Cash value life insurance is the most important financial asset available, and it will remain so for the foreseeable future.
This is because it has the unique ability to combine safety, tax benefits, and leverage and longevity credits. Cash value life insurance is far more valuable than most people realize because it will help them to overcome challenges they do not yet anticipate.
I am stating this so categorically because it seems like many insurance and financial advisors do not fully understand the important role cash value life insurance will play in achieving financial success in the years ahead.
Consider this: If interest rates continue to remain low, how will people save enough for quality retirements? If the stock market reverts to its mean and yields no returns or even losses for the next decade, how will people achieve retirement success?
And how will we pay for health care? According to the Centers for Medicare and Medicaid Services (CMS), the average American spent about $9,600 for healthcare in 2014. That is a 25 percent increase since 2007.
CMS predicts the average American will spend almost $15,000 annually in 2023. That means a couple will spend $30,000 per year.
The median household income in this country is only $51,000 and 86 percent less than $75,000 per year. Bottom line: Most of America will not be able to afford healthcare by 2023.
Wait — it gets worse! According to Health View Services, a 65-year-old couple retiring today will pay between $266,000 and $395,000 for healthcare in retirement. And a 55-year-old couple retiring 10 years from now will pay between $321,000 and $463,800.