How Entrepreneurs Can Build And Protect Tax-Free Wealth Using Life Insurance

Auto-generated from the episode audio and lightly cleaned up. Expect the odd misheard word.

1. 0:00
   Jason Hansen

   What's the best kind of life insurance to have? The kind that is enforced when you need it. I didn't have living benefit. I got hurt in a nasty car accident and it completely destroyed me financially.

2. 0:10
   Wes Mathews

   You're a certified living benefits expert. What does that actually mean?

3. 0:14
   Jason Hansen

   Policies where people can access the death benefit in the event of a critical terminal or chronic illness. How realistic is that? You can have up to 75% of your death benefit and that comes in a lump sum. I've seen a claim as high as $872,000 paid out. The most interesting thing to me is life insurance as an investment vehicle. We can't call it an investment. Cash value life insurance is the most powerful financial tool on the planet. The problem today is that's not how it works.

4. 0:48
   Wes Mathews

   Jason Hanson, thank you so much for coming on. I'm really excited to kind of dive in with you, but I want to quickly introduce you and kind of why you're on the podcast today, which I'm really excited to dive into this topic because it's been confusing for me. I consider myself semi-intelligent and every time I talk about this subject, I either feel dumber or I don't know. I just want to cut through the crap and kind of get some answers here and I think you're the right guy to help with that.

   I want to introduce you to everybody. You're a certified living benefits expert. My bad. So talk to me a little bit about that. What does that actually mean?

5. 1:32
   Jason Hansen

   So there are certain life insurance companies that have policies that include living benefits at no extra cost. A lot of times when I say living benefits, people think I'm talking about whole life and somebody accessing the cash value when they get sick or they get hurt. That's not what I'm talking about. I'm talking about policies that have actual benefits built into the policies where people can access the policy, the death benefit in the event of a critical terminal or chronic illness, also critical injury. Those things are very important.

   I have dozens of testimonial stories about people that have accessed their policies and it completely changed their financial trajectory. I have my own story. I didn't have living benefits and I got hurt really bad in a nasty car accident and it completely destroyed me financially about 30 years ago.

6. 2:34
   Wes Mathews

   So when we're talking about life insurance, I met somebody 10, 15 years ago and they're like, you need life insurance. It's like, okay, let's kind of figure out how much I need. At face value, I was kind of like forecasting my life as it was then my kids and how they could sustain a lifestyle or operate in the event I'm no longer able to. To me, it's pretty basic stuff, but then I think this is where it all kind of gets confusing. Because part of me is, I forget what the amount is, but I'm paying a certain amount per month, but then I'm looking at it, well, if I just made an investment, it's just very confusing as to.

   And then you've got guys that are like, well, you can actually use this as an investment vehicle, put X amount away every month. And I'm like, what is it? There's whole life, there's term life, there's this other investment vehicle that these guys are talking about to use it to pull cash out at a later date, borrowing money from yourself. So can you just explain, if you're walking around as a human, and if you're running a business, what is life insurance? What does that mean? Or what should you start to think about to protect your assets?

7. 3:54
   Jason Hansen

   Well, people always ask me, what's the best kind of life insurance to have? And my answer is always the kind that is enforced when you need it. So there's term life insurance, you mentioned term. Term is for a set number of years, either 10, 15, 20, or 30 year term policies, much less expensive. As we get older, and we need to renew them later on in life, they get much more expensive. Outpermanent is more expensive in the beginning, but the permanent policies that I work with, they stay in force until you are 120 years old, and you can usually pay for them in about 20 or 30 years.

   Sometimes you can pay for them in seven years, sometimes you can pay for them in 10 years. So there's a lot of different ways that we can structure a policy to make it work for you. You know, obviously, a term policy doesn't have any cash value in it. But as I mentioned before, the term policies that I work with include the living benefits, which is you can access in the event of a critical illness or injury, you can access up to 75% of your death benefit.

   If you have a terminal illness, you can access up to 90%. And chronic illness, you can have 2% per month. That's the big deal. You got a million dollar policy, that's $20,000 a month for chronic care.

8. 5:27
   Wes Mathews

   I've never heard of that. My experience with life insurance is like, all right, here's what's going to happen when you die. Like how much do you need? Do you need a million, two million, four million? And this is what happens, right? But you're saying that if something happens, right, and you're still alive, like are these special kinds of policies or are these applicable to like every policy that people have access to?

