I spoke to a gentleman on the phone today about the world economy.   He asked me what is going to happen in the market and if I am concerned.   The short answer to this question is that I am worried about the economy, like any American.    The good news is that our whole life clients seem to be pretty happy, as they have seen their cash values increase even with the economic downturn.   No matter what, the cash value gets better ever month and every quarter.    A whole life policy has guaranteed values in the cash values and a non-guaranteed amount with a dividend.    The dividend is declared by mutual companies and then credited to your policy.   Mutual companies, which are owned by policyholders may reduce dividend scales in an economic downturn.   Even with reducing they dividend scale, most will still pay a dividend and have a long history of doing so.

Even if the economy went completely south and the companies halted paying a dividend temporarily, they guaranteed values would always still grow.   The bottom line is that the whole life cash value always goes up.   It is a safe and steady place to put some of your money and can be a very valuable fund to tap into.   We work with our clients to help them understand the principles of  “Infinite Banking” and how they should build and utilize their cash value in the most efficient way possible.

It is a tough econ0my out there, but whole life insurance keeps plugging right along.