Things about Insurance That You Should Know, Part: 1

7 Reasons Why You Do not Need Insurance 3



Things about Insurance That You Should Know,

Part: 1

By Keith Bunn Jr.

August 24, 2015


There are a lot of people out there who think that insurance in general is a waste of money. And the agents who sell it are just rip off con artists. Well, I’m not sure about the con artist part, but there are diffidently agents out there that will sell their clients just about anything that will give them the highest commissions out there. But there are other agents, that have integrity and don’t care how much they make in commissions, as long as they treat their clients with dignity and respect and will educate and sell their clients the proper insurance product needed for them and their families.

Truthfully though, there are insurance products out on the market today that are trash and should never be bought. But there are some that are absolutely necessary too. Because these products are confusing and sometimes you really don’t know if you have a good one or not until its too late, for the next few weeks I’ll be going over this topic and sharing not only what I’ve learned going through and coordinating Dave Ramsey’s Financial Peace University classes (FPU), but what I also learned by studying for my Life Insurance license.


Home Warranties


Now, Home Warranties aren’t really an insurance product, but they are treated like they are. They are normally sold through your local utility company and what it does is, you pay them a monthly fee and depending on the package coverage you buy, they will come to your home and either repair or replace everything from your household appliances and window air condition units, to your furnace and central air.

One company I looked up charges anywhere between $9 to $60 per month, with some fees attached to them, again, depending on the plan you buy. It doesn’t sound too bad does it? You pay one low monthly fee and just about everything in your home is covered, right? Well here’s the thing folks, this is a rip off and truthfully you should be self-insuring through these types of repairs with an Emergence Fund.

In FPU, you are taught that you should have at least 3 to 6 months worth of Household expenses saved up just for emergencies. Roughly $10,000 to $20,000 saved. “WHOA!! Where am I going to get that much money to just save for emergencies?!” That’s easy, you need to get out of debt!

The average household consumer debt in America as of July 2015 is $16,000 for credit cards, $33,000 for student loans, and $157,000 for a mortgage just to name a few. If you got rid of those monthly payments, you would have enough money to fund your emergency fund.


Why is it a Rip Off?


Now, lets do some math to show you why this is something you need to self-insure through. Let’s go with the $60 plan that I looked up. If you were to pay $60 per month for 12 months, you would have paid $720 for the year. And lets say you pay an extra $17 per month for a cash like saving account to go towards any appliances, furnace and central air units that can’t be repaired and has to be replaced. So now you’re paying $924 per year.

Now let’s say you live in Michigan and it’s the middle of January and your furnace goes out. You call the repair guy, he looks at it and determines that it needs to be replaced. Replacing a furnace is an easy $2000 bill. But you have this built in savings account to go towards the furnace replacement, only to find out the utility company will only give you $720 towards a furnace replacement, according to the plan you bought. That leaves you on the hook for the remaining $1280 bill.

But that’s not the worst of it. Let’s say you didn’t have anything go wrong for 3 years, that would mean you paid them $2,772 and they would still only give you $720 to go towards replacing a furnace. “What happens to the rest of the money?” That’s part of their profit. “But Keith, that’s the same thing with auto, medical, and life insurance. I pay thousands to those things too and don’t use them, what’s the difference?”

PLENTY! Two of those examples, auto and medical, if anything major happened in those categories, it could easily bankrupt you if you don’t have adequate coverage. On top of that, it’s the law to have some sort of coverage in those categories now. As for life insurance, if the coverage is on you, you won’t see the payout on that. Life insurance is for your family who will out live you, to replace any income you bring into your household.




The money you pay into home warranties could easily be used to fund your emergency fund, to pay for those repairs or replacements yourself. The way I look at it, I would much rather keep my hard earned money for myself instead of giving it to someone else.


If you like what you’ve read here, PLEASE pass it on to others. I also post a bunch of financial tidbits on my Facebook Page. I’d be grateful if you follow me there.

It’s Not my Rule Book


It’s Not my Rule Book

By Keith Bunn Jr.

