She paid an insurance company $99,000 to generate retirement income for life. Then it collapsed.
Annie Benjamin invested $99,000 in an annuity with PHL Variable Insurance Co., which recently collapsed, leaving her and 100,000 other policyholders facing significant financial losses. Experts are raising concerns about the life insurance industry's shift towards riskier investments and the failure of state regulators to protect consumers. The situation highlights the growing risks associated with life insurance policies as companies engage in complex financial arrangements that can jeopardize policyholder funds.
- ▪Annie Benjamin invested $99,000 in an annuity with PHL Variable Insurance Co., which has now collapsed.
- ▪The collapse has left Benjamin and 100,000 other policyholders facing a $2.2 billion shortfall.
- ▪Experts are concerned that state regulators are failing to protect consumers from the risks posed by aggressive insurance companies.
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U.S. newsShe paid an insurance company $99,000 to generate retirement income for life. Then it collapsed.Risks are mounting in the life insurance industry, and experts are concerned state regulators aren’t protecting policyholders.Listen to this article with a free account00:0000:00The business of life insurance used to be boring. But the model has changed, with more aggressive insurers taking on more risks in their investments, research has shown.NBC News; Getty ImagesShareAdd NBC News to GoogleMay 20, 2026, 6:00 AM EDTBy Gretchen MorgensonWhen Annie Benjamin invested $99,000 in an annuity 10 years ago, she trusted the insurance company to provide her with retirement income. She also relied on the company’s regulator to ensure the insurer could meet its obligations.
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