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Today's Key Question:
Are you curious about how the current low interest rate environment is affecting the reserves of life insurance companies?
There is good news so far. See the article below from Think Advisor.
"Apartments for rent: Americans don't want yearlong leases amid the pandemic, neither do landlords"
* "A lot of people are still losing their jobs," Pusatere says. "They don't know if their jobs are coming back. So I don't want someone locked into the lease if they need to relocate to another state, or have to move for a job opportunity in a month."
Pre-pandemic, there was great value and security in longer-term leases for both landlords and tenants. Under a typical yearlong contract, residents have more time to make their space feel like home, while property owners avoid lost rental income and vacancy costs.
But that framework doesn't make sense for some renters and landlords in a post-outbreak world where financial uncertainty looms over the economy.
"Was Mary Poppins an Employee Under California’s ABC Test?”
* With remote work for adults and online distance learning for students here to stay, it is natural for parents with already demanding workloads to seek the help of others to keep their children busy and focused on learning during an already difficult situation. Many parents are searching for options, including engaging the services of at-home tutors and teachers to help supervise distance learning or even participate in “learning pods” with a group of students. But with California’s use of the “ABC” test and the enactment of AB 5, which is intended to give workplace protections and benefits to more California workers, these types of arrangements bring their own set of challenges and concerns for parents.
"Doctors Worldwide Are Recording More Deaths Due to Lockdowns Than to COVID-19"
* At some point it needs to be recognized that the lockdowns are leading to problems which exceed those of the virus itself. If it continues to be shown that the restrictions put in place in the name of public safety are actually threatening a greater number of the public, then a serious rebuke of these policies is in order.
"Interest Rate Assumption Changes Could Be the New Monster"
* From S&P analysts’ perspective, the big, publicly traded U.S. life insurers look as if they’re getting a manageable number of COVID-19-related life insurance claims, with claim costs well below stress-test levels.
For now, at least, life insurers’ portfolios of corporate bonds, mortgages and mortgage-backed securities look fine. Banerjee emphasized that, overall, the life insurers S&P rates have been doing well, and in line with the insurers’ own predictions.
Here's a short video from Steve on how you can purchase insurance in these changing times....Watch Here