Thursday, May 07, 2009
How Investors Can Lose with Annuities and Whole Life Policies
“Look, Bruce!”, my 85 year old mother-in-law exclaimed, waving a letter over her head. “My annuity is now up to $85,000. I can’t withdraw my money for 6 months but I don’t need it now anyway”. That got my attention. Why couldn’t she withdraw? Turns out, Standard Life of Indiana, her annuity company, had sent her a second letter. That letter informed all policy holders: Standard Life was now under an “Order of Rehabilitation” with the state of Indiana. The letter went on to assure policy holders that all annuity contract terms would be honored except “partial and full surrenders clauses”. This is kind of like a bank holiday for an insurance company...
Seeking Alpha: How Investors Can Lose with Annuities and Whole Life Policies
Seeking Alpha: How Investors Can Lose with Annuities and Whole Life Policies
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