August 17, 2015

The Guy from Work


I had a guy from work come up to me and said,“Hey, My wife and I have to do something that I know is against your rule book.” Chuckling, I replied, “Oh yeah? What’s that?” To make a long story short, he told me that him and his wife were going to be buying a house. He was first going to borrow money from family (which isn’t good), but that fell through, so now he’s going to borrow money from his 401K. Before we get into what I told him, let’s briefly go over what a 401K is.



A 401K comes from the IRS tax code (paragraph 401, subsection K) that explains how money put into this retirement plan is to be treated for taxes. These retirement plans are offered through some employers who sometimes match your contributions up to a certain percentage. But this match is not fully the employee’s until they are vested, stays with the company for X amount of years.

This is also an account that an employee can borrow from and pay themselves back with interest if they need some extra cash. This loan is normally paid back through payroll deductions until the loan is paid in full. If you withdrawal money from your 401K before age 59 1/2, the IRS will charge you a 10% penalty for early withdrawal plus whatever your income tax rate is. But if you are 59 1/2 years old or older when you withdrawal money from your 401K, you won’t get charged the 10% penalty, but you will have to pay taxes based on what your income tax rate is.


My Answer


There are 2 main reasons why someone should NEVER borrow from their 401K. #1, you put a halt on your investments when you borrow from your 401K until that loan is paid in full. So simply put, when you borrow and pay yourself back with interest, you’re shutting down an investment that could have been giving you a higher rate of return. #2, this is normally the first thing I tell people that ask me if it’s a good idea to borrow on their 401K. This second reason is normally enough to make those people second guess their decision on borrowing and it is what I told the guy from work. I told him that if he gets laid off/fired from work, quits, or dies and that loan is not paid in full, that loan is due right then and they will have 60 days to pay it back or the IRS will consider it an early withdrawal. and as I mentioned above, that could be a 10% penalty plus your income tax rate. So on average, you could be looking at a 40% to 50% interest on your loan.

And I don’t think I need to tell you, that the worst time to have a huge tax bill is when you’re out of work or when your spouse is grieving from your passing. Folks, that’s just too much risk to be taking. Don’t do that to you and your family. So as a rule, I will NEVER borrow from my 401K. But this isn’t my rule book. It’s Uncle Sam’s! And he will ALWAYS get his cut, one way or another!!

If you like what you’ve read here, PLEASE pass it on to others. I also post a bunch of financial tidbits on my Facebook Page. I’d be grateful if you follow me there.

Doing the Impossible




Doing the Impossible

By Keith Bunn Jr.

August 10, 2015


Running into the Record Books


Have you ever heard the name Roger Bannister? Perhaps not, but on May 6, 1954, Bannister did something that no one had ever done before. At the annual Amateur Athletic Association event in Oxford, Bannister ran the one mile race he was in less than 4 minutes. 3:59.4 to be exact.

What makes what he did so important was that every expert in the world said that running under a 4 minute mile was physically impossible. They literally said that if a person did it, the stress on their bodies would be so great that their hearts would explode. So no one ever tried to do it. I mean, who would what their hearts to explode?

What make this even more astounding was that later that same month, a man by the name of John Landy broke Bannister’s record by less than a second. In August 1954, Bannister and Landy ran against each other at the British Empire Games in British Columbia. Even though Landy led Bannister during most of the race, Bannister out-sprinted Landy in the last stretch of the race and won by five yards. Both of their times were under 4 minutes (3:58.8 and 3:59.6).

Now why is all of this important? It is important because no one had ever ran a mile in under 4 minutes before because all the experts said it was impossible, but as soon as one person did it and everyone else seen or heard that it WAS possible, someone else did it, and then another, and another, etc…


Financial Impossibilities


I tell you this story because it reminds me of the way people think about their finances. We have been told by all kinds of financial “experts” for DECADES that we have to have a FICO Score to get the things we want in life. When we want to get a new or newer car, the only way we can get it is to finance it some how. We have been told by experts that if we or our kids want to go to college, we have to do it with student loans… Do you see a pattern here? I do! It has even gotten to a point where if someone like me tells you that these experts are wrong and here’s the proof, you won’t believe me. But I’m here to tell you that there have been hundreds of people in this country who have ran and won that financial race, and have done it in under 4 minutes. You can too! You just have to believe it can be done. If there is anything I can do to help you in your personal financial race, just let me know. And together we can cross that finish line together!


