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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: A new way for insurers to charge high fees Date: 2/5/2013 1:47 AM
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At least the states with well- funded insurance regulators (NY, NJ, Calif.) aren't letting these puppies come to market -- but beware in the other 47 states.

http://online.wsj.com/article/SB1000142412788732346860457824...

Regulators in some of the biggest states have yet to approve these "contingent deferred annuities." They are worried that lifetime-income guarantees sold on a mass scale could be harmful to insurers' financial health if markets were to slide as they did in 2007-09, putting insurers on the hook for massive payouts.

<snip>

One of the few new guarantees on the market comes from Aegon NV's AGN.AE -4.43% Transamerica Advisors Life Insurance unit. Buyers pay an annual fee of 0.85% to 1.75% of the value of a portfolio built from an approved list of mutual funds and exchange-traded funds. That comes on top of underlying fund fees.

</snip>


intercst
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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 71348 of 75335
Subject: Re: A new way for insurers to charge high fees Date: 2/5/2013 9:07 AM
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What is it that you see is new about this? These products and riders have been around for over a decade.

Your quoted article actually states such, "Insurance-industry trade groups maintain that the new guarantees are virtually the same as those sold for more than a decade on variable annuities."

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Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 71375 of 75335
Subject: Re: A new way for insurers to charge high fees Date: 2/11/2013 4:39 PM
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Want to see high fees and rates? Look into life insurance -- term or otherwise -- when you are 70 or older!

It's to laugh! (And AARP should be ashamed for even carrying the ads they carry about the subject.)

Hell, we know why the rates are high! Actuarially, we're on our way out -- right?

Vermonter

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