Today, the WSJ published an article about the increases in prices for Universal Life and Term Insurance products resulting from disruption to the bond and mortgage markets. The article included quotes by Mark Chandik and two FDP clients who are moving ahead to buy policies before the price increases take effect. The article also includes a quote by Larry J. Rybka, the Chairman & CEO of FDP’s back-office partner – Valmark Financial Group. The article highlights the changes life companies are forced to make because of uncertainty in commercial mortgages, bonds and other fixed instruments that comprise 80-90% of general accounts. The combination of low yields for high quality bonds along with concern of downgrades for existing bonds and commercial mortgages has caused almost the entire U.S. life insurance market to pull back on products with guarantees.
Read more from The Wall Street Journal article.
