What could happen to American life insurance stocks?
by admin - March 12th, 2009.Filed under: Investing and Opportunity. Tagged as: economy, insurance, recession, stocks.
When the recession that hurts our wallets is one thing, but when it starts to threaten the lives of our families it becomes a more serious matter. How, you ask, can our lives or health be threatened by the economy? As the recession continues to harm our markets it is not only the money making parts of our economy that will suffer, but our health care as well.
Indeed, indications are that such is already happening.
Many insurance companies are reporting huge losses. These reports are sure to damage the overall condition of these companies nearly as much as the losses that caused the reports. Investors are estimating that many of the stocks of these companies are likely to drop by even 40% and most of them have already lost 20% of their previous worth.
What do these losses mean besides possibly higher rates? Many investors are afraid that these losses will actually lead to the end of many of these companies, taking the health care of many people with them.
The consumer federation of America is actually advising people to look at where their life insurance stands without commiting further. Some insurance companies are already looking to the government for a bailout.
Investors should keep in mind that these companies may soon be in dire straights. It would also be crucial to know the condition of your company and whether your family needs to be insured under a more secure company.