David:

I specialize predominantly in final expense, life insurance. What that is, is what we call final expense or whole life, simplified issue, insurance products. The structure of the product is it's designed to guarantee to pay a death benefit, along with having the prices fixed, and the coverage and hopefully most cases fully covered from the first day if the clients medically qualified. The benefit of this is that we target predominantly seniors who are on a fixed income, usually a low fixed income living month to month on Social Security or disability, and they need something that's reasonably affordable, but also they can medically qualify for that whenever they do die, we'll be there to protect them, and the opportunity of our market, I think, is because there's a lot of lower-income people that hit retirement that doesn’t have as much money as they thought they did. But as we all know, we're guaranteed to die. We got to worry about how we're going to pay for a funeral. Because many times our clients just simply don't have the money.

Also our particular type of program, and this has beneficial not only to the client but the agent so we can get an instant decision to medically qualify the client on the first call. From a sales perspective, we're not going back multiple times. This is a one-call close business, we'll get the client approved and accepted or we pivot to another product or we never do. There are no go-backs, no second, third, fourth appointments. It's a very sales-oriented type of profession. People who don't want to get mired down in the thick of trying to manage a bunch of pending business, or doing examinations, that kind of thing. It's very appealing to the client that they can get what they want real quick and appealing to the agent because it contributes to faster cash flow, activity orientation versus managing a process that may take weeks or months like traditional life insurance, so but it's a great process. For the right group, it's not perfect for everybody no insurance product is but targeting the people we do. It's a really good fit.

Brett:

Got it. Final expense, whole Life Insurance guarantee to pay the death benefit, typically for seniors on a low fixed income, and that you can medically qualify, and as far as the perspective of the age, it's kind of a long call close and that you're gonna be able to qualify look at it and move on. It's not managing the long-term type of sales cycle. Excellent, that's the first one that you mentioned the second one, too, right. The second one, maybe that's it. Maybe that was the one you said.

David:

I mean, that's kind of the main, if we if as far as a life insurance product, that's our specialty. Now we do sell a little Medicare, supplemental coverage, which also helps it's a little bit different at supplements existing coverage. It's a smaller portion of our total volume of business, but it's useful because it helps people get more comprehensive coverage, just original medical.

Brett:

What's an example? So 65? Relatively in good health, and single fixed income. Let's say it's a lady or gal.

David:

We call our clients Mildred. Mrs. Jones?

Brett:

Here we go, and what would be the cost? What would be the conversation? Like, kind of give me a little roleplay here?

David:

In order to find out what the costs are, we have to do medical underwriting, we usually don't start quoting right away, because we can't really until we know exactly what their health issues are. Let's say we do all that. It just depends so a lot of our plans, probably 35 to 45 a month, dollar and a half a day, for full coverage for a $10,000 plan. That's a very common amount of coverage we get. Most funerals. Most people buy these to pay for funerals, sometimes cremations, and if you're looking at a funeral, it's around $10,000 is the average, and we just pick a company that's best suited to the client, and what we think will be most likely that is going to approve them, and we just do an underwriting assessment. Sometimes we can make a phone call for the client’s company to pull up medical information to render a decision, and then it's done. We write it up. The policy comes in a couple of weeks.

Brett:

35 to $40. Assuming that the medical histories, let's say average look good, and then that's going to pay about 10,000, on average, at the death to cover expenses, such as a funeral or cremation. Is that a fair summary? Then the and then as far as the insurance professional, they have to have life insurance life and health, or what's the designation.

David:

The licensing, to sell final expense. The only thing you have to have is a life insurance license because of final expenses, life insurance, it's just a marketing term we use to better describe what it actually is used for. If you want to sell Medicare, you have to have a health insurance license.

Brett:

Is this known as whole life?

David:

Correct? Most final expense is a whole life type of product. we very rarely ever use term insurance to sell a final expense type proposition.

Brett:

I don't know for sure. But would that mean it's less expensive, or what would be the reasons for that? Because they're older, can you walk us through what in turn would be appropriate versus your life?

