Your Life Insurance Policy May Not Be Protected

I have been warning my radio listeners about the insolvency of life insurance companies for the last few months. If you have cash value life insurance, fixed annuities or pensions and 401(k)s held at insurance companies read this article.

On my recent 2009 Financial Forecast radio show I said that I expect at least one major life insurance company to fail (or be bailed out) in 2009.-Lou

Radio Show link:
http://wobmam.com/personalities_lou_scatigna.html

Your Life Insurance Policy May Not Be Protected

By Ben Levisohn

With the financial system in crisis, investors increasingly rely on government guarantees to protect their money. Bank accounts are backed by the Federal Deposit Insurance Corp. and its $53 billion war chest. After decades on their own, money market funds now are backed by the U.S. Treasury. And life insurance policies and annuities? They're backed by state guaranty associations. There's only one hitch: The states have virtually no cash on hand and must rely on promises to pay made by healthy life insurers.

Read Article Here:
http://www.businessweek.com/magazine/content/08_48/b4110100507198.htm?chan=magazine+channel_personal+business&chan=investing_investing+index+page_personal+finance