Dr. Robert Flower, mayoral candidate for Yonkers, New York, recently announced his plan to help the city save money. Flower's plan calls for all city workers to buy life insurance policies through their pensions, establishing Yonkers as the beneficiary. This will enable the city to borrow on the policies or sell them to investors, according to Politics on the Hudson.
Under the plan, the premium payments from the pensions would be reimbursed to city workers out of the policy proceeds and dividends, as the city of Yonkers will gain revenue as the policies increase in value.
"City employees, including hundreds of policemen and firemen, would gain financial stability as additional funds would be available to sustain their positions," Flower said.
Officials are also working to reform the state's life insurance industry. Insurance News Net recently reported that state regulators are creating rules to help prevent confusion over unrealistic illustrations from companies offering fixed annuities.
The rules would require the companies to provide the buyer with documents and illustrations that meet the specific standards adopted by The Life Insurance and Annuities Committee of National Association of Insurance Commissioners. The proposed regulations will not affect illustrations concerning traditional fixed and indexed annuities, according to the news source.