In these uncertain times, the question of solvency becomes relevant. Though it is rare for a life insurance company to fail, it does happen. Here’s the main thing to know (from the NOLHGA web site):

State life and health insurance guaranty associations provide a safety net for their state’s policyholders, ensuring that they continue to receive coverage even if their insurer is declared insolvent. Working together through NOLHGA, the guaranty associations form a national safety net, protecting insurance consumers all across America in their time of need. www.nolhga.com

While laws governing maximum limits and types of policies covered vary from state to state, most states set basic limits of:

• $300,000 in life insurance death benefits

• $100,000 in cash surrender or withdrawal value for life insurance

• $100,000 in withdrawal and cash values for annuities

• $100,000 in health insurance policy benefits