Our approach is part of the reason why we are so excited about bringing this product to market is that right now you've got masses of people that sit on the fringes of the financial system that are under-serviced by the existing financial system.

What's up, world?Welcome to Financial Freestyle here on Yahoo Finance, and I'm your host, We're all smack. Now look guys, no matter where you are in your journey financially, you can never stop learning and that's why I'm talking to some of the ghosts in their own respective fields to uncover a lot of gems, and today is no different, as I'm talking to the Craig DuBrain of Colli of Life. Craig, how you doing,baby?

I am fantastic, Ross. I'm excited for this conversation. You're a legend and it's an honor to get to spend some time withyou.

Look at that. From one legend to another legend. And I'm, I'm gonna call you a legend for one, right? What you're doing, you're revolutionizing an industry that is obviously a $1 trillion dollar industry, but I want to kind of dive into it, right? Like I think the average person, when they hear life insurance, they think of kind of an afterlife product, right? It's a death product, but you're looking at that and you're revolutionizing that, looking at it more so as living capital.Let's talk about that. What does that mean? Why should people even consider

that? Thank you Ross. Well, you know, if you look at the life insurance industry, it should in essence be called the death insurance industry because you'll never really see.The benefits of your life insurance, besides the peace of mind you get while you're alive. Most of the benefits you receive from life insurance are accrued posthumously. They're there after you're gone to take care of your family. And we just looked at that and said, you know, this is an industry that's been around for 150 years.And the mechanism for it hasn't changed. There's been digital and technological enhancements, but the mechanism of life insurance hasn't changed in 150 years. Take out a policy, pay it for life, benefits of death. And we just had a look at that and thought, well,If you've got life insurance, you're worth more dead than what you are alive. Is there a way for us to leverage the inevitability of death? Go to that point in the future where you are worth more dead than what you're alive and collateralize a percentage of that future value, your future value, andBring that to present value and make a portion of it available to you while you're still alive for you to spend that money on the things that are important to you, like paying off student loan debt or putting a down payment on a car or home or taking care of a sick loved one or dream vacation or getting married or whatever it may be.

When you look at life insurance, right, it's one of those things to your point. Like people want a peace of mind, but the average person doesn't know much about life insurance, right? You get kind of term life and whole life, right, a permanent life. And I think that I was looking at the stats, there's like less than 5% of term.life even ever pays out, right? And so the idea of like, OK, one, what are the other benefits of permanent life? And so when I look at permanent life, I hear there's a ability to, right, obviously have some living umAdvantages such as you know cash surrender value, being able to leverage that and you could borrow from that and you don't pay taxes, yada yada. But the idea is that you have to wait until that cash value accrues. Let's actually break down kind of your living capital because I don't think people understand, one, the difference of term versus permitted, but more importantly, that cash value thatFrom traditionally what we're used to.That doesn't accrue until sometime in thefuture.

Right. And it's, it's all based on what you've paid in. All you're essentially able to do.Is a structure, an endowment or an accrued value, um, that you can only capture or, or participate in after to your point, it's built up some value. So, all you're doing is it's a form of savings that you're able to access at some point in the future. You're never gonna get more than what you've paid in. That's just the way that the, the, the product is designed.The difference with what we've created, to your point, Ross, is that if you meet our underwriting and onboarding requirements, you can access up to 25% of your death benefit. So if it's a $100,000 life insurance policy, you can access up to $25,000 of that on the day you take out the life insurance policy. It will be paid into your bank account before you've even paid us a cent.

We have got to break that down, right? Because the only way that I knew about accessing cash value day one is if I'm like a multi-millionaire and I do single pay permanent single pay whole life, and that means I'm buying a million dollar policy and I, you know, day one, I put 200 to $300,000 and then my cash value is this. You're saying for someone right now, and my next question obviously will be kind of the requirement.from an underwriting perspective, but like, help us understand how that's possible. Like from your actuaries. I know your actuaries got to have a headache. Like that, that's remarkable. How does that happen?

