IPB 036: How Negative Interest Rates Could Effect Life Insurance


There's a lot in the news recently about negative interest rates. It's surreal to think that central bankers have gone to such extremes in attempt to stimulate economic growth.

If you don't know what I'm referring to…here's a screenshot taken just a few minutes ago after running a search for “negative interest rates” on google news.


Getting into a conversationĀ of why this policy is being adopted around the world is beyond the scope of our site. Not to mention, that discussion quickly devolves into people screaming at each other.

It's almost as divisive as discussing the 2016 presidential campaign.

So, in this week's episode we're not discussing the policy itself in terms of its sanity. We're more concerned with how life insurance companies are effected if a negative interest rate policy is adopted by the Fed.

To better understand some of the numbers we discuss, check out this article that was posted by the National Association of Insurance Commissioners (NAIC) just a couple months back.

Listen to find out more.


About the Author Brantley Whitley

Brantley is a practicing life insurance agent and has been for nearly 18 years. After years of trying to sell like his sales managers wanted him to, he discovered that people want to buy life insurance if you actually explain the benefits.

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