Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Where Do Insurance Companies Invest?

20 Dec 2024 · 1 min

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A short YouTube monologue (by Richard Canfield) explaining that insurance companies function as deposit-taking institutions that offer savings and retirement products (dividend-paying whole life, universal life, disability, critical illness, etc.). It states that consumer premiums are pooled and invested by insurers into primarily guaranteed assets that provide steady streams of return income to meet product obligations.

Chapters

When you think about the construct of the company, it's a deposit taking institution as well. The insurance company has savings and retirement programs that they make available to the consumer. The consumer pays premium for insurance products, whether it's dividend paying, whole life insurance, universal life, disability, critical illness, universal life, the list goes on. In terms of the suite of products all these premiums come in, the insurance company deploys capital into assets that are primarily guaranteed and paying the insurance company a steady stream of returned income on those investments.