Of interest was this list: The aid applicants include Genworth Financial Inc., Richmond, Va.; Hartford Financial Services Group Inc., Hartford; Phoenix Companies Inc., Hartford; Lincoln National Corp., Radnor, Pa.; Principal Financial Group Inc., Des Moines, Iowa; Protective Life Corp.; Birmingham, Ala.; and Prudential Financial Inc., Newark, N.J.
Read the entire article here
George and I are not a fan of the bailouts – but they are reality. The problems the above companies have had is with annuities. Annuities guarantee against loss if the contract-holder dies, some guarantee a lifetime payment regardless of market performance - now that the market is down 50% of so, guess what? The companies don’t have enough money to pay their claims!
People used to trash Annuities as being a good deal for the broker – now we are living in the classic market for why the White Elephant of insurance wasn’t such a bad idea after all!
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