I post a bunch of financial tidbits on my Facebook Page. I’d be grateful if you follow me there.

You have to Invest in Your OWN Future




You have to Invest in Your OWN Future


By Keith Bunn Jr.

August 3, 2015


Life Changes


On July 13th, in a blog post called Life Changes, I had mentioned that there were going to be some big changes coming to Cavus Financial Coaching, but wasn’t ready to announce them yet. Well now I’m ready.

On June 18th, I received a message through Facebook Messenger from a woman in Atlanta asking if I was a financial consultant. To make a long story short, she is an insurance agent working for an agency based in Atlanta. After several text messages and a phone call, I learned that the agency was looking to spread here in Michigan where I live and she thought I would be a great candidate to start one here based on my blog and Facebook postings.


Work that Matters


I have to tell you that I was excited by this opportunity from the start. Here I am, in a job field that I don’t really like to do and looking for a new job that fits my values, beliefs and “talents” and here it was falling in my lap. So after discussing it with my wife Julie, we decided that we both will take the necessary steps to change our future. And after an overall 2 weeks of going to class and studying, we took and passed our tests and have applied for our Life Insurance licenses. We are not able to sell insurance yet, there are a few more steps we have to do before we can do that, which I’ll talk about in future blog posts.


A Big Step


So why am I telling you all this? I’m telling you all this because even though I’m excited about our possible new future, I’m scared to death too! I’m almost 49 years old, this is a BIG step for us. We both have “secure” jobs and to eventually quit all that and go into a completely different field is scary. But if you want to have different results in your lives, you’re going to have to take some chances, and take some risks. Now I’m not saying to blindly quit your jobs and do something you enjoy. You have to discuss it with your spouse (if you have one) and think of ALL the pros and cons first. Start small. Work your way up the ladder. Maybe do your new career as a part time job before working full time. That’s what we’re going to do for a year and see where it takes us.


Is this the End of Cavus?


ABSOLUTELY NOT!! I absolutely love helping people with their finances and having life insurance is just one part of an overall good financial portfolio. Even if I wasn’t going to sell insurance, learning about all the different types of life insurance was a tremendous experience and allows me to help people better.

It is my hope to somehow incorporate, or weave in, Cavus into this insurance business. Because even though I have learned all these different types of life insurance, there was nothing I’ve learned to change my mind that Term Life Insurance is the best insurance to buy with a good solid financial foundation under you, and that what I’m hoping to do to help you.
I post a bunch of financial tid bits on my Facebook PageI’d be grateful if you follow me there

Are you a team player?



Are you a team player?

By Keith Bunn Jr.
July 28, 2015

The Game


Imagine this; you’re at a football game featuring your favorite team and their biggest rival. You have awesome seats that cost you a fortune. The two teams go out in the center of the field for the coin toss. Your team wins the toss and decides to be on offence. Both teams go back to the sidelines and the coaches start to strategize about the plays that will be done during the kickoff. The rival team starts out onto the field, and begins to set up for the kickoff. Your team begins to move out onto the field towards the end where they will receive to ball. It’s then you notice something odd. Your team only has 6 players out onto the field. You start to think, the others will be out soon, but no one else runs out. Now you’re thinking, this isn’t right, what are they doing?

Now we all know that this will never happen. No team from any kind of sport would send out half their players to play the game. The chances of that team winning the game would be almost zero. Well that is exactly what happens in your marriage when you and your spouse are not on the same page when it comes to your money. The chances of you winning financially are almost zero.

Proverbs 31:10–11 says, “Who can find a virtuous wife? For her worth is far above rubies. The heart of her husband safely trusts her; so he will have no lack of gain.” This can be said the other way too “Who can find a virtuous husband…” Both ways are right. If one of you does the budget, pays and mails out the bills, while the other spouse hands over their paycheck and takes no part in the household budget, but then later on gets mad when something goes wrong or wants to buy something and there is no money, that puts tremendous amounts of stress on the spouse trying to do the right thing. Believe me; I’ve done that to my wife. I had no idea how much stress I was putting on her until something went wrong and she just broke down crying. That was when we talked about money, that’s when I got involved and that was wrong on my part.

