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Hartford Life Insurance Co. gave in and launched-albeit reluctantly-a bonus variable annuity product in the first quarter after feeling competitive heat from its insurance brethren. An onslaught of these bonus VA products have been flooding the market as of late, so retaining market share was the impetus behind Hartford Life's move.
The Hartford, CT-based insurance company entered the bonus VA game somewhat late because it agrees with the Securities and Exchange Commission (SEC) that not all of these "bonus" products are good for consumers. "We spent almost two years saying we didn't like bonus products and hoping they might go away so we wouldn't have to bring the product out," says Peter Cummins, Hartford Life's svp of investment products.
But Cummins says Hartford Life's product, the Hartford Director Bonus Annuity, offers a shorter surrender rate and lower fees- crucial components of a customer friendly bonus annuity.
At issue with bonus annuities, Cummins says, is that they've been...