David:

Here's the problem with the term, and there there are, depending on who you talk to, you'll have long drawn out almost with religious conviction arguments about his term better than whole life, and you'll have arguments that end and never ever ending arguments about it, and I don't even I don't think it's wise to say one type of product is better than another. All insurance is a tool. The point is, is we have to know what the problem is. We can select the right tool. For seniors who are trying to protect against the cost of a burial that don't have enough money, and time to save for it, we think a whole life policy is better because the benefit of a whole life plan is it's guaranteed lifelong protection, as long as the client continues to pay the premium. Because we know the nature of the problem of death is it's guaranteed. We don't know when it's going to happen. It might happen tomorrow, might happen and 50 years from now? But the point is we need an insurance policy that will protect for tomorrow, and for the next 50 years plus whole life does that. Now the problem with Term Life Selling it to seniors in the same position is multifold problems here.

The first problem is, it doesn't accurately solve the problem. The best term insurance is temporary coverage. In other words, it's only good for 10 years, 20 years, 30 years, and many times as our client creeps up in years like 65, even 75 Plus, you're not going to be able to get a 30-year term much less a 10-year term. The other issue is that term insurance typically is much more difficult. qualify for, there's a lot more rigorous examination of medical history. If a client has significant health issues, they may qualify easily for one of our simplified issue whole life plans, but they may get declined quickly with the term insurance plan. That's why in this case, we think the best tool is a whole life plan for our clients because it better matches what the client's trying to accomplish. As far as term insurance goes, I think that's a perfectly fine tool, especially if you're younger, and you're looking to replace an income if you pass away. I personally own term insurance, I think it's a great idea. Because if you die early, and you leave behind a family, and your major a person giving income to the family, and it's gone, well, a term insurance plan is going to pay a bigger death benefit out the whole life. It just comes all down to what's the problem, and which one of our tools is going to be the best solution.

Brett:

That makes perfect sense. Whole life is guaranteed, basically, as long as keep paying the premiums forever term is going to be temporary, and really the key is defining the problem before you can get the medicine or the solution, and so what tool works best for that, and it, by the way, it's not unlike the 1031 Exchange versus the Deferred Sales Trust, and another thing called Delaware Statutory Trust and internal remainder trust. First, define the problem, define the vision for what you want the outcome to be, and then figure out which tool is best for you. By the way, it might be a mix, it might be a little bit of both, and so that is why you want to get with someone like David Duford or even me when it comes to capital gains tax rule. But David for the insurance part of things. You can learn more about David Duford at davidduford.com. It's davidduford.com. Today, we're going to shift a little bit here to investing in Capital Gains Tax, I'm going to test your knowledge here. I don't know. We'll see where it goes here. I'm not sure about the insurance world. But I wonder what's the biggest frustration when it comes to Capital Gains Tax Deferral. But you've seen me with your clients or friends or family on the sale, highly appreciated assets, anything come to mind there?

David:

No. Not with my clients, my clients are, that's the last thing they're worried about, just because that ain't a problem because I don't have it.

Brett:

No doubt, but I do want to talk to you for our listeners. If you sell something that highly appreciates it, you can use the cash flow from that to fund whole life or term insurance policies, right, which is pretty cool. Like, let's say you would have sold a $3 million business. In fact, we just did a deal in Alabama, and then he's building a project in Tennessee, for a client of ours a $2.6 million business deferred 600,000 of tax, all tax-deferred, he's building 70 multifamily units, he can also use the funds from that trust the proceeds to fund life insurance, so he would have paid 600. But instead, it's all invested, and it's earning interest of which you can find life insurance. It's kind of a cool arbitrage and then to take care of the family. Alright, that's a little plug. If you wanna learn more about that, you got to go to capitalgainstaxsolutions.com, it's capitalgainstaxsolutions.com. That being said, are you ready for the lightning round, David?

David:

I'm ready.

Brett:

Alright, so knowing what you know, now, if you'd go back to your 25-year-old self, what's the one Golden Nugget you'd make sure to tell yourself to do?

