Today's cost of living increases are greatly outpacing bank's willingness to provide a reasonable rate of return to depositers. In addition, while keeping as little as 10% of deposits on hand, a bank's FDIC Guarantee is a hollow if market conditions ever spark a bank run.
Many believe that the tax benefits and deposit structure of a mutual insurance company fosters a much more attractive depositor dynamic.
Believe it or not, we are in a period of some of the lowest tax rates in US history. In spite of this, many are encouraged to delay paying their tax bills until many years down the line. On top of this, most people agree that in order to sustain the US economy, in the presence of increasing national debt and the social security crisis, Most people believe that the US will have to increase taxes.
Many are choosing to pay their tax bills now, in order to enjoy tax-free growth and tax-free distribution when they need the money the most.
Uncle Sam is not your uncle, and financial goal of any government is to keep itself financially viable. The markets were built to fund businesses, not for your financial future. So why are most Americans investing in a vehicle that was not created for their benefit? When asked that question, most will answer "It was all that was offered to me".
Is there something else? Many are discovering that life insurance was created to directly provide benefits to it's clients. Our clients minimize tax exposure and profit from the peaks while avoiding the valleys of market trends; using plans that address today's most pressing financial needs.