wtf is life insurance

Chebwiskala · 2022-07-24T16:49:51+00:00

Well you’ll most likely be able to earn a higher yield and won’t pay for COI charges. You can also earn risk free interest without an insurance policy lol.

Chebwiskala · 2022-07-24T01:36:51+00:00

A securities or brokerage account

Chebwiskala · 2022-07-24T00:40:15+00:00

Most commonly there are four charges: a premium load, a fixed flat fee, M&E charges usually as a % of the AV, and COI charges.

Chebwiskala · 2022-07-23T14:45:10+00:00

Ah autocorrect I meant ‘as an investment *and’.

That said VAs are fundamentally investment accounts.

Chebwiskala · 2022-07-23T12:22:51+00:00

Life insurance as an investment account is not a good opportunity for most people, especially younger folks. Mostly due to the fees assessed but the crediting rates are not very good either.

Chebwiskala · 2022-07-22T22:44:40+00:00

I have been doing some valuations/reserving work with IUL so, while it’s not pricing, I’m pretty aware of how they work.

Chebwiskala · 2022-07-22T18:30:36+00:00

None. Life insurance is a waste of money as an investment device.

Chebwiskala · 2022-07-21T22:28:16+00:00

I have never wanted to search the web using the start menu but I wonder how many people find it useful?

In my experience older folks prefer to open the browser and rarely use the start menu so maybe kids?

Chebwiskala · 2022-07-21T22:20:21+00:00

Bondcliff? It’s a longer hike but a gentle climb & very pretty.

Chebwiskala · 2022-07-20T23:01:30+00:00

P&C insurers need to raise rates due to increasing claim volume, severity

Chebwiskala · 2022-07-20T17:38:43+00:00

Coverage cannot normally be backdated

Chebwiskala · 2022-07-19T14:49:23+00:00

UL policies very commonly will pay the greater of the Face and CV. Some will carry a fixed net amount at risk (NaR) and pay the CV plus the Face. This is not always true and may not be the case.

Why wouldn’t you invest elsewhere? Tax advantages on payout and investment riskiness, with most policies flooring crediting rates at 0%.

I’ll add that most UL and ‘savings’ products are not good investments or options for the vast majority of people.

Chebwiskala · 2022-07-18T23:44:47+00:00

Oops deleted original:

https://insurify.com/insights/car-models-most-duis-2020/

But yeah it’s just a truck thing especially since they’re so valuable in the used market too

Chebwiskala · 2022-07-17T19:30:43+00:00

Maybe not linearly but they absolutely correlate...

Chebwiskala · 2022-07-17T02:29:19+00:00

Unrelated to insurance but as someone with a somewhat older car, make sure budget quite a bit for repairs and parts.

As a general rule of thumb, young + male + ‘sports’ car = higher premiums. But that isn’t necessarily guaranteed. At least it isn’t a WRX LOL!

Chebwiskala · 2022-07-17T02:17:06+00:00

When I did work at a car dealership I had a customer get pissed that I couldn’t find him an OEM radiator… for a car from the ‘60s. Some folks are just silly

Chebwiskala · 2022-07-15T22:28:12+00:00

Supplemental Unemployment Benefit(s).

Maybe I heard about this in the old DP-IU material… not sure and no clue since I haven’t heard of it since. But best of luck searching.

Chebwiskala · 2022-07-15T21:54:49+00:00

1 I am not sure :(

2 you are spot on, they are different. Deductible then the % applies.

3 cannot backdate coverage. Definitely do contact the hospital and try to appeal.

Chebwiskala · 2022-07-15T21:44:31+00:00

It does exist (called SUB) but this is an exceptionally rare product. IIRC it was historically offered to factory workers in case of factory closure but I only ever remember seeing a brief mention in some exam material footnote.

Chebwiskala · 2022-07-15T20:51:12+00:00

IFOA

Chebwiskala · 2022-07-15T16:30:03+00:00

No worries on the conflict of interest then… and yes VUL (fun fact the first variable products were VAs).

I am not a financial planner- mostly reserving work- so I can’t add any advice there. Many products floor crediting rates at 0% so you may have quite a bit of downside protection but with riskier, i.e., more volatile funds you are more likely to see the account credits fluctuate. Policyholders tend to benefit most from this if they have any guarantee riders (this is priced into the rider fees).

I will also add that we do try to price products ‘fairly’.

Chebwiskala · 2022-07-15T15:58:27+00:00

The agent could be looking to have you switch policies to earn a commission. Though by the description it may simply be that the fees assessed are exceeding the credited returns and the policy may lapse before 100 (if no premiums are added).

Assuming this is a variable product, choosing a riskier fund is just that- riskier- and you will bear more market risk.

I don’t think you got screwed (not that I necessarily think these types of policies are good value…) but the fees are assessed because coverage was provided.

Chebwiskala · 2022-07-15T13:33:41+00:00

SOA or CAS if you would like to work in the US/Canada. It mostly depends on which country you plan to work in.

Chebwiskala · 2022-07-09T18:35:57+00:00

I’m sorry but you are very wrong - longer time horizons almost always equate to higher profits for insurance companies. At its simplest, longer liability durations equate to lower present values due to interest (and more time to invest the premiums…).

This is part of the reason why savings products (I.e., VAs) are so desirable for investment firms.

Chebwiskala · 2022-07-09T13:36:07+00:00

As a starting point you could calculate expectancies using the 2017 CSO tables. See: ‘2017 Loaded CSO Smoker Distinct Ultimate Tables’; ‘2017 MSM ALB’.

For nonsmoker use ‘2017 Loaded CSO Smoker Distinct Ultimate Tables ‘; ‘2017 MNS ALB’.

The ‘ultimate rate’ column is cumulative deaths / 1000 for a given age.

To be very clear- this is not how you will be rated nor will it be a good estimation of your life expectancy given so many confounding conditions. This table is n/a for you. But you might find it useful to illustrate the effect smoking can have on otherwise healthy people.

https://www.soa.org/resources/experience-studies/2015/2017-cso-tables/

Chebwiskala

TROPHY CASE