3 Responses to “The Benefits of Life Insurance”

  1. paulina guidry says:

    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?

  2. H A L 9000 says:

    Whole life is a terrible purchase…but that is for another question at another time.

    There are two possible salvations for your dad. It may be that your State’s Insurance Commission could step in and settle for pennies on the dollar or another solvent company could buy the assets of the bankrupt company.

    Contact your states insurance commission for better answers because this is technical and we goofs here probably will give bad advice.
    References :

  3. caitlyn says:

    If the carrier goes bankrupt, the policy gets transferred to another insurance company licensed to do business in your state. It happens ALL THE TIME, companies going out of business and policies being transferred.

    Yep, that "adjustment" happens, and if the policy is actually not whole life, but a different kind of policy, it’s going to start costing every year as the investment returns won’t be enough to pay the premium every year. I’d suggest that the policy is not "paid up".

    Try this site to find the best life insurance
    http://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.
    References :

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