How Safe is Your Life Insurance Company?

Posted by:  BeamaLife Editor  on 9 Jan, 2009

Time magazine had a wonderful article explaining why the life insurance industry is so much safer than all the other financial service industries. The article explained that insurance companies only held about ten percent of total assets in the real estate investments that pulverized the bank and investment industries. The article even explains that AIG, the insurance company, was solvent because of insurance companies and life insurance part of the business is still solvent according to New York state insurance department. Insurance companies are  required by law to have money set aside to pay claims. That is very different from credit default swaps, which had no money set aside to pay claims. It also explains that insurance companies contribute to state guaranty funds, which come into play when an insurance company becomes insolvent. This make life insurance ideal not only for death benefit purpose but also for safer savings and risk management purposes. Learn more about whole life insurance, term life insurance and find the best life insurance quotes online now.

http://www.time.com/time/business/article/0,8599,1849023,00.html