- 8,707
Attribute the charge as a "convenience fee", "processing fee", "lapse assumption" or whatever; however, and regardless how "low" it may appear as a dollar cost per month, the $$$ still travel from the consumer's wallet to the company's coffers. All I am trying to get at is that the effective rate (or at the very least, the APR) should be disclosed to consumers. Life insurance is a financial instrument. Would the same company who charges an APR of 29.747 (effective annual rate of 34.157) provide the consumer with the option to buy a CD or MF with a guaranteed return equal to those figures? Rhetorical question indeed but a matter to be kept in mind.
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BTW, As to the cost involved with "touching payments 11 times more per year" these are minimal, particularly when done electronically and automatically. I highly doubt that 11 or 12 automated electronic debits cost the company more than the wholesale price of the paper cup of a Starbucks latte - if even that.
You highly doubt meaning you don't know right what it actually costs. Does it cost what they charge I agree that I highly doubt it.