Many Americans Say They Want Bitcoin Life Insurance – But What Is It?

Many Americans Say They Want Bitcoin Life Insurance – But What Is It?

However the market goes, when it comes to purchasing life insurance, you want to be sure that it will protect your family in any case.

That is the point of life insurance. And that’s why insurers have long been cautious when investing money.

But a survey by NYDIG (New York Digital Investment Group), a technology and financial services company specializing in Bitcoin, shows a growing interest from life insurers for their insurers to catch up with investment trends like Bitcoin.

Here is what you need to know about Bitcoin life insurance and if this is the solution for your insurance needs.

What is Bitcoin Life Insurance?

Life insurance policy on a piece of paper, with a pen, calculator and glasses on top

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When you take out life insurance, you agree to pay your insurer a monthly premium in exchange for a payout on your death (while the policy is still active).

The insurer collects the premiums from its customers every month. Since they don’t expect to have to pay out all of their death grants immediately, companies then invest that sum in stocks, bonds, and other profitable vehicles.

The money that the insurance company collects and invests is called the float. Insurance companies usually prefer to invest in safe locations, as massive damage would be catastrophic if the insurer can no longer pay its claims.

However, some insurers have started to invest in assets that are perceived to be riskier. In the case of Bitcoin life insurance, this means that your insurer has invested part of its capital in the investment in the cryptocurrency.

Last December, 170-year-old insurance provider Massachusetts Mutual Life Insurance Co. invested $ 100 million in Bitcoin for its general mutual fund. MassMutual also invested $ 5 million in NYDIG to provide custody services for the company’s bitcoins.

It may sound like a lot, but the investment accounted for less than half a percent of the company’s floating money.

Other large companies like Soros Fund Management, New York Life, and Morgan Stanley recently invested in NYDIG to collaborate on Bitcoin-related investments.

The story goes on

What’s the attraction?

Mature couple sitting on sofa with financial advisor

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According to the results of a previous NYDIG survey, more than 46 million Americans already own Bitcoin.

And of those who already own life insurance, half also own digital assets like Bitcoin, NYDIG found.

One reason for this is that it is easier than ever to invest in crypto assets: Many popular investment apps allow you to easily trade Bitcoin.

While the currency has strong critics, such as Warren Buffett – who called Bitcoin “a sham” and “rat poison” and told CNBC in 2018 that it would never own a cryptocurrency – its popularity cannot be denied.

And although its value has fallen recently, a bitcoin was worth a little over $ 44,000 on May 17th.

While investors like Buffett once expected interest in cryptocurrency to have waned since then, while it is volatile, it is still bouncing back from either case.

And despite recent comments that caused stocks to decline, Elon Musk, Tesla’s outspoken boss, tweeted on May 17 that his company hadn’t sold any of its bitcoins.

Based on NYDIG’s findings, about 75% of life insurance customers are at least marginally interested in learning more about Bitcoin-associated annuities and life insurance.

And over half of respondents would like to receive some or all of their payouts in Bitcoin.

How to find the right life insurance

Happy looking couple sitting tightly on the couch and looking at the tablet tablet together

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Regardless of whether or not your provider should invest in Bitcoin, finding the right life insurance policy has long seemed to be more complicated than figuring out how cryptocurrencies work.

But now, with cutting edge technology, you can avoid the complications of instantly getting the term life insurance you need at an affordable price.

Experts like the Insurance Information Institute recommend checking at least three quotes before deciding which one to choose.

While this used to require a lot of legwork and research, it’s now so easy to answer a few questions online to get all of the offers you qualify for instantly presented. And you often don’t need to undergo a medical exam or intrusive questions and blood draws to get insurance coverage.

What about my other financial priorities?

Close up cropped image of young woman calculating monthly expenses with calculator and computer

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We know life insurance is a growing problem after 15 months of a global health crisis, but it’s not your only priority. Now that you have your life insurance, you should start thinking about your other insurance policies.

Just browsing to compare prices could save you $ 1,000 on auto insurance. And using the same technique, you can save hundreds on home insurance every month.

If you’re still thinking about cryptocurrency when your safety net is secured, why not download a commission-free investment app that lets you trade bitcoin? This way, you can dip your toe in crypto even if your insurance provider doesn’t.

Or maybe, if you’re too careful – or too much tech – you can invest your money in what is arguably the most reliable, profitable investment there is: US farmland.

Whether or not you want to invest in Bitcoin directly, at the end of the day you can take advantage of these digital developments to ensure you get the best prices on all of your products and the highest returns on your investments.

Well who would say this solution doesn’t suit them?

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