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If a life insurance company goes bankrupt, what happens to whole life insurance benefits?

My Dad purchased whole life insurance through AXA Equitable which is all paid for. What happens if the life insurance company goes bankrupt or their assets are under water like so many other financial institutions these days? Will the benefits still be payable? I also think it's strange that he had to pay $700 more to this insurance company as an "adjustment"(?) recently even though the policy was fully paid for a long time ago. Is this normal?

Public Comments

1. nope ur basically thrown under the bus when this happens
2. you lose it all of it no way to get it back
3. Life insurance is regulated on a state by state basis. Each state has slightly difference reserve requirements but most are around 90+ cents on the dollar of outstanding face amount. The states also have a guarantee fund to help support outstanding policies if an insurance company were unable to pay. If an insurance company were to go under they most likely would be bought. If that didn't happen and they weren't able to pay then the state reserve fund would step in and you most likely would receive a large portion of your benefit if not all. AXA is a large international company that has no indications of failure. Please let me know if you have any questions.