David:

Shut up and follow the fundamentals.

Brett:

Good. What's the one fundamental, you would make sure you would have followed?

David:

Focus on one thing and say no to everything else?

Brett:

I like that. Second question. What's the one book you've recommended or gifted the most of the past year?

David:

I would say, the look back further than that, probably. Atlas Shrugged by Ayn Rand.

Brett:

What's the one YouTube topic you feel you're coming back to the last most in the last year.

David:

Long-term projections in the business such as transitioning from an active income strategy to a passive income strategy and insurance sales.

Brett:

There's a curious part of it, maybe someone who has a big book of business, and they're gonna be selling their book of business, we've helped financial advisors who have sold that capital gains tax. That's something maybe to take a peek at. If someone's gonna is selling and younger guys taking overlook at it as a way to acquire that business by helping that person defer tax. These are all tools you want to know about using the deferred sales trust. That's something to consider. I wanted to plug that in before someone forgot. Next question. What about curiosity? What are you most curious about right now just in general in the world?

David:

Why do people do what they do? I'll never get the answer to that question but hopefully, come close.

Brett:

Then maybe one of the top tools you use, to run your systems, systems and processes, and tools for your business.

David:

I mean, there's a whole bunch of apps and processes but I think the one that comes to mind that helps me to a ton is simple, yet effective, calendly I run a lot of one on one appointments, I don't have to go back and forth to book them the clients self-book. It saves me the pay, I would pay an assistant the correspond, it's been a real, great tool to make life a little easier.

Brett:

Last question here, and then we'll remind listeners where they can find you. After all your success helping tons of agents succeed and you succeeding and doing all the things you do, how do you stay centered in your values? How do you stay encouraged to charge forward to reach new heights?

David:

It's an interesting question, I think something happens when you start earning an income that you never imagined you would have. The money isn't as big of a deal as you thought it would be. One of the things I've gone through is that I've hit my goals, I've had long term financially, and I haven't really changed all that much my spending habits haven't changed. I think I'm the same person, and I think as far as what I've gone through, it's kind of a surprise, really, and on the flip side, it's kind of interesting, because it's not about the money anymore, I guess, is what I'm trying to say, and what it's about is really just doing the right thing. I don't want to say it's because I have enough money that I don't mind being truthful and honest, and all the stuff I've always been the same way I guess I'm trying to say in one word, but at this point, it's it's really just about helping people, and that's about just doing what you're supposed to do. delivering on your promises and keeping your promises, and I feel at the end of the day, that's what really is the most lucrative that's what makes this business the most profit makes your business the most profitable. If you follow through, and there's just a calm, consistent beacon of success, and following through on these things, you're gonna attract the right people to your business, and that's gonna, I think, make your business overall. kind of a choppy way to explain do what's right, it pays the best it makes for the best business, and I think it's just the best thing, short term, and long term. It's hard to do in the short term sometimes, but of course, it's best for the long term.

Brett:

What a great way to wrap up the show, and for our listeners who want to get in touch with you would you give them one last reminder where they can find you?

David:

DavidDuford.com or go to YouTube put David Duford then go down to the black hole of YouTube videos I have.

Brett:

David, thank you for being on the show. I want to encourage you to keep using the gifts and talents even giving of relentless hard work and short training amnesia, to forget about your past mistakes and build more for yourself and your family and all of the folks that follow and on your team, and with that, I also want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who help them they struggle to clarify their Capital Gains Tax for options not having a clear plan is the enemy using a proven tax deferral strategy such as the deferred sales trust is the best way if you'd exit highly appreciated assets and I build and create and preserve more wealth get what David Duford for insurance, especially if you have any need or have parents who have a need for final expense, whole life insurance. We so appreciate your time and your listening out there. Again go to capitalgainstaxsolutions.com. Remember, we're also streaming expertcresecrets.com. We're trying to equip and train commercial real estate agents on how to use the deferred sales trust, eliminate the need for the 1031 Exchange. You can go to expertcresecrets.com to learn more about that. We appreciate everyone out there and we wish everyone well. Bye now.