9. 5:50
   Jason Hansen

   Not every company offers these, these robust type living benefits. There's just a few companies in the industry that offer these benefits.

10. 6:02
    Wes Mathews

    Because what I want to ask you direct, right, like my world is entrepreneurs. And entrepreneurs get so hyper focused on just building their company, their employees, a lot of them don't take a lot of money along the way, they're reinvesting every dollar back in the company. So like the big part of their nest egg is the company, right? And you have the other entrepreneur that's like making a lot of money ongoing, right through income or capital with you know, distributions. But from your perspective, I know a lot of entrepreneurs that just haven't done anything.

    It took a while for me to like, do something myself. But now I'm learning new information from you about hey, if something happens, and I just went through, my dad just went through an experience like you just never know what can happen. Yep. So like, how do you like look at an entrepreneur like myself, and I know everybody has unique situations. But like, what do you recommend just with your deep expertise in this field, that entrepreneurs should be thinking about and how to structure and set this up the right way?

11. 7:05
    Jason Hansen

    Well, first of all, how much money do you need to if something were to happen to you, how much money do you need to sustain? You know, we can do the math and figure out all right. You know, if I'm down for a year, if I'm down for two years, if I'm down for five years, I'm going to need X amount of money. And we can we can figure out, you know, how much death benefit you need in order to generate that generate that money for you.

    And you're right, most entrepreneurs are hyper focused on growing their company. And they don't stop, they don't take the time to think about, you know, if something happens to me, you know, how am I going to fare financially. And so it's pretty simple, pretty simple math of being able to plug the numbers in and figure out how much death benefit do we need to generate, you know, in order to get them a payout if something happens to them. And real quick, hopefully, we can get them through that event and they can continue on, you know, in their career.

    So how does that work, right?

12. 8:14
    Wes Mathews

    If somebody has a policy, and you know, God forbid something happens, an accident, and I think you had mentioned you have a story to share about that. Like, is it something where like, you know, a traditional payments around 500 to 1000 a month, and you're buying a two, $3 million policy, and you mentioned like, there's a portion of that policy that you can get back, is it? I mean, talk about that. I mean, you're talking like 20 grand a month, or 30 grand a month, 40 grand a month, like, how realistic is that?

    Because, yeah, I mean, these entrepreneurs have a, you know, because then you also have like key man stuff you have to deal with. If you're not, you know, there's company stuff, there's personal stuff. So you should probably increase what you think you need, because there's always the surprises and additional funds you need. But can you talk a little bit about that? Because I think it's really interesting. Like, I've never heard of it. Just curious around your thoughts about that. Well,

13. 9:07
    Jason Hansen

    like I said, with the critical benefit, you can have up to 75% of your death benefit. So you got a million dollar policy, you can have up to 750,000 of it. And that comes in a lump sum. The terminal you can have up to 90%. So million dollar policy, you could have up to 900,000. And you mentioned realistic. I've seen a claim as high as 872,000 paid out for a guy that was terminal. And it actually, the money didn't extend his life. But what he was able to do with the money, you know, he was able to go to MD Anderson, Houston, he had one of those glioblastomas in his brain.

    He was able to go to go to MD Anderson in Houston, and get some ancillary treatments that actually extended his life. I mean, he did pass away, but when he passed away, his family was set, because they had already taken that money and done what they needed to do to be able to carry on for their lives. And then, you know, the chronic benefit. And it's important to note that it's a chronic benefit. It's not a long term care benefit. I can't call it long term care, because if you can't do two out of the six activities of daily living, which are toileting, transferring, feeding, contents, bathing, dressing, you can have up you can have 2% of the death benefit.

    So million dollar policy, you get 20,000 a month out of it. You know, that's going to go a long way for somebody. And I always make the joke, you know, something happens to me, you know, my wife can put me in the shed in the backyard and have a nurse come by and check on me once a week and take the money and I don't know, spend it on her new boyfriend, right?

14. 10:56
    Wes Mathews

    Now is that is that in perpetuity? Or is that only go to the amount of the falls?

15. 11:01
    Jason Hansen

    So it's up to so it's 450 months. Okay. Interesting.

