My term life insurance policy is with American General Life Insurance Company. They are a subsidiary of AIG. My understanding is that my policy is safe. I was told by my life insurance agent that in force policies are backed by reserves and individual states require life insurance companies to keep reserves. AIG cannot touch the reserves of its subsidiaries. So regardless of what happens with AIG, my policy is safe. Also, it is likely another life insurance company will purchase American General soon which would be a good thing.