Wednesday, December 24, 2014

State of the industry: 5 annuity insights for 2015

2015 Outlook: 

Dec 16, 2014 | By Daniel Williams

A report released today identifies marketplace opportunities
and shifting demographics for annuity advisors

According to a report released today, the insurance and retirement industries are muscling through “some macroeconomic challenges (that occurred) the past year" and are exhibiting strong gains and growth potential.

“Fixed indexed annuities and immediate and deferred income annuities are showing especially strong growth as the industry is poised to begin 2015 in a strong financial position and with favorable public policy support,” said Cathy Weatherford, President and CEO of IRI, the company that authored the report.

“As Americans become more aware of their retirement income needs, the industry is presented with the tremendous marketplace opportunity to innovate and develop new products to match the increasing demand for insured retirement products.”


The following are five highlights from the State of the Industry report:

* A December 2014 Moody’s Investor Service report found that the industry as a whole has a strong operating company liquidity, with liquidity resources on average of 2.6 times its needs compared to approximately double its needs in 2008.

Industry-wide annuity sales are on track to increase three to five percent in 2014, reaching or exceeding $225 billion, the highest level since 2011.

* Third quarter variable annuity assets were 179 percent higher than their post-crisis low point of $1.07 trillion in the first quarter of 2009, and two percent higher than the end of 2013.

* New product developments are meeting consumer needs by providing limited downside protection, higher payout rates than traditional benefits, and increased flexibility of income start dates.

* Deferred Income Annuity (DIA) sales have more than doubled to $2.2 billion in 2013 and will likely exceed that level in 2014. The number of companies offering DIAs has also doubled since the start of 2012.


Wednesday, December 17, 2014

STOP Doing These Four Things…If You Want to Continue Selling Life Insurance

You cannot continue selling life insurance in the same manner you’ve relied on for so long. 

Our client and prospect base is changing rapidly. Social media, three-second attention spans and two generations growing up in an exclusively digital world have put an end to business as usual. Our industry might be reluctant to change, but if you’d like to survive in this business, you’ll need to adapt to the trends that are changing the way people buy. 

Here are four ways to begin >>


Friday, December 5, 2014

A Comprehensive Survey of Funding Solutions in a Challenging LTC Marketplace

Welcome to Long Term Care - 360°

There are many more LTC Planning options today, from Traditional LTCi to Linked-Benefit Plans to Chronic Illness, Accelerated Death Benefit & Living Needs Riders on Term Life, Universal Life, Whole Life and even Annuities.

While Traditional Long Term Care Insurance products can be expensive, premiums are not guaranteed, and the products are changing on a regular basis, they remain the go-to solution for those who can qualify and can afford it.

Industry research finds market resistance to the traditional approach. Below are the top reasons cited for NOT purchasing traditional long term care insurance:
  • Confusion – People say it is difficult to understand the costs and what is paid by Medicare, Medicaid and long term care insurance.
  • Denial – People do not believe that they will need Long Term Care insurance
  • Mistrust – Clients are concerned they will not be able to rely on a long term care insurance company when they need it.
  • Discomfort – It is too unpleasant to think about becoming ill and needing long term care.
When it comes time for Long Term Care planning, the first step is educating your clients about the need for protection. Explain that Long Term Care planning is not about buying a specific policy, rather it is about protecting their families and their hard earned retirement savings from the life changing event of an extended health care need.

The Traditional Long Term Care policy, as expensive as it can be, remains the preferred way to provide the most protection for a long term health care event. However, since clients have voiced many reasons for not buying a traditional LTC plan, the industry has responded with other options that can help fulfill at least part of their need for long term care protection. These alternatives may also address some of the reasons given for not buying a traditional plan.

Alternatives to Traditional LTC products can be broken down into 3 distinct groups:

  • Hybrid Products - Combinations of Life or Annuity and Long Term Care Benefits
  • ABRs - Accelerated Benefit Riders on Life Insurance Policies
  • LTC Benefit Plans - Conversion of a Life Policy to a Long Term Care Benefit Plan through a Life Settlement
On this site, we will explore and explain the concepts and products available in each of these groups.

Visit the Site Now! >>