Reviewing your (client’s) life insurance is increasingly important according to a NYTimes article published last week. “Risky Moves in the Game of Life Insurance” discusses how some life insurance companies are using “exotic [accounting] techniques … [to] enhance their capital and make themselves look good … without so much of a penny as real cash changing hands”. Such “financial alchemy” is described as a “classic shell game” because several life insurance subsidiaries “would be insolvent” without using these “hollow assets”. The practice “reminds [the New York State Superintendent of Financial Services] “of deals that proliferated in the run-up to the financial crisis of 2008” because it “can make money seem to pop out of thin air.”
A few weeks ago, Veralytic addressed the issues of “Comparing the Financial Strength and Risks Associated with Different Life Insurance Companies” in a webinar for a nationally-recognized trusts and estates attorney. In this free webinar, the use of these “exotic [accounting] techniques” is discussed along with other important considerations when comparing the financial strength and risks associated with different life insurance companies, and how financial strength fits in to a comprehensive policy review. Look for a future enews with more about this webinar.
Veralytic is the only patented, objective and rules-based research tool that goes beyond the overly-simplistic comparisons of illustrations of hypothetical policy values that can be considered “misleading” and “inappropriate” by both financial and insurance industry authorities. Veralytic’s independent research reports provide a facts-based solution that is both compliant with industry regulations and established case law.
Veralytic is simply the fastest, easiest, and most comprehensive and cost-effective way to independently verify to clients and their advisors whether or not the pricing and performance of existing or proposed life insurance is in their best interest. Only Veralytic is accepted for independent client representation, endorsed by the New York Bankers Association (NYBA) and compliant with industry regulations and established case law.
Use the Veralytic Reports to determine the appropriateness of pricing, the reasonableness of performance expectations for invested assets underlying policy cash values, and overall suitability for your (client’s) policies based on the 5 factors of suitability. Get up to 3 Veralytic research reports under our NO-Risk trial subscription.