Last Updated: March 2020
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 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.
Below, we’ll show you what this means for customers who have a Hartford life insurance policy.
- Who Bought Hartford Life Insurance?
- How Hartford’s Life Insurance Sale to Prudential Affects Policyholders
- About the Hartford Group Today
- Compare Your Hartford Life Insurance to Other Companies
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
In 2012, Hartford Life sold and was absorbed by Prudential Life Insurance. Hartford is not issuing any new policies. If you currently hold a policy through Hartford Life, your coverage is safe and will be serviced through Prudential. Prudential has a solid reputation and strong financial standing, bringing you peace of mind.
It’s actually not that uncommon for a company like Hartford Life Insurance to stop selling policies or to merge with another company.
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.
Who Bought Hartford Life Insurance?
In 2012, Prudential Life Insurance agreed to purchase The Hartford’s life insurance business.
After years of successfully selling life insurance, 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.
When the Hartford reached an agreement with Prudential to sell Hartford Life to them, they also sold their retirement plans to MassMutual and their brokerage to AIG.
How Hartford’s Life Insurance 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.
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 any new life insurance business will cease.
What Should Current Policyholders Do?
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. They are one of the best life insurance companies in the industry.
Read our Prudential Life Insurance review here.
About the Hartford Group Today
Today, the Hartford Group sells homeowners insurance, renters insurance, condo insurance, flood insurance, car insurance, and umbrella insurance. They also offer business insurance and employee benefit plans.
The Hartford Financial Services Group is a long-standing player in the financial world, with over 200 years of business under its belt. It has strong financial ratings, and is not going anywhere soon.
A Brief History of The Hartford
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.
Compare Your Hartford Life Insurance to Other Companies
With all of this information in mind, you can depend on Prudential to uphold their end of your Hartford life insurance coverage. Their excellent reputation and credit ratings support that, but so does their long history.
If you want to compare your Hartford life insurance policy to other top companies, use our quote tool to see instant rates.
And then there was Talcott Resolution. How does that sale affect those life insurance policies that started with Hartford as the “issuing company”; then to Prudential, and now to Talcott Resolution?? Can you respond??
Hi Rio,
Your policy will remain inforce and guarantees intact. Prudential will still be administering your policy, but Talcott will be responsible for the financial condition and contractual obligations.
Hartford and Prudential are A+ Best rated while Talcott is rated B++, a big difference in financial strength . Is this something to be concerned about ?
Also , has Talcott increased their service charges on the variable Life product and do they have any intentions in doing so in the future ? I’m worried that after all these years in premium , mu vul may exhaust itself for longevity runs in our Family .
Charles,
The financial strength is nothing to be concerned about. I don’t know if Talcott has increased their service charges on the variable life product, but you can request an “inforce illustration” to see that and your current performance. Just give them a call and request it. Happy to review it with you once you get a copy. Just give us a call 888-430-7668. I must say that most UL’s we review need to be re-worked if you’re insurable…you can transfer the entire cash value to another more stable product as long as you’re insurable.
Our Hartford 15 year term life Insurance policies were taken out in 2002. The payments were automatically paid from our bank account monthly. After 15(?) years, the payments stopped being removed from our account. However, in the last year, payments began being automatically deducted from our checking account again, this time to Talcott.
I was under the impression that since we missed the conversion to whole life Insurance offered by Hartford in 2007, we would stop paying for the term life insurance after 15 years.
Any insight to this scenario would be appreciated. Also, is there a specific Talcott number for Hartford policies?
Thank you.
I’ve never heard of something like that happening. I would call Talcott’s client line directly at 1-800-862-6668.
Jeff, you didn’t answer the question as asked. In fact, I don’t think Talcott will be servicing the policies, Prudential is still doing that (Alliance One was hired by Prudential, though). The real question is, will Talcott be able to pay claims? Its rating is B+ or so. I am concerned that my policy was sold without my consent to a lower rated company. Now what?
I wouldn’t be concerned about a B+ AMBest rating. In the history of life insurance there hasn’t been a claim that wasn’t paid out due to insolvency.
There’s nothing you can do besides keep it or shop around for another life insurance policy.
My policy was issued by Hartford in 2010. Hartford then sold to prudential then my policy is now with Talcott Resolution. I can tell you that I have become a victim of that sale. Talcott this year (2020) drastically increased my premium (i believe fraudulently by the insurance company) and also claim my policy terms were changed from 30yr to 10yr. as well as a change in the face amount covered. I am livid & now strongly disputing with Talcott that my policy is being misrepresented by them. I suspect unethical practices because the policy terms that Talcott states do not match the ones in my policy contract documentation that was given to me by The Hartford agent at the time of issue of the policy in 2010. Am considering legal action. This is unacceptable and it’s causing me so much distress!!