Free Ebook.

Enter your email address:

Delivered by FeedBurner

« Third Party Development for Quicken | Main | Saving Money on Heating Your House »

February 13, 2007


Feed You can follow this conversation by subscribing to the comment feed for this post.

Interesting... thanks for the insight.

I am in the process of purchasing term insurance right now and would like to know how you were able to determine one companies ability to pay over the long term versus another company?

Max --

There are various companies that rate insurance companies based on their financial security. Do a web search and I'm sure you'll find something.

What this points up is that insurance is not really what it purports to be. If one needs to carry several policies in order to protect against default, then isn't insurance simply another speculative investment vehicle like any other? The small consolation that comes from carrying multiple policies is simply that, if you lose your benefits, you might not lose all. But what about a situation in which companies fail, not through any fault of their own, but through larger, adverse economic factors in which the entire sector could be affected? The stately image of the "secure and solid" life-insurance company is a pervasive image that has been carried over from previous generations, but this image is not in accord with the real economic environment of today.

Why I have an insurance policy is primarily because it's free money, no taxes, to my beneficiaries. I'm not weathy and I'm nearing retirement. If I need to I can cash it in at a lesser amount, but it's still green and gives me added comfort to know I still have something to tide me over until I can make another plan.

The comments to this entry are closed.

Start a Blog


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.