How are Life Insurance Benefits Protected?
Here today, gone tomorrow is a common adage that is being applied to a huge assortment of business during the current recession. Local bagel shops, mom and pop stores and major financial institutions are all meeting the same fate regardless of their size. Life insurance companies are also prey to economic hard times, and if you have a policy with a provider who is no more, you do have some government protection for your coverage.
Like other types of insurance coverage, the laws of life insurance are governed by the state and vary depending on residency for the insured individual. Life insurance is indeed backed bystate guarantee associations, but the amount of protection and the rules overseeing those policies are based on where you live and where the policy was issued.
When it comes to permanent life insurance coverage, according toPeter Gallanis, president of the National Organization of Life and Health Insurance Guaranty Associations, there are some general rules in place. $300,000 in death benefits, $100,000 of the present annuity value and $100,000 in cash-surrender values for universal or whole life coverage exists, but each state has the final say over the terms.
If you are concerned about your insurance policy and what laws protect you in your state, check out the complete information at theNational Organization of Life and Health Insurance Guaranty Associations website.
Life insurance policies are a great way to make sure your family is financially protected after you’re gone. Don’t have a policy yet? Go Insurance Rates can help with the best life insurance rates available.