People can also be seduced by the ridiculously, stupidly high accumulations in the later years.It's too bad even after warning him he still want's to look into it. Reminds me of a friend that I told her not to buy the annuity, and she purposely didn't tell her dad in fear of him saying, hell no! After she was taken on a wine tour by the guy, she ended up buying the annuity, and later cancelling and taking a loss. Seems theses salesman know they can exploit human behavior, find and use there fear to get people to sign.
This illustration shows $113 million of value in the last year, when the policyholder is 114 years old. Who lives that long?
Maybe more ridiculously, the illustration has a compounded growth rate of 14.4% over 52 years. This is a product that should earn “fixed income” rates of return, not equity-like returns.
As I said above - Garbage!
Statistics: Posted by Stinky — Thu Jan 09, 2025 12:51 pm