Life insurance companies have stellar records, in many cases dating back to before the Great Depression. To date, there has never been a recorded instance of a company not paying out a claim on a death benefit due to the company’s inability to do so.
With regard to the investment portion of the product, there are different types of life insurance products that allow the carrier more flexibility in how they invest the “holding tank” funds. These products range from conservative to aggressive and anywhere in between. Although there are pros and cons to all investment vehicles, utilizing insurance products that don’t place your cash value directly into the market, such as whole life insurance or indexed universal life insurance, typically offer modest growth potential with zero potential for loss through market exposure.