Last month a public statement was made that many life insurance companies have invested in fast food chains, restaurants, and companies.
A study which examined the investment of millions of dollars by life insurance companies was conducted by Harvard Medical School. These companies included such names as Burger King, McDonald’s, Wendy’s, ect.
Some experts are making the argument that investments into such companies are inappropriate, since eating in fast food restaurants is generally perceived to be unhealthy. There view is that life insurance companies should promote healthy living.
But the criticism being raised misses an important point I think. Here is my personal angle on this one – life insurance companies are also investment vehicles, and it is in the best interest of their clients that these investments do well.
I remind my Sacramento clients that most life insurance investment products are not designed to beat the interest rates in the market. They are designed to beat the interest rates that your local bank offers.
The main difference between permanent insurance and term is that permanent insurance offers a standard death benefit plus an investment portfolio. Stay with me here. Sure, fast food is often unhealthy, and the primary concern for all insurance companies ought to be the well-being of their policy holders, but sometimes the definition of well-being depends on the services being rendered.
Millions of policy-holders depend on their permanent insurance investments to pay off in the event of their death. Choosing those investments that offer high quality returns is what insurance companies are being paid to do.
So there is your answer in my opinion, fast food is often bad for your health. Enjoying the financial rewards of a life insurance company that knows how to make sound investments, such as a fast food company, can be very good take away.
