Page 28 - Know-So Money, Hope-So Money, Retirement Secrets Wall Street Doesn't Want You to Know

In the unlikely event that a company's annual statement or its own
examination reveals possible financial weakness, one of several avenues

is open to the company:
• Produce additional operating capital;

• Sell its business to another life company;
• Merge into another financially stable life company.

A legal reserve life insurance company does not simply close its doors
and go out of business declaring that all policies are null and void.
Legal reserve life policyholders enjoy personal security safeguards
unknown by other type of financial industry.

Fifth, if one company is purchased or merged into another, there is
no change in the policy benefits or premiums. Your contract would
be just as binding on the new company as it was on the company you
originally purchased it from.

So, the bottom line is in order to lose any money in a fixed life
insurance or annuity policy due to company insolvency, ALL the
following would have to happen.

• Your insurance company’s very safe bond portfolio would have
to fail.
• Your surplus fund would have to be depleted.
• The very safe bond portfolios of all reinsurance partners would

have to fail, along with their reserve funds.
• The state reserve fund would have to fail.
• There would have to be no company left that could merge with
the failing company, i.e., a complete financial meltdown far
worse than anything we have ever seen before.

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