Now, Julie writes out the budget, we both sit down and go over it. I will ask questions if I have any, if not and I agree to what she has written down and if something goes wrong, I have no right to get into her case about it because I agreed to the plan too. We both made the decision to do it. Now if one of us changes the plan after agreeing on it and doesn’t talk about the changes with the other and something goes wrong, well now we have something to gripe about and we have a right to get in each other’s case. Because it turned an ‘our plan’ into a ‘my plan’, which can cause not only stress, but sometimes resentment as well.

Look, the number one cause of divorce in this country is due to money fights and money problems. If that’s the number one cause, what do you think will happen if you got that part of your marriage under control? And once you start communicating about that, you’ll start to communicate about other things and that will be the beginning of a more fulfilled marriage. I’m telling you from experience, if you go running out on that financial field as a whole team and not half of your players; you’re on your way to winning the game of money and marriage.



“Family is a connection to life… a tie to the past… a road to the future.” – Unknown –

Life Changes


Life Changes

By Keith Bunn Jr.

July 13, 2015

Change is a Part of Life


There is nothing we can do in life to stop change. It’s going to happen whether we like it or not. The only thing we can do is try to affect the outcome of change. What do I mean by that? Simple, we have to proactively do things in order to affect the outcome, no matter how painful or outside of our comfort zone we have to get.

With our finances, that means living on a budget, living below our means, save for emergencies, retirement, kids college. Maybe get a better job so you can do those things and more, I don’t know. But standing in your bath robe at 2 in the afternoon complaining how life is bad and how you can’t find a job isn’t going to affect change. By the way, that example really did happen. Maybe you have to start your own business to make things better, but it has to be done other words you’re not going to like the outcome of change.
This getting up and doing things to affect the outcome of change also goes towards every area of your life, relational, physical, social, intellectual, not just financial. Listen, I know change is hard, I know getting out of your comfort zone is hard, I know it’s painful and scary, they scare the crap out of me too, but you have to do something in order to make the changes you want to happen.


Change is Coming


Now some of you may have noticed that I haven’t posted since mid-June and there is a reason for that. There are some big changes coming to Cavus Financial Coaching. Changes I’m not ready to tell a lot of people yet, but when I am ready, it will be good news for everyone.

A thing that won’t change is I will still be posting blogs and financial tid bits on social media. I really enjoy that. I enjoy getting your questions and helping you however I can. I will also continue coordinating our Financial Peace University (FPU) and Legacy Journey classes in the Spring and Summer months. In fact, If you live in the Grand Rapids, MI area, we will be having out next FPU class on September 25th. Check the Events section on our website for more details or contact me at

Other than that, please be patience with me. Some of my posts will be sporadic until I can get things in place. But if you have any questions, please feel free to ask .

Financial Decisions based on Fear… Good or Bad?


Financial Decisions based on Fear… Good or Bad?


By Keith Bunn Jr.
June 22, 2015


Are you afraid?


At my work, there is a small truck that comes twice a day to sell sandwiches, candy, and drinks of all kinds. I call it the “Gut Truck”. Believe it or not, you can actually set up a tab to get what you want today and pay them back later (Crazy, I know)! One guy did just that and rang up a bill of $75. Before the snack truck company could collect what he owed, he was fired from our company. For fear of the snack company getting mad and not coming around anymore, another guy from our company paid the $75 bill that was owed.


Another lady I know got a call one day from a collector trying to collect on a bill she didn’t even owe. Yes, the collector had the right name, but wrong person. When she told the collector they had the wrong person, the collector responded with, “But isn’t it worth paying the $150 not to ruin your credit?” Out of fear of her credit getting dinged, she paid the $150.


Fear is a powerful emotion! And mix that with anger and you’re set to make some very poor decisions, especially when it comes to finances. We’ve all done it haven’t we? Some worse than others, but we’ve all done it at some level.


