2020 0107 - WSJ - It’s the Hottest Thing in Life Insurance. Are Buyers Aware of the Risks? Regulators worry insurers are underplaying the dangers of a product tied to the performance of the U.S. stock market, by Leslie Scism - [link]
One concern is that existing consumer materials “can lead to unrealistic expectations,” said Fred Andersen, an actuary with the Minnesota Department of Insurance who is a leader in the effort at the National Association of Insurance Commissioners.
Paul Graham, chief actuary with trade group American Council of Life Insurers, said the industry supports development of materials and disclosures that help consumers “make the right decisions,” though “we do have different views amongst our companies as to how to best accomplish that on rather complex IUL products.”
Some regulators and advisers fear indexed universal life will offer a repeat of what many consumers experienced with a policy known as basic universal life.
Those policies were a sensation in the 1980s when U.S. interest rates were in double digits.