All Life Insurance Tips

I have term life insurance with AIG purchased 5 yrs ago. Should I cancel it and buy from another company?

I am concerned about having to pay more now that five years have passed and I am in a different age range (associated with higher rates). Is my insurance policy secure? What if AIG goes under?

Public Comments

1. So many questions. Hopefully, I can help! First, most states insure life insurance policies. Meaning, if the insurance company in which the policy is held with becomes insolvent, there is an association that oversees the laws which state what type of policies are covered and up to how much. You can find out if such exists in the state in which you are a resident of by calling the Department of Insurance in your state. So, if you do decide to keep the policy it should be safe since the state guarantees it, however, it depends on what their limits are and how they recognize it. Chances are your policy will just be sold to another company and your policy can't change. However, it is also advisable to shop around for the term life insurance just to see exactly how much it would cost you. You may be surprised to find that it may not cost you anything meaning you may find lower premiums or the same, 5 years might not change the rate signifigantly. If you have trouble finding out what your state covers, feel free to email me or let me know and I can help you find out in a matter of minutes.
2. The insurance division is a separate and profitable entity and is not effected by the parent company and is in fact currently growing. Even if AIG goes under the insurance division will still operate (maybe under another name) and will still pay out any claims.
3. If you have 5 year renewable term then yes you should go with another company, you are not in a good product. Your rates will go up because you are 5 years older but they will go up with AIG too. They only reason you might stick with your current policy is if something has happened in the last 5 years that makes you uninsurable. Keep you AIG policy until you have confirmation that your new policy is in place.
4. AIG's insurance companies are financially sound, with substantially more in assets than they need to pay all valid present and projected claims, Insurance Superintendent Eric Dinallo today reassured New York policyholders. Dinallo also announced he would issue notices to insurance companies, agents and brokers, reminding them of their responsibilities under New York Insurance Law to fully inform consumers of the possible costs of switching life insurance, annuity and other policies. "Don't worry and don't make any rash decisions if you have a policy issued by an AIG insurance company," Dinallo said. "All your covered claims will be paid and all your annuity checks will come. Making sure insurance companies are solvent and able to pay every valid claim is my number one job, and the AIG insurance companies are strong and solvent. "If you have a life insurance or annuity policy and someone tells you to replace it because of the troubles at AIG's parent company, call the Insurance Department immediately at 1-800-339-1759," Dinallo said. This is from the NY State Insurance Department.