Be Calm and Breath


When you sense yourself getting frustrated, mad, or fearful, take a minute to breath and calm down. If you’re on the phone with someone, hang up and regain focus. If you’re there with someone face to face, walk away and regain focus. Whatever you do, don’t make any decisions right then and there. Wait until you’re calm and thinking straight, especially when it comes to your finances. Because if you’re talking to a collector, there is one thing they know what to do to make you afraid and/or angry. Because if they can get you either angry or fearful, they have you and they’re going to get something from you.


What’s the Worse that could Happen?


When you find yourself in these situations and you’re starting to calm down, I want you to think of the worst case scenario. What’s the worst that could happen? Let me start by saying if a collector threatens you that you’re going to jail if you don’t pay a bill, let me tell you that there is no such thing as debtor’s prison. If a collector calls you up today and says that you’re not going to get paid this week if you don’t pay your bill is a scar tactic. In order for a collector to garnish your wages, they have to sue you first, and then they have to wait months before they can act on the judgment, so they’re not going to take your money this week.


Now, like I said, there are all kinds of different scenarios that could happen. Like the two people I know above, what were the worst case scenarios? The guy who paid the $75 really didn’t need to pay that bill. If it came right down to it, the snack truck could have gotten the other guy’s address and billed him for it or, the snack truck could have just stopped doing the tabs. They weren’t going to stop coming because they are making too much money on my fellow co-workers.


The lady who paid the $150 bill that wasn’t her’s. The worst case scenario would have been that they could ding her credit and she could sue them for millions. Because by federal law, a collector has to prove that the debt they’re trying to collect from you is yours. If they can’t or won’t, they have nothing to stand on. And if they’re wrong and/or bullying people, they surely don’t want a judge to know about it. So she really didn’t have anything to worry about.


So don’t let your emotions get the best of you when it comes to financial decisions. You’ll learn fairly quickly that that’s not a good plan.

Are you Wearing Stilts?


Are you Wearing Stilts?

By Keith Bunn Jr.
June 8, 2015



Who can remember in the early 80s when Nike shoes became really popular? I do. I wanted a pair of those shoes really bad! Why? Because everyone and their brother had them, and in my opinion back then, you weren’t cool unless you had at least one pair. But there were two reasons I never got some The first reason was because they were too expensive. My parents had to feed, clothe, and house a family of 6 and it just wasn’t in the budget. The second reason was that none of them fit my feet. The Nikes back then were too narrow for my feet, so even if my parents could afford them, I’d never be able to wear them. So I was doomed to be uncool and boring. Or so I thought.

Get to the Point!


Ok Keith, get to the point! What does this have to do with finances? My point is that it is human nature to want to be popular and liked, and we’ll do almost anything to achieve that status, including going into debt to get it. I mean just think about it a bit. How many times have you seen or heard of people standing in line for hours, days, even weeks to get the newest iPhone, Nikes, etc… and it’s so important to get that stuff, people will even break through the doors of the retail stores, and trample others to death to be the first ones to get them!



In the book Fearless by Max Lucado, he wrote about a make believe place called Stiltsville. Where the more popular, classiest, prettiest, more clever, or funnier you are you receive a set of stilts to walk around in the village square to strut and show your status. And the whole purpose of the villagers are to get taller stilts. I know this all sounds funny but isn’t that really what we do?
And why do we do all this? Well, mainly it’s because we’re afraid. We’re afraid of not being popular or liked. We want to have some kind of “proverbial stilts” to show some sort of status. But there are a few of us out there who really don’t care or have no fear what others think anymore, those are the ones who are content with what they have and don’t have the need to impress anyone. They choose to be stilt-less because they know that no matter what they have, God still loves them for who they are, stilts or not. Jesus said in Matthew 10:29-32, “Are not two sparrows sold for a penny? And not one of them will fall to the ground apart from your Father. But even the hairs of your head are all numbered. Fear not, therefore; you are of more value than many sparrows. So everyone who acknowledges me before men, I also will acknowledge before my Father who is in heaven”
So know that your Heavenly Father loves you no matter if you have a brand new BMW or a used Chevy, a new iPhone or a used flip phone. As long as you are able to function, live comfortably, and live happily with your family and friends, you don’t need to impress anyone with shiny new things. Throw away your stilts, or better yet, don’t get any at all.

