If you want to know why it’s important to know the health of your life insurance company, ask Vince Watson. His daughter, Katie, was left severely disabled and in need of 24-hour care because of a series of tragic errors at a hospital.
The hospital purchased a life insurance policy that was supposed to pay for Katie’s care for the rest of her life. But less than a decade later, the insurance company failed and the Watsons learned a hard lesson about the limits on life insurance company guaranty funds.
The monthly annuity payments that were supposed to pay for Katie’s care were cut in half. The home that they’d built to accommodate a hospital wing for Katie was foreclosed on. The Watsons filed for bankruptcy protection. The family believes that they are millions of dollars poorer because of the failure.
And Vince Watson, 68, says that although he can make sure Katie is well cared for while he’s alive, he’s not sure whether there will be enough money to cover her needs when he and his wife are gone.
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