What happens to life insurance policy if the company is bought by another company?

Answer 1

Ordinarily the company that buys the insurer that issued (your) policy will assume all of the liabilities of the insurer that issued your policy. Doing so is normally a condition of the merger of the two insurers. The terms and conditions of your insurance policy should remain the same, although you may be instructed to pay premiums to a different entity. State Departments of Insurance will require one or both companies to ensure that policyholders are advised of the transaction. It is therefore important that you read and understand all mail that comes from insurers, even if you do not immediately recognize the name of the insurer (because some may come from the acquiring insurer). You may also be notified of the acquisition from the State Department of Insurance, so be sure to read and to understand all mail from it.