16. 11:09
    Wes Mathews

    Yeah, I've never I've never heard that honestly, like, and I've, you know, I've always thought it was just like life death, like, here's what happens when you pass, right? But talk, talk a little bit then. I think the most interesting thing to me is like the whole, you know, life insurance as an investment vehicle. Yikes. We can't wait on that.

17. 11:31
    Jason Hansen

    Yeah, we can't call it an investment. Cash value life insurance is the most powerful financial tool on the planet. The problem today is the youtubers and the tick talkers that are touting it, touting it as being more powerful than it really is. In other words, somebody gets on tick talk and says, Oh, you can put $100 a month and that's going to create a million dollars for you, you know, in the next few years. That's not how it works. Permanent life insurance, like I said, is very, very, very powerful.

    It's very flexible. You know, you've heard of infinite banking, be your own bank. And that's what they're talking about. They're talking about permanent life insurance where you can access the cash and the policy at any time, at any age, for any purpose. You know, we, we sometimes call it a Roth IRA on steroids where the money is growing non-taxable. So there's no tax being paid on them, on them, on the growth of the money. And then you can access that money back tax free. Like I said, at any age for any purpose.

    Now, it takes more than a hundred dollars a month to be able to create a policy that you want to do that with, you know, real estate investors use these policies all the time. They, they put large quantities of money into the policy and then access the money back, you know, maybe to buy a property or renovate a property. And, you know, when they sell the property or when they, maybe they're, they're renting the property out, they can, they can put the money back into the policy and it just, it grows that much faster.

    I'll give you a small example of, of how I've used mine. I've got a son that he turned 16 two years ago and we live in Nebraska. So what does every 16 year old kid want? You know, when he gets his driver's license, he wants to pick up, right? So we found one and went and looked at it and took it for a drive. I asked him, I said, what do you think? He said, I really like it. I think I want it. I said, all right, let's talk to this guy who's a, it was a farmer little ways, little ways away from where I live here.

    I said, let's talk to this guy and see Phil. Let us, let us give him, give him a check to hold onto it for us. So we asked the guy, if I write you a check for $500, we hold onto the truck until we can, we can get the money and come back and pay it. He agreed to that. So this was on a Saturday. We went home and we had started a policy on my son about 10 years ago. Actually, it was longer than that.

    He was four years old when we started the policy. Anyway, we started the policy way back then. And so we called the company called the life insurance company on Monday said, Hey, we need X amount of money out of his policy. They said, there, there's no questions other than would you like that EFT or check. Two days later, the money was in our account. We went and paid the guy cash for the, for the pickup. And now when we got home, I said, now, Davis, what you're going to have to do here is if we would have gone to the bank, they're going to want you to pay that back.

    You know, gone to the bank, got a loan. Obviously, you're going to have to pay that loan back. And so what you need to do is you need to pay this back into your policy. You need to put money into your policy every month. And so that's what he's doing. And his policy is going to grow that much more. So that's kind of a smaller example of how I've actually used mine.

18. 15:24
    Wes Mathews

    So you're basically taking a loan from yourself, essentially. So like, let's kind of dissect that a little bit. I love that. It's that small scale. So it's super easy to understand, right? What if he doesn't pay that back, right? He's like, Hey, I'm, I'm good. Like, when I die, I die. Like, it's not my money anyway. And I don't want to pay that back. Right.

19. 15:43
    Jason Hansen

    You don't, you don't have to pay it back. It's just going to, it's going to lower the death benefit and the policy. You know, you're going to lower the cash that's inside of the policy and you're going to shrink your death benefit a little bit.

20. 15:54
    Wes Mathews

    But it's still like, so the money he puts back in, the money he generates, that's still going to be classified as income, or is it not?

21. 16:03
    Jason Hansen

    As far as taxes? Correct. No, it's tax. It's, it's tax-free when it comes back out.

22. 16:10
    Wes Mathews

    Going in, it's, you're always going to be taxed coming in, the money coming out. It's already, it's already taxed, correct?

23. 16:18
    Jason Hansen

    Just like a Roth IRA, the money's taxed before you put it in. Then it grows with no tax and comes back out tax-free.

24. 16:28
    Wes Mathews

    So from your opinion and expertise, like what's the, what's the benefit then, right? Like if you would have set your son up with like, say a basic, you know, account of, you know, investing in the S&P 500 or whatever vehicle you're using, right? In a, in a stock versus him pulling from there to use that money. Like what's the biggest difference?

