What do I do if my insurance company goes bankrupt?

What do I do if my insurance company goes bankrupt?

http://insureme.us/insurance-company-bankrupt/

The National Organization of Life & Health Insurance Guaranty Association’s article “What Happens When an Insurance Company Fails” discussed that if an insurance company went bankrupt it may still pay policy benefits from a guarantee association or guaranty fund. When the company went bankrupt, the guarantee accounts are still open and the death benefit has not been paid, there could be a settlement. On the other hand, if the guarantee accounts for that company have been closed, there will be no help from that avenue.

Policy holders start to question what would happen if their insurance company went bankrupt, after a major insurance company failed in September, 2008. There is no specific answer for this question because each state has its separate agency that governs the insurers’ accreditation to do business in the state. Every state differs from another, some have more extensive protections for insureds than the others. Most states guarantee around $300,000 in life insurance death benefits; this amount also varies from each state.