Insurance products for investment have grown dramatically over the last many years. Whole life, annuities, MYGAs, etc., have all become widely available. Generally these are purchased for a guaranteed income. But note they are not guaranteed by the government, rather they are guaranteed by the company, and by a State insurance plan (which I’ll talk about next time). So the first thing you want to do when buying insurance products is to make sure the insurance company won’t go out of business on you.
The best way to check, is to look up the A.M. Best rating for insurers. The company has been doing this for about 100 years. You can check for free at:
Generally I would suggest sticking with companies that have a rating of A- or higher (Excellent). It may mean a slightly lower yield, but the peace of mind is worth it.
Next time I’ll talk about what happens if disaster strikes and your insurance company fails, with a special warning for residents of California.