Life Insurance Company Ratings – “A New Reality”

Thursday’s New York Times article “Insurance Industry Joins Banking Giants on the Hot Seat” pretty much says it all. “Insurance stocks have plunged more than 30% in the last 5 days with Prudential Financial the big loser on Thursday.”

It’s no longer just the banks. Life Insurance Company asset quality and capital ratios are under the microscope and Prudential Financial, Hartford Financial and MetLife Inc. were the focus on Thursday.

Life Insurance Company Financial Ratings Are Changing – Some Thoughts & Shopping Tips

In the short to intermediate term, the current worldwide economic upheaval will leave few financial sector companies unscathed.  The life insurance industry is all about quality of assets, capital levels and financial ratings. In today’s illiquid economic environment and focus on asset quality and capital ratios, many life insurance company’s financial ratings are bound to change.

Reuters today reported – “Moody’s Investors Service warned on Friday it may downgrade credit ratings on some U.S. life insurers as a financial crisis takes a toll on their investment returns.”

American General Life – AIG To Sell Life Insurance Units To Repay Loan

It appears that American General Life Insurance Company policyholders may soon have some answers regarding the future of their life insurance policies. Bloomberg.com is reporting that AIG plans to sell their U.S., Japan and European Life Insurance companies to repay their government loans.

This is good news!  American General Life is an excellent company and the financial stability that will come from severing ties with AIG can help them get out of the public relations business and back to providing high quality, innovative life insurance policies and excellent policyholder service.

Concerned About Your AIG Life Insurance Policy?

Kiplinger.com has an excellent article entitled “Don’t Rush To Ditch Your AIG Policy.” This is an objective, even handed summmary regarding the safety of your policy. It rightly cautions against predatory agents seeking to replace your policy and discusses a variety of issues worth considering as regards your existing AIG policy.

“Human Life Value” – What’s Your Economic Worth?

“Human Life Value” is a phrase used to represent an individuals economic value. More specifically, it represents how much money you’d need today (with interest earnings) to replace your projected income and employer sponsored employee benefits until retirement.

While it is occasionally used as a life insurance needs device, “Human Life Value” analysis is more commonly used is in computing damages (loss) that arise from an individuals premature death.