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I’ve been hearing about this as a trend recently – first in Bottom Line a couple of weeks ago and again today.
From a CBS News story:
The Consumer Federation of America (CFA) on Monday warned insurance regulators that life insurers are quietly hiking rates on some universal life policies, possibly to compensate for losses from falling interest rates.
The Washington, D.C., consumer watchdog and advocacy group said that AXA Equitable, Transamerica and VOYA Financial (VOYA) had notified their agents about the premium hikes, but hadn't put out any public announcements.
From Bottom Line contributor Tony Steuer, CLU:
Insurers typically do not raise the premiums throughout the life of the policy, and the cash value of the account typically increases. But because investment returns for the insurers have been falling short, the fine print allows them to increase fees, which reduces the cash value—in effect draining the account. That could mean that policies—which typically are written to expire when the policyholder reaches an age somewhere between 87 and 121—will terminate 10 or more years early if policyholders do not pay more in premiums.
Any agents receiving these notices from Voya, AXA or Trans, and if you did, would you proactively contact impacted clients?
Are life insurers raising rates on universal policies? - CBS News
Your Life Insurance May Be Terminated | Bottom Line Personal
From a CBS News story:
The Consumer Federation of America (CFA) on Monday warned insurance regulators that life insurers are quietly hiking rates on some universal life policies, possibly to compensate for losses from falling interest rates.
The Washington, D.C., consumer watchdog and advocacy group said that AXA Equitable, Transamerica and VOYA Financial (VOYA) had notified their agents about the premium hikes, but hadn't put out any public announcements.
From Bottom Line contributor Tony Steuer, CLU:
Insurers typically do not raise the premiums throughout the life of the policy, and the cash value of the account typically increases. But because investment returns for the insurers have been falling short, the fine print allows them to increase fees, which reduces the cash value—in effect draining the account. That could mean that policies—which typically are written to expire when the policyholder reaches an age somewhere between 87 and 121—will terminate 10 or more years early if policyholders do not pay more in premiums.
Any agents receiving these notices from Voya, AXA or Trans, and if you did, would you proactively contact impacted clients?
Are life insurers raising rates on universal policies? - CBS News
Your Life Insurance May Be Terminated | Bottom Line Personal