I want to put a small price on my head.
December 19, 2008 9:51 AM Subscribe
Why should I refrain from buying a very modest 30-year term life insurance policy from a financially unstable company like AIG?
posted by wabashbdw to Work & Money (3 answers total)
Ok, I want to purchase a 30-year term life insurance policy. The value of this policy is within the limits guaranteed by the applicable state guaranty association. At this point, what is the benefit of paying a little more for an insurer with a strong financial position vs one that may not last 30 years?
My understanding is that if I buy the cheapest policy and the company goes under, then the state guaranty association takes over the policies and finds them a suitable home with another insurer or simply administers the policies itself. I was informed that my rates and coverage would remain the same. So why should I not save a couple bucks a month on the premium?