Jayson Lowe walks through how life insurance death benefits work across multiple policies. When someone dies, the payout can cover policy loans and premiums on other policies, keeping them active and creating a compounding effect across generations.
When we look at scenarios where we've got a family and we have a system of policies and you know the patriarch of the family passes away and the matriarch of the family's insured, the children are insured and you know they've been implementing the process and this tax free windfall comes in it not only backfills any outstanding policy loan balances on the remaining policies in the family but it provides more than sufficient funds to cover the premiums on those policies so that the system continues and then down the road the matriarch of the family passes away. Now there's a cascade effect, there's another death benefit that flows to the children who are now fully grown adults. They use that windfall to backfill their own policies erase any outstanding policy loans, residual balance they can use for whatever they wish but there's more than sufficient funds to continue paying the premiums on their own contracts. They pass away the grandkids. The cascade effect it's powerful if it's done properly and if there's clear instruction.
