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When 5.85% isn’t really 5.85% …
August 8, 2019 @ 1:00 PM - 2:00 PM
When you run an insurance illustration for your client, 5.85 percent annual interest crediting sounds good. But sometimes that’s not the whole story – in reality, it isn’t really 5.85 percent. Here are three reasons why:
Illustrated rates are based on averages and most years aren’t average
High indexing fees in some indexed accounts can cause a client to lose cash value
Illustrations don’t show the ups and downs, which can be more exaggerated in high-fee/large-multiplier accounts