25. 16:49
    Jason Hansen

    Well, the, the tax benefits, obviously. Oh, my brain just did something.

26. 16:59
    Wes Mathews

    But the tax benefit, like help me understand though, because if the money going into it is already taxed, the money coming out, like there's no taxable event. But like when it's a stock, you're going to have to pay on capital gains or a loss. Correct.

27. 17:18
    Jason Hansen

    So the first thing I want to talk about there is these policies, the way they work is they credit interest into the policy based on what the index does. And let's use the S&P for easy, easy example. And that's the most popular one. So let's say the S&P goes up 8% one year, they credit your account 8%. So it goes down 8% the next year. That year you would get a zero. It has what's called a 0% floor on the policy. So anytime the index goes down, you don't take the loss, you get a zero.

    And sometimes I get some pushback on that people say, wait a minute, you want to offer me zero on my money? Well, if we could rewind the clock back to 2008, when the index dropped 54%, zero would have been your hero, right? Yeah. And then anytime it goes down, it usually rebounds pretty well in the next year, say it rebounds 12. Well, again, I said the floor is zero. So if something has a floor, there's usually a ceiling. Let's for example, for my example, let's say the ceiling is 10%.

    So you give up that 2%, they only give you 10%. Interesting. So like what?

28. 18:37
    Wes Mathews

    So what's the vehicle then? Because I see like you talked about like real estate, you know, individuals using this, like is it get the max amount of death benefit that you can possibly get based on your health and how much you can afford? How do you how do you determine that? Like if I'm like, hey, like I want a nice distribution for my family if something happens, but along the way, I mean, I kind of look at this as, do you really want to use this as like a HELOC, a home equity line of credit, or like some type of vehicle to move stuff in and out of or is it, you know, what's your take on that?

29. 19:16
    Jason Hansen

    Well, if for obviously it's this is a life insurance is a long term play, permanent life insurance is a long term play. You know, that's where people get in trouble is, you know, they, they stop contributing, and the policy eats itself up. Now after a certain point, you know, that's not going to happen. After a certain point, there's going to be enough cash in there to sustain the policy. You know, and you talked about using it as a HELOC, usually get a better interest rate on a life insurance policy.

    So ask me that question again, Wesley. Sorry.

30. 20:03
    Wes Mathews

    Yeah, no, I'm just thinking about like using it. You know, again, I'm thinking like from my where I sit as an entrepreneur, and just entrepreneurs in general, right, there's always costs or things or opportunities or real estate, or buying the son's vehicle, whatever that may be. And you either need to like, dip into your checking account, right and do this. Or you need to tap into some type of an account. Right, right. So the traditional way is probably like, do you have an E trade account?

    Or do you have like a guy managing your money? Right, right. So my question is, you know, if I need life insurance, anyway, right, if something's going to happen to me, can I play that along the way, if I want to buy a $200,000 down payment on a house, I'm going to flip. And I've got five kids, and I've got three vehicles this year. And whatever, like, is that a good tool? Or does it just kind of complicate things or get you in trouble? And does the IRS approve of that or not?

31. 21:08
    Jason Hansen

    It's a great tool. And the good thing, one of the most wonderful things about life insurance is there's no umbilical cord to the IRS. Absolutely none. So, you know, you ask the question, should I get as much death benefit as I possibly can? What we usually do is we will create a term policy as well as a permanent policy, so that if the living benefits are needed, we take the money out of the term policy. But yes, create as much death benefit as we can in the permanent policy, so that we can grow as much cash in that policy as we possibly want to.

    You know, I've got a doctor that puts $650,000 a year into his policy. He's running himself into the ground, and that's why he's doing this. He's going to put $650,000 in a year for seven years. And then three years after that, he's going to be able to retire and have a nice tax-free income. So again, it's very, very flexible.

32. 22:15
    Wes Mathews

    So tax-free in the sense of let's just stay on that real quick. So help me understand and I'm understanding properly. So this calendar year, I pump in $650,000 into the life insurance policy. I do this every year for six years. So I'm paying the tax on the money as income, but when it goes into the life insurance policy, it's there. Six years, I'm like, hey, had a good run. I want to retire. I want to live off my life insurance benefits. So I can take distributions from that as I see fit.

