Americans are facing a fiscal tsunami. It will require a miracle for most of them to stay in control of their financial futures. Fortunately, we sell miracles. We sell the miracle of compound interest, which Albert Einstein once called the eighth wonder of the world. If he were alive today, he would say the miracle of tax-deferred compound interest is the ninth wonder. This miracle provides our clients with triple compounding: interest on principal, interest on interest and interest on the taxes they would have paid in an investment taxed on an accrual or yearly basis.

Even as taxes increase, tax deferral helps Americans accumulate larger lump sums that will provide them larger guaranteed paychecks for life. Even better, this can be done without any additional risk. Income annuities provide the same income as a stock, bond and cash mix, using only 60 percent of the money required by that allocation.

Studies at the Wharton School, the University of Pennsylvania, and the University of Illinois all found that annuities are the most efficient way to provide a guaranteed paycheck for life. The president and his administration have sung the praises of annuities and the guaranteed income they provide.

Finally, the greatest miracle of all: We sell the miracle of leveraging. Pennies that buy dollars; one dollar that does the work of many dollars. Cash-value life insurance is a perfect example.

Remember, Americans will pay higher taxes and receive lower benefits, meaning they will pay more out of pocket and have less discretionary money to buy goods and services. Cash-value life insurance allows Americans to provide coverage for many eventualities using the same dollar. That is both efficient and necessary. Americans should use this for building financial independence.

Marvel at the many benefits of a quality cash-value life insurance policy:

  • It takes care of your family if you die too soon.
  • It takes care of you if you live too long: The cash value can provide the same guaranteed paycheck for life as an annuity.
  • It is self-completing if you become permanently disabled: A waiver of premiums guarantees that it completes the program even if you cannot.
  • It can have catastrophic benefits that will pay out for cancer, heart attacks and strokes; life insurance can help even when you don’t die.
  • It can have terminal illness benefits that will pay out when you are diagnosed, allowing you to put things in order before you die.
  • Finally, it can now provide long term care benefits; this is drawn from your policy’s value.