What Happens When Your Life Insurer Goes Under?

Ever since the problems at the American International Group burst into the consciousness of everyday consumers two months ago, a sort of low-grade fear has set in among policyholders at insurance companies of all kinds.

This week, the concern moved up a notch or two. First, the federal government raised its A.I.G. bailout commitment to $150 billion. Then, a Goldman Sachs research report suggested that some life insurance companies might have to exit the business altogether.

What Happens When Your Life Insurer Goes Under?
Source: New York Times