Much misinformation has been circulated with respect to the stability of life insurance companies and the guarantees they provide.  To keep things in perspective, it interesting to review and compare the historical facts regarding the the failures of life insurers vs. banks and savings & loan institutions.   According to FDIC (Federal Deposit Insurance Corporation) data shown here, there have been a total of nine hundred fifty four (954) bank and savings & loan institution failures since 1990.  During the same period,  NOLHGA (National Organization of Life & Health Insurance Guaranty Association) reports a total of ninety eight (98) life insurer failures.  Of the 98 failures, only 2  (Executive Life and Confederation Life) were active in issuing structured settlement annuities requiring the state guaranty funds to get involved in the rehabilitation  process.

To reduce your risk in investing with any financial institution, due diligence regarding financial strength and stability is very important.  For life insurers, more information can be obtained by visiting one of the independent rating agencies websites (or the respective life company) in the links section.

            “In this world, nothing is certain but death and taxes.

                                                    - Ben Franklin