Life reinsurance is insurance for life insurance companies--the transfer of some or all of an insurance risk to another insurer. It allows life insurance companies to spread their risks, reduce their liabilities, and increase assets. Without reinsurance, most life insurers could not issue the size or many types of policies issued today. Life reinsurers assume the risks associated with virtually every product sold by life insurers.

Learn more about how reinsurance works, the relationship between reinsurance and bank letters of credit, and impact of the financial crisis in our Reinsurance Fact Sheet.