It's unique in that we've brought a really interesting financial algorithm or financial engineering to an age-old product, right? We're solving things differently.And the way we look at it to go back to to what we said earlier, is if you have life insurance, you're worth more dead than what you are alive. We go, we use technology to calculate mortality and go to that point in the future where you're worth more and give you a percentage of that back now. If you've thought about it in real terms, I know that this is morbid and, and not necessarily the most fun topic to talk about, but if John Doe entered our ecosystem and took out a policy,And listed his wife as the beneficiary on that policy. And heaven forbid, on Monday next week, on his way to work, he got hit by a bus and ended up at the holy gates, right? What would happen at that point is his wife would have a claim as the beneficiary, and John Doe's policy would pay out to his wife.So the terms of the contract have been fulfilled. We would cover the risk if John Doe passed away, his beneficiary would receive the proceeds of that policy. So that is pretty linear and easy to understand. Well, all we're doing is we're taking that point of John Doe's departure, and we know it's at some point in the future, and we know at some point we're gonna have to pay out that policy.So all we're doing is we're giving them 25% of that now.As opposed to them having to wait until they're dead. It's the same actuarial model. The only difference is we are assuming we will 100% pay that out at some point in the future, and we're just gonna advance and give them a portion of that now to improve their circumstances in their life in the present moment.

Permanent whole life is written to 100 years, right? And so you're saying day one.With a person not paying any premium, they now have the ability to access up to 25% of that death benefit. And so my question is, right, what's the collateral on this, right? Because my understanding, when it comes to Whole Life, if a person's making payments and then they fall on hard times, they'll always have the cash value that they built up.But in the event they stop making payments, the entire policy lapse. Now, they'll still have the cash value. If a person comes day one, they get up to $25,000 and come year two, they stop paying, right? Like, how does that, like what's that look like? But more importantly, maybe that segues it to the next question of like, from an underwriting standard, what, how does that process look? Great

connection that you made to those two points, Ross. It's all based on underwriting and onboarding, right?So when somebody enters in our ecosystem, we build a 360 degree wellness matrix on every single one of our clients that takes, that pulls in certain data points. So we look at biometrics. We use really advanced technology using the front selfie camera on your cell phone, where you take a front selfie and weUse, we pull biometrics from that, where we're able to look at things like your blood pressure, certain chronic disease that you may be predisposed to using advanced technology that enables us to do that. We use behavioral economics and and psychometrics to determine what your risk profile is. Are you somebody that umAs a high risk tolerance and is a little bit more frivolous with your money. And using psychometrics, we can build a 360 wellness matrix on every single one of our customers. So we build this 360 wellness matrix using data points from biometrics, behavioral modeling, financial modeling, um, and that gives us what we call a life liquidity score.That life liquidity score is fully transparent. We give you access to that data of how we determined and made the decision on your life liquidity score. No smoke and mirrors like exists in the industry right now where you've been underwritten, but you don't know what the terms are upon which you're being underwritten. We make it fully transparent, no smoke and mirrors, and we give you your life liquidity score.Your life liquidity score, russ, determines how much liquidity from your death benefit you can access on day one. And it's gonna be a number, anything from 0% to 25%. Let's assume John Doe enters our ecosystem.Goes through the onboarding, we build the 360 degree wellness matrix and we give him his life liquidity score.And his life liquidity score determines he doesn't qualify for any upfront cash on day one. So he comes out at zero upfront cash. That's not where the relationship ends. We have a gamification and rewards engine built into our app which says to John Doe, this is where your life liquidity score is right now. These are the improvements you need to make to your physical wellness.And your financial wellness and we'll give you some milestones in this road map with micro rewards built in.In other words, you're pretty sedentary right now. You could really use a little bit more exercise. We're not expecting you to go run a marathon, but start walking at least 10,000 steps every day. If you hit that consistently for 5 days, we're gonna give you a Starbucks coffee. I'm just using random examples, right? So we give John Doe the road map that shows him the improvements he can make that will ultimatelyaffect that life liquidity score. So the higher the life liquidity score improves over time, the more liquidity he can access from his death benefit over time. So it's never that, that, that people will not get anything. You're either gonna get access to the roadmap to improve your life liquidity score, or you're gonna get 25% now.

