Life Insurance Leads Cape Coral Florida FL

Reader’s Question:

I recently learned that my life insurer which is based in Cape Coral Florida FL has become bankrupt. This can be a terrible situation for me especially since I got the highest premium from this company and I have already fully paid my policy. Is there anything I can do about my life insurance?

Mindy

Cape Coral, FL

In case of insolvency, you need not panic. There is a chance that you are still at least partially covered by your life insurance. Most states, including Florida FL, have established “guaranty associations” or “guaranty funds” that cover insurance company failures; in much the same way as the FDIC covers bank failures. Although the coverage provided by a guaranty association or guaranty fund is limited (typically $300,000 for auto, home, and life insurance policies) and depends upon the financial resources of the guaranty association, in most cases it should prevent you from being left completely without protection if your insurance company goes belly-up. The insurance regulators in Florida State will persuade another insurance company to take over the policies of the company being liquidated. In most cases, you are more likely to still have coverage. Although, you may not receive all of the benefits you had hoped for such as projected interest rates on a cash value life insurance policy, among others.

Next, just follow instructions. If your insurance company in Cape Coral Florida FL goes into receivership, you should be contacted by the insurance company itself, the company’s receiver (usually the state insurance commissioner), or by the guaranty association. The communication regarding your insurance which you shall receive will tell you what needs to be done and will often contain the forms you need to move your old policy to another insurance company in Cape Coral Florida FL or elsewhere. If you still do not hear from anyone soon after the insurance company is declared insolvent or taken over by another life insurance company as the receiver, you can always choose to call your agent, the company itself, the state insurance department, or your state’s guaranty association.

If you decide to purchase a new policy anywhere in Cape Coral Florida FL or elsewhere, do your homework first. Any company is vulnerable to go bankrupt but it is less likely when the life insurance company you pick is already financially stable. You can always check for insurance company rating information which is easily available through some independent rating agencies, like Moody’s Standard and Poor’s and A.M. Best. You can always contact the rating service directly either through its website or by calling its customer service department to get reliable rating information. You can also try to ask your insurance agent or financial planner to do some research for you in case you do not have the time to look up the information yourself.

Tags: life insurance insolvency, insurer insolvency, life insurance claims