Insurance Company Regulation
Insurance companies in the United States are highly regulated.
- Read more about Insurance Company Regulation
- Log in to post comments
Annuity
An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.
Mutual Insurance Companies
A mutual insurance company is owned by its policyholders and operates on a cost basis. In other words, any profit or surplus is distributed to policyholder owners rather than shareholders.
Glossary:
- Read more about Mutual Insurance Companies
- Log in to post comments
Laddering Annuity Purchases
Laddering is a term that refers to staggered purchases over time.
Glossary:
- Read more about Laddering Annuity Purchases
- Log in to post comments
State Guarantee Funds
All states have what are referred to as state guarantee funds. Operated by departments of insurance, guarantee funds are insurance funds that receive contributions from carriers that operate in the state.
- Read more about State Guarantee Funds
- Log in to post comments
Insurance Company Hedging
Insurance companies take in huge amounts of money from policyholders. Part of the purpose of an insurance company is to invest the massive amount of policyholder funds.
Much of the money is invested in bonds or fixed income, some can be invested in stocks or equities, and portions can be invested in real estate, hedge funds, venture capital, etc.
Glossary:
- Read more about Insurance Company Hedging
- Log in to post comments
