A new book from financial advisor and author, Elan Moas, (pictured at left) exposes what he calls “groundbreaking, widespread design flaws and revelations” in his latest book that could “shake the foundations of the life insurance industry.”
The book, LAPSED: The Universal Life Insurance Whistleblower, presents the findings of Moas’ extensive research into over 5,000 individual universal life (UL) and variable universal life (VUL) policies, totaling over $1 billion in death benefits. His work reveals why he claims 90% of these policies are at risk of lapsing before ever paying a death benefit.
In the wake of his research, Moas said via a press release that he has alerted regulatory bodies, earning the attention of the state of Massachusetts, who referred the matter to the Attorney General’s office. Furthermore, he filed two whistleblower complaints with the Philadelphia SEC office, based on his comprehensive study of UL/Group UL and VUL/Group VUL policies.
Key revelations from “LAPSED” include:
- Widespread Problem: The lapsing (or crashing) of UL and VUL policies is not limited to a single company. The inherent policy design flaws are prevalent across various companies in the life insurance industry.
- IUL Actuarial Guideline 49B: The May 2023 update has exposed flawed investment illustration assumptions in sales made prior to this date, potentially damaging to all IUL policyholders.
- “Target” Funding Deception: Policyholders are falling victim to advisors and insurers prioritizing their commission gains over the well-being of the insured, leaving them with inadequately funded policies destined to lapse.
- Fatal Flaws in Group UL/VUL Policies: Even Fortune 500 companies’ employees are at risk due to structural policy flaws that can leave them with nothing.
- Elder Abuse: The elderly’s life insurance policies are being eroded, causing their cash values to vanish even before lapsing—a disheartening reality that must be addressed.
In response to these revelations, Moas is urging all universal life policyholders (UL, VUL, IUL, or group UL/VUL) to learn to safeguard their interests. Investors in the life insurance sector, whether in bonds or equities, must also seize the opportunity to understand the significant risks they face. A compelling argument is presented in the book, demanding a law mandating annual “in-force illustrations” for every universal life insurance policyholder.
Moas says his research, backed by 15 years of experience in direct life insurance sales, has unveiled the uncomfortable truth about the industry. He says the implications of his work point to the potential “Subprime Universal Life Insurance Company Crash of 2023,” a crisis that must be averted to protect millions of insured individuals from unforeseen lapses.
“This compelling revelation is a wake-up call to Wall Street and lawmakers, demanding they acknowledge and rectify this pressing problem,” the press release concludes.