From, the two posts at securities-fraud-blog.com and www.sos.mo.gov, you can read more details. However, I will try to simplify the explanation to make your life easier. I'm telling you, you need to read this so this doesn't happen in your family!
An agent sells a variable universal policy to someone as a personal pension plan. Since this person can't afford the high cost, the agent convinces them to take the equity out from their home using a negatively amortizated loan to fund the policy.
So, variable universal life policies are terrible for middle class Americans. However, with flash and mirrors, these policies get sold everyday. Of course, using a negatively amortizated loan is terrible because rather than paying off debt, people get deeper and deeper into debt.
How in the world did we not only let this happen but allow this company to continue to do this?
Related articles:
- Should Whole Life Insurance be Sold as a Personal Pension Plan?
- Should Whole Life Insurance be Sold as a Savings Program?
Isn't it time you made the decision to donate to charity, reign in your spending and allow yourself to grow your income?
This post was reposted from http://finlit.biz/life-insurance/what-is-the-worst-thing-happening-in-the-life-insurance-industry/, originally written on January 31st, 2013.
No comments:
Post a Comment