26 - Sheryl Moore: What your Agents need to know about. And that is what is the integrity of the renewal rates with the company that you are doing business with. Because some of these insurance companies have very high, inflated first year rates and they are subsidizing them with the rates in years two plus.
Steve Savant: That sounds so evil to me.
Sheryl Moore: eh... No Comment. I'll just say it's become a function of our independent agent distribution system unfortunately.
NAILBA - "
2019 0327 - Leimberg - Subject: Barry Flagg: New York Best Interest Rule for Life Insurance – New Requirements for Life Insurance Producers and Ethical Considerations for Other Estate Planners, by Barry Flagg - 27p
This Base/Target Premium is set by actuaries and generally calculated using conservative assumptions as the amount necessary to cover COIs and expenses required to maintain life insurance death benefit.
As such, this Base/Target Premium can be thought of as the "insurance premium" (i.e. the premium paid to maintain life insurance coverage).
[Bonk: Overfund-?] - Premium amounts paid into the policy in excess of this Base/Target Premium can, therefore, be viewed as "excess premium" above and beyond that required to cover the costs of maintain the death benefit.
"Excess premiums" are typically intended to either create a cash value reserve as “pre-payment” of what would otherwise be future premiums and/or to grow the policy account for wealth accumulation, retirement planning, and/or asset protection
2020 04 - Providing Life Insurance Advice under the New CFP Board Practice Standards, By Paul H. Auslander, Raymond Ferrara, and Barry Flagg --- [link] --- 17p
I regret to have to resign from Finseca … again, for the following reasons.
California Best Interest Rule for insurance products (i.e., CA SB 264).
Lobbying against Client’s Best Interest rules is lobbying for preservation of current NAIC-based regulations that permit agents, brokers and insurers to “quote” low premiums while charging HIGH costs withOUT disclosing either those HIGH costs nor the HIGHer risks of future “premium calls” for more than the originally “quoted” premium or total loss due to policy lapse even when all originally “quoted” premiums were paid.
Such “bait-and-switch” sales and marketing practices foster DIS-trust blocking financial security for all, and continue to divide the financial security profession.
This current regulatory regime creates an environment where the reckless get rewarded and the prudent get punished.
I likewise believe Client’s Best Interests rules for life insurance are BOTH needed to protect consumers against “bait-and-switch” sales and marketing practices AND will lead to sales growth.
Insurance products are the last, largest, most-neglected and worst-performing assets on client’s balance sheets (e.g., WSJ: Universal Life Insurance, a 1980s Sensation, Has Backfired - [link]). - [Bonk: by Leslie Scism]
Client’s Best Interest rules harmonize the operating principles necessary to enable more financial advisors to have more conversations like this with more customers, resulting in BOTH greater financial security for all AND growth in sales.
2023 0609 - Veralytic - Insurance Illustration DECODED learn how to find the hidden costs the agents won't tell you! - [Barry Flagg] - [VIDEO-YouTube-44:23]