Life insurance companies backing retirement contracts are heavily regulated and more stable than banks for long-term savings. They're required to maintain legal reserves and operate under strict state and federal oversight, making them reliable for protecting money over 20 to 30 years.
Chapters
With all the economic and political uncertainty in the world today, how can we be sure that our money is safe with the companies that guarantee our retirement insurance contracts? How can we be sure that these companies are financially stable and capable of fulfilling their contractual obligations, especially over 20 or 30 years of retirement? Well, to begin with, it is important to understand that that a retirement insurance contract is guaranteed by a legal reserve life insurance company, which is regulated by both state and federal government, and that life insurance companies are among the largest and most stable financial institutions in the world, more carefully managed and more conservatively invested than other financial institutions like banks and investment firms. In fact, life insurance companies are more reliable and dependable at saving, growing, and protecting your money because of two very important—