1. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Life insurance is not federally insured by the FDIC (Federal Deposit Insurance Corporation). The FDIC insures bank deposits. Life insurance is a contract between the policy owner and the life insurance company, and life insurance companies and contracts are regulated by state insurance commissions. In addition, states have guaranty funds to help offset loss if a life insurance company should leave policyholders in peril.
    Answered on May 24, 2014
  2. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    Life insurance is NOT federally insured, and be happy it is not. It is as strong as the company you buy it from, so be certain to buy from a reliable company with only the highest ratings. This way you do not have to worry about getting your payment. You do not have to rely on our federal government either, for maybe, eventually, getting around to making good on a payment, if ever. Select from the top rated companies and you can be sure to do well. That is why the ratings of these companies are so widely published. Use the information along with their premium rates, in making your selection, from a reliable agent. Thank you. GARY LANE.
    Answered on May 24, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question! The answer is technically no, but kind of yes. The funds for your policies death benefit are not insured or backed in any way by the Governments money. What the Government did do though, is ensure that the insurance companies have to have a cash fund available to cover the death benefits for the policies they write. And to doubly cover you, the States themselves have a fund set aside to cover some or all of your policy, should your insurance company go belly up. Thanks for asking!
    Answered on May 27, 2014
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