Insurance Quotes & Advice

As the millions of baby boomers begin to retire in the next few years, insurance companies are poised to rake in the cash.  This segment represents a quarter of the population of our country with an estimated purchasing power of well over $1 Trillion Dollars.

Some experts on Wall Street are worried about the adverse effects all these people leaving the work force will have on the stock market.  The insurance industry of the other hand will be welcoming them into retirement with open arms.

Many analysts feel that there will be a significant outflow of dollars from the stock market as baby boomers shift from riskier investments to safer alternatives in preparing for their retirement years.

A good portion of this money is expected to go into the coffers of the insurance industry as people begin to cash in their pension funds and purchase  a wide variety of insurance products, from annuity contracts to long term care plans.

With the uncertainty in the future solvency of the Social Security system as well as Medicare and Medicaid, the prospect of receiving guaranteed income streams for life that annuity products represent becomes very attractive.

Even the most pessimistic of forecasts still sees a large influx of capital to the industry.  You can already begin to see signs of this as sales of annuities have picked up in recent months.  Some of this you can attribute to people’s fear that the economy is heading for a downturn and the general effect it will have on the stock market.

So while there are many other investment options that might offer the possibility of more attractive returns, the current troubles of the housing market and financial sector will only see the insurance industry benefit as people flee to safer havens.