- 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