How Secure Is Life Insurance?
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63333 POINTSview profilePeggy MaceMost of the U.S.Life insurance companies are heavily regulated. They are also historically very secure. During the Great Depression, while banks were failing, life insurance policies were still paying out. When a life insurance company is bought by another, the purchasing company must honor the guarantees of the policies that are inherited. And there are state insurance pools to secure up to a certain face amount if an insurance company would be unable to meet its obligations.Answered on October 7, 2013flag this answer
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNLife insurance companies are very secure. Because of tight regulations they are ultra conservative with their investment strategy. Banks are insured through FDIC. Life insurance companies are insured through very large reinsurance companies which are some of the wealthiest companies in the world. Companies like Munich Re, Swiss Re, Berkshire Hathaway, Hannover Re and Lloyds of London are the 5 largest. There is no worry when dealing with "A" rated life insurance companies.Answered on December 12, 2014flag this answer
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