By Marnina Delahanty
Debt is crippling not only America as a nation, but American families, as well. We address the problem, and insurance solutions for the individual, on the Asurea blog regularly. Today, we turn to the debt burden on a more personal level, considering its impact on families, and insurance solutions to alleviate strained household finances.
American Family Debt
Be it student loans, mortgages, autos, credit cards, or many of these combined, the average family is saddled with tens, and often hundreds of thousands of dollars of debt burden. The trend doesn’t look good. Q3, 2019 marks the 21st consecutive quarterly increase in household debt, according to the Center for Microeconomic Data. Totaling $13.86 trillion, US consumer debt is more meaningfully reflected on an individual scale. For example, the average household with credit cards owes $8,398 in credit card debt alone. While we could further break down the numbers, a deeper understanding of the problem won’t solve it.
An Unexpected Solution – LIFE INSURANCE!
Instead of particalizing the problem, let’s jump right to an unexpected solution – LIFE INSURANCE. The traditional benefits of life insurance still hold; it takes care of loved ones when we pass. But a wealth of life insurance benefits are unknown.
Life insurance can be structured to provide account value loans taken out during the insured’s lifetime at rates so low, and at such favorable terms that they beat traditional banking industry norms. This is a total game changer for policyholders! It allows them to utilize their policies as though they were their own personal banks, paying off their mortgages decades earlier, eliminating credit card debt, and financing college themselves rather than through debt accumulation. Tens of thousands of dollars are saved in interest alone. Policyholders time these loans to coincide with their policy’s cash value integrity, ensuring that the policy never goes defunct, which is crucial.
We’ll explore the many facets of life insurance alternative uses in future blog posts. Meanwhile, contact Asurea for a personal assessment to see if this is a good fit for you. We’re always here to help!