Life insurance companies who are wary over massive investments are hoping that they will be next in line to receive massive financial aid from the American government. They are arguing that government funds could stabilise the trillions of dollars that they have invested, as insurance companies are warning that any failure of a life insurer could dry up a key source of corporate financing.

Treasury Secretary Henry Paulson said Tuesday he had not yet decided whether other insurers would get federal funds. The only insurer to get government help so far is American International Group Inc, which was saved from bankruptcy with a rescue package that has ballooned to $152 billion.

Being some of the biggest buyers of corporate bonds life insurance companies are claiming that they are keeping the wheel of American finance turning , and if a company was to go under it would put another huge hurdle in the way of economic recovery.