The thought of insurance companies getting into financial trouble or if yours files for bankruptcy is a scary thought. What will happen to your life insurance policies and all the premiums you have paid? Will your loved ones still have financial protection or will you need to get a new policy?

It is highly unlikely that the insurer you choose will become an insolvent company. Protect Line’s life insurance panel all have very strong financial health and statutory capital reserves to pay out on any valid claim or future claims. There are insurance regulators and most providers are on the stock market, keeping a close eye on the financial condition of the companies.

Usually, if an insurance provider does hit financial difficulties then the insolvent insurer’s customer list is acquired by one or more companies in the insurance industry, protecting the consumer and ensuring insurance claims can still be made.

If the worst happened and an insurance firm went bust, with no other company taking on the policies before or during insolvency proceedings, you are protected by the Financial Services Compensations Scheme (FSCS), who would honour your insurance policy.