FE Companies Rate Increase.

I wouldn't necessarily call his example justified. Just because one company may have invested better than another doesn't give them a free pass so to speak.

They could lower rates and tighten underwriting. Still have to get approval.

Actually, Rick is spot on. Investment income is huge for life carriers, without it rates have to go up.

Your situation is more appropriate to the annuity world. Turn the spigot on for a while and then once enough business comes in, just turn it off. Changing rates has to be filed. No life company will go through that much trouble just to slow down business. There are much easier ways to slow down business if that is all that is desired.
 
They don't all invest in the same places, remember Shenandoah... they would still be around if they hadn't put their reserves in Fannie and Freddy... whoever was involved in making that decision was an ***.
 
It could also have a lot do do with their ams best or BBB rating. I know that my company is adamant about keeping an A rating. I'm not sure the exact parameters for these ratings but I'm sure that if the companies increase their profit their rating will be better. Maybe some of these companies are close to having their ratings lowered because of increased costs, high commissions, low rates etc..
 
Actually, Rick is spot on. Investment income is huge for life carriers, without it rates have to go up.

Your situation is more appropriate to the annuity world. Turn the spigot on for a while and then once enough business comes in, just turn it off. Changing rates has to be filed. No life company will go through that much trouble just to slow down business. There are much easier ways to slow down business if that is all that is desired.

Never said Rick wasn't spot on. I'm just saying there are other possible reasons and yes in the annuity world the reasons I put forth may carry more weight.

Does anybody know why Ohio National tends to have the lowest term rates (at least from what I have seen)? Do they offer a 30 year term? Why don't they have a 30 year term?

I just don't see how many times you can go to the state and tell them your investments suck and you need a rate increase. Insurance companies have more than one way to skin a cat is all.
 
Does anybody know why Ohio National tends to have the lowest term rates (at least from what I have seen)? Do they offer a 30 year term? Why don't they have a 30 year term?

You know the easiest way to sell a whole life policy? Convert it. Term is just inventory. Also, a 30 year term kicks the problem too far down the road, makes conversion harder.
 
You know the easiest way to sell a whole life policy? Convert it. Term is just inventory. Also, a 30 year term kicks the problem too far down the road, makes conversion harder.

Good stuff! Makes sense. I never thought of term as inventory. Learn something new everyday! :idea:
 
Polar bears and whole life a winning combination.:idea:

A life company I worked for years ago, insured a bunch of high risk clients (they also brought on Parker and Associates). When the dust settled the increased premiums were out of this world (P and A went to greener pasture) the company took a hit and were not issuing many Life policies. And premiums seemed twice as much at older ages.
 
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