Where all do insurance companies invest?

Question

Where all do insurance companies invest?

Answer 1

Insurance Companies are All Investing money into,SHARE,MUTUAL FUNDS Like That.

There Are Different Types of Investments is there

get good basic idea from

www.Younginvestorsnetwork.com

Answer 2

Insurance Companies Investing their money in the following ways.

1. Reinsurance in Reinsurer for safety.

2. Govt sector (Traditional Policies)

3. Mutual Funds (ULIP Policies).

Answer 3

Depends on the policy nature.

If the policy is a ULIP, they will clearly inform you the fund types associated with the ULIP to invest your money. There will be 5 to 8 funds associated with each ULIP policies. some of them invest in equity market, some of them to money market and govt securities and some of them invest in both equity and money/govt bonds. In a policy illustration booklet, they will clearly give the idea where the money is investing.

If it is a traditional policy like LIC's money back or endowment, they will lend this money as loan to institutions, government or individual.

Does this answer clear your doubt?

Answer 4

If you are talking about the general assets of the company, they are invested in stocks, bonds, real estate, mortgages and loans. Insurance companies have to release where they are invested to share holders or policy owners if the company is a mutual.  If you own a whole life or UL the cash value is tied to the general assets of the company.

http://www.newyorklife.com/file/pdf/0,24...

If you are talking about the assets inside a Variable life policy they are invested in separate accounts that are very similar to mutual funds. They are not the same thing, separate accounts mirror the mutual funds they represent but usually perform better than the mutual fund because of lower turnover, taxation and fees.

http://www.financial-resource.com/report...

Answer 5

Well, they don't tell you - it's kinda like  a trade secret.  They don't want all the OTHER insurance companies scooping up their potential profits.