Some insurers are raising costs on in-force universal life insurance contracts, due largely to persistently low interest rates, which has some industry watchers concerned more firms will follow suit as rates remain depressed.
Low interest rates could cause many other insurers to follow suit

By: Greg Iacurci
InvestmentNews, 7 December 2015

Some insurers are raising costs on in-force universal life insurance contracts, due largely to persistently low interest rates, which has some industry watchers concerned more firms will follow suit as rates remain depressed.

“You're going to see more and more of this happen unfortunately if we continue to stay in a low interest rate environment,” Gregory Olsen, partner at Lenox Advisors Inc., said. “I think that this is the time where the rubber meets the road with advisers that have sold these contracts. This is just the tip of the iceberg.”

Voya Financial, AXA and Transamerica figure among the insurers that have raised the cost of insurance for some UL policyholders.

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