Veralytic

Pacific Life has a long history of low costs and superior performance of invested assets underlying policy account values (e.g., ranked among the best #lifeinsurance companies 👉 'https://lnkd.in/epAnaKS by Forbes based on decades of independent pricing and performance data from Veralytic), but to compete in the “make‑believe world” of current "Whac-a-Mole" #NAIC regulations, a super‑majority of IUL products are marketed based on practices considered “misleading” by FINRA, “fundamentally inappropriate” by the Society of Actuaries, and unreliable by the US Treasury/OCC. Until #ClientsBestInterest rules for #lifeinsruance are the "law of the land", the Consumer's ONLY hope for protection against such "bait-and-switch" industry practices are #fiduciary-oriented #Veralytical advisors! *New PacLife PDX Lawsuit Puts Wider Spotlight on Lax IULRegulation 👉https://lnkd.in/e4PSVnMt by Warren S. Hersch is behind a pay-wall but a worthy read.

Are you getting #lifeinsurance decision-support for YOUR #StandardOfCare? Given "Life Insurance Makes Up 75% of Complaints Yet Avoids #ClientsBestInterest Laws", if you're a #FinancialAdvisor with a #ClientsBestInterest orientation or a #CFP, #CPA, #ILIT #trustee, #TaxAttorney, #WealthManager or other #fiduciary advisor, then probably not! Become a #Veralytical advisor and #DeclareYourStandardOfCare! https://lnkd.in/eZvKU6Tj

Can #ArtificialIntelligence Replace YOU[r #FinancialAdviser]? [L]et’s look at 5 essential qualities for effective #financialadvice ... 1. Debiasing - "ChatGPT exhibits many of the same behavioral tendencies and biases that a good adviser tries to minimize." 2. Empathy - "45% of AI responses were rated as empathetic or very empathetic, compared with only 4.6% of [human] responses." 3. Accuracy - As "AI [becomes] integrated with reliable financial databases, such as Morningstar ... its models and recommendations [will be] based on [increasingly] accurate representations of the financial world." 4. #ClientsBestInterest - "AI should be less likely to get into #ConflictsOfInterest [because] AI is easier to monitor ... than a human adviser." 5. Consistency - "AI should be able to achieve consistency by confirming it gave the same advice to clients with similar financial needs and preferences." So what's a #FinancialAdvisor to do? Go where AI caN'T. AI requires HUGE amounts of data. The internet contains HUGE amounts of data about #InvestmentAdvice, but almost NOTHING about #LifeInsurance advice in #ClientsBestInterests. Ask AI "how to determine when a life insurance product recommendation is in my best interest?" and you'll get NOTHING about how to 1) ensure internal policy costs are justified, 2) evaluate the reasonableness of performance expectations/requirements, nor 3) assess whether under-performance risks are consistent with #risktolerance. On the other hand, you can get answers to these questions and more by becoming a #Veralytical advisor! https://lnkd.in/eXHS2Tkc

"Fool me once, shame on you. Fool me twice, shame on ME!" 🤦♂️ -Anthony Weldon, 1650 FEDweek says: "[I]f you bought a permanent #lifeinsurance policy years ago, ... you should call your #lifeinsuranceagent for a #policyreview. However, "be careful [because] [m]any of these policies were sold with illustrations that have proven much too optimistic, [and because actual performance has] not lived up to their illustrations, ... you [could] lose the insurance coverage ... and ... owe income tax ... [u]nless you pay higher premiums than originally [quoted]." Current regulations in most states STILL permit #lifeinsuranceagents, #lifeinsurancebrokers, and #lifeinsurance companies to "quote" low premiums giving the appearance of low costs, while actually charging HIGH costs, an withOUT disclosing either those HIGH costs NOR the HIGHer risks of additional "premiums calls" for more than the originally "quoted" premium to cover those HIGH costs, or even total loss due to policy lapse even when all originally "quoted" premiums were paid. So doN'T make the same mistake twice. AVOID #lifeinsurance #policyreviews that compare illustrations that never come true! If you have trouble finding someone who can tell you(r client): 1) if/when internal policy costs are competitive relative to the universe of peer-group alternatives, 2) if/when performance requirements are reasonable relative to asset class benchmarks, and 3) if/when UNDER-performance risk is appropriate for your (client's) risk tolerance, then ask us to connect you with a #Veralytical advisor near you. https://lnkd.in/ex2e2VKV

#RIAs are key to #LifeInsurance in the #ClientsBestInterest (i.e., because the insurance industry has been litigating and lobbying against #ClientsBestInterest for #LifeInsurance for years), but being compensated for advising clients about their #LifeInsurance has been a challenge for many #RIAs. 👇 will begin to change that. However, even more important to #RIAs than form-of-compensation is performance of their #fiduciaryduty to 1) justify costs relative to benefits, 2) evaluate the reasonableness of performance expectations, and 3) assess that risks of under-performance are consistent client risk tolerance, all of which are essential to serving #ClientsBestInterests. See how easy as 1, 2, 3 it can be to (provide #RIAs with) INDEPENDENT(LY) document performance of these #fiduciary duties 👉 https://lnkd.in/eN_5Fi-m https://lnkd.in/eis4k6EE

Be CAREFUL not to "step out of the frying pan and into the 🔥". While old inforce policies can present risks to TOTAL loss due to longevity, current regulations in most states permit #lifeinsuranceagents, #lifeinsurancebrokers, and #lifeinurance companies to "quote" low premiums while charging HIGH costs withOUT disclosing EITHER those HIGH costs NOR the HIGHer risks of TOTAL loss due to policy lapse even when all "quoted" premiums are paid. As such, insist than any "quote" is verified with a Veralytic report. https://lnkd.in/dJh3qqfQ

While an "update [to] #lifeinsurance #IllustrationsModelRegulation ... is long overdue" per Sheryl J. Moore, "National Association of Insurance Commissioners (NAIC) regulators are candid about not wanting to reopen the [overhaul? of] #IllustrationsModelRegulation. So what can you(r clients) do in the meantime to avoid what Birny Birnbaum and Brenda J. Cude describe as "[m]isleading and deceptive practices"? Ask your #FinancialAdvisor for a Veralytic report revealing ... 1) the competitiveness of internal policy costs relative to benefits, 2) the reasonableness of performance requirements relative to peer-group alternatives, and 3) the appropriateness of under-performance risks relative to consumer risk-tolerance. ... or ask us for a #Veralytical advisor in your area. https://lnkd.in/erbsgvgd

Buy #LifeInsurance like Warren Buffett, Charlie Munger & Mark Twain ... "A mine is a hole in the ground owned by a liar." - Mark Twain "That's the way I've come to look at projections." - Charlie Munger "I don't understand why any buyer of a [financial instrument] looks at a bunch or projections put together by a seller or his agent. It's ridiculous [and] naive to think that [projections] have any utility [to the buyer] whatsoever." So refuse to even look at #lifeinsurance illustrations/projections like Charlie and Warren, and instead use Veralytic to understand 1) the competitiveness of internal policy costs, 2) the reasonableness of expected investment performance, and 3) the appropriateness of product risks relative to risk tolerance, which altogether ACTUALLY determine the results you(r client) will receive.  Credit to @TheRationalInvestor1 on YouTube for capturing such words of wisdom from such sage financial minds.  https://lnkd.in/ebzuQX6F