New "Hybrid" Products Combine Traditional Investments with Insurance that Guarantees Income

Traditional asset allocation and many target date mutual funds have not served retirees and near-retirees well during the financial crisis.  Many in the asset management community are realizing that diversification and asset allocation are not sufficient.

Largely in response to the crisis, several companies are rolling-out new products that combine traditional asset management and insurance.  These "hybrid" products use insurance to create a base income that is guaranteed for life and is not subject to market volatility

Companies currently offering hybrid products include the Phoenix Companies, Genworth Financial, Nationwide Mutual Insurance and Allstate Insurance.

Source: Investment News

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