What happens when a life insurer fails? Clark has addressed this issue before and created some panic among listeners…so he's going to tread gently on the topic again!

First off, there's no FDIC for failing insurance companies. Insurers have historically been regulated at the state level. So each state has its own state guaranty association that handles paying out money to people in the event of an insurer failure.

Most states have coverage levels of somewhere between $100,000 to $300,000 for individual policyholders. NOLHGA.com can help determine the level of protection your state affords.

However, there is one caution about state guaranty associations. The associations will not have enough money on hand to make everyone whole in the event of a failure. So there may be an indeterminate waiting period until you get your money.

But remember, once again, most insurers won't fail.

The greatest warning here is for those buying insurance. Clark recommends only buying from insurers that are rated A++ or A+ by A.M. Best. In addition, you may also want to buy multiple policies instead of just one. That way you can ensure that each policy does not exceed your state's limits.

Well, another day and another federal bailout.

For weeks now, Clark has been warning you about difficulties in the life insurance industry. Just yesterday, with great reluctance, he singled out one troubled life insurer named Lincoln National on the air.

The consumer champ never wants to be a part of the problem, but his duty is to you as a listener to make sure you know how to protect yourself.

The insurance industry has long been regulated by the states. But it became clear that state guarantee funds would not be adequate to handle the insolvency of large providers. So the feds coughed up additional taxpayer money.

Wow, who would have ever thought you'd need insurance for your insurance?!

Hartford Financial Services, Genworth (a GE spinoff), Lincoln National and Prudential are among those insurance giants lining up at the taxpayer trough. A rumored fifth one -- Met Life -- will not comment on whether they're seeking federal rescue funds or not.

So what exactly happened to bring us to this sorry state? Two things, actually.

First, insurance companies made promises to policy holders (in the form of variable annuities) that they couldn't keep. Their risk projection models did not account for the significant decline in the stock market.

Second, the investments that they put policyholders' money into tanked -- just like your own investments over the past few years.

One bright note here: Some of the largest insurers are rock solid and need no bailout money. Dow Jones has cited these ones as Northwestern Mutual, Mass Mutual, New York Life and TIAA CREF.

So if Clark made you nervous as a policyholder from any of a number of insurance giants over the past few weeks, you now have nothing to worry about. But as a taxpayer, you're going to be paying for it through the nose.

What happens when a life insurer fails? Unlike banks, insurance companies are regulated at the state level -- not the federal level. A state guarantee association is the last line of defense in the event of a failure.

Unfortunately, with state guarantee associations, policyholders are often left waiting and wondering if and when they'll get their money back. There often isn't even a clear-cut timeline about the process, according to Clark.

In the latest example, Shenandoah Life recently failed and is now in receivership after being seized by the state of Virginia.

Clark's longstanding advice is to only buy life insurance or long-term care from insurers that are rated A++ by A.M. Best. Well, Shenandoah Life had a B++ rating!

Don't be tempted by low premiums when you're shopping around. Stick with insurers of top strength -- even if you have to pay more for it.

Finally, there are caps on the protection you can receive under state guarantee associations that vary from $100,000 to $300,000 by state. So if you're going to buy substantial insurance or annuities, be sure to have it split up with different insurers to be proactive about protecting yourself.

Clark has long encouraged people in their late 50s and early 60s to consider buying long-term care (LTC) insurance, which pays for care in a nursing home, an assisted living facility or in your own home.

There's a misconception that Medicare will pay for this kind of care, but it won't. Medicaid, meanwhile, requires you to impoverish yourself before the government will pick up the tab for a nursing home. But what happens when you get better and suddenly you're broke? LTC insurance takes the worry out of the equation.

The industry, however, has been littered with fly-by-night operations and other unstable players. The latest blow comes from Conseco, which worked out a deal with Pennsylvania to dump its LTC obligations and essentially turn people over as wards of the state.

The solution is to only buy LTC insurance from a solid company, preferably one that has an A.M. Best rating of A++ or A+. It may cost you more now, but decades down the road you have a greater likelihood that A++ and A+ companies will be around.

One final note: LTC insurance isn't necessary if you're so wealthy that money is no object to getting the best care, or if you're so poor that being a ward of the state makes sense. That still leaves between 65% and 80% of Americans in the middle who could benefit from it.

Clark has tried for years to get people of a certain age to buy long term care insurance. Many of us are going to need to stay in a nursing home or will need long term care when we’re old, yet people assume social security will pay for it. That is not true. Most people should get long term care insurance when they reach their ‘50s. The only groups who don’t need LTC insurance are those who have very few assets or millions of dollars in wealth. That leaves about 80 percent of people who do. The New York Times published a story about the three companies you absolutely do not want to have. The third largest writer of LTC insurance, Conseco, has 29 times the complaint rate of the industry leaders. According to reports, Conseco repeatedly does not pay legitimate claims. Banker’s Life & Casualty, which is owned by Conseco, was second on the list. The last one is Penn Treaty American, which is the 7th largest writer of policies. That company has a complaint rate of 9 times the industry leaders. It’s horrible. These people have paid throughout their working lives in order to be taken care of when they no longer can. But that is not happening. Shame on the companies listed for mistreating customers.

Long-term care insurance is the coverage that pays when an elderly person needs care at home or in a nursing home. It’s a great product, but nearly no one buys LTC coverage these days. A law on the books makes it much tougher for people to get government help for this kind of care. So it’s up to you. What are the odds you may need long term care, you may be asking? If you reach age 65, about 70 percent of us will need long term care, according to the New York Times. That’s three out of four people. So, who should buy it and when should you buy it? Well, if you are loaded with dough (assets greater than $3 million) or you have almost no assets at all, you should not buy LTC insurance. Everyone else needs it. The time to buy is in the late 50s and early 60s. If you buy after that it can get too expensive. Clark recommends nine companies over any others and he has a buying guide to help you along. Check it out here. For more help with LTC coverage, click here. Clark prefers LTC coverage that has a lifetime benefit, rather than those that last a period of years.