Released: September 16, 2008

What market tumult means for us

Source: Nancy Trejos, Washington Post (Free Registration)

The stunning events rattling the financial markets are raising a lot of questions about the average person’s finances. We talked to several experts to find some answers.
Q: What if I have a life insurance policy or annuity with AIG, which is struggling financially?

A: Life insurance policies are covered by each state’s guaranty association. The amount of coverage you get if the company fails varies from state to state, but typically, you will be able to recoup up to $300,000 in life insurance death benefits, $100,000 in cash surrender or withdrawal value for life insurance, and $100,000 in withdrawal and cash values for annuities. Check with your state’s guaranty association or the National Organization of Life and Health Insurance Guaranty Associations, which oversees the state associations. Its web site, http://www.nolhga.com, has a list of state rules. 

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