The beautiful, diverse mosaic of American families and communities stretching from east to west has been sustained with the help of life insurers.
Life insurers are paying out $2.1 billion daily. This includes disability benefits for paid family medical leave, plus life insurance, annuity, and long-term care insurance benefits, among other types of payments. In comparison, Social Security pays out $2.8 billion daily.
At the same time, life insurers have been investing approximately $640 million every day in recent years, primarily in bonds with an average remaining maturity of 15 years. That’s long-term financing state and local governments, as well as large and small businesses, can rely on through thick and thin.
For example, life insurers hold corporate bonds totaling $2.6 trillion, fueling employment and business expansion in the private sector throughout the United States.
Few if any other businesses are as committed to the long-term financing marketplace as life insurers, who turn the premiums people pay for their families’ financial protection into capital for education, health care, infrastructure and more.
Take as an example life insurer investments in Georgia. Life insurance companies have invested $179 billion in Georgia’s economy with education bonds, loans for infrastructure development, affordable housing financing and more.
Or consider Oregon. Life insurers have invested nearly $1.3 billion in bonds for education in Oregon over the last 10 years. They have also dedicated over $2.1 billion in mortgage loans for residential homes throughout the state. All told, life insurers have invested $74 billion in Oregon’s economy that has helped to finance government initiatives and business development and create new jobs in Oregon.
Through the life insurance industry’s investments, thousands if not millions of Americans are employed in addition to the 2.6 million jobs the industry typically is credited with generating in the United States. 90 million American families receive financial protection. Communities receive essential financial investments.
Put simply, life insurer products and services are a pillar of what holds America together.
As America pushes through a global pandemic and works to rebuild, the role that life insurers play in households and communities is essential and committed.
Susan K. Neely was President and CEO of the American Council of Life Insurers (ACLI), the nation’s leading trade association determined to help families live better lives by achieving financial security and certainty. As president and CEO, Neely drove public policy and advocacy on behalf of ACLI’s member companies that represent 93 percent of industry assets and serve 90 million families. She is CEO Emeritus through December, 2024.
