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URL:  http://boards.fool.com/the-product-is-not-closing-so-much-as-it-is-simply-30535930.aspx

Subject:  Re: Pru VA High 5 closing this week Date:  2/11/2013  9:44 AM
Author:  Hawkwin Number:  71373 of 75610

The product is not closing so much as it is simply cutting the top off of how lucrative it has been.

This is a trend with most VAs. Many companies have even gotten out of the business because they simply lost too much money on the guarantees they paid clients (win for you, loss for the insurance company).

Hartford quit this business shortly after having to take TARP money. AXA is offering buy-outs to clients if they would give up some of their benefits. Metlife just cut benefits on new contracts too.

Pru is cutting their 5% deal to 4.5%, increasing the cost of that benefit by .10%, and reducing the amount it can grow from double to compound over 10 years.

Getting it before the end of this month makes sense if you are thinking of this at all as those that buy before the cut off get the current benefit and not the lower and more expensive new one.

That does not make this more suitable for a person than it used to be but there is no question that this will not be as good (relatively speaking) of an option after the change.
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