The illustrated internal rate of return (IRR) displayed in life insurance proposals is the net result of debiting policy expense loads from the gross crediting rate. Comparing the IRR of life insurance proposals to other investments net of all expenses is the balance sheet quest of every consumer conscience advisor and producer.
Today on the Business Insurance Zone, national insurance columnist Steve Savant and co-host Eric Palmer discuss product expense loads as the lead component of comparison against historical product performance, since no one can predict future interest rates, return on indices or equities gains. Determining the true net IRR with all expense loads accounted for is the holy grail of product due diligence for income scenarios.
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Steve Savant is the host of the daily producer show, Let’s Get Down to Business, and the weekly consumer show, Steve Savant’s Money, the Name of the Game. Steve is the number one online author and videographer of insurance content. During his 30-year career in the financial services industry,... More