What happens if my life insurance company goes bankrupt?
Life insurance is treated as 'long-term' insurance and in the event your life insurance company should have financial difficulties and go out of business, you would be covered under the Financial Services Compensation Scheme.
Under the scheme, compensation in respect of life insurance is unlimited. You would be paid the first £2,000 in full and 90% of the remainder, without upper limit.
For more information, see The Financial Services Compensation Scheme.
