All Life Insurance Tips

I have an AIG term life insurance policy to help my children if something happens to me. Is it in danger?

What if when my family needs it in the future, AIG is bankrupted.

Public Comments

1. Depends on how many more $700,000 parties they have.
2. Not to worry. Insurance regulations require that they have enough money to pay their policies. What is more likely to happen is that AIG will be sold to someone else, in that case you will get a letter informing you of the new company and telling you what to expect. Don't worry, your policy is safe enough.
3. You're fine! in order to operate, ins companies must have adequate reserve to pay off claims. so if something would happen, the money is there. What will probably happen down the line is, you get a letter from another insurance company saying " He now have your policy. " Everything will remain the same except where you send your premiums and to whom you make out the check. This is one thing you don't have to worry about.
4. AIG Life (the insurance division you have your policy with) is not in any kind of trouble and is very strong financially. It's AIG's holding company that owns the Life division that is in toruble. If the holding company does go bankrupt, it will just sell off it's divisions and AIG Life will be sold to another company and your policy be inforce. The only change might be a different logo on the envelope and letterhead you get. Think of it like a record label in music. If the record label goes bankrupt, that doesn't mean that all the bands they own have to stop making music and go bankrupt as well. It just means that the bands will likely end up signing with a new record label and carry on. Sports analogy? When a team folds, like the Montreal Expos, or the Winnipeg Jets, or whoever, it's just the team that disappears...the players all move on to different teams. They are still just as strong of a player, just a different logo on their jersey.