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AIG life insurance holders-what happen
- Thread starter NY_HOOD
- Start date
Quote from NY_HOOD:
what happens to AIG life insurance holders?
http://online.wsj.com/article/SB122152624211640147.html?mod=googlenews_wsj
Quote from NY_HOOD:
i know an older guy who has a 2 million dollar life insurance policy with AIG. if AIG go bankrupt will his policy just be transferred to another company?
Mostly yes. If his policy is term, no problem at all.
If his policy is whole life and has cash values, it's still likely safe. "Cash Value Reserves" have restrictions upon how they can be invested... state insurance divisions set conservative standards.
policy holders are "covered", unless their policy is of an extraordinary amount.
Quote from NY_HOOD:
he has term insurance. he's safe for the remaning 15 years left on his term?
Yes. Most companies retain only a portion of the face amount and reinsure the balance with one or more reinsurance carriers.
To my knowledge, there has NEVER been a default on a death claim in the US.