Episode•November 14, 2019•21 min

What You Need to Know About Insurance with Acquania Escarne | Ep. 18

Insurance, insurance, insurance! Join Tiffany as she talks insurance with Acquania Escarne, a licensed insurance agent. They discuss everything from term life to whole life and even long term care. Get your pen and paper ready for these gems! About our Guest Acquania Escarne is a financial coach, freelance blogger, and real estate investor committed to helping people find financial freedom and build generational wealth. As a financial coach, she equips her clients with "outside the box" finance tips and tricks people can incorporate in their daily lives in order to meet and exceed their financial and personal goals. Her coaching is individually tailored to address all financial situations. Also, through her website, The Purpose of Money, she shows women how to invest and save more so they can live a more fulfilling and prosperous life. Her passion for personal finance and investing began when she was in high school and her father gave her a copy of Rich Dad, Poor Dad by Robert T. Kiyosaki. At 16 years old, Acquania opened a Roth Individual Retirement Account and has been seeking financial independence and early retirement (FIRE) ever since. She aspires to create generational wealth for her family, and has created multiple streams of income for her family to enjoy today! She still works a 9 to 5 but is counting down until the day her residual income provides enough money for all of her family’s needs. Follow her on Twitter: https://twitter.com/purpose_money Follow her on Instagram: https://www.instagram.com/thepurposeofmoney/ Links Visit Acquania's site: www.thepurposeofmoney.com Visit my site: https://www.moneytalkwitht.com Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Channel Pinterest: Money Talk With Tiff This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
GoFundMe is not a substitute for life insurance
Many families rely on crowdfunding to pay for funerals after losing a loved one's income
Life insurance protects dependents' lifestyle beyond just funeral costs
Term policies are affordable and cover specific time periods when protection is most needed
2
Term vs Whole Life: Renting vs Owning analogy
Term insurance is like renting - cheaper, temporary coverage for a set period (1-30 years)
Whole life is like owning - permanent coverage, potentially lifelong premiums, builds cash value
Only about 1% of term policies are claimed, making them profitable for insurers
3
Whole life insurance can serve as a wealth-building tool
Cash value accumulates at 7-11% annually, higher than traditional savings accounts
Can be borrowed against for investments, purchases, or emergencies at favorable rates
Referenced in 'What Would the Rockefellers Do?' as a family banking strategy
4
Special needs planning requires unique insurance strategies
Special needs trusts protect government benefits while providing financial support
Whole life may be appropriate when dependents will need lifelong care
Structured payouts can prevent young beneficiaries from receiving large sums at once
5
Long-term care planning should start in your 40s-50s
Medical expenses are a leading cause of retirement savings depletion
Long-term care riders on life insurance policies offer an alternative to standalone policies
Apply when young and healthy to avoid pre-existing condition exclusions

Intro

Tiffany Grant discusses the often-overlooked topic of insurance with Acquania Escarne, a licensed life insurance agent who helps clients build generational wealth through strategic financial planning.
Acquania Escarne is a financial coach, freelance blogger at ThePurposeOfMoney.com, and real estate investor. She opened her first Roth IRA at 16 after reading 'Rich Dad, Poor Dad' and is passionate about helping women achieve financial independence.

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– Why Life Insurance Matters Beyond Funerals

GoFundMe is not an insurance policy
– Acquania Escarne

Many families use crowdfunding to pay for funerals but fail to replace lost income for dependents. Life insurance protects a family's ability to maintain their lifestyle even after losing a breadwinner.

– Term vs Whole Life Insurance Explained

Term insurance works like renting - affordable coverage for a specific period (1-30 years). Whole life works like owning - permanent coverage that may build cash value but costs more.

Only about 1% of term policies result in claims, making them profitable for insurance companies when policies expire without being used.

– When Whole Life Insurance Makes Sense

Acquania shares her personal situation with a special needs son who will require lifelong financial support. Even after paying off her house and building wealth, she maintains whole life coverage to protect her dependent.

Special needs trusts can receive insurance proceeds to provide ongoing care without disqualifying government benefits.

– Using Whole Life as a Wealth-Building Tool

Whole life policies build cash value that can be borrowed against for investments, down payments, or emergencies. Interest rates on policy loans are typically lower than traditional loans.

Some policies allow borrowing without mandatory repayment, functioning as a 'family bank' strategy used by wealthy families.

– Long-Term Care Insurance and Riders

Long-term care covers assisted living, nursing homes, or in-home care - expenses that can cost thousands monthly and deplete retirement savings.

Long-term care riders on life insurance policies offer an alternative, paying monthly benefits when care is needed. Apply in your 40s-50s while healthy to secure better rates.

– Living Benefits and Shopping for Policies

Some insurers include living benefits at no extra cost, providing monthly stipends for heart attacks, terminal illness, or chronic conditions to help cover bills during recovery.

Working with an independent agent allows shopping across multiple providers for optimal coverage and pricing rather than being limited to one company's offerings.

Books Mentioned

Rich Dad, Poor Dad by Robert T. Kiyosaki
What Would the Rockefellers Do? by Garrett Gunderson

Resources

The Purpose of Moneyarticle
Money Talk With Tiffarticle

Topics

Life InsuranceTerm vs Whole LifeLong-Term CareFinancial PlanningWealth BuildingSpecial Needs PlanningEstate PlanningInsurance RidersGenerational WealthCash Value Policies