What happens to my policy if AIG goes under?

You policy will be picked up by the government and then sold to another company. Nothing will change on your policy.

Again, I will repeat, nothing changes on your policy. Believe it or not, those rates are set in stone. Just look at your life insurance policy. Everything is set as along as you have a whole life or term policy.

Universal life policies run a different. But if you have had your policy a long, long time, there is a good chance you do not have that policy.

It's the bad mortage loans that are befalling AIG and the like (Lehman, Bear Stearns etc.) Now with AIG in financial troubles, there's always a good chance that another insurer may buy out AIG's insurance operations and your policy. Having said that, if AIG's life insurance division gets bought out by someone else, there's no gurantee that your low premium will be maintained. The acquirer (and even AIG in the unlikely case that it survives) can raise the policy premium, I suppose.

IF they filed for bankruptcy protection the life insurance holders should be fine. If anything they'd spin off the profitable insurance unit to a buyer in order to raise cash. AIG doesn't sell insurance...American General does (as does their other subsidiaries)....keep that in mind. AIG just owns American General.

ideally, we Nationalize or take it into Receivership hearth all the incompetent fools who declare to be "the best adult men interior the Room", detach the branch it relatively is to blame for this disaster (the AIG bonus adult men) and we tax payers settle on their mess that they positioned us taxpayers on the hook for, circuitously!! We sell the AIG insurance company on the open industry, with any luck, making a earnings and liquidating the financial centers team! the reason we are "on the hook" is using the fact a lot of our Bond Holders such as China, SuadiArabia and so on offered those "leveraged bets" aka default swaps and that they forced the Treasury to "make good" on the insurance they "offered" for those from AIG!!!

It will be picked up by whoever buys up the bits and pieces of AIG.

Under the unlikely event they go under, your policy will be transferred to another insurance company in your state. Sleep well, don't worry about it.

If AIG is as lucky as Fannie Mae and Freddie Mac, we taxpayers will keep you afloat!