Be leery of high illustrated returns.

September 19, 2023 by Sheryl J. Moore

Reading a class action lawsuit filing and came across a point that I have made in the past.

“If buying options [on indexed insurance products] is so incredibly profitable…then why doesn’t everyone do it and why aren’t life insurers employing this strategy to generate higher returns in their own general accounts?”

***********************Be leery of high illustrated returns.************************

Be especially leery of high illustrated returns from insurance companies that have a reputation for reducing their inforce rates.
 
Remember that these ARE fixed insurance products with guarantees. These guarantees have a “cost.”

That “cost” means you will not receive market-like performance on these products! -sjm