Life is Short

One of my favorite questions to ask somebody is, “Would you rather plan around a known event or an event unknown?”

I have never had anybody ever tell me they would like to plan around an event in the future that is unknown. Ironically this is the way most everybody plans for their financial future. They plan around the unknown risks associated with stocks, currencies, mutual funds, bonds, mortgage values and the likes while shunning the most proven method of financial planning known for the last 200 plus years.

You see everybody that leaves this planet for good has always died (except for two people.) And that is an event that will happen to everybody that is still left on this planet too. The only way out is by death. So why not plan your future accordingly?

Now I’m not going to start talking about theology or metaphysics, although that may not be a bad idea either, but I want you to consider the risk associated with your death. Because death is inevitable there is a science that has developed which can predict your probability of and the time of your death quite accurately. It is called actuarial science and these actuarial scientists can tell you exactly how many folks from your high school graduation class are now dead and how many more of them will die before the end of the year. The only thing they can’t tell you is who those folks are going to be. But they can tell you if the deaths will be male or female based on the facts that they have been provided.

Now consider how the actuaries help life insurance companies determine the premium rates that they must charge to insure your life. Knowing the probability of your life span, these actuarial scientist calculate just how much money the company needs to collect and what kind of return the company needs to make on you premium dollars, in order to pay a death claim for you when you leave this planet for the last time. Those premium dollars work for the insurance company and produce profit that eventually will be paid to your beneficiaries.

Now consider the fact that you can borrow money from your life insurance company and pay them the rate of return that they know they need to make in order for you death benefit to keep growing and not collapse. What could you do with that money?

Well, some folks have learned that using that available line of credit from the life insurance company they can leverage it in their favor right now. Not having to wait until their death to show any profit. Fact is if they have a good coach and work this line of credit from their insurance company properly, they will increase their current lifestyle and their death benefit all without having to work any harder than they are currently are working right now. But it does take knowledge, desire and discipline.

So don’t play it risky, give us a call today and learn how you can acquire that knowledge. And in the meantime think about that question I love to ask. What are you planning your future around? The known or the unknown.

By Tomas McFie