Summary of Municipal Bond Insurance

Insured municipal bonds have higher credit ratings than non-insured municipal bonds. They are one of the safest investments you can buy. If the bond issuer defaults, your principal and interest payments are guaranteed by the insurer. However, this security comes with a price: lower interest payments. The decision to buy an insured bond will ultimately come down to your risk tolerance. Is it worth it to you to lose a little return for that extra protection? If it is, then insured municipal bonds may be a good investment for you.