Veralytic

12/13/2019

offers the promise of A) higher returns than traditional or where invested assets underlying policy account values are required by regulation as a practical matter to be allocated to high-grade bonds and government-backed mortgages, and B) less risk than where invested assets underlying policy account values can be allocated directly into equity asset classes.

While this can be true, the most recent genre of products can look more like with considerably higher costs and exotic indexing strategies that pose significantly greater risk. And while are available ONLY to (e.g., sophisticated high-net worth individuals), IUL products are NOT similarly regulated. As such, ensuring an product is in the is the responsibility of the advisors more than most any other financial instrument.

Alan Gassman and I therefore discuss what to look for, and how to think through this risk/return trade-off.

Indexed Universal Life (IUL) offers the promise of higher returns than traditional Universal Life (UL) or Whole Life (WL) where invested assets underlying po...

12/17/2015

Rules governing life insurance illustration crediting rates, which are used to calculate premiums and death benefits, have been changed for certain product types.
Actuarial Guideline 49 was adopted by the NAIC on June 18, 2015. Phase I (sections 4 & 5) went into effect on September 1, 2015. This is the effort of the National Association of Insurance Commissioners (NAIC) to curb the overly optimistic crediting rates used in index universal life illustrations and provide greater uniformity among illustration use.

On November 3rd, 2015 the NAIC posted a proposed revision to AG49 for comment through November 30, 2015. The proposed revisions are aimed to address situations where an IUL policy makes available multiple index account options with different account charges.

Rules governing life insurance illustration crediting rates, which are used to calculate premiums and death benefits, have been changed for certain product types. Actuarial Guideline 49 was adopted by the NAIC on June 18, 2015. Phase I (sections 4 & 5) went into effect on September 1, 2015. This is…

07/30/2015

Transamerica announced on June 8th, 2015 that it will be increasing the monthly charges within several inforce universal life insurance products sold between 1987 to 1998

Life insurers have the ability to raise expenses within non- guaranteed life insurance products (whole life, universal life, variable life and index universal life insurance). Transamerica announced on June 8th, 2015 that it will be increasing the monthly charges within several inforce universal lif…

03/31/2015

Join Veralytic's webinar today (3/31) at 5pmEDT "Comparing the Financial Strength and Risks Associated with Different Life Insurance Carriers"

By clicking this button, you submit your information to the webinar organizer, who will use it to communicate with you regarding this event and their other services.

02/26/2015

Just returned from private CE training for BDO CPAs, OCC bank fiduciaries, and Holland & Knight T&E offices. Next up: "Premium Financing in 15 Minutes" webinar. Click here to register!

By clicking this button, you submit your information to the webinar organizer, who will use it to communicate with you regarding this event and their other services.

02/18/2015

Don't forget this afternoon's webinar (2/18 - 5pmET) on IUL - What the Heck are these and Why are they so Popular?

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02/06/2015

January 2015 Rating Downgrades/Watch-List
In the 2015 Ernst and Young US Life Annuity Insurance Outlook, "prospects are generally upbeat in 2015 for providers of life insurance and annuities in the US. Insurers can expect to build upon recent improvements in annuity sales, as credit rates continue to increase and customers return to simplified, taxdeferred products. Life insurance sales will benefit from rising levels of consumer confidence and personal wealth, both driven by the ongoing economic recovery and expectations for gradual increases in interest rates." Financial strength and claims-paying ability ratings of the insurer is one of the five factors of suitability. The obvious reason being that insurance is most simply defined as an agreement for the payment of a premium today in exchange for payment of a claim at some future point, the more time between policy inception and the expected claim date, the more relevant the durable financial strength and long-range claims-paying ability to overall product suitability.

The less obvious reason is when an insurer's rating is downgraded, the change often means that either the insurer's profitability has declined, the insurer's reserves have deteriorated, or both. The insurer's most immediate response to a downgrade in its ratings, and its most effective means for restoring profitability and recovering reserves, can be to increase policy costs for cost of insurance (COI) charges and expenses. In other words, when ratings go down, policy charges are more likely to be increased, and thus premiums are likely to (need to) go up.

In the 2015 Ernst and Young US Life Annuity Insurance Outlook, "prospects are generally upbeat in 2015 for providers of life insurance and annuities in the US. Insurers can expect to build upon recent improvements in annuity sales, as credit rates continue to increase and customers return to simplif…

01/26/2015

Join the webinar "How to read Illustrations: Proper Uses and Questionable Practices" 1/26 at 5pm

By clicking this button, you submit your information to the webinar organizer, who will use it to communicate with you regarding this event and their other services.

01/14/2015

Life Insurance as an Asset today, Ed Koren talks fiduciaries tomorrow! Drop by Suite F to discuss, enter to win an ANKI Drive, get your shoes shined, and get a complementary report!

01/13/2015

Veralytic will be attending Life Insurance as an Asset Class session tomorrow 1/14 @3:50 with Brody, Mancini & Ratner. Stop by suite F to discuss, get a complementary report, get your shoes shined after yesterday's rain and enter to win a fun giveaway!

01/12/2015

Lester Law's Fundementals Program is a great start to ! Stop by Suite F for a chance to win a cool giveaway and find out how you can get a complementary report

01/11/2015

Heckerling Bound! Find Veralytic @ Suite F to find out how you can get a complementary report and a chance to win a give away featured on CNN, NY Times, and Bloomberg!