To gauge the credit worthiness of a bond, there are some rating agencies (big ones are Standard and Poor's, Moody's, Fitch ratings) that
classify different bonds into the following rating bands:
As to insurable interest, the US Supreme Court
classified life insurance as an asset long ago, no
different than an equity or
bond, so «killing it» is not a slam - dunk option.Something that is being lost in this debate is the difference between term and permanent life.