Life Insurance 101 - Everything You Need to Know for Beginners

Introduction by Host: Dr. Gee

There are many aspects to holistic wellness, but one of the most prominent to many people is financial wellness. How we handle our finances has an impact on every area of life, so it is important to get that right. Today, Douglas Eze joins us to share his view of financial wellness and his experience with generational wealth and life insurance.

Guest Bio

Douglas Eze has been in the financial service industry for over 25 years. He works with many business owners and families, teaching them how to improve their financial health. His main focus is on life insurance and why it is important to consider before you die. He has also written a book: Creating Generational Wealth.

Q: What is generational wealth?

Generational wealth is wealth that goes on forevermore. For example, consider Walt Disney. Even after his death, what he created is still generating wealth for those who came after him. He started building Disneyland with $100K, and now his company with worth billions of dollars. When you die, generational wealth does not die with you.

Q: What is life insurance?

Life insurance is what you have to protect you. How much are you worth as a human being? We tend to undervalue ourselves when it comes to life insurance. Your family depends on the income you bring into the house, but what happens if you are no longer there to provide for them (either because of death, or even illness)? That is where life insurance comes in.

Q: Do I really need life insurance if I do not have kids?

You definitely do. Life insurance is your final paycheck. Even if you do not have anyone who depends on you, you will have costs after your death. Who will pay for your funeral? What about any unfinished work you have left behind? Life insurance helps cover all of that. Life insurance can also function as a secure savings account.

Q: How does the insurance company know I died?

Insurance companies know everything. If you die the day after you signed a $500K policy, that’s a lot of money that they will lose. They have to be able to keep track of your risk of death so they know if they can afford to give you that policy. The government will send notification of your death to everyone who has a vested interest in you.

Q: Who should be my beneficiary?

Anyone you want. That’s the beautiful thing about life insurance; you can pick anyone to be your beneficiary. Some people even leave money to their dogs, so they will be taken care of after they die. Charities are a popular beneficiary of life insurance policies. And you can always make changes, if you decide to add or remove beneficiaries from your life insurance.

Closing Thoughts

At the end of the day, there’s no easy way to build wealth. It’s about taking the time to do it right and being patient. Keep adding more and more knowledge to your mind, and surround yourself with people who are looking to go somewhere and people that you can learn from. Continuing thriving!

By Dr. Gee, Success and Holistic Wellness Advocate