She paid an insurance company $99,000 to generate retirement income for life. Then it collapsed.

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.The 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. Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.Benjamin’s trust in both was misplaced. PHL Variable Insurance Co., a private equity-owned life insurer, collapsed in 2024 and is heading for liquidation. Benjamin’s account is frozen, and 100,000 other PHL policyholders face a $2.2 billion shortfall, public documents show.“What you thought you could depend on you no longer have,” said Benjamin, a retired 3M executive from Minnesota who has an autoimmune disease. “I try not to get emotional about it, but mentally it has really impacted me. Basically, I am stuck.”Annie Benjamin.Courtesy Annie BenjaminWith the decline of pensions, a rising number of Americans count on life insurance companies’ promises to generate reliable retirement income, but it’s no longer the staid, steady industry of the past. Aggressive companies affiliated with private equity firms and asset managers have been snapping up insurers and, in some cases, engaging in highly complex deals that can imperil policyholders. Such deals resulted in a bigger hole faced by PHL policyholders, documents show. People like Benjamin have almost no way to know whether the money they pay into their premiums is being placed at risk — the details of such a...