Cash value life insurance: the foundation that supports American families and small businesses
By Jeffrey Reeves MA
Insurance and financial advisers have a similar responsibility and so do their clients. We fulfill our role by creating a legacy of wisdom and wealth to pay forward to those we care most about and after your clients pass, you deliver that in the form of a check to those they care most about.
There’s a formula for laying the foundation for a successful personal economy. It doesn't describe the way Warren Buffett, Bill Gates, or Donald Trump — having already accumulated great wealth — handle their money today. It does describe how cash value life insurance can help your clients find and follow a safe and easy path to prosperity.
The formula is quite simple: DIAL
Freedom from debt is the single most liberating event in the life of any American and the first measure of financial success. Every insurance and financial adviser should make debt reduction and elimination the first priority of any guidance he or she provides. Not doing so or suggesting otherwise is, in my opinion, a dereliction of our duty.
Cash value life insurance is an essential part of any strategy that aims to help your clients become debt free.
I = income security — Having an income your clients don’t have to work for, that is protected from inflation and that they can’t outlive gives peace of mind that few Americans experience. Now that we are all living longer, retirement is no longer a realistic assumption if all your clients have is inflated dollars in an unpredictable 401(k), some equity in a home — and that's no longer all that secure — and even fewer dollars in the bank.
However, the simple truth is this: When you achieve income security, you are truly free. Cash value life insurance, as well as other life insurance products and annuities, delivers residual income your clients can count on.
A = abundant ready cash — Imagine assuring your clients that they will have ready cash to deal with everyday needs and wants, to face emergencies and to take advantage of opportunities. It is both liberating and, when managed properly, very profitable for both you and your clients.
Wall Street and Washington have misled Americans into thinking that they need only three to six months of “emergency” cash. Ask any laid off or downsized 53 year old if a six-month ready reserve is an adequate financial backstop.The money your clients save in cash value life insurance can provide them withthe cash they need, when they need it — no qualification required, no questions asked, no banker involved.
L = Legacy — Our founders pledged their lives, their fortunes and their sacred honor to their fellow man and to their country. They pledged that in the Declaration of Independence.
Insurance and financial advisors have a similar responsibility and so do their clients. We fulfill our role by creating a legacy of wisdom and wealth to pay forward to those we care most about and after your clients pass, you deliver that in the form of a check to those they care most about.
There are no financial products in our arsenals that can do for our clients what guaranteed cash value life insurance and well chosen annuities can do for them — and us. It's time to recognize that any product that relies on derivatives is risky and should not be a part of the portfolio of everyday Americans.