Life Insurance & The Big Bail Out?

With the government trying to bail out all the troubled financial industry leaders, and the economy running on empty what can we count on? I am not an economist but even I can see the writing on the wall. We can all count on the same things that we have always counted on and have always tried to avoid. What is that you ask? Death and taxesunfortunately, I can not help you with your taxes. I will, however, try to help you understand why your life insurance is a good investment.

With the Bail Out of these huge companies many people may think that life insurance is not a good thing to purchase. While I can and do understand why people think this way, I would like to explain why the concern is not warranted. I am not going to pretend that I know or completely understand what has happened to these companies that are constantly in the news. I do, however, understand from what I have heard that a lot of the blame is falling on deregulation and corporate greed. The insurance industry, on the other hand, is very heavily regulated to protect public interest. While the regulation of the industry is actually divided among many different authorities, the three major channels of regulation are:

Federal insurance regulation: is mostly used to oversee the areas that are not covered by the state regulation of the industry.
State Insurance Regulation: Each state has its own insurance department. The official that heads the department is most often referred to as the Insurance Commissioner but can also be called the Superintendent or the Director of insurance. The duties of this office are very vast and include but are not limited to examining the accounts, records, documents and any transactions of an insurance agent or broker conducting business in their state.
Self Regulation: This is where most of the continuing education requirements are mandated if an insurance agent wishes to maintain his/her license. The continuing education laws are designed to protect the consumer by focusing on product knowledge, insurance regulations and ethics. There is much more that is done under self regulation but this is the information I felt was most relevant to the topic.

I hope that you can see that the life insurance industry has a very good checks and balance system in place. This is why I believe that life insurance is still the very best way to protect your family from an untimely death and should be used as an investment tool. If you have any questions about this article or life insurance you can contact me through my website.