It Might Be Time to Take a Second Look at Permanent Insurance

Look at these statistics and tell me you don’t need financial advice. The U.S. government reported a $68 billion deficit for June 2010, the second consecutive year that there has been a deficit in June (i.e., June 2009 and June 2010). Before 2009, there had not been a deficit in June since 1991. In fact, over those 17 years, from 1992 to 2008, there was an average surplus of $30 billion in the month of June. What this means is that the government has spent more than it has received in tax receipts for 21 consecutive months. Do you think this may affect you future tax rate?

The S&P 500 lost 9.1% (total return) in calendar year 2000. The S&P 500 also lost 9.1% in aggregate (total return) for the last decade (2000-2009). Thus, the total return for the S&P 500 for the past nine years from (2001-2009) is zero. What has happened to your portfolio?

According to the Employee Benefit Research Institute, 47% of Americans currently between the ages of 56-62 would run out of the funds necessary to pay for basic retirement expenditures if they retire at age 65. Can you afford to retire at 65?

If you say you don’t need financial advice, you would be in the minority. But if you were smart enough to purchase permanent life insurance with cash value guarantees, there is a bright spot, because you were assured of at least some growth in your investment portfolio due to the cash value guarantees. If you don’t own any permanent life insurance, it’s not too late. Contact your agent or financial professional to review your portfolio and see if it should be part of your financial plan. (Or locate an agent to assist you here.) At a minimum, life insurance can replace what you may have lost over the past 24 months and make your plan self-completing for your family.