The Cyprus Banking Debacle – Another Case For Mutual Life Insurance

Cyprus

It might be only a matter of time before we see things like Cyprus happen in other countries.

Of course they always say this could never happen in the United States, but the truth is we’ve got a serious debt crisis too.

In Case You Haven’t Heard…

If you woke up on Monday morning and had money in the Cyprus banking system, you found out that the banks were closed. You also found out that when they open there could be as much as a 10% tax put on your savings account.

If you had $100,000 saved, it would cost you $10,000 – this just by the mere fact that you had saved money in the Cyprus banking system.

That’s insane! And a perfect example of an overreaching government that has let spending run out of control.

What This Means To Us In America

Cyprus might seem like an extreme example, but we are certainly not moving away from that direction. For years I’ve heard all sorts of rumors as to what might happen here in the U.S. to satisfy the demand for our out of control spending. I’ve heard rumors of the government taking over 401k plans, adding an excise tax on retirement plans, and now the idea of taxing accounts at the bank – all in the name of getting out of debt.

The reality is we aren’t reducing spending. Instead, we seem to be looking for ways to tax more and more. Who knows, at this pace it could be our banks shutting down one day  and all of us getting hit with a brand new tax. Surprise!

The Case For Mutual Life Insurance Companies

If there were ever a case to be made for storing your large sums of money into Cash Value Whole Life insurance this is the one.

Mutual whole life insurance companies are not ran by nor guaranteed by the government. This is a group of like-minded individuals who own the polices and the cash value of the life insurance company – all for the mutual benefit of each other.

Given the choice between having my money in the potential control and confiscation of the government and held in a private mutual life insurance company owned by me and the other policy holders, I’ll take the latter any day of the week.

The reality is we are losing more and more of the one thing we need, control. We seem to always have less, and the government seems to always have more.

I personally don’t want to wake up one day to a new bank tax like we’ve seen in Cyprus, and I’m sure you don’t either. So whether it’s a mutual life insurance company, an offshore account, or anything thing else you can think of, it’s a strong hint we need to put ourselves in a little more control.

About The Author

Dan Thompson

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