Insurance to Protect 401(k)s: The Trick Is to Figure Out How

If ever there were a product whose time has come, this would seem to be it: a guarantee that you won’t lose the money you’ve amassed in your 401(k) as you near retirement, whatever happens with the market. And you can convert that money into a stream of paychecks that will last your entire life.

Life insurers, money managers and consultants are testing just such an idea and trying to figure out how to make it workable on a large scale. But these guarantees face lots of roadblocks.

For one thing, insurers can’t promise too much, or they risk damaging their own financial health. What’s more, insurers may have to work hard to gain the trust of big employers, who fear they will end up footing the bill for these plans if the insurers go under...

WSJ: Insurance to Protect 401(k)s: The Trick Is to Figure Out How