The Black community prioritizes instant gratification over long-term planning
Chaka is a highly successful agent for Farmers Insurance. Her journey in the financial sector began three years ago. Equipped with knowledge and experience, she is now on a mission to help those in need better understand the insurance industry.
“I have been involved in the insurance industry for quite some time, with my primary focus being on selling life insurance. I am committed to educating our community and helping to reduce the need for GoFundMe campaigns related to funerals.”
She explains that her main focus is on education and mindset. Chaka believes that people in our community do have money; they are earning it, but are not prioritizing how they spend it. Many people choose to spend their money on fast food, entertainment, hair, gym memberships, and other materialistic purchases.
“We are the biggest consumers in America. So, trying to open our minds to use the resources we have for generational wealth and future benefits can be challenging. This is because, for not all, but for some of us, the mindset is geared toward instant gratification rather than long-term rewards.”
One of the challenges that Chaka faces as an insurance agent is the perception within our community that insurance is just another bill.
“Many people tend to postpone dealing with it, thinking, Oh, I’ll take care of it later. It is disheartening to see older individuals who, for health or financial reasons, find themselves unable to afford insurance. I believe this was my purpose, and I feel equipped by God for it. I have a passion for educating our community about the benefits of our community.”
However, Chaka advocates for permanent life insurance policies over term life insurance, highlighting the cash value and loan options available with permanent policies. According to Chaka, the disadvantage of term insurance is that it is limited.
“The policies last 20 or 30 years, then you’re older. Then you’re looking for another policy. Plus, if you have medical issues, it becomes harder to get covered. And then you’re older and looking for a policy. Term insurance is good if you have a mortgage, and if you pass away, you don’t want to put that burden on your family.
On the contrary, with a permanent life insurance policy, the premium will generally remain the same for the rest of your life. For example, if you purchase a policy in your 20s and pay $50 a month, that amount could stay at that amount for your entire life. Similarly, if you buy a policy for your child at $35 per month, that amount will also remain the same throughout their life, provided they don’t borrow against it.
“Additionally, these policies accumulate cash value. This means that if you need to access some money, you can borrow from your life insurance instead of going to a bank. For instance, one of my clients had an Indexed Universal Life (IUL) policy, which is linked to the market but also offers protection from lawsuits due to its nature as a life insurance product. He withdrew $32,000 from his policy to help his wife purchase a car instead of obtaining a bank loan. He has a $300,000 policy, so if he were to pass away tomorrow, his wife would receive $268,000.”
This option allows you to function like your own bank, managing your finances more effectively without relying on loans. Life insurance can serve as proof of income in some situations.
Chaka’s faith influences her work and outlook on the future of educating individuals about financial planning.
Looking ahead three to four years into the insurance business, Chaka wants to emphasize that she is open to whatever path God has in store for her, because it won’t be a disappointment. Ultimately, her goal is to level the playing field for her community, to educate and broaden the minds and hearts of individuals regarding generational wealth, which, according to teachings, is something we should strive to attain.
“I want to encourage everyone to read the Bible, as it serves as a blueprint for how we are meant to live. We should focus more on our internal spiritual lives instead of worrying about external factors that are not important. So, I want to urge everyone to engage with that word.”
To contact Chaka for more info call: 312-248-5745
