AIG failing...should I get out?

[twuoo]

I have AIG life insurance and car insurance.

Thus far, I've had no real disappointments with either. Except that when I donated my van and lost my multicar discount, my premium went up 31% "just because".

I tried shopping around, but nobody else seems to be cheaper for car insurance.

At any rate, all the news today about the big companies dying off.

I give AIG about $55/month for life insurance. I've been with them for 2 years now for that. It's the kind of life insurance that if I don't bite it by the time my policy ends, I'll get all my premiums back.

But now with this dark shadow over AIG and its stocks plunged 60% today, should I take the clue and get out of the life insurance policy with them?

I'm sure I'll loose the money I've already invested.

What should I do???

[JRScott]

I don't know what to tell you.

It looks like they are headed to bankruptcy though. I don't know how that will affect your policy though. The problem is that the other insurers could be in just as bad of shape and we not know it.

[banca rotta]

I don't want to tell you what to do either since no one can tell what the future holds but they will probably be bought out either by Buffet or another Billionaire bargan hunter.

Lehman may now be bought out too since it filed for bankruptcy and they are now a bargain for another company.

Do you have whole life or term. If it's term you can go to another company after you pass the physical. Whole life and you may lose some value.

[chloe0724]

Lehman is going to be bought in bits and pieces.

I work in the financial industry and we were told today to suspend all sales of AIG products.

I would recomend looking around.

[danaf]

I work in the financial industry too. I think they will make it out of this ok. They are restructuring and looking to sell some subsidiaries to shore up their losses. And the thing is - they have tons of subsideries worth tons of money. And also, the last I heard there were two major financial institutions willing to bridge their loans until they do sell off some subsidiaries - Goldman and Citicorp. That says alot! Hank Paulson, who was the CEO at Goldman had to draw the line somewhere BUT he's obviously still got pull at Goldman for them to step up. Today was a really bad day on Wall Street. But AIG has been talking about restructuring and selling of subsidaries for about a month now. This fear about AIG is the rippling effect of Lehman & Merrill and for sure the last poster isn't helping matters by spreading the fear. Hopefully tomorrow will be a different & better day. I think you'd be hit with some major penalties if you changed. I understand your fear but check it out with your state before you do anything. Life ins. is state controlled and they have extremely strict rules. Find out what your options are before succumbing to the fear and losing money.

[Flamingo]

I have AIG life insurance and car insurance.

Thus far, I've had no real disappointments with either. Except that when I donated my van and lost my multicar discount, my premium went up 31% "just because".

I tried shopping around, but nobody else seems to be cheaper for car insurance.

At any rate, all the news today about the big companies dying off.

I give AIG about $55/month for life insurance. I've been with them for 2 years now for that. It's the kind of life insurance that if I don't bite it by the time my policy ends, I'll get all my premiums back.

But now with this dark shadow over AIG and its stocks plunged 60% today, should I take the clue and get out of the life insurance policy with them?

I'm sure I'll loose the money I've already invested.

What should I do???

Read your life insurance and car insurance policies for further information as there is usually always something in there regarding the state in which you reside as to clauses. Also as the previous poster suggested, your state insurance department can also clue you in on regulations if something does go down with AIG.

[oldrocker]

I'm watching the AIG mess also. I have 20 yr term policys that are almost 6 yrs old. I could never at my age now get anywhere near as good rates for the amount of coverage. Oh well, we'll see.

[poor@budgeting]

Take out the max loan(if available) that the policy would allow?

[layla17]

It looks like they aren't coming back from this, I would get out now before it's too late.

[Scott50]

looks like the Federal Govt is loaning $85 billion dollars to AIG.. Federal Govt in returnwill receive a 79.9% equity stake in AIG..

[AngelinaCatHub]

looks like the Federal Govt is loaning $85 billion dollars to AIG.. Federal Govt in returnwill receive a 79.9% equity stake in AIG..

So the Government buys failure, and WE pay for it. Government buys nothing, it is us, the taxpayer. This cannot go on forever. 'Hub

[Scott50]

everyone has their hands out for loans the Federal Govt- the Big Three Automakers have "requested" 25 billion dollars in loan guarantees from the Federal Govt that were part of last years energy bill. GM;Chrysler; and Ford had originally requested 50 billion in loans.

[lrprn]

everyone has their hands out for loans the Federal Govt- the Big Three Automakers have "requested" 25 billion dollars in loan guarantees from the Federal Govt that were part of last years energy bill. GM;Chrysler; and Ford had originally requested 50 billion in loans.

Hmmmm....whatever happened to "letting the market correct itself" and "we need less regulation"? Guess the big business boys are finally getting a taste of the outcome of their own incredibly short-sighted financial manipulations to make obscene profits.

Remember back to the Reaganomic's 1980s "trickle down" economic theory saying that if rich people make more money, the money will trickle down to the rest of us? Well, the rich sure made a lot more money, but now that's reversed to become "trickle up" with the rich guys losing their riches right and left. They should be suffering as much as the rest of us in the middle class. But no, our government is bailing them out with our tax dollars. Just doesn't seem right. Nobody bailed *us* out - we had to bail ourselves out by filing bankruptcy with 7-10 years of consequences dragging along behind us.

[AngelinaCatHub]

Why the HELL are we bailing out private enterprise? This is rolling over on our backs to the Socialists. It is time to pull back, lessen corporate taxes so they don't go overseas. Give tax incentives to stay here. We are now reaping what we have sown. NAFTA, my German car, built in Mexico, and I pay big bucks for quality.

At this time, the Chinese make our troops boots and helmets. Russia and China make ammunition 223 cal for our M16. I don't yet know who makes the m16. It used to be Colt, but it could be China with a Colt name. So, what are we?

When you purchase a Microsoft product, and have trouble with it, who do you call? Pakistan. Our tax laws are causing this.

However, Vote for Ali Bama, and you can tax me because I'm Rich. I now have no obligations so whatever I make, I can give my max.

I have to quit for now. I'm about to vomit. 'Hub

[ready2puke]

Shoot I have my dogs insurance with AIG underswrites...Im really NOT kidding. MY dog is my family and if anything happens to her...its curtains for me.