You canimprove your, your, your uh liquidity score by being more healthy.But I'm saying like the, from a, you know, a risk standpoint, like almost credit, right? Like, what's your likelihood of paying your premium since I'm giving you this upfront? And how does that look?

The first point that I was making was that it's unlikely we would have given John Doe the money in the first place if we felt that his risk profile was negative. If, and if we assume the risk profile is negative, we'll give John Doe the opportunity to prove us wrong by giving him the roadmap and showing him the improvements he can make over time. Now let's assume somebody still beats the system.Still gets an upfront cash portion, let's call it $25,000 and to your point in 2 years' time stops paying. What happens at that point? At the point of origin where we issued the contract, we added ourselves by agreement with John Doe as a contingent beneficiary on the policy for the portion we advance them.And that's the collateral. We are securing ourselves as a contingent beneficiary on the policy for the portion we advance them.

Makestotal sense. We got to take a quick break, but when we come back, we'll have more from the CEO of Collio Life.All right guys, welcome back to Financial Freestyle here on Yahoo Finance. I'm your host, Ross Mack, and we're talking to Craig DuBryan. So Craig, listen, as a person in my background, right, I love financial literacy and I think the cornerstone, the backbone of a person being financially free, especially if you have dependencies, you need life insurance, right? It is something that is, it's not up for debate, right? Like you have to have it, especially as a person like me. I got 3 kids.And what I find is that about a third of Americans, if not more, are either uninsured or underinsured. So how do you want look at that, but also tell me what's your vision for how, you know, Kaleido is going to find a way to even bridge this?

No question, Ross, and I think our, our approach is part of the reason why we are so excited about bringing this product to market is thatRight now, you've got masses of people that sit on the fringes of the financial system that are under-serviced by the existing financial system. And these are people that, that unless they are inheriting money from an aging parent or um have some windfall that is gonna change the trajectory of their lives, we look at that and go, is there a wayThat we can take the trillions of dollars of underutilized wealth that these behemoth life insurance companies sit on right now through the assets that they own and redistribute that not through some socialist decree. If we can redistribute that into the flywheel of value creation and put some of that money.Into the pockets of people so that they can get a leg up, a lift up in life, to just start on the right financial footing. And I know that that's something really that you're very passionate about and I'd love for you to share some of your thoughts on that.

Very well put, I think that um you know, theWhen you think about the wealth gap in this country, it's really boils down to an exposure gap and an information gap. And so, when I talk about just the base cases of, you know, life insurance, I think most people want.Overestimate how much it will cost and underestimate the benefits of it long term, whether it's the living benefits or AKA living capital and so many other things. And I think you know my goal is obviously to educate the masses. And so, you know, I love having these type of conversations. And then I have a question, right, because I think you know when you think about, and you use the word, you know unless you're inheriting from your parents, I love the way you think about.Lido life is because you're saying you're inheriting from your future life, I mean, from your future self. And so curious, right? So, what are you seeing most people leveraging it and using it? Is it, I don't know, investments, real estate, or, you know, like, what, what are most people using the capital for?

Ourinitial beta testing is showing paying off student loan debt and paying off debt. And that's an interesting data point for us in our behavioral modeling.I, you know, I don't know that somebody's gonna come into the ecosystem and go, what we go, what do you want to use the, the money for? And they're like, Well, I was thinking of going to Miami for a weekend to hang out with some of my friends in Miami, you know. So, we, we, we, we, we need to still determine whether there's bias in those answers. But the majority of, of the profiling we're doing is paying off student loan debt, paying off debt.And then the next is putting down payments on cars and homes. And I really think that that's where we start shifting the financial well-being of major sectors of the population who are on the fringes of owning a home. They'll never own a home because they just don't have enough to beto cover the down payment. And now they can inherit that from their future self because their future self is going to be a financially knowledgeable individual. And why not give them an opportunity to give them the leg up right now that they need.

