• I do think that analogy could lead you to some very incorrect conclusions.
  • The principal one that I would address is the question of "honesty".
  • There are advertisements for back-end loaded Universal Life products which say things such as,

    "A product in which there is no expense charge to the persisting policyholder".

  • That language is artfully worded to convince the person who buys that there is no expense charge.
  • That is obviously not the case in actuarial pricing.
  • There are expenses and they will be amortized one way or another.

-- Thomas Eason

1983 - INDIVIDUAL LIFE INSURANCE, Society of Actuaries

  • LC - Walker vs LSW - One Fee