Living in a Cause and Effect World




Living in a Cause and Effect World

By Keith Bunn Jr.
June 1, 2015


Just like what the title says, we are Living in a Cause and Effect World. Most of us don’t give it a second thought, but everything we do or don’t do in life have consequences. Sometimes we don’t see what those consequences are for many years, but they’re there. And when it comes to our finances, it’s no different. In this week’s blog, we will go over some facts when it comes to our finances. It is my hope that just seeing these facts, will make you take a second look at what you’re doing with your finances and give you a direction in which to make any changes you feel need to be changed.

Financial Facts


The average household income in the U.S. is $50,000 per year. That means in a ten year period, that same average household will have made $500,000.

The average new car payment is $482 per month and $437 for a used car. If you were to invest those monthly payments from 16 – 65 years old, you would have between $13 to $14 million in an investment.

75% of the Forbes 400 (the 400 wealthiest people in the U.S.) say the best way to build wealth is to get out and stay out of debt.

The number one reason for college students dropping out of college is because of their overwhelming debt. Most of them having student loan debt to pay without a degree.

The number one reason people file for bankruptcy here in the U.S. is because of medical debt. Credit cards are number two.

As of May 2015; the average credit card debt is $15,609. Mortgage debt is $156,706. Student loan debt is $32,956.

45% of credit cards holders here in the U.S. make only minimum payments.

The formula used to create your credit (FICO) score has nothing to do with you winning financially. It does however have everything to do with your debt payment history, your debt levels, length of time you’ve been in debt, what kind of debt you have, and what kind of new debt you have.

This list can go on and on…



Folks, I hope you can see a continual theme here. Debt is nothing more than a thief that steals your future. It takes your hard earned money away from you so you can’t invest for retirement or even your kids’ college fund. The bad thing is, most people whole heartedly believe that they need some sort of debt in order to get the things they need or want and that’s just NOT TRUE!

So let me ask you, has this week’s blog opened your eyes just a little bit? Was it enough to make you think you need some changes in your financial life? I hope so.

Loneliness can be Costly




Loneliness can be Costly


By Keith Bunn Jr.

May 25, 2015

Back in the Day


Back in 1989, after I got out of the Army and moved back to Michigan, I moved into a one bedroom apartment in my hometown of Grand Rapids.


Most of my friends (which wasn’t many) had moved on with their lives and started new families during the 3 years I was gone. So I can tell you, I was pretty lonely. Sure, I had co-workers, but it wasn’t anything like the camaraderie I had while I was in the service.


While this was going on, I found myself going out just so I could be around people. Stores, restaurant, movies, etc… were the places I’d go just so I wasn’t cooped up in my apartment by myself and that became costly.


Budgets for Singles


Now, doing a budget when you’re single isn’t a cure for loneliness, but it does give the single person an out of bounds marker on what they can and can’t do with their money. A budget also gives them control, empowerment, and self accountability over their finances, something I was sorely lacking in my life back then.


You see, there is nothing wrong with going to the movies, or going out to eat, as long as you have a plan for it and a written plan allows you to do that without living beyond their means.


Time Poverty and Fatigue


Another thing that singles, or even single parents do is spend money on things because they are just wore out mentally and physically from that day or that week’s worth of stress. And the logic behind their whole spending spree is, “I owe it to myself” for the rough day or week they had, and that can be costly too.


Accountability Partner


One of the ways singles can keep themselves in check is by getting an accountability partner. This person can be anyone. A family member, pastor, friend, etc…


This person should be someone who you trust letting them know your financials and should be doing well financially themselves. Not necessarily wealthy, but doing well themselves. Your accountability partner should also be someone who loves and cares enough for you to hurt your feelings by telling you NO when you’re getting carried away with your spending.


The point of all this is, there is nothing wrong with spending your money to do or get anything, just as long as it is planned out with a budget first. And find someone you can talk to on certain financial issues that may and often do come up in life. The bible says, “The mind of man plans his way, but the Lord directs his steps.” Proverbs 16:9. It also says, “In the multitude of counsel, there’s safety.” Proverbs 11:14. So have a plan and seek wise counsel from someone you trust. You won’t believe how much of a difference that will make in your life.