    And if I understand correctly, if it's tied to the index and let's just use the S&P, if it's 8%, it's growing along the way. And if we have a crap year, if the market's down 12% negative, I have a safety net at zero. So again, I'm no mathematician, but like 8% growing at that's a decent clip of cash. Now, when I pull that out, there's no tax liability on that growth gain. Zero. Zero. Correct.

33. 23:24
    Jason Hansen

    That's why it's so powerful.

34. 23:26
    Wes Mathews

    So let me ask you a different quote. Like, so what's the strategy then for you for somebody like, hey, like if I like right now, I love a stock right now, it's called VOO. Okay, nobody like take my advice on any of this, but it's a Vanguard index fund, right? And it's performs really well. But like after talking to you, it's like, well, there's a lot of risk with stocks and mutual funds, right? It can go to zero and below. So why wouldn't I pump all of my money into a life insurance fund, where I have that bottom protection versus, you know, the traditional way of buying stocks or E-Trade or having just like normal financial investment vehicles?

35. 24:11
    Jason Hansen

    Well, life insurance is a tool. If we've got a nine sixteenths bolt, we're not going to we're not going to tighten it with a seven eighth wrench, seven eighth wrench, right? So it's a tool. And I, it's, you know, we talk about using buckets, right? With life insurance being one bucket, you know, in your case, where you're managing your own money, and you're doing halfway decent, you know, it depends on how much risk you can afford to take. And that usually has to do with somebody's age, you know, the older we get, the less risk we want to take.

    So, you know, I encourage people if, if they're getting a match, I'll use 401ks as an example. If they're getting a match, take that, take that match, contribute to the match, and anything else, let's take it over here and let's, let's, let's put it into a life insurance policy so that you can have some tax-free cash as well as, you know, your tax-deferred tax cash. I have a great story about that. I don't think, I do a lot of drawings and pictures and things like that.

    We'd have to get back together to look at that sometime. But, you know, we, we talk about the tax buckets. You know, one bucket is our tax bucket. That's our wages and income and all those things that we pay tax on as we earn it. If we don't, the IRS will chase us down, throw us in jail. Then there's the tax-deferred bucket, 401k, IRA, 403b, all of the number letter alphabet soup of tax codes. And then there's the tax-free bucket, municipal bonds, Roth IRA, and then life insurance.

    So I encourage people, you know, I wouldn't shove everything into a life insurance policy, especially if you can, like I said, if you can tolerate a little bit of loss, and if we're young enough, you know, take advantage of those, those big gains in the market while we're young. But then as we get older, maybe start shifting it more, more into the safer bucket.

36. 26:28
    Wes Mathews

    Yeah. Cause if I, you know, just looking at it simply, if I have, let's just say a million dollars in, you know, a mutual fund that's making 8%, right? That's $80,000 a year. Right. If I pull that out before one year, I'm taxed at max, you know, Uncle Sam, right? Yep. And then if I go beyond a year, like that money is at what, 15% or whatever. But if I, and say I want to buy like a piece of real estate, you know, for, for 80 grand.

    Now, if I had that life insurance vehicle and the money's in there, I can take that money right out with no tax implication whatsoever. And I have the flexibility of backfilling that or not. Are there caps on these policies and how much money you can stuff away? Nope.

37. 27:21
    Jason Hansen

    You can put, you can grow as much money as you want. Matter of fact, I, one of my business partners had a conversation with a billionaire in Colorado, guy's worth $8 billion. He actually has 19 permanent life insurance policies that, that he uses. So there's, there's no cap on the number of policies you can have. And we're not limited as to how much cash we can put into it. You know, that's one thing I'm going to talk about with, you know, Roth IRAs are great, except, you know, there's that umbilical cord to Uncle Sam, as well as, you know, if we're under 50, we can put 7,000 a year into it.

    If we're over 50, we can put a whopping 8,000.

38. 28:08
    Wes Mathews

    And there's income required, correct? I mean, if you make a certain amount of income, you can't even,

39. 28:12
    Jason Hansen

    that's the number, right? That's exactly what I was, where I was headed. If you make too much, you can't have one. And you have to wait till you're 59 and a half to access the money tax-free life insurance policy. We can, we can access the money anytime we want tax-free, no questions asked. And I like, you know, I've started, I've started several policies on kids when they're 10 days old, to get them started when they're young, and their insurability is still there. We can use the money for college, we can use the money for a car, like I, you know, the example I used, we can use the money for anything we want later on.

