Monday, November 5, 2012

Ca$h for (Annuity) Clunkers

Fortunately, this isn't a government-run program:

"Hartford Financial Services Group Inc. has offered some of its annuity clients cash for their contracts."

As regular readers know, Variable Annuities can be solid financial vehicles (they can also be dangerous, but that's another post). When the stock market takes a dive, insurers who issued the policies can find themselves "upside down" because of guaranteed payouts in the contract.

So Hartford's looking to get out ahead of the problem by buying out policyholders who themselves might be feeling a financial pinch. So if you're a Hartford Variable Annuity owner, best be watching your mailbox.

No comments:

Post a Comment