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The Dirty Secret Of Life Insurance Quotes


actually have to pay. And what you must pay could dramatically increase over time.
How could this happen? Because life insurance quotes for cash value policies can be based on not only guaranteed projections in policy illustrations but also very optimistic non-guaranteed projections.
As it turns out, many quotes for all forms of universal life and whole life insurance are based on the non-guaranteed portions of policy illustrations, says Barry Flagg, founder of independent life insurance research company Veralytic. (This does not apply to term life insurance, which has no cash value.)
Essentially, it’s a bait and switch: You think your life insurance quotes reflect what you’ll pay as long as you own the policy, but years later you could be hit with a need for unexpected, extra premiums. ....

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Private Equity Is Buying Up Annuity and Life Insurance Policies. That May Be Bad for Consumers


But others don t see a five-alarm-fire scenario.
Many of the bigger buyers are well-capitalized firms and not all deals are inherently bad, according to some analysts. Policyholders may benefit from potentially higher investment returns in an environment of low interest rates.
I don t know if I d say [they re] unfounded, Dafina Dunmore, lead analyst for alternative investment managers at Fitch Ratings, said of the fears. I d say they re overplayed.
Watch closely
The pace of acquisitions has accelerated since 2014, according to Refinitiv, which tracks financial data.
There were 191 private-equity-backed insurance deals last year in the U.S., beating the prior record of 154 set in 2019. ....

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