She 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 are not protecting policyholders.

When 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.

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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.”