This question is on every one’s mind these days; is whether or not the U.S. will sleep into a recession and further more in a depression. Technically, a recession is defined as two consecutive quarters of negative GDP growth. Surveying the current thinking among economists suggests that the potential for a recession lies somewhere between 80% and 100%. The fact is we may already be experiencing a recession and may not see depression at all. Nobody can say for sure right now. Investors are feeling quite uneasy and confused. The stock market is up 400 points one day and down 700 the next day with 40 to 50% loss to their investments.

I think that this is a period of time that will require lot more patience on the part of long-term investors as the markets work through the current issues. The stock market has been through many uncertain periods in the past, and I believe we will get through the current one as well even it is going to take much longer. Market environments like this are one of the reasons investors should have a well-diversified portfolio, long term and properly insured. A well-diversified portfolio may include investments such as stocks, bonds, cash, life insurance and alternative asset classes. Historically, individuals with well-diversified portfolios who remained invested in the financial markets, in both good and difficult times, have been appropriately rewarded.

This is probably perfect time to look at permanent insurance very closely and you will be pleasantly surprise the way permanent insurance and especially whole life insurance performs over long term period. Whole life Insurance policy provides almost 10% returns when you total guaranteed cash value, non guaranteed dividend, no cost of term insurance and the tax efficient growth of policy cash value. Whole Life Policy also avoids above worries and stock market volatilities.