Fate of AIG Life of Canada
After last year collapse, American International Group (AIG) shares are on the bottom (value decline from $55 to $1.2 in one year). What does it mean for clients of AIG Life of Canada? Are there serious reasons to concern about their policy safety?
Nothing special, for three reasons:
1. AIG Life of Canada was recently bought by Bank of Montreal for $375 million in cash. This bank with its $416 billion in assets represent solid and respectable partner, who guarantees you security.
2. AIG Life of Canada wasn’t financially connected to AIG. Both companies were doing independent business, with own assets, on different markets. AIG suffered large loss related to housing market collapse in the US. AIG Life of Canada hasn’t experienced such problems, due to different investment structure.
3.Insurance policies in Canada are backed by Assuris, which protects Canadian policyholders (100% up to $200000, then 85% of the original face amount or $200,000). This protection covers not only life insurance policies, but also disability insurance policies and other. Assuris proved its function three times in Canadian history.
Everybody should be careful and protective, when talking about personal finance. On the other hand, cancelling your existing AIG life insurance policy may cause you lot of expenses, which should be deeply considered!
If you are not sure to decide whether leave your AIG policy or not, ask independent broker, who is not bounded to any company and has the best motivation to help YOU!
