Large Cost of Insurance Increases Hit Policies Purchased Years Ago.
Universal Life was a popular insurance product when it was introduced in the 1980s. It offered insurance coverage in combination with an interest-bearing savings account designed to earn money to keep premiums level. But as a recent article in the Wall Street Journal makes clear, things didn’t go as planned:
“Today, rates are completing a decade at historically low levels, crimping the savings accounts. Meanwhile, the aging of the earliest customers into their 70s, 80s and even 90s has driven the yearly cost of insuring their lives much higher.”
Seniors are suddenly learning that they owe thousands – even tens of thousands – of dollars in additional premiums each year. As one retiree quoted in the article says:
“I’m very scared that everything will go down the drain.”
Click here to read the entire Wall Street Journal article.