The market will always have it's ups and downs. When the market goes up, you can be sure there a lot of happy individuals that are able to cash out of their 401K's and take that to the bank. Some individuals want to keep their money in the banks and wait until they see what happens as advised by their agents and advisers. True to form There are hundreds of ways to invest. But how do you invest in the stock market? Does your life insurance get affected by the stock market and how can I be sure my life insurance won't get affected?
For the most part, your life insurance is only truly affected if the company you're working with has some sort of crash or overall collapse. Other moments or times we can see your life insurance being affected is when the stock market has a recession or crash. Since 1987 we have experienced recessions, tech bubbles and bursts, however one thing that you can be certain is unless your life insurance policy is tied to the stock market like a with a mixed annuity, your life insurance still carries a death benefit.
You will be owed your death benefit. If you have a Universal or Whole life policy that in many cases is tied to the stock market and will be affected with by changes in the market. Some companies you need to look at their overall long term gains over the long period of time.
What can change with a Whole Life insurance policy that doesn't change with a Term life insurance policy? Your premiums and death benefit can change on a Universal policy as opposed to a whole life insurance policy. Your whole life insurance policy is fixed in its premiums and your Universal Policy is flexible. However companies like Allstate has seen over the long term 5%-9% gains on their policies and boasts on the market down turns they won't dip into your policy only if the market goes below 10% then you will lose the difference of 10% and whatever the market goes to. Which is why so many individuals trust them and why Allstate is able to fund these downturns.
You can be sure these will affect your pricing only for the better. Another thing that we find is that life insurance appeals to the lower income to mid income individuals which makes sense because high income individuals are more likely to rely on their net worth as opposed to spending money on a policy. With that in mind they might be more misguided and trusting of their agent which is why the New York Best interest rule is applied to this and is something that all insureds should be aware of.
In the long term it is in most cases even with a Universal Policy beneficial to invest in a whole life insurance policy if you invest in companies like Allstate, State Farm, Nationwide, ect. who have guarantees of steadiness in the market flow.
The Burkholz Insurance Agency specializes in home, auto, commercial real estate and truckers insurance. We have several locations accross the country and have multiple enterprises we go through to provide some of the best products for our customers. W have Bundling options, broker with multiple providers, good student discount, Broker in Las Vegas NV, 100% straight forward pricing, Best reputation in Las Vegas, NV. Contact us for a quote.