Mike’s Life Insurance Advice

In the news right now is the outrage over the latest in Wall Street scams to hit the street, but this one could be by far the biggest in history.

Bernie Madoff allegedly conned wealthy and supposedly sophisticated investors out of $50 billion in a Ponzi scheme. And a number of these investors were insurance companies from around the world.

Amongst some of the affected investors are insurance companies like AxaSA of Paris, Massachusetts Mutual Life Insurance Co. of Springfield, Sumimoto of Japan and Swiss Reinsurance Co., as well as other all-star companies, have also seen the negative effects of Madoff’s big swindle.

We can learn some lessons from this scandal. Kathleen Pender of the San Francisco chronicle laid out what investors can learn from this scandal. 5 of these points apply directly to those interested in investing or getting life insurance:

1) Don’t buy what you don’t understand.

2) If it sounds too good to be true, it probably is.

3) Understand any fees associated with your investment.

4) Know the terms and the company.

5) Don’t just trust someone that you’re getting a good deal; do the research yourself and make an educated decision.

Keep these points in mind when you’re looking for insurance companies and you will soon find the one you need AND want.