    So we're not limited to an accredited university like you are in a traditional 529 plan.

40. 29:00
    Wes Mathews

    So if you start that when they're 10 days old, right, or whatever, very early on, is that, what, what type of policy is that? That can't be a term, or is that a term or is that, that's like, is that just a purpose, like that policy's in perpetuity? Yeah, permanent policy. So what's something like that? Like, just give me an idea. Like, you know, I have five kids or an entrepreneur has a kid, you're not thinking about a life insurance policy when your kid's born. Right.

    I mean, you should, because you can use this as a different type of vehicle. I did the traditional stuff it in a 529, play that game, right? But how do you, is it like 200 a month, 500 a month? Is it like, how do you determine is it just what that overall net and value is? Yes. Well,

41. 29:44
    Jason Hansen

    and we can start as low as 25 bucks a month, which is not going to do much for somebody, but it'll, it'll, it'll create a little bit of cash for you. The ceiling is how much insurance do the parents have, you know, they usually won't let me, let me go over a million dollars on, on kids, a million dollars of death benefit. Now, I should back up and kind of explain what, what I mean by that is if I pull up my software on the computer and if I plug in a number, that will tell me how much death benefit that will generate for me.

    So a hundred bucks a month, then, you know, say it generates 400,000 on a kid. So it's all, it's very, it's, it's flexible as well as, you know, like I said, we're, we're kind of limited there on kids and the parents have to have at least as much insurance as the kids.

42. 30:44
    Wes Mathews

    So what happens then, if you like, let's go back to your doctor that's shoving 650k in this thing. If something happened to him on year three, is every dollar invested added on top of that death benefit or is that like, how does that shake out or is that, that's the risk you take? Right.

43. 31:06
    Jason Hansen

    You get the death benefit, but that's, you don't get the cash and the death benefit. Think about it like this. If I have a $500,000 house and I have 200,000 of equity in the house, when I sell that house, I get 500. I don't get 700. Does that make sense? Yeah. Okay. That's the easiest way to look at that.

44. 31:31
    Wes Mathews

    So that's probably it then why you wouldn't put all your eggs in that bucket, because if something happened to me and I have my other financial account, right? Like that's getting passed through. Right. Right. So what do you write? Yeah. What's like a good balance then? Like, you know, 10%, 20%?

45. 31:54
    Jason Hansen

    Um, you know, usually the, um, 100 rule where, um, when you are, let's say you're 25, that means 25% of your, your assets should be somewhere safe. And then as we get older at 50, then 50% of our assets should be somewhere safe. So, you know, one thing we should always do is create an emergency fund and that's, that's the, you know, shoving money into a savings account. So it's there if the hot water heater breaks or, um, we got to pay it, got to pay a deductible on a roof or whatever.

    Um, and then, you know, from there, then we, we use that the rule of 100.

46. 32:44
    Wes Mathews

    That's an interesting concept. I've never heard that. So like that makes total sense. So if I'm 43, it's like, okay, 43% of my assets should be very, very safe. Yeah. Is that the concept? Yep. And life insurance falls within that bucket. Yes. But then you got to figure out that, Hey, if some, if we are using this vehicle to invest in something happens, because I'm kind of thinking about like, say that death benefits, $10 million, right? But if I'm dumping in 650 K a year, something happened prematurely.

    If I put that 650 in a different account, I'm still getting that $10 million death benefit. And they're still getting the other capital from the other accounts. Correct. Versus like, if you put all that into life insurance, you wouldn't, you would just get the 10 million. Right. Correct. I get it. So it's probably a little bit deeper strategy there. Right. Right.

47. 33:40
    Jason Hansen

    But, you know, again, it's the most powerful financial tool on the planet. You know, it's one of three tier one assets, cash, gold, and permanent life insurance are all three tier one assets. Matter of fact, I'll tell you a story of Walt Disney. You know how Disney World got started? You know, Walt had filed bankruptcy, I don't know how many times before he decided to open Disney World and every bank that he went to, to try to get some money to start Walt Disney World, turned him down.

    Finally, one banker asked him, well, do you have any, do you have any cash value life insurance? Walt said, yeah, I've got some of that. And that's how Disney World was started was because Walt Disney had some cash value life insurance, even though his credit was horrible. Well, yeah. Interesting. Yeah. Hmm. Interesting. Very powerful.

