What To Do When Life Or Health Insura...

What To Do When Life Or Health Insurance Companies Falter

There are 34 comments on the Hartford Courant story from Apr 11, 2009, titled What To Do When Life Or Health Insurance Companies Falter. In it, Hartford Courant reports that:

Many insurers are feeling a financial squeeze, and you're worried that your life insurance policy or annuity isn't safe.

Join the discussion below, or Read more at Hartford Courant.

First Prev
of 2
Next Last
Wait

Ellington, CT

#2 Apr 11, 2009
Over 90% of the life and annuity policies that are replaced, don't have to be. BUT...the advisor or agent that does the replacement gets a nice payout on it. Up to 8% of the total amount. So a 100,000 annuity would net the agent around 8,000. Life insurance pays out on the premium for the 1st year. Up to 110% is paid to the agent. How come there's no mention of that in this article? Or...did I miss something?
ANGEL

United States

#3 Apr 11, 2009
The regularity of people (including brokers themselves) who are telling me..."I AM WATCHING THE MONEY DISAPEAR AND I DON'T KNOW WHAT TO DO" is staggering and almost daily....

THANK GOD MY FATHER WAS GAMBLER AND TAUGHT ME EVERYTHING HE KNOWS....

As such....You are standing there watching your greyhound fall farther and farther behind.....the cards are all coming up against you.......your nascar has a flat tire midrace....and alll you can think is WHY CAN'T I TAKE MY BET BACK....

Our economy is a gamblers paradise....YOU CAN TAKE YOUR BET BACK...why on earth wouldn't you?
ZENA

United States

#4 Apr 11, 2009
People are scared to death and FEAR CAUSES MOST PEOPLE TO "DO NOTHING" (the overly discussed rainy day fund in the state budget)

not us....FEAR IS A MOTIVATOR....FEAR MOTIVATES US TO FIND shelter....SAFETY.......AND WE HAVE....
ANGEL

United States

#5 Apr 11, 2009
Wait wrote:
Over 90% of the life and annuity policies that are replaced, don't have to be. BUT...the advisor or agent that does the replacement gets a nice payout on it. Up to 8% of the total amount. So a 100,000 annuity would net the agent around 8,000. Life insurance pays out on the premium for the 1st year. Up to 110% is paid to the agent. How come there's no mention of that in this article? Or...did I miss something?
THANK YOU...THANK YOU ...THANK YOU...anyone else wanna jump in here and educate the public...

MY BROKER IN THE 90'S WAS MAKING A PRETTY PENNY WHEN I WAS LOSING ON A DAILY BASIS...i learned the hard way...

BUT I LEARNED!
ANGEL

United States

#6 Apr 11, 2009
THIS TIME AROUND...I cashed out on an annual basis.

I knew the fall was coming and I cashed it out on an annual basis and I have been for over 10 years...more over the last seven....

I lived off it....STONE ...I LIVED OF IT WHILE I RAISED MY KIDS AND ONLY WORKED 10 OR SO HOURS A WEEK....

STONE YOU ARE FOOL.......a fool in a gamblers paradise...

In the turn of 2006-2008 it was enjoyable to watch ct-n and see all the players run around making bids on money we were never gonna have....while I was watching it I thought, "well maybe rell knows something I dont"

NOT SO...MAKING THE CT-N VIEWING MORE ENJOYABLE IN RETROSPECT....
ANGEL

United States

#7 Apr 11, 2009
AFTER THE CRASH IN THE NINTIES...i learned....

buy low cash out high....right away...

MAKE IT...TAKE IT
MAKE IT ...TAKE IT...
LINDA

United States

#8 Apr 11, 2009
I KNOW...I married a fool!
Vesuvius

New Hartford, CT

#9 Apr 11, 2009
Losing your rear in insurance stocks? Tough luck, buddy, that's the world of finance. We should bail out NO ONE.

Maybe we should just take all the money from the middle and lower classes and just give it over to the wealthy. Enough of this trickle-up foolishness.
HartfordResident

Hartford, CT

#10 Apr 11, 2009
This was one of the Courants more poorly written article...

1. Insurers hold reserves to pay for future claims. It does not matter if the company's stock price is low. It only matters what the reserves are and what the "Risk based capital ratio" is- how much "extra" money the company holds. The RBC ratio for PNX is well above 330% the RBC ratio for the hartford and Lincoln are also well over 300%. This is what the state looks for when it wants to "Take over" an insurer, since this is the best indicator of whether or not an insurer can repay claims.

To scare policyholders from Phoenix, The Hartford, Lincoln... is complete misinformation. AND BAD FOR THE POLICYHOLDERS.

2. Even if the company goes "bankrupt" the policyholders are the first ones to be paid,(before the bondholders). For this reason there is very very little chance policyholders will not get their money.

