GFG & M Financial
- The Volatility Index (VIX), which measures investor expectations of market volatility, has spiked. From trading around 10 at the start of the year, the index rose to 37 on February 5 before retreating to the 20-range. This indicates a dramatic swing in expected volatility in 2018.
- On December 16, 2015, the Federal Reserve (Fed), as widely expected, approved a quarter-point (0.25 percent) increase in its target funds rate. The new target is now 0.25 percent to 0.5 percent (up from 0 percent to 0.25 percent). This is the first Fed fund rate increase in more than seven years.
- In the face of historically low interest rates, adverse mortality, increased reinsurance rates, and decreased profitability, some carriers have raised cost of insurance (COI) rates for in-force policies.
- The need for care when an individual experiences a chronic health issue continues to increase as the population in the United States ages. This care, often referred to as Long-Term Care (LTC), exists in many forms—from homemaker services and adult day care, to assisted living facilities and nursing homes.