insurance companies – are they dependable?

POSTED BY Beginner ON July 4, 2013 11:50 pm COMMENTS (2)

While reserching on the policies (both term plan and health insurance) – i noticed that most of them have the coverage per year basis (some term plans long term coverage for single payment) – but below questions come to my mind.

These can silly questions or questions for which answer are obvious – may be I’m missing, but i still want to ask

– lets say, i buy a term plan (and health plan)  from ABC company upto 65 years of my age (which is like close to 4 decades years from now) and I depend on these policies for coverage both life and health wise. In some 20 years, what if the company crashes down suddenly or they have to close the business –  and hence my coverages will vanish… what is solution for this?

– if i go some other company whan I’m 50 or something premium will cost of bomb for me!!! then, how is that we beleive that these companies will continue to operate and pay claims (if any)?

 

Thanks

2 replies on this article “insurance companies – are they dependable?”

  1. Beginner says:

    hmm – all in the name of God, we trust the insurance companies. what you makes sense – even Mutual Funds can crash, banks can crash (we never know) but we still need to invest.

    Thanks anyways.

  2. You have to trust it .

    Unless you trust, you can not invest anywhere nor you can put money anywhere .Restrucuting , take overs happen and they are part of the life .

    However regulators makes sure (I should say try their best) , that a peoper due deligence happens before they give licence . A company business can fail and in that case other company generally takes over the business of the other party and your cover is continued by them

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