UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 17953  
Subject: Re: Company's "ability to pay" Date: 9/24/2012 8:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
They all seem to make all sorts of promises and guarantees in large bold print, and then have some very tiny print at the bottom indicating that their promises and guarantees are subject to the companies ability to pay.

Life insurers rarely go bankrupt. Life insurance and annuities are one of, if not the, most stable types of insurance. You must be looking at a presentation based on an often arbitrary projected rate of return. Those often don't hold up very long and the actual rate of return ends up at, or at least much nearer, the guaranteed rate. As far as principal and guaranteed rate of return, you shouldn't have a problem. One of the few times I've known a life insurer to have some financial problems involved commingling of funds by intermediaries who were using float to divert premium payments. As I recall, another life insurer bought the policies, honored the contracts at guaranteed return rates and the perpetrators went to prison while their luxury assets were sold to return much of what they "borrowed".
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement