InsuranceNewsNet Magazine | January 2024

Page 1

THIS ISSUE: 2024 PREVIEW Life Insurance • Health/Benefits Annuities • Financial Services JANUARY 2024

e r He we gogain! a

PLUS:

Denise Appleby: The IRA whisperer

PAGE 4

If selling life insurance were easy, everyone would do it

PAGE 18

The best index crediting strategy for your clients

PAGE 22

The science of successful habits

PAGE 31

The Department of Labor is trying for the fourth time to extend fiduciary duty to virtually all annuity sellers. Industry critics are spoiling for a fight. So what’s in this rule? PAGE 8


Life Insurance • Health/Benefits Annuities • Financial Services JANUARY 2024

Unlock the secrets to filling your events with ideal prospects who become high-value clients. From identifying your unique marketing style to mastering follow up, discover five pivotal steps that separate successful marketing events from the rest.

Ready to attract ideal prospects who become high-value clients?

» Turn to page 15 for

how to put on profitable events.


The answer to growing your high-net-worth client base isn’t just about generating more leads. Relying solely on lead generation leaves you with prospects and clients that aren’t the right fit for your business. That’s why a subtle shift is necessary to put on profitable marketing events that lead to more engaged audiences, higher-quality prospects, and significantly more business. See what other financial professionals who found success with this system have to say. Find out how they changed their focus from mere lead generation to a more refined strategy, drawing in more attendees, establishing meaningful connections, and winning the business of affluent clients.

To learn more about the no-stress system for filling your events with ideal prospects who become high-value clients, visit PutOnProfitableEvents.com.


Securing income for future needs Palladium®

SPIA

Single Premium Immediate Annuity Alleviate the worries of retirement planning with SPIA. By incorporating the option to include a Cost-of-Living Adjustment (COLA), this annuity can provide an income stream for life that helps offset inflation.*

Our SPIA rankings have experienced a significant improvement, and we are excited to announce that the product has been successfully integrated into ExpertIllustrator! This presents a valuable opportunity that you definitely shouldn’t overlook. For more information, please visit our website.

Visit lad.americannational.com for more information or to run an illustration. * Not available on the Life with Cash Refund or Life with Installment Refund income options. Form Series SPIA22 (Forms may vary by state). The contract and riders may not be available in all states. See Policy for details and limitations. Neither American National nor its agents give tax or legal advice. Clients should contact their attorney or tax advisor on their specific situation. American National Insurance Company, Galveston, Texas. For Agent Use Only; Not for Distribution or Use with Consumers. AMERICAN NATIONAL INSURANCE COMPANY 888-501-4043 | lad.americannational.com

LAD10027 | INN 01.2024


IN THIS ISSUE

View and share the articles from this month’s issue

» read it online InsuranceNewsNet.com/topics/magazine

JANUARY 2024 » VOLUME 17, NUMBER 01

FEATURE

Here we go again! By John Hilton

8

What’s in the Department of Labor’s fourth attempt at a fiduciary rule.

12 C onnecting through loss

By Susan Rupe Danielle Chesney’s life was turned upside down when her mother died. She uses her experience to promote the benefits of life insurance while giving back to grieving children.

INTERVIEW

4 The IRA whisperer

Denise Appleby became an expert at making individual retirement accounts understandable for clients and advisors. In this interview with publisher Paul Feldman, she discusses her fascination with IRAs and her advice to keep clients from making a costly mistake.

Paul Feldman John Forcucci Susan Rupe John Hilton

ADVISORNEWS

29 4% is a safe starting withdrawal rate for retirees, research finds By Doug Bailey The safe starting withdrawal rate for retirees is the highest it’s been in years, according to Morningstar.

LIFE

IN THE KNOW

18 If selling life insurance were easy, everyone would do it

31 T he science of successful habits

By Joe Ross Tips on having difficult conversations about buying life insurance.

By Joe Templin Why you won’t achieve your goals overnight and what you can do about that.

ANNUITY

22 I ndex crediting strategy: Which one is best for your clients By Susan Rupe Three steps to better understand the environment in which various strategies can thrive the best.

INSURANCE & FINANCIAL MEDIA NETWORK PUBLISHER EDITOR-IN-CHIEF MANAGING EDITOR SENIOR EDITOR

26 W orkplace benefits help get employees in the door — and keep them there By James Reid Workers are looking for additional protections and options from their employers.

IN THE FIELD

4

HEALTH & BENEFITS

CREATIVE DIRECTOR SENIOR CONTENT STRATEGIST EMAIL & DIGITAL MARKETING SPECIALIST TRAFFIC COORDINATOR MEDIA OPERATIONS DIRECTOR

INSURANCE & FINANCIAL MEDIA NETWORK 150 Corporate Center Drive • Suite 200 • Camp Hill, PA 17011

717.441.9357 www.InsuranceNewsNet.com Jacob Haas Lori Fogle Megan Kofmehl Sorayah Talarek Ashley McHugh

NATIONAL ACCOUNT DIRECTOR NATIONAL ACCOUNT DIRECTOR DATABASE ADMINISTRATOR STAFF ACCOUNTANT

Brian Henderson Tobi Schneier Sapana Shah Katie Turner

Copyright 2024 Insurance & Financial Media Network. All rights reserved. Reproduction or use without permission of editorial or graphic content in any manner is strictly prohibited. How to Reach Us: You may e-mail editor@insurancenewsnet.com, send your letter to 150 Corporate Center Drive, Suite 200, Camp Hill, PA 17011, fax 866.381.8630 or call 717.441.9357. Reprints: Copyright permission can be obtained through InsuranceNewsNet at 717.441.9357, Ext. 125, or reprints@insurancenewsnet.com. Editorial Inquiries: You may e-mail editor@insurancenewsnet.com or call 717.441.9357, ext. 117. Advertising Inquiries: To access InsuranceNewsNet Magazine’s online media kit, go to www.innmediakit.com or call 717.441.9357, Ext. 125, for a sales representative. Postmaster: Send address changes to InsuranceNewsNet Magazine, 150 Corporate Center Drive, Suite 200, Camp Hill, PA 17011. Please allow four weeks for completion of changes. Legal Disclaimer: This publication contains general financial information. It should not be relied upon as a substitute for professional financial or legal advice. We make every effort to offer accurate information, but errors may occur due to the nature of the subject matter and our interpretation of any laws and regulations involved. We provide this information as is, without warranties of any kind, either express or implied. InsuranceNewsNet shall not be liable regardless of the cause or duration for any errors, inaccuracies, omissions or other defects in, or untimeliness or inauthenticity of, the information published herein. Address Corrections: Update your address at insurancenewsnetmagazine.com.

January 2024 » InsuranceNewsNet Magazine

1


NEWSWIRES

Fed: Spiraling interest rates may not be over

Hold the phone. Or, rather, your wallet. The era of Bowman spiraling interest rates may not be over. Michelle Bowman, a member of the Federal Reserve’s board of governors, raised the possibility that the Fed’s goal of capping inflation at 2% might not be reached without another tweak or two to the federal funds rate, which was pushed up for 11 straight periods to a 22-year high before the central bank instituted a pause in October and November. “My baseline economic outlook continues to expect that we will need to increase the federal funds rate further to keep policy sufficiently restrictive to bring inflation down to our 2% target in a timely way,” Bowman said. Bowman, somewhat at odds with her colleagues at the Fed, said she is willing to support raising the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or is insufficient to bring inflation down to 2%, as the battle against inflation isn’t over.

INVESTORS WORRIED ABOUT 2024 ELECTION IMPACTS

We’re less than a year away from the 2024 presidential and congressional elections, and many American investors are nervously considering the elections’ implications for their investment portfolios. Regardless of political affiliation, nearly half (45%) of investors believe the results of the 2024 U.S. federal elections will have a bigger impact on their retirement plans and portfolios than market performance, according to Nationwide’s ninth annual Advisor Authority survey. 68% of Republican investors believe the outcome of a presidential election will have a direct, immediate and lasting impact on the performance of the stock market, compared with 57% of Democratic investors. Source: Nationwide

In addition to general pessimism about the election’s impact on retirement prospects, investors fear the impact of new policy and opposing party rule on the U.S. economy. Nearly one in three (32%) investors believe the economy will plunge into a recession within 12 months if the political party with which DID YOU

KNOW

?

2

they least align gains more power in the 2024 federal elections. Roughly the same percentage (31%) believe the party they least align with gaining more power in office will negatively impact their future finances, and 31% believe their taxes will increase within 12 months.

WHAT WILL 2024 HAVE IN STORE FOR INSURANCE?

Now is the season when news columns include predictions for the coming year, and Forrester Research has come out with its 2024 predictions for the insurance industry. Forrester looked into its crystal ball to offer insights for the near future and maybe some cautions about what’s ahead for insurers. Overall, Forrester says that after a couple of years of rising claims expenses, 2024 should see insurers return to greater profitability and stability as they continue to pass on the higher costs

QUOTABLE

I strongly believe that for the first half of 2024, we will see no rate activity in the Fed. — Gary Cohn, IBM vice chairman

to customers and benefit from rising interest rates. Here are Forrester’s top five predictions for insurance in 2024:

1. Half of embedded distributors will struggle to convert consumer interest to sales. 2. Tech spending will see 5% growth. 3. Generative AI might not be the boon some people expect. 4. Insurers will drop heavy climate collaborations, voting instead with their feet. 5. Half of insurers in established markets will launch heat-related retail insurance products.

LARGE DROP SEEN IN AGENCY M&A

The once-ballooning insurance agency mergers and acquisitions market in the U.S. and Canada has deflated, showing a 27% drop in deal activity through the third quarter of 2023. According to the latest report from OPTIS Partners, the decrease in M&A deals marks the largest decline ever for this period. Multiple factors are cited for this sudden deceleration: rising capital costs, increased leverage and a reduced pool of business owners willing to sell.

The landscape of top buyers has also seen a shift. Acrisure and PCF Insurance, for example, both former leaders in deal counts, dramatically reduced their deal activity by 81% compared with 2022.

The median wealth of lower-income households shot up 101% between December 2019 and December 2021, during the height of the COVID-19 pandemic.

InsuranceNewsNet Magazine » January 2024

Source: Pew Research Center


LETTER FROM THE EDITOR WELCOME

Proposed fiduciary rule:

A threat to advisors and investors

I

n the evolving landscape of the financial services industry, regulatory changes often spark debate and concern among financial advisors. The recent proposal by the Department of Labor to implement a new fiduciary rule is no exception. Although the intention behind such rules is to protect investors, the potential ramifications of this proposal are far-reaching and may prove detrimental to financial advisors as well as the clients they serve. The essence of the fiduciary standard is to ensure that financial advisors act in the best interest of their clients. However, the proposed rule may inadvertently stifle innovation and limit investors’ access to a diverse range of investment options. The financial services industry thrives on competition and choice, both of which are crucial in helping investors achieve their goals. By imposing stricter fiduciary standards, many advisors believe the Labor Department risks limiting the ability of financial advisors to tailor investment strategies to their clients’ unique needs. Another primary concern is the potential increase in compliance costs that financial advisors would face. The proposed fiduciary rule could necessitate significant changes to operational structures, forcing advisors to divert resources away from client services and research. This added administrative burden may disproportionately affect smaller advisory firms, limiting their ability to compete with larger institutions. In turn, this could lead to further industry consolidation, reducing the diversity of available financial services providers and limiting the options for investors. The fiduciary rule might also discourage financial advisors from working with clients who have smaller investment portfolios. The increased compliance costs may make it financially difficult for advisors to provide personalized services to clients with less substantial assets. Critics of the proposed fiduciary rule

also argue that it could create a one-sizefits-all approach to financial advice, undermining the value of specialization and expertise. The potential for increased litigation risk for financial advisors is also a concern. While the fiduciary standard aims to protect investors, it may inadvertently expose advisors to an elevated risk of legal challenges. The ambiguity surrounding what constitutes a breach of fiduciary duty could lead to an increase in lawsuits. The industry currently has the Securities and Exchange Commission’s Regulation Best Interest as well as state laws and regulations in more than 40 states based on the National Association of Insurance Commissioners’ model for annuity transactions. These regulations require advisors to act in their clients’ best interests. Building on this approach, rather than what is proposed by DOL, will retain the integrity of the industry while

serving the needs and interests of investors. This is the approach that makes the most sense for all parties.

Speaking of the fiduciary rule …

Given the importance of the proposed fiduciary rule to the industry, InsuranceNewsNet is committed to providing in-depth coverage of the regulatory process. As the public comment period closes early this month, we will follow the next steps as the inevitable challenges arise and wend their way through the legal and regulatory process. Keep up to date with the latest developments on our Fiduciary page and through our Fiduciary Newsletter. John Forcucci Editor-in-Chief

January 2024 » InsuranceNewsNet Magazine

3


INTERVIEW

Originally pulled in as temporary help during the height of IRA season, Denise Appleby took to IRAs “like a fish to water,” never looked back and eventually became renowned for her expertise. An interview with Paul Feldman, Publisher

4

InsuranceNewsNet Magazine » January 2024


THE IRA WHISPERER — WITH DENISE APPLEBY INTERVIEW

D

enise Appleby, chief executive officer of Appleby Retirement Consulting, has more than 20 years of experience in the retirement plans field, which includes providing training and technical consultation. Her company provides individual retirement account resources for financial, tax and legal professionals. As complex as the topic of IRAs is, Appleby says keeping abreast of changes is key. Despite her level of knowledge, “the rules might change tomorrow,” she said. “My firm’s primary goal is to help prevent mistakes from being made with retirement account transactions, and where possible, provide solutions for mistakes that have already been made,” she said. Appleby writes and publishes educational and marketing tools for advisors and has co-authored several books on IRAs. She has appeared on numerous media programs, sharing her insights on retirement account rules and regulations. In this interview with publisher Paul Feldman, Appleby discusses Roth versus traditional IRAs, errors to avoid, required minimum distributions and SECURE 2.0.

difference between education and advice, and you can educate the client without giving them advice. So when the advisors would call, they would say, “Get me Denise.” Everybody wanted to talk to me, because I knew the answers and I was able to translate them into English. The tax code is written in legalese. It’s a challenge to break it down for nonexperts. Feldman: There are many different types of IRAs. Can you discuss each type and some of their key differentiators? Appleby: The primary types are traditional IRAs and Roth IRAs, and there are others, like SEP [Simplified Employee Pension] IRAs and SIMPLE IRAs, but those are established by employers for their employees. Let’s talk about the one where you and I as individuals can go to any financial institution and say, “I want to set up an IRA.” And then the question becomes which one should you choose? It depends on multiple factors. There are some rules that will force you into a tra-

taking RMDs — whether it’s age 72, 73 or 75 — you must start taking money out. That RMD rule does not apply to a Roth IRA. Some people think, I don’t want to take money out of my account, why are you forcing me to? If that’s a big issue, then you want to keep your IRA assets in a Roth IRA, but there’s still the big question of whether it makes sense from an income tax perspective. Some people may want to do the traditional IRA because it means getting the tax deduction now. The average annual salary right now for Americans is $57,000. For someone who’s earning $57,000 and wants to contribute to an IRA, they might be thinking, man, things are tight. I can hardly find the $6,500, but you know what? If I put it in a traditional IRA, I get a tax deduction, and that frees up more funds. You don’t get that break if you put it in a Roth IRA. If you Google “Should I choose Roth or traditional?” you will see people who claim to be experts saying, “Everybody should go into a Roth because it’s taxfree income and tax rates are going up.” I don’t have a crystal ball. I know all things point to income tax rates increasing, but there is no absolute certainty. Also, there is no absolute certainty about what tax bracket you will be in when you are ready to retire. So when someone asks me, “Which one should I choose, Roth or traditional?” I say, “That’s when you need to bring in your tax advisor, who will do a Roth versus traditional suitability assessment and make a recommendation based on certain projections.” Now the good news is that if you’re on the fence about which one to choose, you can split your contributions between the two accounts. Contributions are only one of the ways that you can fund a Roth IRA, or even a traditional IRA. If you work and you have money in, say, a 401(k) or a pension plan and you are eligible to make withdrawals from those plans, then you can move those assets into your traditional IRA and a Roth IRA.

For many, a Roth IRA is the gold standard, Paul Feldman: How did you get into financial services? because that means And how did IRAs become your main focus? tax-free income in retirement. Denise Appleby: When I was new to America — I’m from Jamaica — I started by doing telework at a bank. The first job that had anything to do with IRAs was at Pershing. They hired me in the month of March when it was the height of IRA season — all hands on deck – and they borrowed me from the automated customer account transfer department, thank goodness. I took to IRAs like a fish to water, and they wouldn’t let me go back to the ACAT department. I was new to the role, new to the tax code. I didn’t know what the tax code was, didn’t know what the IRS was, but I don’t like to do anything unless I know everything about it. I read the IRS publications, I read books, I read the tax code. When customers called, the general response they received usually was, “Go talk to your tax advisor.” I didn’t find that acceptable. There’s a

ditional IRA. For example, if you make too much money, you cannot contribute directly to a Roth IRA, but you can eventually get the funds in there by making the contribution to a traditional IRA and then converting that to a Roth. The question becomes, well, what’s the big difference? Money that you put in a traditional IRA grows tax-deferred, and when you take it out, it’s taxable. Money that goes into a Roth, it’s already taxed when you put it in. Earnings grow tax-deferred as well, but once you’re eligible for a qualified distribution, then everything’s tax-free. For many, a Roth IRA is the gold standard, because that means tax-free income in retirement. Another difference is once you reach the age at which you’re supposed to start

Feldman: Can you give me an example where having the right information can make a big difference to a retirement investor?

January 2024 » InsuranceNewsNet Magazine

5


INTERVIEW THE IRA WHISPERER — WITH DENISE APPLEBY Appleby: Sometimes a question might seem simple, but it’s not. The answer might be different based on the circumstances. I’ll tell you a real-life case where a taxpayer saved about a million dollars. This person wasn’t protected because he went to a financial institution. I like to call them big-box custodians, huge firms. He called the big-box financial institution and said, “I want to roll over my million dollars to my IRA.” He tells them it’s a traditional IRA, they give him a check made payable to another big-box custodian, TR IRA. Now, there are two types of IRAs, traditional and Roth. When you see TR, it means traditional, yet he walked into the second custodian, handed them a million dollars and said, “I trust you guys. I trust you to take care of me. Here’s my million dollars that I’ve worked all my life and saved.” They asked him, “What’s your account number?” He didn’t know it. So what happens in most cases is they pull up his account using his Social Security number. They read him an account number and said, “Write this on the back of the check.” He wrote it on the back of the check, they told him to endorse it and he did. Guess what? They put it in his account, and found out later that the account is a Roth IRA. What’s wrong with this? That caused them to do a Roth conversion. Now, this person is in his early 60s. He doesn’t plan to take any money out until he reaches age 73 or 75, but now, they force him into taking a distribution that’s been included in income for a million dollars in one year, while the plan usually is to spread it out a little bit. Now, he owes about $500,000 in federal and state income taxes and the custodian refused to fix it. People might think, “Oh, it should be so easy,” but it’s not. For an advisor, the question becomes, how do you prevent something like that from happening? When someone comes in to see you and tells you they need to roll over their 401(k), get a copy of the statement. If it’s a traditional IRA and they want to retain tax-deferred status and not do a conversion, make sure that the receiving account is a traditional IRA, and have the assets directly rolled over to that IRA. The statement will also show you whether this client has Roth 401(k) assets, in which case, those assets would 6

“Which one should I choose, Roth or traditional?” I say, “That’s when you need to bring in your tax advisor, who will do a Roth versus traditional suitability assessment and make a recommendation based on certain projections.” be rolled over to a Roth IRA. While you’re on that conversation, also look to see whether the account includes after-tax amounts. If a 401(k) includes after-tax amounts, then that amount should be rolled to a Roth IRA, not a traditional IRA. It can be rolled to a traditional IRA, but it’s much better to roll it into a Roth because the earnings will eventually become tax-free.

or conversion that you do will include a prorated amount of your pretax and after-tax balance. You must file Form 8606 to keep track of that. What happens if you don’t file Form 8606? You end up paying taxes twice on the amount. Tax rates are already too high. We don’t want our clients to have to pay taxes that the tax code says they shouldn’t be paying, right?

Feldman: What is the better IRA, Roth or traditional?

Feldman: What are some of the top questions you get asked by advisors about IRA rules and rollovers?

Appleby: One of the big debates right now is whether clients should choose Roth or traditional. A lot of people are saying, “Why should you convert now and pay taxes when you can put it off as long as possible and pay later when you’re in RMD status?” But one of the exceptions to that rule, when you should absolutely do it, is when you have after-tax amounts in your 401(k) or 403(b). Now, let’s assume that you have after-tax amounts in your 401(k) and 403(b). To make sure that the after-tax amounts are sent directly to your Roth IRA, you must say you want a split distribution. When you tell them that you want to split distribution, they’ll issue two checks, one to the traditional for the pretax amount, and one to the Roth for the after-tax amount. Make sure when you fill out the paperwork, it clearly indicates that. If you don’t, then the entire amount will go into your traditional IRA. The downside is that because you now have after-tax amounts in your traditional IRA, the earnings on that will be taxable, and every subsequent distribution

InsuranceNewsNet Magazine » January 2024

Appleby: It’s seasonal. Let’s say it’s getting close to required minimum distribution season. At that time of year, I get a lot of questions about required minimum distributions. It seems like a simple process, but there are 101 rules that apply. Say, for example, you have two traditional IRAs and a Roth IRA. RMDs do not apply to Roth IRA owners. They apply to Roth IRA beneficiaries. But if you have two traditional IRAs, you might think: “I want to take RMDs from only one of those IRAs and leave the other one nice and fat because I like that beneficiary better. Or the other one is for a charity — distributions will be nontaxable. Let me take the money from that.” The question becomes, if you have multiple accounts, can you take the RMD from all those accounts or from one? And the answer is, “It depends.” For example, if you have multiple traditional SEP and SIMPLE IRAs, you can aggregate your RMD, meaning you calculate them separately and you take it from one or more. If you have multiple 403(b)s, same thing.


THE IRA WHISPERER — WITH DENISE APPLEBY INTERVIEW But if you have multiple 401(k)s and pension plans, you cannot aggregate your RMD. If you have an IRA and you have a 401(k), you cannot aggregate RMDs for those accounts. I also get questions on the RMD requirements or distribution requirements for beneficiaries, especially in light of the SECURE Act and SECURE 2.0. You know that with the SECURE Act, they drastically changed the rules that apply to beneficiaries. Now, unless you are classified as an eligible designated beneficiary, you cannot take distributions over your full life expectancy. If someone inherits an account from an IRA owner who was already taking RMDs, they must continue taking RMDs every year, and if they are not an eligible designated beneficiary, then they have only 10 years in which to take those distributions. Another common question I get is, what are the rules that apply when moving retirement assets? One thing that will happen with a retirement account is that it will move. That could be because someone changed their job and they’re moving their old employer plan, or someone doesn’t like their old advisor and they want to move to a new advisor, or someone gets divorced and they’re splitting retirement assets, or someone dies and it’s being moved to the beneficiary. You must be very careful about the way you move those assets. I’ll give you two examples that show why this is so important. If you move assets from an IRA to another IRA, you can do that as a transfer. A transfer is nonreportable, it’s nontaxable and you can do 10 transfers per day if you want to. The other way to move an IRA is as a rollover, where you take a distribution and you put it back in the IRA. You have 60 days to do that for it to be excluded from income. Now, you can do that only once during a 12-month period. I had a client who did 16 of these during a 12-month period. Feldman: What’s one of the most important and impactful provisions advisors should know about SECURE 2.0? Appleby: There’s a rumor that SECURE 2.0 doesn’t include anything great, and I disagree with that. There are a lot of great

provisions in SECURE 2.0. For example, the RMD age is now increased. The SECURE Act increased it to 72. SECURE 2.0 increased it to 73 or 75, depending on when you were born. One of the benefits of that is your assets can stay in your traditional IRA or retirement account longer so your assets continue to grow tax-deferred. Another change, effective 2024, is that there are no more RMDs on a Roth 401(k), Roth 403(b) or governmental Roth 457(b). There are new Roth provisions, too. The only types of accounts that you could make Roth contributions to are Roth IRAs and Roth 401(k)s. Under SECURE 2.0, you can now make contributions to Roth SEPs and Roth SIMPLEs. But don’t ask me where to find one of those accounts, because I’ve been searching and nobody’s ready yet. Feldman: What are some effective strategies to avoid the RMD mistakes? What should advisors discuss with their clients? Appleby: I’m very big on checklists. One of the common questions I get is, who calculates the RMD? For IRAs, for traditional SEPs and SIMPLE IRAs, the IRA custodian must send out an RMD notification by Jan. 31 of the year in which an RMD is due. The RMD notification must include either the calculated RMD amount or an offer to calculate the amount upon request. If you have a custodian that does the calculation, great, but you still must double-check it, and here is why. When an IRA custodian calculates an RMD, the formula says you must take the fair market value of the IRA for the previous year-end and divide it by the applicable life expectancy for the current year. Ask your client, “Did you take a distribution last year and roll it over this year?” Why is that important? Because then that rollover would not have been included in the fair market value for the previous year-end, and the IRA custodian will use that previous year-end fair market value, which is short the rollover that was done this year. The same thing applies if you started a transfer from the IRA last year that gets completed this year. If we ignore that, you’re going to have an RMD shortfall.

When you have an RMD shortfall, you owe the IRS a 25% excise tax, which can be reduced to 10% in some cases if corrected in a timely fashion, or zero if the IRS approves or requests to get a waiver. That’s one of the things. You also want to check for RMD aggregation. Can you really aggregate RMDs? I had a case where someone was taking the RMD for their 403(b) from their IRA for 13 years. It turns out you can’t do that, so now, we have a 403(b) that didn’t take RMDs for 13 years. Make sure aggregation is permitted, and remember that the RMD rules for inherited accounts are different. You cannot aggregate RMDs for inherited accounts with accounts that the individual owns. Even where you can aggregate RMDs for inherited accounts, aggregation is permitted only if the account is of the same type, say, a traditional SEP and SIMPLE, and it was inherited from the same decedent. Otherwise, RMD aggregation is not permitted. Now, custodians are not required to calculate RMDs for inherited accounts. The IRS was very clear about this. Advisors should take those calculations done by a custodian with a grain of salt and double-check them, and here’s why. Usually, if you’re calculating RMDs for a beneficiary who is using the life expectancy option, the age of the beneficiary is used. But there are exceptions to that. If John inherited an IRA from Susie, and John is taking distributions over his life expectancy and dies and leaves the account to Jericho, Jericho can’t use Jericho’s life expectancy. Jericho must use the first beneficiary’s life expectancy. If a custodian doesn’t ask all those questions, there’s no way the calculation would be correct. If you have an RMD for the year and you’re rolling over assets, you must take the RMD before the rollover. Feldman: Listening to you talk about this, it’s clear this is very complex and should not be taken lightly by advisors. Appleby: You must keep abreast of the changes. I was teaching a class once, and as I told the class about a particular rule, I said as I always do, “Listen, the rules might change tomorrow.” And what do you know? The rule changed the next day.

January 2024 » InsuranceNewsNet Magazine

7


COVER STORY

Here we go again! The Department of Labor is trying for the fourth time to extend fiduciary duty to virtually all annuity sellers. Industry critics are spoiling for a fight. So what’s in this rule? By John Hilton

8

InsuranceNewsNet Magazine » January 2024


HERE WE GO AGAIN! COVER STORY

W

ith the Nov. 3 publication of the Retirement Security Rule, the Department of Labor embarked on its latest Sisyphean quest to extend fiduciary duty to annuity sellers. Regulators are expected to spend much of 2024 pushing the metaphorical boulder up the hill to get the rule on the books before the November presidential election. It remains to be seen whether the rock — or rather, the rule — will ever stay in place. Industry trade associations say they have a line, and a blanket fiduciary standard crosses it. “The proposal is out of touch with the anxieties of regular people who are worried about savings lasting through retirement, the effect Froment of volatile markets on 401(k)s and the high cost of living,” said Jillian Froment, executive vice president and general counsel for the American Council of Life Insurers. “Traditional pensions are no longer the norm, and guaranteed lifetime income through annuities lets people create their own pensions. That’s why annuity ownership is up.” Much like Sisyphus, condemned by the Greek gods to suffer repeated failure, the DOL cannot seem to get its fiduciary rule to stick. In 2010, the department withdrew its initial rule after widespread criticism. Its 2016 follow-up rule was tossed out by a federal appeals court two years later. Even the 2020 replacement rule, while it avoided the word “fiduciary,” was opposed by the industry and bested in court earlier this year. Yet, despite these setbacks, the DOL is seemingly emboldMayeux ened, pairing the current rule package with an aggressive attitude. President Joe Biden held a White House press conference to denounce socalled junk fees that accompany annuity sales, words that make industry executives bristle. “Referring to legitimate compensation many advisors receive for their work as

‘junk fees’ is insulting and unfair,” said Kevin Mayeux, CEO of the National Association of Insurance and Financial Advisors. “It disregards the fact that many consumers are best served by models that include products delivered on a commission basis.” Continuing its aggressive stance, the DOL quickly rejected appeals to extend a 60-day comment period for the rule. With previous fiduciary proposals, the DOL held longer comment periods and granted extensions. From where does this confident obstinance stem? The answer might be that regulators are playing the long game. After all, many distributors and producers drifted toward fiduciary delivery during the brief time the 2016 rule was in effect. Most of them did not abandon the new compliance regimes.

‘All the way to the Supreme Court’

Even if the department loses in court again, the current rule proposal might be in effect for years before it is overturned, noted Fred Reish, partner at Faegre Drinker Biddle & Reath. “It is entirely possible that this will go all the way to the Supreme Court,” he wrote recently. “In that case, advisors and agents, insurance companies, broker-dealers and investment advisors Reish will have been covered by and in compliance with the new rules for several years.” Whether this version of the fiduciary rule survives or dies will likely come down to two words: “trust” and “confidence.” In its 2018 decision, the Court of Appeals for the Fifth Circuit ruled that the 2016 fiduciary rule strayed too far from the common-law definition of the term fiduciary, which hinges on the existence of a relationship of “trust and confidence” with the client. Agents who merely sell products to their clients do not have this relationship, the court concluded. So this became the hurdle that the fiduciary rewrite must clear. Regulators acknowledged this in the rule preamble: “The current proposal bases investment advice fiduciary status on circumstances that indicate the retirement investor may

January 2024 » InsuranceNewsNet Magazine

9


COVER STORY HERE WE GO AGAIN!

New rule details With its new fiduciary rule package, the Department of Labor is replacing the nearly 50-year-old “five-part test” for establishing fiduciary advice, the law firm K&L Gates said. In its place, K&L explained that under the proposed rule, a person making an investment recommendation would be a fiduciary in any one of the three following contexts: » The person either directly or indirectly (e.g., through or together with any affiliate) has discretionary authority or control, whether or not pursuant to an agreement, arrangement or understanding, with respect to purchasing or selling securities or other investment property for the retirement investor. » The person either directly or indirectly makes investment recommendations to investors on a regular basis as part of their business, and the recommendation is provided under circumstances indicating that the recommendation is based on the particular needs or individual circumstances of the retirement investor and may be relied upon by the retirement investor as a basis for investment decisions that are in the retirement investor’s best interest. » The person making the recommendation represents or acknowledges that they are acting as a fiduciary when making investment recommendations.

10

InsuranceNewsNet Magazine » January 2024

place trust and confidence in the recommendation as a professional recommendation based upon the particular needs of the investor.” It might come down to convincing one judge to accept this argument. Opponents only Campbell needed one judge in the 2-1 Fifth Circuit decision. Brad Campbell, partner at Faegre Drinker and former assistant secretary of labor under President George W. Bush, does not accept the DOL’s explanation. “Though paying lip service to the Fifth Circuit, declaring the new proposal to be more narrowly tailored, the reality is that the new standard would deem many recommendations to be fiduciary advice that the [court] ruled Congress did not intend to capture,” he told InsuranceNewsNet.

The big changes for everyday agents

At nearly 500 pages, the DOL’s new fiduciary rule package is more than weekend reading material. Regulators propose a host of small and big changes to plug what they say are significant gaps in the financial advice business. “Financial advisors should put savers’ best interests first and not sell them lower-returning products in order to maximize their own fees,” said Lael Brainard, director of the National Economic Council. “When a retirement saver pays for trusted advice that is Brainard actually not in their best interest and comes at a hidden cost to their lifetime savings, that’s a junk fee.” Here are three areas of proposed change that every producer selling annuities should know. One-time sale will be fiduciary advice. This is the heart of the proposal, a change in what constitutes fiduciary advice from the five-part test to cover much-broader rollover recommendations. Conceived in 1975, the test is used to determine fiduciary status. Under the five-part test, a person is a fiduciary only if (1) they render advice as


HERE WE GO AGAIN! COVER STORY to the value of securities or other property, or make recommendations to invest, purchase or sell, (2) on a regular basis (3) pursuant to a mutual agreement, arrangement, or understanding with the plan or a plan fiduciary that (4) the advice will serve as a primary basis for investment decisions with respect to plan assets, and that (5) the advice will be individualized based on the particular needs of the plan. “According to DOL, the five-part test as applied to the current marketplace fails to capture many circumstances in which investors reasonably believe they are receiving advice from a fiduciary,” the law firm K&L Gates said in a client alert. The rule proposal would eliminate the “mutual understanding” and “regular basis” concepts present in the test. In place of the five-part test, the new rule establishes three contexts in which a

the 2020 replacement rule developed by the Trump administration DOL and permitted to take effect by the Biden administration. PTE 2020-02 expanded the definition of a “prohibited transaction” under retirement plan law to include any recommendation for rolling over 401(k) assets into an IRA (or from one IRA to another) when doing so would increase the compensation for the advisor. To qualify for an exemption to this rule, advisors must comply with DOL’s Impartial Conduct Standards requiring advisors to provide prudent investment advice, charge only reasonable compensation and avoid misleading statements. The DOL wants to push more producers into PTE 2020-02, analysts say. The exemption would be expanded to cover certain transactions involving pooled

It all comes down to compensation. In its bid to mitigate conflicts, the DOL is very narrowly restricting how independent agents can get paid .... person would be a fiduciary by meeting any one of them. This language opens the fiduciary gate: “The person either directly or indirectly makes investment recommendations to investors on a regular basis as part of their business.” “The change from the five-part test’s ‘regular basis’ prong to persons providing investment recommendations ‘on a regular basis as part of their business’ would accomplish DOL’s goal of making one-time advice, such as rollover advice, covered by the fiduciary standard,” K&L Gates wrote. Prohibited Transaction Exemption 2020-02. This exemption was part of

employer plans and transactions involving “pure” robo-advice providers, K&L Gates explained. In addition, the proposed amendment includes changes and clarifications regarding the exemption’s conditions, such as clarifications regarding the fiduciary acknowledgement requirement and a new requirement to provide a written statement of the best-interest standard of care owed by the investment professional to the retirement investor. “If the proposed amendment is adopted, financial institutions relying on PTE 2020-02 may need to amend their client disclosures and make changes to their policies and procedures,” K&L Gates

wrote. “Also, because the proposed rule broadens the definition of who is an investment advice fiduciary, more parties may need to rely on PTE 2020-02.” Prohibited Transaction Exemption 84-24. Independent agents relying on PTE 84-24 to get paid commissions are in for the biggest change, and this will be the biggest fight, Reish said. And it all comes down to compensation. In its bid to mitigate conflicts, the DOL is very narrowly restricting how independent agents can get paid, Campbell explained. “The whole purpose of an independent agent is to be independent; therefore, they can’t be controlled by that carrier to the same extent,” he said. “But that also means that it’s harder for us, DOL, to know that someone’s watching their conflicts and properly mitigating them. So, instead of giving broader latitude in compensation, we’re going to narrowly define what it is.” DOL regulators have long wanted to ban questionable incentives like trips and other bonuses given to producers who hit annuity sales goals. As a result, many of those practices have gone away. The new rule would further streamline compensation. The only permissible compensation would be the upfront commission, the renewal fee and any trailing fees, Campbell noted. “No other form of compensation of any kind is permitted under the exemption,” he said. “That means no marketing support payment [and] a whole variety of different incentives that are typically present in insurance sales relationships.” InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john. hilton@innfeedback.com. Follow him on X @INNJohnH.

Keep up to date on the latest developments. Visit insurancenewsnet.com for the latest fiduciary and DOL updates.

January 2024 » InsuranceNewsNet Magazine

11


the Fıeld A Visit With Agents of Change

with Danielle Chesney

12

InsuranceNewsNet Magazine » January 2024


CONNECTING THROUGH LOSS — WITH DANIELLE CHESNEY IN THE FIELD

DANIELLE CHESNEY

uses her personal experiences to connect with clients while giving back to children who have lost a parent.

BY SUSAN RUPE

W

hen Danielle Chesney was 14 years old, her mother died of breast cancer. Her family didn’t suffer only an emotional loss; they also faced a mountain of expenses. “Her death really inspired me in so many ways,” Chesney said. “Her loss was significant in that it was emotional, but it left my family with such a big financial burden. We were not only dealing with the loss of my mom, but we were struggling with finances because she did not have life insurance. So that was kind of the beginning of my journey here.” Chesney is a life insurance executive and marketing director with Byrne Insurance Group, based in Louisville, Ky. She has been in the business only about a year, but she is driven to help families avoid the struggles her family faced after her mother’s death. “My mom was a stay-at-home mom,” she recalled. “I recently asked my dad why mom didn’t have life insurance, and his response was, ‘I honestly did not think that anything could happen to your mom.’ That was such an honest response; it did not cross his mind that anything

could happen to her. And that is the case for so many people. “I totally understand his perspective. When my mom got sick, it was way too late to get life insurance, and there was nothing we could do. But without life insurance, the cost of the funeral and all of the hospital bills was so expensive. Luckily, my dad was able to pay them, but it wasn’t easy.” Chesney graduated from the University of Kentucky with a degree in family science in 2019 and originally planned to become a marriage and family therapist. She was also on the university’s gymnastics team, having competed in the sport for 14 years. “Gymnastics is very demanding, and it starts at a very young age. I learned so much from the 14 years I competed,” she

mutual friend. “It felt like this would be a great fit for me. And I’m really enjoying it so far,” she said of the insurance business.

A combination of experience and skill

Chesney said she combines her college degree with her family’s experience and her coaching skills to work with clients on the best solutions for their needs. “I learned so much in my major, and I’ve applied a lot of it here, building relationships and understanding people’s needs,” she said. As far as her coaching experience goes, Chesney said she applies it in her insurance career as well. “In coaching gymnastics, I try to get to know the individual as a person. I try

You get out there to compete in an event, and if you fall, you have to get right back up. That’s kind of something that I’ve had to apply in my personal life as well. said. “You get out there to compete in an event, and if you fall, you have to get right back up. That’s kind of something that I’ve had to apply in my personal life as well.” After college, she coached gymnastics and eventually met Ben Byrne, president of Byrne Insurance Group, through a

Chesney combines her college degree with her family’s experience and her coaching skills to work with clients on the best solutions for their needs.

to understand who they are as a person before I understand who they are as a gymnast,” she said. “I try to employ that mentality in my insurance role. I want to get to know you, get to know your story. Are you married? Do you have children? Where do you live? I want to make sure I can best serve their needs for life insurance so that they have all that taken care of in the event of their death. “Gymnastics is a very challenging sport, and I try to provide the best support for the athletes that I can. In the same way, it’s also important for me to support my clients and for us to connect on a level that enables me to meet their needs.” Chesney said she serves a clientele that is mostly older, but she is doing her best to make inroads with younger consumers. “It is challenging to promote life insurance for young adults, especially for those who aren’t married or who don’t have kids,” she said. “But I do try to convey the

January 2024 » InsuranceNewsNet Magazine

13


the Fıeld A Visit With Agents of Change

“Gymnastics is a very challenging sport, and I try to provide the best support for the athletes that I can. In the same way, it’s also important for me to support my clients and for us to connect on a level that enables me to meet their needs.” importance of it. Because the best time to get life insurance is when you’re young. Then if you do get married or have children in the future, you’re covered.”

Helping others with their grief journey

Chesney’s experience with her mother’s death inspired her to reach out and serve children who have suffered a similar loss. After graduating from college, she began to mentor a boy whose mother died. By 2021, she had expanded her mentoring to establish Young Hearts, a nonprofit organization that provides mentoring and emotional support to children who have lost a parent. “It’s a very small organization serving a few kids at this point, but a lot of people have supported Young Hearts, and we’re helping those children on their journey of grief,” she said. Young Hearts provides group activities for the children it serves, and Chesney said she often takes the children out for dinner as a group. The organization also 14

has peer support events where children can connect with others who have experienced the same type of loss. “It’s important for the kids to be able to find others they can connect with,” she said. “We also do some individual activities with the kids, and sometimes we just all hang out and spend time together.”

Growing with the agency

Byrne Insurance Group is a family-owned insurance company employing several family members. “Everyone here has a connection, everyone has a story,” she said. “I’ve truly enjoyed every bit of my experience here.” “We’ve brought in eight new insurance agents just in 2023. There is such a big growth factor here. And I see me using my marketing skills and my connections to help grow the agency — that is our primary goal.” Chesney said that her mother’s death continues to influence her insurance career. “Losing my mom when I was 14 forced me to grow into the person I am today,”

InsuranceNewsNet Magazine » January 2024

she said. “I really had to struggle through that emotional pain and emotional loss. But I connect with people today through my life insurance career. I see the importance of life insurance because I’ve been through the loss of my mother. I’ve seen how not having life insurance really impacted families financially. So I try to express that to my clients, highlight the importance of life insurance to them and build that personal connection.” Susan Rupe is managing editor for InsuranceNewsNet. Susan formerly served as communications director for an insurance agents’ association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on X @INNsusan.

Like this article or any other?

Take advantage of our award-winning journalism, licensure and reprint options. Find out more at innreprints.com.


Why advisors are struggling to fill their events with ideal prospects and turn them into high-value clients (and how to fix it)

O

ften agents and advisors believe that just seeing more people is the key to their success. They focus solely on getting more leads. However, those who want greater marketing ROI … to spend more time on financial planning than event planning … and to have a more profitable business, focus their attention on something different. The secret to marketing that leads to millions in sales or AUM is to shift from just generating more leads to attracting and nurturing “better prospects.” Consider two advisors. Both have been in business for a few years. Both are confident in their ability to help clients with their financial plans. They’re contracted with similar carriers and offer many of the same products. Both are motivated to grow their practice. And want the business and loyalty of ideal clients. But there’s a difference between these two advisors.

The story of these two types of advisors illustrates a couple points. One, marketing events that attract high-quality clients require more than the typical lead generation efforts. And two, hope is not a strategy. To help predictably fill your events with ideal prospects that become million-dollar clients, here’s what digital marketing expert and Founder and Managing Director of Safe Money Marketing, Clifford Blodgett, helps his financial advisor clients do.

5. Lean into your strengths.

You’ll be more likely to consistently do and excel at the type of marketing that suits you. If you like dinner seminars, great. But there are other options out there. How valuable would it be to have an expert work 1:1 with you to identify and implement the most effective marketing strategies for your business?

4. Ensure a continuously full pipeline.

Stay several steps ahead. Top advisors

“With my previous marketing firm, I had 7 registrants going into a Tuesday about 7 days before my dinner event. With the SafeMoney Event Fire and Rescue Crew, I got 27 additional registrants. So, I had 4-5 days of ads running once Facebook approved and everything got published. And then I did another event right after that in a new area, using Safe Money Marketing, and generated 91 registrants for a dinner event without using mailers at all.”

— Adrian D., financial advisor

The first type is generating leads for their events by relying on sporadic Facebook ads or emails that lack a cohesive plan. They don’t even like doing dinner seminars but don’t realize there are other options out there. They’re disappointed with a low show-up rate and rarely set appointments or get million-dollar clients from their events. But they keep repeating this faulty process hoping for different results. Compare that to the second financial advisor who decides to focus on attracting and nurturing better prospects. This advisor from Los Angeles, CA, put a digital marketing strategy in place for his events, which led to submitting $950K of annuity premium within just two weeks of his most recent seminar — with an additional $3.7 in the pipeline.

have the following year’s events planned, ensuring a continuously full pipeline. Knowing your marketing is set for the next 12 months also brings confidence and security. While planning ahead may cost a bit more up front, with expert guidance, the financial investment in marketing becomes a calculated, profitable decision.

3. Follow up, follow up, follow up.

When it comes to marketing, you can’t give up after one interaction. It can take seven to 15 or more “touches” before someone is ready to do business with you. Blodgett says, “It never fails. Every time I’m at a conference or meeting with financial professionals, someone will tell me they just had an appointment and closed $2 million, for example, from the emails in

the follow-up campaign we did for them.” The money’s in the follow up — if you do it right.

2. Get a verbal commitment.

Don’t rely solely on online registrations. Have a skilled confirmation caller, preferably not you, contact registrants to ensure they plan to attend. When you add this step to your process and get it right, 75-80% of them confirm. And once they’ve made that verbal commitment, it increases the chances they’ll show up.

1. Know your client better than they know themselves.

The foundation of effective marketing is identifying and understanding your ideal client: their self-perception, pain points, and the language they use to describe what keeps them up at night. Incorporating these insights into your digital marketing is what leads to full venues — so full you have 89 registrants and have to make it a two-day estate planning event like Advisor Court P. Or Advisor Adrian D. who paid a mail house to do a traditional direct mail invite, which bombed with only 7 responses, to filling that event within 4 days. By using these strategies, you can build a thriving practice with profitable events. But what if you could consistently and predictably fill your events with engaged prospects eager to do business with you, without having to worry about all the marketing pieces…

Learn more about the no-stress system that fills your events with ideal prospects more likely to become your next milliondollar clients. Visit PutOnProfitableEvents.com to find out more.


