IMPERIAL, Pa. — Hardly a day goes by without some bad news about the market, economy, hedge funds, investments, etc. With so much negative press, it’s no wonder the market has sustained an average loss of 37 percent over the past year.
When you apply that percentage to a hypothetical 401k with $50,000 as of last year, the new value is $31,000-plus. This is a significant loss for anyone. We’re only talking paper losses, but they do become real if you retire, leave your employer or cash in the account. Many people are under the impression that the market will be coming back in a year or so. Hopefully they are correct, but how long do you think it will take to recover from a 37 percent loss? Market professionals say it will take seven years to get back to the original $50,000, assuming an eight percent annual return. Seven years to get even, then factor in the time value of money lost over that period.
Life insurance is one way to protect yourself. While it will not prevent market losses, life insurance is an excellent way to make sure your family has money to meet their needs should anything happen to you. Some people believe they don’t need life insurance because they are in good health and their family would receive more if they invested elsewhere. However, that is exactly why you should have more life insurance. When you’re in good health is when you can qualify for life insurance. Purchasing life insurance gives you peace of mind knowing that if something happens to you, your family is going to be O.K. financially. Owning life insurance allows you to invest freely without worry. You won’t need to fret about the market being up or down because the foundation of your financial plan is life insurance. Life insurance is 100 percent guaranteed and the proceeds are paid to the beneficiary tax-free.
Contact your Lodge secretary, local sales representative or the SNPJ Home Office at 1-800-843-7675 for more information on our new plans and competitive rates. See how easy and affordable life insurance can be. Stop worrying and start living!
