So what do we do? We all want to be ethical consumers. We recycle. We use reusable bags. Maybe even drive an electric vehicle. But what about our money? In particular, the money we pay into life insurance?
It’s easy to overlook. But where your premiums go really matters. Insurance companies aren’t hoarding your money. They invest it. And, at times, those investments support industries that don’t reflect your values.” Sustainable life insurance: How to build a sustainable future with your life insurance
Seek Out Companies Putting Money Into Renewables
Not all insurance companies are made equal. Some are leaders in sustainable investing. They invested in renewable energy projects, green bonds and companies working toward a cleaner future. This is the type of company you want underwriting your policy.
So how do you find them?
To get started look at insurers who have good Environmental, Social and Governance (ESG) ratings. These indicate how closely a company follows ethical, sustainable and socially responsible guidelines. Some insurers are even proud of their green credentialing. Others take some digging to get to.
A few questions to ask:
Do they invest in renewable energy?
Are they publishing sustainability reports?
Are they seeking to reduce their carbon footprint?
If an insurer matches your values, you’ve got a good start.
Look Out for Policies Linked to Fossil Fuel Companies
Here’s the uncomfortable truth: The majority of traditional insurance companies have invested heavily in fossil fuels. They finance coal plants, oil pipelines and industries that create pollution on an industrial scale. If you don’t want your money propping up these industries, you need to take matters into your own hands.
Check financial reports. Assess where a company allocates its assets.” There are independent organizations, such as the Insure Our Future campaign, that rank insurance providers based on their relationships with fossil fuels. These resources can guide you toward the insurers to avoid.
It’s also worth checking with your current insurer. Call them. Send an email. Inquire as to whether they have investments in fossil fuel projects. If they do, explain to them why it’s a problem for you. If enough people raise concerns, companies are more likely to re-evaluate their investment plans.
Opt for Insurers That Promote Sustainable Initiatives
Besides where they put their money, some insurers take extra steps to support sustainability. They donate to environmental nonprofits, offer discounts for eco-friendly behaviors or provide carbon offset options.
Some insurers have “green” policy incentives. This can include reduced premiums for customers who operate electric vehicles or participate in paperless billing. Others donate a share of premiums to conservation efforts or reforestation programs.
Some environmentally friendly insurers also have eco-friendly life insurance options. These policies may be written to drive less environmentally invasive activities or earmarked specifically for green efforts. Again, research is key. Look up their mission statements. Look at past initiatives. Check whether their values match your own.
Ask Questions. Analyze Where Your Money is Going. Make an Informed Decision.
Transparency is everything. If a company has no transparency about its investments, that’s a red flag. Law-abiding businesses should have no secrets.
Don’t be afraid to ask:
“What do you do with policyholder premiums?”
“Do you invest in fossil fuels?
“What are your efforts to further sustainability?”
If an insurer doesn’t (or can’t) answer these questions, shop around. Your money is powerful. Where you decide to place it can drive corporations toward better, more responsible decisions.
How You Can Help By Choosing Ethical Insurance
It’s easy to think that one person’s choice doesn’t matter. But when enough people start spending differently, industries transform. Just look at the growth of renewable energy, electric vehicles and plant-based food. Progress is propelled by consumer demand.
The same holds true for life insurancedo. Choosing an insurer that is committed to sustainability sends a message. You advocate for more sustainable investment decisions. And you help create a future where financial security doesn’t have to exact a toll on the planet.
So, take that extra step. Research your provider. Ask the tough questions. And get the life insurance that reflects the world you want to leave behind.