Blog 83 – The Financial Strength Of Life Insurance Companies

In 2020, life insurance companies had a huge expense that far exceeded their expectations. It was a sharp increase of 15.4% in death benefit claims. This was the largest annual increase the industry has experienced over the last 100 years when we were affected by another pandemic. The large increase was just not due to the pandemic but to the increase of opioid consumption during the pandemic.

So what are the consequences of this jarring rise in death claims? Is the industry now stumbling on bankruptcy and financial fallout? Not at all. In fact, this news was so unnewsworthy that it didn’t even catch the attention of major media outlets.

Life insurance companies make an amazing promise to the people who choose to do business with them. They guarantee the payment of money in the event of death that is critically needed by families during what is often one of the darkest moments they will face. It is no secret that life insurers have not operated within the most favorable conditions during the past decade. With constant low-interest rates, life insurance companies have been forced into riskier investment options than desired while lowering non-guaranteed features of insurance contracts.

Despite this considerable headwind, the industry continues to innovate and bring products to market that compete fiercely with appropriately matched financial tools.

A sharp increase in death claims seems like an almost insurmountable curveball that could rattle an already stressed industry. Instead, the industry met the challenges of low-interest rates and an unexpected increase in death claims and moved on.

In summary, the life insurance industry is in good financial strength, and we have now seen evidence that it can weather a major storm. As we have always said, a properly designed Infinite Banking policy is a great place to store your money.

If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at or feel free to email us your questions at or call us toll-free at 1-844-443-8422.

Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners

We are experts in designing high cash value dividend-paying whole life policies.

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