State Guarantee Funds - mention them or not?

Jun 15, 2019

  1. Tahoe Ray
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    Tahoe Ray Guru

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    Variable products don't need to be covered because they're held in separate accounts, not the general account of the insurer.
     
  2. VolAgent
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    In reading it, I believe they are not covering the cash value portions. The death benefit would still be protected up to the limits as that is a guarantee from the company.
     
  3. Tahoe Ray
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    That's correct. I was speaking to CV. The living benefit riders "may" be covered as well, but there isn't anything definitive to that.

    Better not to find out...
     
  4. VolAgent
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    I agree. I said this earlier, but I'm sure it got lost in the noise.

    If I'm worried about the solvency or stability of a bank or insurance company, I'm not putting my money there, regardless of whether it is FDIC insured or there is a state guaranty fund.
     
  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    I agree, best not to find out.

    I think the issue of LBRs is more state specific. Some states use the phrasing similar to "policy benefits", others are more specific with terms such as "account value". I would think states with the more general terminology would be more likely to cover LBR benefits.
     
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