Life Insurers Raising Rates on Some Older UL Policies

[scagnt83]

All policies and the expenses within them, both current and maximum expenses, are reviewed and approved by the state DOI. How could raising expenses in an amount that was already approved by the DOI, be in violation of DOI regs?


But I have no sympathy for the carriers. They do a shi**y job of reviewing the suitability of how agents design UL policies. And until recently, have done little to educate agents on how to properly design a UL policy to fit a clients needs and to be sustainable over the long term. You reap what you sow.

 

[walthamny]

All policies and the expenses within them, both current and maximum expenses, are reviewed and approved by the state DOI. How could raising expenses in an amount that was already approved by the DOI, be in violation of DOI regs?


They can argue many things like what the DOI approved was based on incorrect information provided by the insurance company 67 years ago, the print of the policy or ink color was misleading therefore the whole sale should be voided, year 72 of the guaranteed cash value column should have had a comma at the end and so on. You can legally argue DOI doing a poor job all the time. It is up to the courts to figure it out.

 

[yorkriver1]

This motivates me to pay attention, now that I am getting back into the life market.
Some term has been sold historically with current and maximum premiums as well as products like UL.
With interest rates at historic lows, all policies with the built in right for the company to raise rates could be expected to have a possibility of increase.
I also recall that some carriers selling term offered plans with no current/max. In other words, no right to raise premium.
That will affect my choices.