how inurance investment works


E

esocio

could some one be kind enough to explain or refer me to sources that
explains
how investments in life insurance policies are managed or invested
if i invest money in a life insurance policy where does it go, how much
money
do the insurance company makes and are their investment management
firms managing
these investments?

tx
esocio
 
Ad

Advertisements

C

Cal Lester

What you have asked involves an OXIMORON ! ! ! !

One should NOT combine the words "Life Insurance" & "Investment".......

A Life Insurance policy is designed SPECIFICALLY to do one thing,
and one thing only. That is to provide a specific amount of money at
a specific time, USUALLY at Death. They were NEVER intended to
be used as an investment tool........................................

In order to be in a position to provide those large amount of dollars
at Death, the Insurance company MUST be able to earn sufficient
money to have on hand at that time. They invest the money that you
pay them in the form of PREMIUMS, to cover thier costs, and still
be in a position to "pay-off at Death".

There are MANY different forms of Life Insurance available in the
market place, Whole Life, Universal Life, Variable Life and others.
I gather that someone has approached you to "INVEST in one of
thier Variable Life Policies", with the hope of making a profit with
the Cash Value account, which they INVEST in a "family of mutual funds",
that THEY control. If that is true, and YOU are interested in "INVESTING"
your money, LOOK ELSEWHERE. The "ancillary costs" involved in
a Variable Life Policy are EXTREMELY High. You could most likely
do much better by yourself.

HOWEVER, If you are in NEED a Life Insurance Protection
(see above description), then BUY a good Life Insurance Policy, and
forget trying to beat the insurance company.
Cal Lester CLU
 
Ad

Advertisements

C

Cal Lester

What you have asked involves an OXIMORON ! ! ! !

One should NOT combine the words "Life Insurance" & "Investment".......

A Life Insurance policy is designed SPECIFICALLY to do one thing,
and one thing only. That is to provide a specific amount of money at
a specific time, USUALLY at Death. They were NEVER intended to
be used as an investment tool........................................

In order to be in a position to provide those large amount of dollars
at Death, the Insurance company MUST be able to earn sufficient
money to have on hand at that time. They invest the money that you
pay them in the form of PREMIUMS, to cover thier costs, and still
be in a position to "pay-off at Death".

There are MANY different forms of Life Insurance available in the
market place, Whole Life, Universal Life, Variable Life and others.
I gather that someone has approached you to "INVEST in one of
thier Variable Life Policies", with the hope of making a profit with
the Cash Value account, which they INVEST in a "family of mutual funds",
that THEY control. If that is true, and YOU are interested in "INVESTING"
your money, LOOK ELSEWHERE. The "ancillary costs" involved in
a Variable Life Policy are EXTREMELY High. You could most likely
do much better by yourself.

HOWEVER, If you are in NEED a Life Insurance Protection
(see above description), then BUY a good Life Insurance Policy, and
forget trying to beat the insurance company.
Cal Lester CLU


Having re-read your message, I may have inadvertedly read more
into than I should have. IF you are in reality CONCERNED about the
investments that the Insurance company (ALL OF THEM) make with
those premium dollars, then have no fear.

They are controlled by the State Insurance Department of EVERY
State in which they operate. The Insurance Commissioners dictate
the types of investment vehicles that they are permitted to use. I can
assure you that THOSE investments are as safe as ANY investment
could possibly be.

Although a number of Insurance companies have gone "out of business"
EACH & EVERY policy that was in-force was protected by the State
Insurance Fund, and in almost every case, another larger more successful
company simply took over the contract. There has N E V E R been a legitimate
Death Claim on an "in-force" policy issued by a defunct company that
was NOT paid.
Cal Lester CLU
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top