08.13.24

Life and Annuity Illustrations Fool Clients, Advisor Tells Regulators

by: Allison Bell

Richard Weber, principal at The Ethical Edge, told the National Association of Insurance Commissioners' Consumer Liaison Committee that state insurance regulators should put bad years into the performance illustration charts that show how life insurance policies and annuities might work. Marketers already include warnings stating that the illustrations are not performance promises, but “with all illustrations — no matter the warning — customers will focus on the most favorable illustrated (‘current’) outcomes,” Weber said.

Read the full article on Think Advisor