Confusion

  • In my experience very smart people don't really know what all the components mean. 
  • I mean I feel like it does lead to confusion
  • So, I think if you can refer to the eventual illustration and just show the cash value.

-- Teresa Winer (GA)

2019/9/17, NAIC LIIIWG, <Bonk>

  • He <Michael Lovendusky - ACLI> said consumers are mostly confused about options, guarantees and riders.
    • The ACLI work group was considering asking the Life Insurance and Annuities (A) Committee to narrow the charge to look at only products with options, guarantees and riders, but Ms. Cude said she thinks that it is important to consider how the disclosures for all products could be improved.
  • <Mr. Lovendusky - ACLI> said the ACLI work group thinks that most confusion for consumers involves complex products like Universal Life, and not Simple products like term life.

2016/4/3 - Life Insurance Illustrations Working Group (LIIIWG), NAIC Proceedings

Gary Sanders (NAIFA):

  • And that leads to my second concern which is that consumer confusion I think, and we fear, in large part is going to be translated into a lack of confidence or a lack of trust in their advisor.
  • And in some way or another, the consumer is going to end up with the feeling that the advisor did some form of misrepresentation initially to the consumer and now the truth is coming out.
  • And I think that is a very big concern and not only would it harm the consumer's confidence in the producer, but it could have a lot of reputational damage to producer's as well.

2019/11/15 - Indexed Universal Life Insurance Working Group (IULWG) - NAIC - Conference Call <Bonk>

Complaints and inquiries related to life insurance and annuity products were less frequent, and generally concerned consumer dissatisfaction with, or confusion regarding Universal Life insurance policies.

2018 - Wisconsin Insurance Report, page 90