Recent audits show that Medicare will run out of funding by 2026. And Social Security will be depleted by 2035 and that includes the funds that pay for hospitalization, long term care and hospice. The latest data are based on the projections of an audit performed by the trustees of these funds who are appointed by the President. They include the Secretaries of Treasury and Labor, as well as Health and Human Services.
Currently, 3.7% of the GDP is being spent on Social Security and Medicare. These precise projections show that this percentage will soon rise to 6%, primarily due to the increasing number of Baby Boomers and Alzheimer cases in America.
Today 1 out of 5 American seniors depend on Social Security. And that means, Social Security provides at least 90% of their total income. Another 1 out of 2 Americans, depend on Social Security providing them at least 50% of their income.
With Medicare, the numbers are similar. 1 out 6 Americans depend upon Medicare to take care of their hospitalization, long term care and hospice needs. Without Medicare, many seniors, Alzheimer, disabled and children of deceased parents would suffer.
And yet, despite these dire predictions, 31% of Americans still believe that Medicare and a Basic Income Check for everyone is a viable plan to reduce poverty in the United States. The math simply proves this to be an impossibility. The top 50% of income earners today in America only earn $50 to $75 thousand a year, depending on what city you live in, and in what state you reside. And, of course, you realize that $50 to $75 thousand a year doesn’t go very far in today’s economy. So where is all the money going to come from to give everyone free Medicare and those in the lower 50% income bracket a Basic Income Check?
Can you say “Bankruptcy?” That is what such nonsense will do to America.
On the other hand, Life Insurance is often ridiculed as “Being only for the next guy.” But with certain types of life insurance, equity is developed inside the policy that you, as the policy owner, can use before you die. This type of life insurance is called Participating Whole Life Insurance and you can actually build equity faster and more securely in this type of life insurance than in the home you are purchasing. And the equity that is built in this type of life insurance is more liquid, making it available to you to use for anything that you need to use it for, without having to get the banks permission to use the equity you build in your home.
That is why smart money managers have always looked to Participating Whole Life Insurance as a way to protect themselves for their own future needs as well as a way to provide for their loved ones. Many have used this kind of life insurance to fund their own business, their future retirement, as well as endowments and charities. In doing so they have provided for less fortunate wage earners in a fiscally sound method rather than through massive taxation which leads to economic ruin for all societies that have attempted such bold schemes in the past.
If you don’t own Participating Whole Life Insurance, you are taking a gamble that the government will tax others higher than they currently are so that Medicare and Social Security don’t run out during or before your retirement. And the great thing is, for pennies on the dollar, you can secure your financial future today with a contractual guarantee, and eliminate the worry over whether or not Medicare and Social Security will be there for you and your future.