Life Insurance

[benevera_IHB]

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?

 

[CalGal_IHB]

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?

According to the FDIC website:

What Is Not Insured?

Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, life insurance policies , stocks and bonds. Unlike the traditional checking or savings account, however, these non-deposit investment products are not insured by the FDIC.