Your Life Insurance Policy May Not Be Protected

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.

Your Life Insurance Policy May Not Be Protected
Source: Business Week