IPB 016: The Universal Life Insurance Expense Debacle

 

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Perhaps you've heard or seen some of the rumblings about certain life insurance companies raising their cost of insurance (COI) charges on blocks of universal life insurance business.

To be sure, this is not something that's great news.

But is it really the calamity that some news stories make it out to be? Here are links to three different stories that are raising the red flag about the issue:

John Hancock Hit With Class Action Lawsuit Over Cost of Insurance

Surprise: Your Life-Insurance Rates Are Going Up

Retirees Stung by ‘Universal Life’ Cost

It's never great to hear about life insurance companies having to change their pricing on blocks of existing policies. But it actually happens more than you might realize.

And quite honestly the other side of the “horror” stories concerning this increased COI for universal life insurance policies is something that's not discussed. So, as part of today's episode we're going to look at what the real problem is with universal life insurance. And no, it has nothing to do with the increased cost of insurance.

It's actually more fundamental than that and could largely be avoided. Listen to find out more.


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