Hartford Life announced today that they will no longer sell life insurance and only concentrate on their property and casualty operations, group benefits and mutual fund business.
According to reports, this decision is linked to the economic downturn when it was caught with variable annuities and variable life insurance contracts that offered guarantees to investors during that economic downturn.
What does this exit mean for Hartford life insurance policy owners?
If you have an individual life insurance policy with Hartford, your policy is still in force. Your guarantees are still there and will go on as if nothing happened. This decision only means that new life insurance business will cease.
As of today, Hartford is considering a sale of it’s life insurance operation. Even if a sale happens and Hartford life insurance gets absorbed, your life insurance policies will be fine. The only change is that a different company will be servicing your policy.
Keep in mind, in the history of life insurance (going over 150 years) – there has NEVER been a claim not paid by a life insurance company due to insolvency or an exit of the market. There are guarantees and protections in place for consumers. If you’re worried about your Hartford policy not paying out, don’t be.
However if you want the peace of mind of being with a life insurance company whose focus is on their life insurance operation, then contact an independent life insurance agent.
As long as your health hasn’t changed recently, an independent life insurance agent should be able to match or beat your Hartford life insurance premiums with an “A” rated carrier.