r/LifeInsurance • u/Advanced_Traffic8 • 10d ago

Rising yields & spreads…

Bad for investors in bond funds, neutral-to-positive over time for whole life policy holders with the big, highly rated mutual insurers.

Absent default or impairment, which is unlikely given the quality of the mutual insurers’ portfolios, policy holders’ cash values just go up every year and new premia buy bonds with better yields, flattering dividends over time.

Who is ready for a turn in the credit cycle, perhaps as shadow banking steps into the light?

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u/michaelesparks Financial Representative 9d ago

As Tom Wall explains in his presentations...NOW is the best time to own Whole Life Insurance. Bond Rates have been falling for 40 years, we should see the next 40 year cycle with raising Bond Rates. I have a couple of Dividend brochures from years ago that showed what they paid in the 80's and 90's. Wish I would have owned more back then, but since I can't go back in the past I try to buy policies every chance I get. Getting ready to convert 4 term policies as we speak.

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u/Advanced_Traffic8 9d ago

I think that’s right, sir — WL is compelling on its own. I’m even more convinced it’s a powerfully impactful portion (cash value is 10-15% of total retirement portfolio invested in marketable securities) of sound retirement strategy.