What's My Number? Life Insurance Edition

Purpose Driven Finances – October 4, 2025 What’s My Number? — Life Insurance Segment 1: Credit Risk & Being Purpose Driven Allan began this week’s show by connecting two powerful themes — financial risk and personal purpose — showing how both can quietly shape our lives if left unexamined. A. Credit Risk: The Tri-Color Auto Loan Company He discussed the unfolding story around Tri-Color Auto Loan Company, a deep-subprime, “buy-here, pay-here” lender now under scrutiny for double-pledged assets and questionable lending practices uncovered by Fifth Third Bank. Many of these loans were reportedly extended to undocumented borrowers, adding another layer of risk to already fragile portfolios. “When you don’t know what’s underneath the surface, you risk building on sand instead of stone.” Allan reminded listeners that in markets — just like in life — character and structure matter more than appearances. Investors and consumers alike need to look beyond the headlines and understand what truly supports the value of what they own. B. Being Purpose Driven Transitioning from credit to character, Allan shared reflections inspired by Viktor Frankl’s Man’s Search for Meaning, written out of Frankl’s experience surviving the Holocaust. He described a striking modern image — a woman attacked on a train while passengers did nothing — as a reflection of today’s spiritual and moral fatigue. “Too many people have lost their sense of purpose and hope. Purpose doesn’t just happen — it’s planned, chosen, and pursued.” Allan encouraged listeners to: Take time to dream and plan.Determine what it will take to reach that destination.Get it done — with intention and perseverance. Segment 2: What’s My Number — Life Insurance & Risk Management Allan then turned to one of the most practical and emotional topics in financial planning — life insurance. Why Life Insurance Matters Life insurance isn’t for you — it’s for the people who depend on you. It offers peace of mind, stability, and time for loved ones to grieve without financial pressure. Two Broad Categories Term Life Insurance: Pure insurance for a defined period (10, 20, or 30 years).Low cost; ideal for income replacement during working years. Permanent Life Insurance: Lifetime coverage; includes Whole Life, Universal Life, and Variable Universal Life.Higher premiums but can build cash value and serve in estate or charitable planning. Key Difference: Term = Affordable safety net.Permanent = Long-term, flexible protection with potential legacy benefits. “Most families simply need term coverage, but permanent insurance can make sense for business owners or families focused on legacy and giving.” Determining Your Number Two main approaches guide how much life insurance coverage you need: Income Replacement: Generally 10–12× annual income.Example: $75K salary = $750K–$900K coverage. Income + Debt Coverage: Add mortgages, student loans, or college costs to ensure total protection. Ask yourself: Who depends on your income?How long will they need it?Should debts be eliminated immediately or paid over time?Do you want to leave a charitable or family legacy? Practical Example For a household with one working parent earning $100,000, a $250,000 mortgage, and two children with future college costs of $200,000, Allan suggested $2 million in coverage. This ensures enough to replace income, cover debts, and support education — allowing the family to heal without financial fear. “The goal is simple — provide enough so your loved ones can grieve with peace, not panic.” Life insurance is about love, not loss — a commitment to protect your family’s purpose when life takes the unexpected turn. 📞 Contact Servus Capital Management at 434-316-0246 or visit www.ServusCM.com Live with Purpose. Plan with Clarity.