Reason number eight why you and any money smart person should choose to use participating cash value life insurance to build a Money for Life economy that lets YouBeTheBank and that lasts in good times and bad:
Your “bank” allows you to pre-pay the cost of future health and long-term care so the money you need as you age is in your “bank” when you need it most. One of the greatest challenges we face is being able to care for ourselves or to be able to afford to pay for the care we need as we age. A three year stay in a nursing home (average for a retired couple) costs almost $200,000.00 today. Receiving the same care at home is almost as expensive. Add to that the medical care costs that are not covered by insurance (Fidelity Funds annual estimate for a 65 year old couple in 2007 is $207,000.00). That’s over $400,000.00 in unfunded medical and long term care costs for the typical retired couple.This is a big problem for each of us and for society. If retired persons can’t pay for their care then society will have to chip in. It is imperative to put money aside to pay for these costs. But, it is a daunting task in the conventional way of thinking.It’s not as scary if you have your own “banks”. The same participating cash value life insurance policies that allow you to build your wealth by borrowing and repaying yourself for the things you buy throughout your lifetime can also be used to pay for unreimbursed medical expenses and long term care when you are older. Remember, everything you buy and pay for by borrowing from your “bank” is going to be there for you when you are older. The more successful you are at building your “bank” in your early years, the more comfortable you’ll be as you age and your needs change.
“You can be young without money but you can’t be old without it.” Tennessee Williams
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