LIFEWIRES

Financial fears encourage, inhibit life insurance sales

People who have financial fears are more than five times more likely to say they want to buy life insurance, according to new research by LIMRA. However, at the same time, that research found that interest in buying life insurance is often overstated, as affordability is a common reason why people ultimately choose not to buy. LIMRA suggested financial advisors could best serve target markets by making an effort to understand the core financial Top 3 consumer financial fears fears consumers have and taking a holistic approach to address those concerns. 1. Making ends meet. LIMRA’s research surveyed 3,000 con2. Savings and preparedness. sumers aged 18-65+ to understand how fi3. E conomic stability and stock nancial stress affects purchasing decisions. market. Source: LIMRA Seven in 10 respondents said something about their financial situation “scares” them. Four in 10 were concerned about making ends meet, and 4 in 10 were concerned about savings and preparedness. Younger respondents, in their 20s and 30s, were more likely to be concerned about making ends meet. Respondents in their 40s and 50s were more likely to be concerned about retirement savings and preparedness. In contrast, 3 in 10 respondents said nothing about their financial situation scares them. Respondents aged 60 and over were the most likely to give this response.

LIFE INSURANCE NOT A PRIORITY FOR MILLENNIALS

Shopping for and buying life insurance isn’t a top priority for the millennial generation despite major efforts by companies to ease sign-ups and lower costs. 29% of millennials wish they had bought life insurance when they were younger. The average age at which millennials bought life insurance is 27. Source: Insuranks

A survey of more than 1,000 millennials by Insuranks.com found more than half (53%) do not own life insurance, even though 48% said they want it. Finances and confusion were the main reasons stated for holding back on DID YOU

KNOW

?

16

purchasing life insurance, according to the survey. Also, a high percentage said life insurance wasn’t all that important to them after health, auto, and home or rental insurance. Life insurance was ranked the fourth most important. However, more than 1 in 2 millennials admitted they have refrained from getting life insurance due to the higher costs of other types of insurance. One in 3, or 28%, said they didn’t think they needed life insurance. And a significant number, 29%, said they were overwhelmed by the complexity of life insurance.

MASSMUTUAL TO ‘WIND DOWN’ HAVEN LIFE

MassMutual Life said it will “wind down” its online Haven Life subsidiary, which offers term life insurance only. Over the “coming months,” MassMutual will shift direct access to MassMutual life insurance products from Haven Life to MassMutual.com, a spokesperson confirmed. Created in 2015, Haven Life suffered from “lack of consumer adoption” and “high costs associated with

QUOTABLE

The central argument that insurance professionals need to get across to the public is that people should obtain life insurance while they are still young and healthy. — Bob Gaydos, founder and CEO of Pendella

customer acquisition” in the years since, the source added. Haven Life focuses on direct-to-consumer term life policies written digitally without health exams. Its policies will continue to be serviced by MassMutual, the spokesperson said. Sales will continue through Haven Life “for a limited time,” the insurer said.

LIFE INSURERS WARMING TO AI

Fifty-eight percent of life insurers are either using or have an interest in using artificial intelligence in their businesses, an NAIC working group found. The Big Data and Artificial Intelligence Working Group discussed these during the National Association of Insurance Commissioners’ fall meeting.

Life insurers reported they are mainly using AI and machine learning for marketing and underwriting. Some life insurers are using AI and machine learning to “augment” processes, while others are using the technology to fully “automate” tasks. When insurers were asked whether they informed policyholders about how their data is being used, other than what is required under the Fair Credit Reporting Act, 37% of respondents said they inform policyholders when their data is used for marketing, the survey found.

Fitch Ratings has revised its sector outlook for North American life insurers from “neutral” status to “improving” for 2024.

InsuranceNewsNet Magazine » January 2024

Source: Fitch Ratings


• Optional Rate Enhancement Rider, which gives higher Participation, Cap, Trigger, and Fixed Rates, and increases the free withdrawal amount to 10% (after the first contract year). • Eleven flexible crediting strategies to choose from for accumulation needs. • Consistent Rate History with rates steadily increasing since launch across all strategy options. PERFORMANCE YOU CAN COUNT ON

In 2020, Sentinel Security Life Insurance Company and Atlantic Coast Life Insurance Company’s Accumulation Protector PlusSM (APP) Annuity took the annuity market by storm with its one-of-a-kind 10-year guarantees1, market-leading index options and flexible crediting strategies. Now in 2023, the APP annuity has been upgraded in big ways to provide even more value, and builds on its proven history of reliability and performance.

FOR AGENT USE ONLY. NOT FOR DISTRIBUTION TO CONSUMERS. ALL PRODUCT RECOMMENDATIONS MUST BE PRIOTITIZED BY THE CONSUMER’S BEST INTEREST. COMMISSION RATES LISTED ARE PROPOSED RATES ONLY AND MAY CHANGE AT ANYTIME WITHOUT NOTICE.

10

10% 10% PERFORMANCE YOU CAN COUNT ON

Interest Rates as of 9/25/23. Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company are members of the A-CAP Family. Guarantees rely on the financial strength and claims-paying ability of Sentinel Securi ty Life Insurance Company 2 BONUS GUARANTEES ONoffers legal or tax advice. RatesPREMIUM CAP RATE and AtlantiYEAR c Coast Life Insurance Company independently. Neither Company are subj e ct to change. Products, Ri d ers and features are not avai l a bl e i n al l states and are subj e ct to change wi t hout noti c e. See annuity contract, agent 1 field guide,MULTIPLE rate sheet, and statement of STRATEGIES understanding for all terms and conditions. Fixed Index Single Premium Deferred Annuity Contract with Premium Bonus; ICC19-SSLACCFIAPOL; ICC19-ACLACCFIAPOL; or state variation thereof. Jurisdiction and product limitations or restrictions may apply. Informational purposes only. This communication does not constitute a company warranty. Since APPIndex annuity expectations. now for includes a annui 10% and 10%Company Cap conti Rate 1 The Particiits pationlaunch, Rates for the CSthe Momentum One-year poihas nt-to-poitransformed nt and Two-year point-to-poi nt crediting strategies areItguaranteed 10 years from the ty issuePremium date, provided thatBonus Sentinel Securi ty Lifae Insurance nues toon have acSM the S&P 500® 1 Year Point-to-Point in addition to its 10-year guarantees1. cess to the CS Momentum Index. The Participation Rates for the CS ESG Macro 5 Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the annuity issue date, provided that Sentinel Security Life Insurance Company nues to have access toOffers the CS ESG Macrothe 5 Index. The Participation Rates for the CS Momentum Index One-year poin1t-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the annuity issue date, provided that APPcontiAnnuity Total-Package AtlWhether antic Coast Lifyour e Insurance Company conti n ues to have access to the CS Momentum Index. The Participation Rates for the CS ESG Macro 5 Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the client is looking for accumulation power, protection, stability, or performance, the APP annuity fixed indexed annuity has a annui t y i s sue date, provi d ed that Atl a nti c Coast Li f e Insurance Company nues to haveand accessatoproven the CS ESG Macro total-package of enhanced features and conti benefits, track5 Index. record of performance and reliability that set it apart from the competition. 3 ® The new 10% Premium Bonus and the new higher 10% Cap Rate on the S&P 500® 1 Year Point-to-Point (12.25% with rider)4 combined with the 2 With the selection of the S&P 500 1 Year Point-to-Point crediting strategy. 1 the Fixed Rate, Trigger Rate and Index Strategy options make the APP annuity rich in performance based features and a 310-year Funds can beguarantees accessed subject to ,a vesti ng schedule. valuable addition to a retirement plan. 4 Interest Rates as of September 25th, 2023, and are subject to change without notice.

In 2020, Sentinel Security Life Insurance Company and Atlantic Coast Life Insurance Company’s Accumulation Protector Plus (APP) Annuity took the annuity market by storm with its one-of-a-kind 10-year guarantees , market-leading index options and flexible crediting strategies. Now in 2023, the APP annuity has been upgraded in big ways to provide even more value, and builds on its proven history of reliability and performance.

• Guaranteed participation rates for 10 years.1 •A.M.NEW 10%withPremium Best B++ (Good) Stable Outlook as ofBonus. August 2023.3 • NEW 10% Cap Rate on the S&P 500® 1 Year Point-to-Point (12.25% with rider). •The4.75% a product ofRate. S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Sentinel Security Life Insurance Company. Standard & Poor’s® and S&P 500® are registered trademarks of Standard & Poor’s Financial “S&P 500®” isFixed • Trigger Rate strategy credits 9% when the index breaks-even or performs positively. trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Sentinel Security Life Insurance Company. Services LLC (“S&P”); Dow Jones® is a registeredthat • Exclusive access to the CS Momentum Index and the CS ESG Macro 5 Index. SM Annui t y i s not sponsored, endorsed, sold or promoted by SPDJI,gives Dow Jones,higher S&P®, or theiParticipation, r respective affiliates, and none of such Trigger, parties make anyand representati on regardiRates, ng the advisabiand lity of investi ng in such product(s) nor do they Accumul a ti o n Protector Pl u s • Optional Rate Enhancement Rider, which Cap, Fixed increases ® . havethe any liafree bility for withdrawal any errors, omissions, oramount interruptions of to the S&P 500 10% (after the first contract year). • Eleven flexible crediting strategies to choose from for accumulation needs. •TheConsistent steadily all strategy of S&P DowHistory Jones Indices LLCwith or its affilrates iates (“SPDJI”), and has beenincreasing licensed for use by Atlsince antic Coastlaunch Life Insuranceacross Company. Standard & Poor’s® and S&Poptions. 500® are registered trademarks of Standard & Poor’s Financial Services “S&P 500®” is a product Rate

10

10% 10%

LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Atlantic Coast Life Insurance Company. Accumulation ty is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P®, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any Protector PlFOR usSM Annui AGENT USE ONLY. NOT FOR DISTRIBUTION TO CONSUMERS. ALL PRODUCT RECOMMENDATIONS MUST BE PRIOTITIZED BY THE CONSUMER’S BEST liability for any errors, omissions, or iINTEREST. nterruptions of theCOMMISSION S&P 500®. RATES LISTED ARE PROPOSED RATES ONLY AND MAY CHANGE AT ANYTIME WITHOUT NOTICE.

