Are most life insurance companies insured? Is it common for them not to be?
Are most life insurance companies insured? Is it common for them not to be?
we were looking at getting life insurance, but when reading through the fine print, it said the company was not insured or bonded, ect… there were 2 different kinds, I know one of the was FDIC but Im not sure about the other. is that normal?
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
4 Responses
2.1.2010
They have workers comp, and general liabiltiy insurance.If you're asking, is the PAYOUT insured, no, NO life insurance companies have insured payouts. BUT, if you buy your life insurance from a company admitted to do business in your state, then the payout is protected by your state insurance guarantee fund. It is NOT insurance, and the protection is for a limited amount, depending on the circumstances.But when buying life insurance, buy from an A rated company or better, and likely the issue won't arise. Try this site to find the best life insurancehttp://best-life-insurance-usa.blogspot.com/Here you can get quotes from different life insurance companies in your area, its the best way to find an affordable life insurance with a reliable company.Hope this help,
2.1.2010
Life insurance companies typically buy insurance from other companies called re-insurance. This helps them share very risky or very large risks with other companies. If your life insurance company fails, there is a "state guarantee association" in each state that honors each life insurance contract up to a certain point – usually $300,000. Search Google or Yahoo to find out more about the limits in your state.But before the state guarantee association kicks in, most life insurance companies sell their entire block of business to another insurer (as a last-ditch effort to get cash). The new insurer would honor the full value of claim.FDIC only protects bank deposits. It does not cover any other activity a bank may conduct, including selling insurance.
2.1.2010
FDIC is for BANKS. Life insurance companies buy insurance, sure. But they aren't "federally insured". None of them.But if you buy your policy from an insurance company admitted to sell insurance in your state, and they go broke, your policy gets transferred to another life insurance company in that state.And if you die at the same time they go broke, your claim will be paid from your state insurance insolvency guarantee fund. You need to discuss this with your agent, and make sure the company is licensed to sell insurance in your states.
2.1.2010
No insurance companies are FDIC insured. FDIC insurance is for bank deposits.