, from an estate perspective, what we did is we set up those trusts that I was talking about. So should I pass away, or should Elizabeth pass away? A trust is created upon her death. That process is called testamentary trust making, and the life insurance goes into that trust, and the income from that trust is then given to me, if Elizabeth were to pass, or if I'm the pass, then it goes to Elizabeth. But the principal amount, right? So if it's $2 million it's in there. The bulk of that money is protected from any sort of bad actor or future partner that you know, if they get wind of the money and want to, do, you know, take advantage, they're, they're pretty harshly limited on their capacity, yes, and that is a big lawsuit, right? Like so if she's in a big car accident, and for some reason, at that time, doesn't have liability coverage that she needs, or vice versa, then that asset is out of reach from a core judgment.

Peachie Thompson 37:14
Yes, and I'm glad that you guys thought that through already, and that a lot of people think of it that way that now you have that's, you know, we can structure the beneficiary arrangements depending on the client situation and desires, such as, what you guys did is a little bit more now you have a trust as the beneficiary for yourselves. Some people, sometimes they just say, Okay, we'll just have a straight up spouse to spouse, and there's nothing wrong with that, too. I know if your business owner, I do a lot of business owners, for example, you know not to get off on a tangent, right? It's the same way that your your loved ones will receive money at your death. If you have a business partner, for example, right? So if you were to pass away, you have a share in your business. So let's just say you, Joey, you're 5050 I'm just, I'm just saying what your situation is at this point. But you're 5050 with your current partner. If you were to pass away, let's say the value of your business is a million dollars, therefore half a million is yours correct. Let's just say that's the way it is. So if you were to pass away while that arrangement is so 5050, your partner, you need what we call a Buy Sell agreement that actually says, If you were to pass If Joey passes away, partner needs to buy out his share of the business, meaning give money to Elizabeth the heirs for give half a million dollars, because that's what Joey worked hard for, and that's his share of the business, right? So there's two things there to buy sell needs to be tied into, sometimes insurance, or there's other ways to fund it, which I'm not going to get into, because I might warrior people listeners, but you know, and that could be a different, totally different conversation, but just kind of high level, the idea is the same, that there's tax free money that will be going to your partner, that that will basically be tied into a buy sell that dictates how he's going to pay your heirs in this in this case, let's just say it's Elizabeth, or trust, or whatever that's associated with that would be for the benefit of Elizabeth. It's, it's insurance money that goes there and pays and again, takes care of Elizabeth. Right? So those are bit of a tangent. But, yeah,

Joey Loss 39:44
well, no, I think that's a good it's a good place for us to if I can wrap up like what we've talked about, I think we've covered a lot of good things. And you know, I could tell you're like me, where, if you're given a microphone to no external stoppage, we could just go on nerd out for this. Or hours, absolutely.

Joey Loss 40:03
But so I think the biggest takeaways are, look the questions you have to ask to start to figure out, is there a need? The first one is, if I pass away, is anybody up a creek? If the answer is yes, then there's probably, there's potentially a life insurance need, and that's where the conversation starts for that. The next question is, if I get disabled or something happens to me? I'm in a car accident and I can't work, or, you know, I crushed my hand on the job. And yes, there's other types of insurances that might play a role here, but let's just say, generally speaking, something happens to you, you're unable to work, and nobody else is going to pay for it. Are you up a creek? You know? Then there's a potentially a disability need, right? And you start from there. People don't love thinking about paying premiums for these coverages, but the idea is, you're really, again, you're just plugging the whole potential holes in the boat. It doesn't take much to sink a really a big ship that you've been building for a long time. And that's what we're trying to prevent here with this type of coverage.

Peachie Thompson 41:04
That's right, I could not have described it better than you did. You know, that little hole sink a giant ship, really? Yeah,

Joey Loss 41:12
it doesn't take much. And look, we've seen it happen. And so, you know, we just, I take pretty seriously. I know Adam does too, and I have tons of friends at other firms, and I know insurance people feel this way too, that helping people plug these gaps is a big deal, because if something happens and there's the peace of mind to focus on what really matters, which in typically, in any event where one of these is needed, there's either a loss of life or there's a loss of health, there's a lot of other stuff to focus on that's more important and typically, a big concern about finances in either of those moments is not good for health. You know, whatever the situation is, and starting point, if finances become a problem, the health gets worse. It's just a fact, that's right. So, so anyway, peachy. How can people keep up with you if they want to know what you're doing and writing and talking and thinking

Peachie Thompson 42:03
about Yes. So there's a couple of ways. I have my website, Peach insurance.net, I have a blog there that I write from time to time, all about insurance and also some of the things that I love in life, like cooking food. I love food, and you'll get some recipes there. You get all kinds of geek insurance stuff there, life long term care. Di, you are also welcome to connect with me on LinkedIn. So peachy Thompson. I'm usually the only peachy Thompson insurance that you'll find there. But if you find someone else, let me know. I'd be interested to see who that is, and or you can contact us directly with an email contact@beachinsurance.net but either way, I'd love to connect with you, and you know you can reach me that way. Awesome.

Joey Loss 42:53
Well, PG, we're going to put links to those places in the show notes, and I appreciate your time. Thanks for coming on the podcast. Thanks

Peachie Thompson 42:59
for having me, Joe. We appreciate it awesome until next time. Okay, bye, bye.

Joey Loss 43:10
Thanks for joining us. If you enjoyed the podcast, please consider sharing it with your friends or family. This is the best way to spread the word, and we want to keep churning out great content for you guys. Show Notes and episode transcripts are available on our website at strivus wealth.com/podcast Special thanks to bode leesons for the intro outro music and to the podcast man for producing the show. Until next time,

Disclaimer 43:36
The Wealth Unplugged podcast is sponsored by Strivus Wealth Partners, Joey and Adam’s, SEC SEC-registered investment advisory offering Financial Planning and Investment Management services to clients across the United States. The opinions voiced in this episode are for general informational purposes only. Nothing any host or guest says on the podcast is meant to serve as advice or recommendations for any individual security to determine which investments may be appropriate for you, consult your financial advisor prior to investing. This information is not intended to substitute for individualized tax insurance or estate planning advice. Please consult your tax advisor, insurance agent or a state advisor regarding your specific situation.