YEAR GUARANTEES ON MULTIPLE STRATEGIES1

PREMIUM BONUS

CAP RATE2

Interest Rates as of 9/25/23. Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company are members of the A-CAP Family. Guarantees rely on the financial strength and claims-paying ability of Sentinel Security Life Insurance Company and Atlantic Coast Life Insurance Company independently. Neither Company offers legal or tax advice. Rates are subject to change. Products, Riders and features are not available in all states and are subject to change without notice. See annuity contract, agent

field CS guide, rate sheet, and the statement understanding for all Fixed Index Deferred Premium Bonus; variation thereof. The Momentum Index, CS ESGof Macro 5 Index (the “Inditerms ces”),andandconditions. any trademarks, serviSingle ce marksPremium and logos relatedAnnuity theretoContract are serviwith ce marks of Credi t SuiICC19-SSLACCFIAPOL; sse Group AG, Credit SuiICC19-ACLACCFIAPOL; sse International, or oneorof state their affil iates (col lectivJurisdiction ely, “CS”). CSandhasproduct no limitations or restrictions may apply. Informational purposes only. This communication does not constitute a company warranty. 1 The Participation Rates for the CS Momentum Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the annuity issue date, provided that Sentinel Security Life Insurance Company continues to have acrelcessatiotonshithepCSto AtlMomentum antic CoastIndex. Life Insurance Company and Sentinel Security Life Insurance Company, other than the licensing of the CS Momentum Index and the CS ESG Macro 5 Index and its service marks for use in connection with the Accumulation Protector The Participation Rates for the CS ESG Macro 5 Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the annuity issue date, provided that Sentinel Security Life Insurance continues to have access to the CS ESG Macro 5 Index. The Participation Rates for the CS Momentum Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 yearsSMfrom the annuity issue date, provided that tyLife andInsurance certain hedgi ng arrangements andhave is notaccess a partyto totheanyCStransacti on contempl atedParticipation hereby. CSRates shall notfor betheliCS ableESG for theMacro resul5tsIndex obtaiOne-year ned by usipoint-to-point ng, investing iand n, orTwo-year trading thepoint-to-point Accumulatiocrediting n Protector Plus Annui ty. CS hasfornot10created, publithe shed PlCompany usSM Annui Atlantic Coast Company continues to Momentum Index. The strategies are guaranteed years from annuity issue date, provided that Atlantic Coast Life Insurance Company continues to have access to the CS ESG Macro 5 Index. SM 1 Year Point-to-Point crediting strategy. With the selection of the S&P 500 Annui t y are sol e l y the obl i g ati o n of Atl a nti c Coast Li f e Insurance Company and Senti n el Securi ty Life or32 Funds approved thi s document and accepts no responsi b i l i t y or l i a bi l i t y for i t s contents or use. Obl i g ati o ns to make payments under the Accumul a ti o n Protector Pl u s can be accessed subject to a vesting schedule. 4 Interest Rates as of September 25th, 2023, and are subject to change without notice. Insurance Company and are not the responsibility of CS. ®

A.M. Best B++ (Good) with Stable Outlook as of August 2023.

The “S&P 500®” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Sentinel Security Life Insurance Company. Standard & Poor’s® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Sentinel Security Life Insurance Company. Accumulation Protector PlusSM Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P®, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500®.

There is currently no universal definition or exhaustive list defining the issues or factors that are covered by the concept of “ESG” (Environmental, Social, Governance). CS’s view of ESG is based solely on CS’s current opinions, assumptions, and interpretations, whi ch may evolve over time and are subject to change. The “S&P 500 ” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Atlantic Coast Life Insurance Company. Standard & Poor’s and S&P 500 are registered trademarks of Standard & Poor’s Financial Services

Since its launch, the APP annuity has transformed expectations. It now includes a 10% Premium Bonus and a 10% Cap Rate on MSCI Indices are the excl®usive property of MSCI Inc. (“MSCI”). MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and1 have been licensed for use for certain purposes by CS. The financial product referred to herein is not sponsored, the 500by MSCI,1 Year nt into addi tioanl product.to itThes annui10-year endorsed,S&P or promoted and MSCIPoi bearsnnot-to-Poi liability with respect such financi ty contract orguarantees other governing disclo.sure document contains a more detailed description of the limited relationship MSCI has with CS and any related ®

®

®

LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Atlantic Coast Life Insurance Company. Accumulation Protector PlusSM Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P®, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500®.

The CS Momentum Index, the CS ESG Macro 5 Index (the “Indices”), and any trademarks, service marks and logos related thereto are service marks of Credit Suisse Group AG, Credit Suisse International, or one of their affiliates (collectively, “CS”). CS has no relationship to Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company, other than the licensing of the CS Momentum Index and the CS ESG Macro 5 Index and its service marks for use in connection with the Accumulation Protector PlusSM Annuity and certain hedging arrangements and is not a party to any transaction contemplated hereby. CS shall not be liable for the results obtained by using, investing in, or trading the Accumulation Protector PlusSM Annuity. CS has not created, published or approved this document and accepts no responsibility or liability for its contents or use. Obligations to make payments under the Accumulation Protector PlusSM Annuity are solely the obligation of Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company and are not the responsibility of CS.

financial product. No purchaser, seller or holder of this financial product, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this financial product without first contacting MSCI tois currently determinenowhether MSCI’ s permiorssiexhaustive on is requilistred.defining Under notheciissues rcumstances maythatanyareperson or enti y clconcept aim any ofaffil“ESG” iation (Environmental, with MSCI withoutSocial, the priGovernance). or written permiCS’sssiview on ofofMSCI. There universal definition or factors covered by tthe ESG is based solely on CS’s current opinions, assumptions, and interpretations, which may evolve over time and are subject to change. SSLAPP065 ACLAPP062 MSCI Indices are the exclusive property of MSCI Inc. (“MSCI”). MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by CS. The financial product referred to herein is not sponsored,

APP Annuity Offers the Total-Package

endorsed, or promoted by MSCI, and MSCI bears no liability with respect to such financial product. The annuity contract or other governing disclosure document contains a more detailed description of the limited relationship MSCI has with CS and any related financial product. No purchaser, seller or holder of this financial product, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this financial product without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI. SSLAPP065 ACLAPP062

Whether your client is looking for accumulation power, protection, stability, or performance, the APP annuity fixed indexed annuity has a


LIFE

If selling life insurance were easy, everyone would do it The right way to have difficult conversations about buying life insurance. By Joe Ross

M

ost InsuranceNewsNet readers are well convinced of the value of life insurance — as they should be. Life insurance is an extraordinary financial product that helps ensure security and protection for loved ones and beneficiaries. But life insurance’s many benefits and positives don’t mean that selling life insurance is easy. After all, if it were easy, everyone would do it! Many agents, especially new agents, struggle to succeed for two primary reasons.

1. Prospecting. How do you find people to talk to about the benefits of life insurance?

2. The words. What do you say to

someone about life insurance’s ability to help them achieve their financial goals?

The challenge of prospecting

Let’s begin with prospecting. Many new agents are told that their best first 18

prospects are their family and friends. These new agents are instructed to call everyone they know and set up an appointment to sell them some life insurance. The fledgling agent might then ask, “What do I do after I’m done running through those appointments?” The guidance is often, “Every time you successfully sell a life insurance policy, ask the buyer if they know anybody else that you can help.” What’s the problem with that approach? First of all, you can hardly be vaguer. Second, people don’t like to have life insurance agents call their friends. And third, their friends get angry when they’re called by a life insurance agent who says, “Your friend Amy told me I should give you a call to talk about life insurance.”

How to prospect like a pro

How can a new agent overcome these prospecting challenges? My recommendations are first to ask better prospecting questions and then to ask for introductions instead of referrals. What do I mean by better prospecting questions? You’re in the client service business, so don’t make your new clients do all the work. If you only suggest that you want to connect with “someone I might be able to help,” your

InsuranceNewsNet Magazine » January 2024

new clients might not recognize all the types of people who could use life insurance and then may struggle to give you a name. It’s important to be much more precise and present specific ideas that will inspire your clients. You might ask if they know anyone who has recently had a baby. I have found this life event creates a special joy in almost everyone. You can almost tell by the look in their eye and how they react whether they know someone who has brought a new person into the world. If so, the conversation can unfold into how you often help new parents create financial security for their family when they have dependent children under their roof. Here are some other life situations to ask your new client about. Maybe they know someone who:

»R ecently bought a new house or moved into the neighborhood.

»G ot married. »G ot divorced. »B ecame a widow or a widower. »G ot a new job or promotion. »R etired. By being specific about these life moments, you are much more likely to inspire people to think of someone specific.