It's one thing to say, hey, I, I, you know, I wanna use this money day one to to cook up a crazy parlay. But then it's another thing to say, I actually wanna, wanna buy a home or pay off my student loans, so I find that fascinating.You know, as we get closer, I, I would love for you to speak to some of our viewers that are either aspiring tech founders or currently tech founders, right? And clearly you have navigated this world and you've raised capital. What advice would you give for someone that is looking to take an idea andTake it to the next level and actually see it, see it through and see it to fruition.

The starting point is that there is no such thing as a bad idea. Start somewhere and, and don't be too attached to iterate and, and change course and change direction with time. Start somewhere and uh knowledge comes.Through making mistakes. I love talking about Ross. Go and make fail forward fast.Early in life. Like go and make mistakes and develop some resilience. You've got your whole life ahead of you. You don't have to have it all figured out at 20 or 22 or 25 or 27, or even 30. Go and make the mistakes early and just get started. And thenAccept rejection as part of the process. Failure is going to happen. That's just the data point on your journey.

You know, where I come from, we turn, you know, we turned losses, ails into the lessons, right? What was one of your biggest lessons that came from a loss that actually may even outweigh a win for you?

I'd love to share with you very quickly the story of origin of where Kaido Life came from. I had a business partner in South Africa. He was younger than me in his early 30s, married with two children.And we had a phenomenal business partnership. And I was uh in Seattle, Washington on business. He was in South Africa. We had a call on the Friday afternoon discussing a project we were working on, and we both went off to go and have a great weekend. I was in Seattle and uh I woke up Monday morning to a text message that he had passed away that weekend. He'd had a stroke and didn't make it through the weekend.Thank you, Ross, and it was like being hit by a freight train because it was completely unexpected. I'd had people pass before, but never somebody so unexpectedly. I returned to South Africa and handed his widow a check from the life insurance company because he was insured through the company. And she said to me, Craig, I could have used this money when he was alive. My kids have never been on a real holiday with their dad, because he was so busy earning a living, we never got to make a life.And it occurred to me as I left there that kept reverberating through my head, Ross, and it occurred to me even when life insurance works, it fails. Why does it work the way that it does? And that led me down this path of wanting to understand how life insurance works, and kaleido life was born from that story and was born from the desire.To fix how death benefits are paid. How many other people are there in the world, like my ex-partner, that could have used the dream vacation and just didn't have the finance or the means at that time to take his family on a vacation. And so that's the origin story of where this started.

And, and you know what's interesting is, one, you know, my condolences. And I think most great ideas and businesses come from some type of experience, right? What what problem do you see and what's the solution? And that's always some of the best businesses. So that's a remarkable story. Uh, last question, right, for the interest of time. Craig, if you could go back in time and talk to an 18 year old version of yourself, what advice would you give yourself?

Keep passing them like just.Keep, keep hustling. Um, learn, ask questions, make mistakes, um, and surround yourself with, you know, you are, uh, the person you are 5 years from now, Ross. And I know a lot of your viewers will have heard this. The person you are 5 years from now is a direct consequence ofYour, the, the people you hang around with, the podcasts you listen to, and the books that you read. So you have the power over your destiny by just fixing those three things, the people you hang around with, the podcasts you listen to, and the books that you read.

This has been a phenomenal conversation. I can't say thanks enough, Craig, for coming on here. I wish you nothing but the best of luck when you launch this. I can't wait to stay in contact with you. And that's it for this episode, ladies and gentlemen. I want to thank you guys for sitting here. Make sure you like, subscribe, hit.Your auntie and your cousins to also watch this episode. And it's your host, Ross Mack, and this is Financial Freestyle here on Yahoo Finance. As a matter of fact, not only can you find this everywhere, but also you can find it on Amazon. All you got to do is say, Hey Alexa, let me listen to Financial Freestyle.

This content was not intended to be financial advice and should not be used as a substitute for professional financial services.