Last week we blogged about the way Biden is mirroring Jimmy Carter when it comes to fiscal policy. The only real difference is the massive extension of those failed policies.
Therefore, it comes as no surprise that Cecilia Rouse, one of Biden’s own Council of Economic Advisers, stated the Council fully anticipates, and expects, to see inflation, supply chain disruptions and other economic discomfort in the coming days. As one economist put it,
“Biden spending like a drunken sailor is putting America in a pickle.”
But you don’t have to have some “official” tell you what is happening. Gasoline prices have risen 57% since Biden took office. Food prices are on the rise. Housing has doubled, and even tripled in some communities, and steel and lumber prices have more than tripled.
So, what do you recall living in the Carter administration? Maybe you are too young to remember but:
We are living a Déjà vu moment in history! This is concerning because only those who are prepared will avoid the pain and suffering that is coming as a result of these failed economic policies which, if we had wise leadership would never be repeated.
It was under the extreme inflationary results of the Carter Administration that R. Nelson Nash discovered he could access cash flow from his life insurance policies at a fraction of what he was paying for it with traditional loans. With the prime at 21.5%, Nelson was having his outstanding loans being re-adjusted quarterly. Nelson often talked to me about the pain and suffering he had to endure just to keep the sharks and dragons (his creditors) at bay.
But once Nelson realized he could access money by leveraging his life insurance policies, his pain and suffering disappeared, and he was able to sleep peacefully again. The only limits Nelson mentioned which kept him from accessing more money was that he had not put as much in as he could and should have.
Life insurance policy loans, according to “The Model Policy Loan Interest Rate Bill”, an act which regulates the interest rates for life insurance policy loans states; The rate shall not be:
This regulation is a huge advantage for a life insurance policyholder, especially when inflation and interest rates rise, as we have been forewarned by Cecilia Rouse.
Granted we are experiencing unprecedented low interest rates currently. In fact, interest rates have been so low that life insurance companies were allowed by the last administration to lower the rate of return they use to calculate the guarantees they provide their policyholders. At the same time this new regulation allows greater early cash value to build up in a policy without creating a taxable event, otherwise known as a modified endowment contract.
Both of these new regulations, set forth and approved by the Trump administration, are good news for policyholders for the following reasons:
Because of all these things and more, there has never a better time to prepare for the worst which is to come. Don’t be caught like Nelson Nash was, wishing he had put more money into participating whole life insurance when interest rates reached 21.5%. Don’t be like the ten foolish virgins in Matthew 25 who wished they had stored up a reserve of oil so their lamps would stay lit for the bridegroom’s return. Don’t be like the many millions of Americans, who under the Carter administration, were left empty handed and ended up having to depend on food stamps as well as government assistance for housing under Carter’s Community Reinvestment Act (CRA).
So, call today and start building your life insurance cash values immediately, while you still have time to prepare. Knowing what is coming, make sure you are prepared so that you can sleep peacefully when the times arrive.