With the Fed's ongoing battle with inflation, we're now seeing interest rates that haven't existed in a few decades. Many of us can't remember a time in our adult lives when the cost of money was so high.

Not surprisingly this is forcing some changed behavior when it comes to borrowing money. We started the year with mortgage rates around 3%, and now they sit around 7%. While many people will tell you this is brand new territory for Americans, older folks know we've been here before.

In fact, many have expressed concern for what they received as artificially low-interest rates sustained by the Fed's policy of Quantitative Easing following the collapse of financial markets in 2008. We all enjoyed a prolonged period of low-interest rates that made borrowing money seem like it had virtually no consequences.

Those days are now gone, and it's likely we'll have a substantially higher expense to borrow money, so now it's time to strategize on the cheapest ways to borrow money when we need it.

Higher interest rates are likely to remain a thing for a while. Life insurance loan rates relatively speaking will likely remain low. We warned people about this years ago. The important message here is the mechanics of life insurance and how it operates in relationship to other financial tools. Sure for a number of years there was indifference between financing through a bank and financing through a life insurance policy. But if interest rates rose to levels many people agreed were more realistic, then life insurance held an advantage. It was difficult to get people to see that forest through the trees, but it's becoming a lot easier these days.

Owning life insurance creates options, and as time goes by life insurance contracts have a tendency to get financially stronger as the policy owner tends to become financially more vulnerable--age has a way of doing that to us.

And lastly, as rates rise, so do whole life dividends, making this an even sweeter deal. _________________________

If you're curious as to how a whole life insurance policy might accomplish these things for you, please click right here to get in touch with us.