3. There is a guarantee fund where the state guarantees insurance contracts, this is 500K for life and 500K for annuities.
ANGEL

United States

#11 Apr 11, 2009
What were all the brokers selling in the early ninties...ANNUITIES...
ANNUITIES...
the state guarentees nothing...ABSOLUTELY NOTHING...the state CANNOT PAY OUT WITH MONEY IT DOES NOT HAVE...
THERE IS NO MONEY...when are people going to GET THAT...there is no money.
Tommy

Ware, MA

#12 Apr 11, 2009
HartfordResident wrote:
This was one of the Courants more poorly written article...
1. Insurers hold reserves to pay for future claims. It does not matter if the company's stock price is low. It only matters what the reserves are and what the "Risk based capital ratio" is- how much "extra" money the company holds. The RBC ratio for PNX is well above 330% the RBC ratio for the hartford and Lincoln are also well over 300%. This is what the state looks for when it wants to "Take over" an insurer, since this is the best indicator of whether or not an insurer can repay claims.
To scare policyholders from Phoenix, The Hartford, Lincoln... is complete misinformation. AND BAD FOR THE POLICYHOLDERS.
2. Even if the company goes "bankrupt" the policyholders are the first ones to be paid,(before the bondholders). For this reason there is very very little chance policyholders will not get their money.
3. There is a guarantee fund where the state guarantees insurance contracts, this is 500K for life and 500K for annuities.
What's done with the 230% excess RBC that's left after the insurance company pays out the 100% owed on its policies and annuties? Does it go to the bondholders and shareholders?
ANGEL

United States

#13 Apr 11, 2009
This time in our economy is like THE DIVORCE FROM HELL.

Where the wife if chasing MONEY THAT IS NOT THERE...and the dirty mudslinging divorce is creating a HUGE BILL FOR THE ATTORNIES TO LEVEL AT THE COUPLE is ongoing....... BEING ADVERTISED EVERYWHERE SO...the wife can get to THE MONEY...

STONE....., THERE IS NO MONEY...chase the pot of gold at the end of the rainbow all you want...THERE IS NO MONEY..........

There is no money!
ANGEL

United States

#14 Apr 11, 2009
To the demographic who invested in whole life and annuities in the late eighties and early nineties...They said by now you would be worth millions and be able to cash out a bit at a time and live well......

ARE YOU?
HartfordResident

Hartford, CT

#15 Apr 11, 2009
Tommy wrote:
<quoted text>
What's done with the 230% excess RBC that's left after the insurance company pays out the 100% owed on its policies and annuties? Does it go to the bondholders and shareholders?
Really it wouldnt even come to that, but yes after the Policyholders are paid, then the bondholders are paid. This is done to protect the policyholders.
Reserves - which is what an insurer uses to pay claims (you promise for a death benefit for life insurance). Are "SELF FUNDING" so when the insurer promises to pay X$ in death benefit they set aside money in a reserve to fund the liability. The assets held in the reserve will earn interest and pay for the claims when they come due.
The Reserves ARE FOR THE POLICYHOLDER - NO ONE ELSE CAN GET THIS MONEY, not the BONDHOLDERS... etc
That is why the policyholders are safe, they already have money set aside for them, and in addition there is "extra" money used to calculate the RBC ratio.
The RBC ratio - which takes into account Mortality risk, risk of default, interest rate risk is a formula that serves as a good indicator of an insurers financial health. So it is not 100% accurate to say that 100% would go to policyholders and 200% to the bondholders but basically yes.
ANGEL

United States

#16 Apr 11, 2009
For years.... I have been hearing....."Look what I have in my 401K..."

WHATS IN THERE NOW?

same deal different book jacket...
HartfordResident

Hartford, CT

#17 Apr 11, 2009
Tommy wrote:
<quoted text>
What's done with the 230% excess RBC that's left after the insurance company pays out the 100% owed on its policies and annuties? Does it go to the bondholders and shareholders?
Yes policyholders are paid before bondholders. Meaning if the insurer goes bankrupt all the money - assets etc.. goes to the policyholders FIRST then the bondholders. The stockholders are last on the list
HartfordResident

Hartford, CT

#18 Apr 11, 2009
A good example is AIG - the company went bankrupt, they "lost" 160 billion dollars. But this was in Credit default swaps - the policyholders are SENIOR - paid before the credit default swap owners.

THat is why policyholders for AIG are safe. AIG was required to hold reserves - this goes to the policyholders first.(i think aig is property casualty insurance but they might have a little life)
ANGEL

United States

#19 Apr 11, 2009
Tommy and Hartford Resident...workin a commission there boys?
Tommy

Ware, MA

#20 Apr 11, 2009
HartfordResident wrote:
A good example is AIG - the company went bankrupt, they "lost" 160 billion dollars. But this was in Credit default swaps - the policyholders are SENIOR - paid before the credit default swap owners.
THat is why policyholders for AIG are safe. AIG was required to hold reserves - this goes to the policyholders first.(i think aig is property casualty insurance but they might have a little life)
I was under the impression (WSJ articles) that AIG property & casualty and Life Insurance policy holders were separated by a strict firewall from the part that wrote CDS's and would in no way be impacted by the CDS's so therefore policy holders were safe. It appears that your post is mixing the two AIG parts.
ANGEL

United States

#22 Apr 11, 2009
There is time for everything ....

THE TIME NOW IS TO GET YOUR INVESTMENTS TURN IT INTO CASH....AND keep it close to your body....Suzi Orman.

A little late with the advice but late is better than never!

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 2
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Phoenix Companies Discussions

Title Updated Last By Comments
News The Phoenix Companies Inc.'s Troubles Worsen (Mar '09) Mar '09 Reply 2 _Karesh P... 22
News Phoenix's CEO Stepping Down As Insurer Battles ... (Mar '09) Mar '09 Get real 35
News CEO Words Don't Provide Comfort (Mar '09) Mar '09 Ernest Rankin 3
News Phoenix Companies Remain Healthy (Mar '09) Mar '09 Catholic Observer 5
News State Farm Suspends Sales Of Phoenix Cos. Products (Mar '09) Mar '09 Indiana 21
News Good Move, NU (Sep '08) Sep '08 Bob Cobb 3
News Phoenix, Shareholder Settle Board Of Directors ... (Apr '08) Apr '08 KRT 2
More from around the web