When you purchase life insurance, you’re investing in your family’s security and well-being.
Ultimately, you’re investing in their future, so that no matter what happens to you, you can rest assured knowing your loved ones are protected.
And when you make that purchase, you do so with full confidence that your policy will stay intact as long as you maintain your end of the agreement by paying your premiums on time and keeping your policy up to date.
When you purchase life insurance, you probably don’t expect to hear midway through the term of your policy that your insurer will no longer be selling life insurance.
In the event that an insurance company does decide to exit the line of life insurance, its customers may be left with some questions and concerns.
In 2012, customers of the Hartford Financial Services Group learned that Hartford would no longer be selling life insurance policies, focusing its financial services elsewhere. Soon after that announcement, Hartford announced the sale of its life insurance branch to Prudential.
If you’re a client who purchased your life insurance coverage with Hartford Life, read on for a quick overview of the details of the company’s acquisition and everything you need to know about its effect on your life insurance policy.
About the Hartford Group
The Hartford Financial Services Group is a long-standing player in the financial world, with over 200 years of business under its belt.
The Hartford, as the company is known for short, began its enduring history of investment and insurance services in the United States in 1810 in its namesake city of Hartford, Connecticut.
That year local merchants pooled their resources to invest in a fire insurance company that lived through some monumental fires over the next century, from the fire that ravished New York’s financial district in the 1830s to the great Chicago fire several decades later.
Over the last hundred plus years, the Hartford extended their reach to offer life insurance, accident insurance, personal loss coverage, liability insurance, and more.
Through a series of acquisitions and corporate changes throughout the twentieth century, the company maintained its promises to clients and investors alike, holding to its original commitment to serving its customers.
After years of successfully selling life insurance, the Hartford made the decision in 2012 to concentrate on their property and casualty operations, group benefits, and mutual fund business.
According to reports, this decision was 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.
Today, the Hartford Group sells homeowners insurance, renters insurance, condo insurance, flood insurance, and umbrella insurance. They also offer business insurance and employee benefit plans.
How Hartford Life’s Sale to Prudential Affects Policyholders
The Hartford’s initial announcement in 2012 simply meant that the company would no longer sell any new life insurance policies.
That claim basically said that if you had an individual life insurance policy with Hartford, your plan and its agreed upon terms would still be in force. All of your guarantees were still there and would go on as if nothing happened. This decision only means that new life insurance business will cease.
Fast forward to 2013, when the Hartford reached an agreement with Prudential Life Insurance to sell Hartford Life to them. In this agreement, they also sold their retirement plans to MassMutual and their brokerage to AIG.
So what does that mean for you, the policyholder? Even though the sale happened and Hartford life insurance was absorbed by Prudential, your life insurance policies will be just fine.
The only change is that a different company is now servicing your policy.
In this case, that is very good news considering Prudential’s solid reputation. The company boasts professional credibility, household recognition, and positive client reviews.
You can rest assured knowing that your policy is still in good hands with Prudential, but you don’t have to only take our word for it.
If you’re still uncertain, let’s take a quick look at Prudential and the company’s relationship with both policyholders and business credit rating agencies to see how it stacks up in the life insurance world.
About Prudential Life Insurance
Prudential Financial Inc. has been providing financial services and solutions to Americans for over a century, standing strong through monumental moments in the country’s history.
Initially founded under the name The Widows and Orphans Friendly Society, Prudential company originated in New Jersey in the late 1800s.
At the turn of the century, the company made its mark selling life insurance policies to industrial workers who had a hard time finding affordable coverage due to the nature of their work.
In its earliest years, the company’s sole policy was burial insurance. Over the last one hundred and fifty years, the company expanded its options, now offering expansive and flexible coverage choices to customers.
You can choose from standard term life policies, universal life policies, variable universal life policies, indexed universal life insurance, and whole life policies, with the ability to add riders to your policy to customize it.
Prudential’s life insurance plans are generally competitive across the board, but their policies are especially beneficial to customers at risk of some illnesses and non-smoking tobacco users, offering far more lenient rates to these groups than anyone else.
But Prudential isn’t only a life insurance provider. In addition to its life insurance policies, the company offers financial education resources to customers as well as advising services to help you meet your financial goals in every stage of life, with online tools to help you track your goals and progress.
Prudential LINK allows you to create a personalized roadmap to financial success through its financial management app.
With your goals and financial situation in mind, it maps solutions for you and puts you in contact with Prudential advisors who can answer your questions via video chat online, over the phone, or face to face. LINK can help with your life insurance policy, retirement goals, and investing strategies.
The company also offers investment opportunities, annuities, and workplace benefits. Prudential’s acquisition of the Hartford’s life insurance policies could be beneficial to you with the full arsenal of financial services they offer to customers.
Beyond the services it offers to customers, Prudential is recognized among major business rating companies as a reliable and outstanding business with an “A” rating from A.M. Best.
With all of this information in mind, you can depend on Prudential to uphold their end of your life insurance coverage. Their excellent reputation and credit ratings support that ideal, but so does history.
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.
We are several years down the road from the Hartford’s decision to sell, and time has proven that Hartford Life Insurance’s policies have remained intact with Prudential.
With that said, it is always wise to talk with an independent life insurance agent to ensure you’re getting the best rates on your life policy.
As long as your health hasn’t changed recently, an independent life insurance agent should be able to match or maybe beat your life insurance premiums with another “A” rated carrier.
Contact us today, and we’ll be happy to discuss your policy and options with you.