The life insurance business is built on a simple concept: One person alone typically can’t bear the cost of financially protecting their family for decades into the future. But people joining together and pooling their resources can.
For generations, life insurers have created communities, putting people of similar profiles together in “risk sharing pools.” Members of these groups – policyholders – pay premiums for coverage to ensure their loved ones receive a death benefit in the event of their untimely passing.
Life insurers invest these premiums for earnings that are used to help keep the cost of coverage as low as possible. These investments also spur economic growth and job creation across the nation. Every day, life insurers invest approximately $640 million into the U.S. economy.
Life insurer investments totaling $6.1 billion in retail, office and industrial mortgages in Arizona is one example. These investments help business owners open their doors, grow to new locations, ramp up manufacturing and more.
The industry also has dedicated $2.5 billion in mortgage loans for multi-family units and apartment buildings in Tucson, Phoenix and nearby areas, helping more individuals and families call the Grand Canyon State “home.”
In addition, investments of nearly $486 million in bonds issued by educational entities in the state have helped provide for safer school buildings. They have helped Arizona enhance technology for students and staff and ensure students have the tools they need to learn at their best.
Other ways life insurers have invested in Arizona include:
Life insurers also invest in stocks and bonds issued by private businesses in the state. Industry investments total $116 billion in Arizona. Some 61,500 jobs in Arizona are generated both by direct industry employment and investments.
Put another way, life insurance company investments both protect families and individuals and help build and improve communities throughout Arizona and the United States.
(Mark A. Haydukovich is President and CEO of Oxford Life Insurance Company in Phoenix, Arizona.)
Mark A. Haydukovich is President and CEO of Oxford Life Insurance Company in Phoenix, Arizona.
