Life Insurance Inflation

This is part one of a 7 part series on why you should obtain life insurance. Please check my next blog posts regularly for the rest of this series on life insurance.

Most of us have been told that life insurance is for people who plan to pass away. Contrary to popular belief, life insurance serves a much more significant purpose than most people could possibly imagine. With a real deficit that is around $17 to $75 trillion, the truth of the matter is that the government has allowed the proverbial can get kicked so long that it has morphed into an out of control freight train. Increasing what you pay out of your pocket to reduce this deficit is inevitable, and that payment plan is going to be drastic, at least for those of us who do not have a plan to combat this.

Now that we have a clearer picture about what lies ahead, we must understand what hinders our money from growing with maximum capacity. There are four wealth snipers that you must know about before you make life insurance work the most efficiently for you. These snipers camouflage themselves and silently watch while you meander through life, oblivious to their presence. They patiently wait for you to make a mistake out of ignorance or misguided beliefs that place you on a path that leads you to the center of the sniper’s cross-hairs.

Sniper one – Inflation

One morning, you go to the grocery store because the kids eat when they are not full instead of when they are actually hungry. Today, you don’t mind because it’s a beautiful day in Southern California. You get your shopping cart and go down every row in the store to make sure you didn’t miss anything. As you scan the enormous selection of ice cream, you zero in on cookies and cream because it has enough vanilla flavor to satisfy an adult palette and enough cookies for the little ones at home. As you pick up the ice cream, the price tag seems to be the same, but the half gallon of ice cream you remember buying is now 1.5 quarts. You are busy so you don’t really think too much about it, so you keep shopping.

As you get to the junk food aisle, you notice that the bag of chips has a lot more air inside and the dish-washing liquid seems a little more diluted than before. Suddenly, you become more observant as you go down the cereal aisle. You recognize that the prices have sharply increased. The same is true for bread, orange juice and especially produce.

The prices of these staple commodities continue to increase and rob us of our wealth.  These snipers steal from us every time we take our cars to the gas station or check our bags into an airport; long gone are the good ole’ days when a ticket price included luggage and a hot meal. Certainly, we can choose not to travel, but we can’t opt out or boycott the grocery stores because we have to physically survive. In short, as the cost of the goods and services we buy increases, the amount of money we have to invest decreases.

Please check out my next blog post on life insurance which discusses Life Insurance Sniper 2:  Taxation.