Financial Literacy 101 || A Talk on Trust, Will & Life Insurance

Introduction by Host: Dr. Gee

Welcome to week 3 of our financial wellness series! In this lesson, we will be tackling Trusts, Wills, and Life Insurance. What is the difference between these things? When should you get one by not the other? John Essegbey joins us once again to share his knowledge and advice with the Thriving Generation.

Guest Bio

John Essegbey is the president of Kharece Group. He is also a businessman, an engineer, and a minister.

Q: What is Wealth Creation?

I interpret wealth as the full expression of value. Wealth creation, then, would be a journey. It begins wherever you are today, but it will continue for the rest of your life. As a Christian, I often think of the dominion mandate. To subdue and steward the world, and to be fruitful and multiply. Wealth creation comes with great responsibility.

Q: What is the difference between a Will and a Trust Fund?

A will is simply the constitution that says what you want your wealth to do when you are incapacitated. At the basic level, it is a document. A trust introduces another level to it. When you are talking about a trust, you are moving away from a document with instructions. It puts in place another person or party that will take over management of your wealth.

Q: Why would you have a trust over a will?

A will is simply instructions on who gets what. Having a trust, because a trust has the capacity to stand on its own as a legal entity, you are capable of bypassing the courts when the trust has to be executed. Most trusts can provide security and privacy that is not possible with a will.

Q: What is Life Insurance?

Life insurance plays different roles when you are in different levels of wealth. For some people, it is the easiest way to create wealth. There is very little chance that you will be able to save that amount of wealth on your own. It is a way to ensure that your children will be able to start life with more money that you could give them.

When you are on the wealthier side, life insurance is a form of protection. It is a way to ensure that, no matter what happens to your wealth or investments, you will have some money set safely aside.

Closing Thoughts

As we work on our wealth, it is important to remember that our lives are in God’s hands. We can work hard and make smart decisions, but without the support of God, our wealth will never be able to thrive!

By Dr. Gee, Success and Holistic Wellness Advocate