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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (1229)	10/20/2005 11:33:36 AM
From: energyplay	Read Replies (1) \| Respond to of 218107

Re: insurance Major consideration.... 1) Consider that life insurance companies worldwide may stop writting policies if avian flu becomes more of a threat. 2) Insurance transactions have high frictional costs, both for the buyer and seller. Lots of stuff to read, medical exams, commisions, etc. If you expect a 25% drop in the USD, fricitonal costs can eat most of that. An 80% drop is another matter. If you have term life, you essentially buy and use most of the product each year. Value of premiums will decline with USD also. Why not make everything term life ? See 1) above... BTW, if you have term, you may want to pay for next year's and maybe 2007s insurance in the next month or so....;-) If you have cash value, as with whole life, ususally you can borrow most of the cash value at a low interest rate. Also, many insurance compnanies have an affilliated brokerage subsidiary. Let's say you have a cash value of X, and can borrow 80% of X. You borrow about 70% of X (leave enough slack to cover a year or so of premium payments, in case of currency controls or other problems) Put enough for about 3-4 years of premium payments into the affilated brokerage account (Watch the fees & cost), and then NEM, CanRoys, QCOM, GLD, etc. This will allow you to pay premiums for a number of years without changing currencies, just a transfer within the same country. Then take the rest - maybe 50% or more - and invest along with everything else. Not a perfect solution - but it lets you retain what may be a hard to buy product - life insurance - while hedging against the decline of the USD and being prepared for a period of currency controls.