A woekerpolis is a Dutch term that literally translates to “usury policy”. It refers to a type of investment insurance product with exploitative characteristics. Here’s a breakdown:
- Investment Insurance: Woekerpolissen are sold as a way to save money, pay off a mortgage, or supplement your pension. They combine elements of both saving and investment.
- Exploitative Costs: The key issue with woekerpolissen is their high fees and hidden costs. These costs can eat up a significant portion (25% to 86%!) of your premiums, leaving very little for actual investment returns.
- Misleading Promises: Often, woekerpolissen are sold with unrealistic promises of high returns. The reality is that the high fees significantly diminish the potential gains.
Essentially, woekerpolissen are seen as a deceptive financial product that benefits the insurance companies and intermediaries through high fees, while leaving the policyholder with minimal returns.