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In Reply to: nml in trouble posted by TVO on August 19, 2001 at 13:50:04:
: NML has a dividend rate of 8.8% -- that is not to be confused in no way shape or form with 8.8% INTEREST. Most NML agents don't even know the difference. Most whole life contracts pay the SAME interest ( after expenses ) of 5% to 6.5%. The guaranteed rate is typicall 4%, sometimes 5.5% as with certain MassMutual or Guardian contracts. The NML 8.8% figure is grossly distorted and manipulated by agents.
TVO --
I've read some of your prior posts, and you seem very knowledgeable. Thanks for this one! I trust your judgement. Would you please answer some questions on this?
1. Other than PPSI (nmlcomplaints.com), are there other websites dealing with NML "problems"?
2. Apparently a number of policyowners have complained that their agent misrepresented the actual rate of return as being 30% to 50% higher than it actually is. Same thing you are saying. But, TVO, how is this done? What are they doing to get the 8.8% figure? How are agents distorting and manipulating the numbers?
3. Insure.com ran an article last year claiming the return rates were only 1% to 3%. I assume they are talking about the first 10 years or so only.
These are the primary issues right now, TVO. Otherwise I am fairly aware of NML's other "sins" which seem to include misreprestnting tax-free retirement income...overfunding into MEC's...
vanishing premium problems...and piggybacking/churning/bait & switch tactics.
Furhtermore NML has NOT reported ANY 20-year dividend histories to A.M. Best in 3 years -- cracks in the cheese foundation in Milwaukee perhaps?
: As for NML and UL -- NML does write UL -- they just don't call it that. They have a product portfolio of heavily blended products ( adjustable comp life which comes in fixed and variable and survivorship types -- the blend can be as MUCH as 90% term with only 10% permanent -- pure insurance suicide for an unwitting policyholder ) These ACL policies are NML's version of UL -- looks like UL, smells like UL -- must be UL.
Just to share my experience with NML term -- it is extremely expensive ART...rates guaranteed only 5 years...spread between current and guaranteed max almost 300%...limited 7 year conversion, and then they chose the product. I would be personally embarassed to market this kind of term.
Another thing their agents appear to be trained to do is hard-sell term conversion annually, to small face WL policies. It's not unusual to find someone owning 4 or 5 separate $50,000 WL. Of course, each one has a separate policy fee, doesn't it? Doesn't seem very cost effective for the customer...but I guess it's good for the agents and the company.
Thanks for your insights! hindi