Anxiety. That’s what many people are experiencing over the current financial meltdown and concerns about AIG, one of the largest insurance companies in the world. According to USA Today, AIG issues more fixed rate annuities than any other company in the United States, and it is the ninth largest seller of variable annuities.

Should you be concerned about their current financial problems, and what should you be doing, if anything, if you own an AIG product? The answer to the first question is yes. Being concerned is understandable. But I have good news. It is the AIG holding company which has the problems. According to the state regulators, the AIG life insurance subsidiaries are highly regulated and well capitalized. Take it from Consumer Reports, which released an article this week that read: “AIG policyholders . . . need not worry that their claims will be denied.” With that being said, if you are holding a general account product and the insurance company fails, these cash values may be subject to the claims of AIG’s creditors.

If you own a variable account product, the underlying values invested in the subaccounts are segregated accounts and not subject to the claims of the creditors. They are, however subject to the changes in the market.

All of these products are protected by your state insurance guarantee association. While each state guarantee may vary, the typical amounts protected are up to $100,000 in cash values and up to $300,000 in death benefits.

So, back to the second question. What should you do now? First and foremost, don’t panic and make a decision based on emotions. Talk to your professional insurance agent or financial advisor to insure you are making an informed decision after reviewing all your options. If you don’t have an agent, go to the LIFE website’s agent locator and click on the agent locator to find an agent near you. The agent/advisor will help you make the decision which is right for you.