Updated: 11 March 2024

What Does Securities Mean?

Securities are units of debt or ownership that can be bought and sold. They typically come in the form of stocks, bonds, or options.

Many life insurance companies offer investment components that involve securities as a way of increasing the cash value of the policies they sell.

Insuranceopedia Explains Securities

Many securities are bought and sold on publicly traded markets such as the New York Stock Exchange. Publicly traded companies typically gain access to capital by selling stocks in the company on these markets. Once the stocks are on the market, investors can buy and sell these securities. Their value can fluctuate dramatically, however, so there is a risk involved in investing in them through life insurance policies.

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