KCLau's Money Tips Forum

[alesfecky]

Dear Author,

I am putting this topic here simply because i have no idea where it should be placed.

My question is easy, what happen to our policy of our insurance company gone out of business?

Ex: after paying 15 years of life insurance bundle with investment link at Beta company (let say it's a biggest and high reputated company), at 16th years i should have say 200K if i lapse it. All the sudden my insurance company announces "out of business". what will happen for my policy with this company?

[KCLau]

This situation haven't happened in Malaysia.
Normally, the central bank (Bank Negara) will bail out the insurance company - meaning paying them money to settle the financial problem.
But Bank Negara does not want this to happen. So they impose many rules to make sure that insurance company invest conservatively and guarantee the interest of policyowners.

[alesfecky]

THANKS FOR THE INFO KC. REALLY HELPFUL

BUT ONE HONEST CURIOUSITY, WHERE THE HELL YOU GOT THESE INFORMATION FROM? I HAVEN'T GOT A CLUE WHERE TO SEARCH NOR GOOGLE IT.

[KCLau]

You can take the insurance exam.