AIG

I hope AIG does not end up like Bear or Lehman, for the sake of millions of commoners who have insurances with it. If, God forbid and SEC/ Fed/ Treasury forbid, that indeed happens, and assuming it goes belly up, with no one else taking over, like Hehman, here are some of the possible ramifications:

1. People who have life insurance have to forgo any money that may be with the company, especially people with endowment policies.
2. People may be forced to go to another insurer and start afresh- most likely at a much higher cost of insurance, since they will be starting all over again, with no no-claims bonus etc to aid.
3. People with Helath Insurance with AIG will have it even tougher. They now have to prove that their health is as good as ever- which in many cases, may not be the cases, forcing their applications to be either rjected outright, or tobe accepted a much higher premium.
4. If a behemoth like AIG can be tourbled this easily, imagine the plight of the smaller fish! This could cause premiums in general to rise dramatically.

I only hope and pray nothing of this sort happens.