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The Wall Street Journal recently posted an article describing how Coachmen Industries, Inc. has kept their RV company afloat in this economic storm using policies that grow cash value. The executives at Coachmen understand the purpose and value found in maintaining a liquid position. While this story is a great example of how cash value life insurance can be used on a very large scale, most entrepreneurs can implement this similar strategy in their own financial plan or business plans.

You can click on the Wall Street Journal Link above, but here is the summary:  The RV business has been struggling this year, and it is not surprising!  With fuel prices rising and home values dropping, who would want to buy a gas guzzling road-trip-mobile?  To make a long story short, Coachmen has been buying cash value life insurance policies on it’s employees for a number of years.  They have so much cash value available (remember, cash value is one of the most liquid financial vehicles available today) that they are weathering this economic storm with no problem.

This may be a large scale example, since Coachmen may have roughly $50 million dollars in cash value that they have built up over time, but liquidity planning can occur at any level. Think about it, while their competitors are struggling to liquidate assets (which means they will likely be forced to sell their assets at a discount…probably to Coachmen) just to stay in business and cover their current expenses, Coachmen will ride the storm just fine. Perhaps it time to look at your financial situation from a liquidity perspective!  $50 million worth of liquid capital would be nice to have, but even the smallest amount of liquidity can make a big difference!