Conseco Raising COI Charges on Some Universal Life Policies

Conseco Life Insurance Company has begun sending letters to policyholders announcing a cost increase on some Universal Life insurance policies.  The letters which, according to the carrier, started coming out earlier this month, reference the fact that any change in COI charges can be based on “our future expectations for such elements as investment earnings, mortality, persistency and expenses.”
The letter goes on to tell the policy owner that Conseco is “increasing the cost of insurance rates because the Company now expects higher rates and numbers of insured deaths than we had anticipated for policies such as yours.  We have been experiencing higher claims costs for these policies and expect this trend to continue in the future.”  The scheduled increase will begin next month.
At this time we are unaware of the percentage increase in cost and the number of policies affected, but we will be actively reviewing the situation and will report back as further information becomes available.

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