48. 34:39
    Wes Mathews

    So what, then how do you make the decision? Right? I mean, there's a million different things out there, right? That are super confusing. Right. Complicated. There's guys out there, guys, gals, like peddling policies, annuities, life insurance. It's like, well, how do you know you're not getting bamboozled? Like what are some, what are some tips and tricks for people to do their due diligence to make sure they're not, they're doing the thing that they believe in. Right.

49. 35:07
    Jason Hansen

    If the guy is trying to sell you really hard, stay away. One of the things that, one of the things we do is we educate. Educate, educate, educate. My, my goal is, you know, like I said earlier, I draw stuff on a, on a, on a legal pad and, you know, I explain things that way. My goal is to have somebody point to my legal pad and say, may I have some, please? I don't, I don't feel like I have a right to sell anybody anything because let's use this example.

    If I owned a used car lot and you came in to buy one of, look at one of my cars, you took it for a drive, you come back, you tell me you liked the car, guess what? You're not, you're, you're not leaving until we sign the paperwork on that car. If I, you know, if I've got to get somebody to hold one arm behind your back while we sign the paperwork, then that's how we're going to do it. That's about a five year commitment. The, the, the strategies that I work with will affect you for the rest of your life.

    It'll affect the people that come after you, maybe even the people that come after them. So I don't feel like I have a right to sell anybody anything. My goal is to educate you and facilitate what you ask me to do for you.

50. 36:28
    Wes Mathews

    Yeah. Cause I feel like there's just, there's so much out there, right? Like, so like, how do you identify, like we talk about like the S and P or some type of index, are there like certain types of policies that just stand out versus others? Cause it's just, to me, it's like super confusing. Unless you're like in this space, like it's all, it's all great to people. Like nobody can really be like, Oh, I fully understand this. I spent a ton of time. I mean, that's what you guys are for, right?

    Like you guys have the expertise, but I do feel it's like product dump overload, right? It's just, yeah.

51. 37:03
    Jason Hansen

    And that's why I talk about concepts instead of product makes it much easier to digest it for people. If we talk about concepts instead of, you know, pulling up an illustration and, you know, looking at each little line and here's what this means. Here's what this means. Here's what this means. We talk in concepts instead of, instead of product, because you start talking product after a while, somebody's eyes glaze over and you've lost them. Yeah. Because you're right. It can be very, very confusing, but we keep it very, very simple.

    And that's what makes us stand out is because we focus on the education piece. And, you know, again, concepts. That's the easiest way to help somebody understand how these things work.

52. 38:01
    Wes Mathews

    So one last question then, so like I have a policy right now, I pay a certain amount per year. Now, if I didn't, in the case of like how to use this for like to build, to build, you know, your account, you know, the company that I have, I think it's called Guardian, like they tell me how much the policy is. So like if, in this model, if that person just pays that fee, nothing above and beyond, right? Is there like, is it a five year, 10 year clip where now they start to get access to capital or is it only if they contribute above and beyond that minimum payment?

53. 38:42
    Jason Hansen

    It's, and that's, it depends on how we set it up, you know, if we set it up to really, really over-fund it, so to speak, you know, you can have access to the cash right away or a portion of the cash, about 80% of the cash. But usually, again, like I said earlier, this is, life insurance is a long-term play. And it usually takes about seven years for somebody, five to seven, depending on how the market does, right? The market does really well, then it's going to grow their cash faster.

    But five to seven years, and then about that 11 year mark is when it really starts cooking. Awesome.

54. 39:33
    Wes Mathews

    Well, Jason, thanks so much. I learned a ton. I was very interested in kind of diving deep in this topic. I think it's a confusing topic, definitely had some clarity. Now, people want like, how can people get in contact with you if they have questions?

55. 39:49
    Jason Hansen

    Jason at midwestfamilyfinancial.com is my email.

56. 39:55
    Wes Mathews

    And we'll put all that in the show notes too. But Jason, I really appreciate you coming up, sharing your knowledge. Definitely helpful, gave me some insights. So I really appreciate it. Thank you so much.

57. 40:04
    Jason Hansen

    It's been fun, for sure. Thank you. Thank you.

58. 40:09
    Wes Mathews

    This has been another episode of Entrepreneur Intel. Thank you for joining us. For show notes, for other episodes, please visit us at entrepreneurintel.com. Until next time.