Life Insurance

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benevera_IHB

benevera_IHB

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With the failure of IndyMac on Friday, I started thinking about other products offered by potentially troubled banks, including life insurance policies. Is there any reason for concern when holding a policy issued by a troubled bank? Are the insurance and banking divisions completely separate? Is a term life policy affected by a bank failure?
 
[quote author="Bergsteiger" date=1215903387]With the failure of IndyMac on Friday, I started thinking about other products offered by potentially troubled banks, including life insurance policies. Is there any reason for concern when holding a policy issued by a troubled bank? Are the insurance and banking divisions completely separate? Is a term life policy affected by a bank failure?</blockquote>
According to the <a href="http://www.fdic.gov/consumers/consumer/information/fdiciorn.html">FDIC</a> website:



<strong>What Is Not Insured?</strong>

Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, <span style="color: red;">life insurance policies</span>, stocks and bonds. Unlike the traditional checking or savings account, however, these non-deposit investment products are <span style="color: red;">not insured by the FDIC.</span>
 
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