IF SELLING LIFE INSURANCE WERE EASY, EVERYONE WOULD DO IT LIFE

Introductions vs. referrals

possible, and lately I’ve been hearing a common theme — many people tell me they’re concerned about the taxes their beneficiaries will pay on the individual retirement account they inherit. Is that something that concerns you?” If you’re introducing yourself to a young couple, then the journey will be different. It will be less about reflecting on the past and more about picturing the milestones of the future. Almost everyone wants these important events to happen, whether they’re around to see them or not. It’s about using the right words to make sure that thought process happens. “If, for whatever reason, you don’t make it home from work next week, and 10 years after you’re gone you have an opportunity to look down on your family to see what’s going on, what would you like to see?” Encourage them to tell you about their kids graduating, Your words make a perhaps getting married, maybe difference buying a house and succeeding If you’ve obtained the introducin their careers. How they were tion, that’s a great start. But what still able to enjoy the family vado you say when you are introcations you had dreamed about. duced to someone new? You Encourage them to talk about must introduce yourself in a what they’d like to see their surMy approach resonates with sports way that gets them interested in viving spouse doing. fans, but I know there are elements talking to you about how you can “Based on the plans you have that hit home with everyone, help them. in place today, what do you including those who — to borrow Great life insurance sales think you’d actually see?” some baseball lingo — don’t professionals do more than sell For this, you may have to know the first thing about hitting life insurance. I make it a point sketch out some difficult situasomeone home. to choose words in my opening tions. There might not be monthat demonstrate how I see myey for their children’s education, self making contributions to their total financial well-being and for family vacations, or for help with weddings, down payments how I can help realize their dreams. or replacements for aging cars. Then, get into key specifics, like My approach resonates with sports fans, but I know there how much the surviving spouse can earn and whether there are elements that hit home with everyone, including those who will be new child care costs. From there, gently move the con— to borrow some baseball lingo — don’t know the first thing versation toward life insurance. about hitting someone home. “If there were a way to bring what you think you’d actually “I consider myself a financial coach. I help people play fi- see closer to what you’d like to see, would you like to learn about nancial offense and financial defense. Financial offense is the ways to do that?” process of planning for what you expect to happen. Financial Helping people achieve their financial goals, whether it’s defense is the process of preparing for what you don’t expect. planning for the expected or preparing for the unexpected, is a I’ve found that the highest likelihood of achieving long-term rewarding career path. Now you have a better chance of finding financial success comes from a balance of both.” more people to help. Another avenue is to use questions that get your prospect I began by saying, “If it were easy, everyone would do it.” A talking. If you’re talking with a retiree, you can ask them about career in life insurance offers incredible opportunity but can their accomplishments, and then transition to the legacy they’re be challenging. If you can employ some of the things I’ve delooking to leave. Again, the words here are important because scribed, it can become a bit easier. These are the tools that can you want to help them make the connection between all that lead to a long and successful career in life they’ve worked to achieve and how to turn that into as much as insurance. Good luck! possible for the next generation. “I work with a lot of people in a situation like yours — indi- Joe Ross is vice president, sales producviduals with an amazing track record who are ready to succeed tivity and business development, with Corebridge Financial. Contact him at joe. in their next phase. I specialize in helping people create lega- ross@innfeedback.com. cies for their families and charities that they never imagined Next, don’t just ask for that person’s name and phone number. Aim to make your next step something meaningful. Get an introduction from the person who just bought from you. It goes something like this: “So your friend Larry just got married. I know you don’t owe me any favors, but would you be willing to invite Larry to have breakfast or a cup of coffee with you and me — my treat — and you can introduce me to Larry? We can talk a little about what I do so Larry can determine if I can help him as well.” This description already sounds like an enjoyable and productive way to spend an hour or two. Just by going through the process of thinking about protection, everyone will have crystallized a point or two in their financial plan and maybe even their plan for life.

January 2024 » InsuranceNewsNet Magazine

19


ANNUITYWIRES

Annuity sales reach new record levels in Q3

QUOTABLE Source: Wink Inc.

Deferred annuities just kept selling in the third quarter as the products enjoy an ongoing resurgence. Total deferred annuity sales hit $78.6. billion, Wink Inc. reported. Sales were down 1.4% when compared with the previous quarter and up 8.5% when compared with Q3 2022. All deferred annuities include the variable annuity, structured annuity, indexed annuity, traditional fixed annuity, and multiyear guaranteed annuity product lines. Among product lines, structured annuity sales stood out. Also known as registered indexed-linked annuities, structured annuity sales in the third quarter were $11.4 billion, up 6% compared with Q2 and up 12.5% over Q3 2022. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts. LIMRA’s Q3 report saw annuity sales of $88.6 billion, a 10% increase year over year. Year to date, total annuity sales were $269.6 billion, jumping 21% from the prior year’s results. LIMRA is forecasting sales to exceed $350 billion, more than 10% higher than the record set in 2022. Company and Commonwealth Annuity and Life Insurance Company. MetLife will retain servicing and administration of the policies.

FINRA CHARGES ADVISOR WITH UNSUITABLE ANNUITY SALES

GLOBAL ATLANTIC STRIKES REINSURANCE DEAL WITH METLIFE

Global Atlantic Financial Group closed a $19 billion reinsurance deal with MetLife Inc. The transaction, signed between subsidiaries of the two companies in May, reinsures a seasoned and diversified block of MetLife’s U.S. retail annuity and life insurance business. General account assets under management supporting the transaction at signing were approximately $13 billion. Under the terms of the agreement, MetLife transferred general account assets for the block to Global Atlantic subsidiaries First Allmerica Financial Life Insurance DID YOU

KNOW

?

20

The Financial Industry Regulatory Authority and Malay Kumar recently settled charges that Kumar violated provisions of Regulation Best Interest while affiliated with Cambridge Investment Research Inc. FINRA said that Kumar recommended that seven of his customers exchange variable annuities — without reasonably considering the impact of the substantial surrender fees and the loss of benefits and liquidity caused by the exchanges. FINRA alleged that Kumar did not have a reasonable basis to believe that his recommendations were suitable or, after June 30, 2020, in his customers’ best interest. The exchange recommendations

Equity market growth combined with attractive cap and participation rates drove investor interest in fixed indexed annuities. — Todd Giesing, assistant vice president, LIMRA Annuity Research

caused Kumar’s customers to incur $50,103 in surrender fees, FINRA said.

KKR ACQUIRES REMAINDER OF GLOBAL ATLANTIC FOR $2.7 BILLION

KKR will pay about $2.7 billion in an all-cash transaction to buy out minority stakeholders of Global Atlantic. The cost is well above the $4.7 billion KKR paid to acquire 63% of the insurer three years ago. Since then, Global Atlantic’s assets under management have grown significantly, up from $72 billion in 2020 to $158 billion today. The annuity seller has become a key cog in KKR’s aggressive growth plan, which calls for quadrupling its market cap in the next decade. “Insurance is a powerful contributor to our business,” said Co-CEO Scott Nuttall. “The earnings of Global Nuttall Atlantic have proven to be highly recurring and fast growing. And GA helped scale our asset management business’s indirect private wealth distribution.” Global Atlantic recently reported a strong third quarter, with earnings up 24% to $210 million, helping KKR beat analysts’ expectations. According to LIMRA’s most recent data, the insurer ranked 12th in year-to-date total annuity sales with more than $7.1 billion through the third quarter.

Just 22% of Americans identify outliving their savings as their major concern.

InsuranceNewsNet Magazine » January 2024

Sources: Jackson Financial Inc. and Boston College


1

The # Overlooked Marketing Strategy (If you’re seeing this… it’s working.)

Feel like your messages to agents and advisors are vanishing into the inbox black hole?

The “Golden Inbox.”

Financial professionals are swamped with emails vying for their time, attention, and business.

The “Golden Inbox” is an UNTAPPED opportunity for carriers, IMOs, and fintechs to get marketing results that drive ROI for YEARS.

Make sure your message gets the attention it deserves by leveraging this overlooked strategy:

Contact an Account Director today about securing your spot in the “Golden Inbox” at 717.441.9357.


ANNUITY

Index crediting strategy: Which one is best for your clients? A three-step approach to understanding the index crediting strategy that will protect your clients’ investment.

Barnes discussed his three-step approach to better understanding the environment in which various strategies can thrive the best. Those three steps are:

By Susan Rupe

1. Index type. 2. Index tracking model. 3. Crediting mechanisms.

W

hen it comes to choosing an index crediting strategy, there is no one-sizefits-all approach, according to Jeff Barnes, EquiTrust regional vice president. Barnes presented a three-step approach to choosing the right index crediting strategy during a recent webinar held by the National Association for Fixed Annuities. “Different index crediting strategies thrive in different environments,” he said. “And rather than trying to project the best index strategy, because you really can’t, a better approach might be to allocate among index crediting strategies based on the anticipated environment.” 22

Index type

Barnes said his first step is looking at the index type. “Since fixed indexed annuities were introduced, stock market indices like the S&P 500 were the standard,” he said. “More recently, volatility control and hybrid indices have gained some popularity.” The cost of the call options is the big difference between volatility control and stock market indices, he said. “Reduced volatility lowers the cost of the call options for the insurance carrier, allowing higher participation and crediting rates to be offered on a volatility control strategy. With a volatility control index, while

InsuranceNewsNet Magazine » January 2024

growth may be lower than that of a stock market index, the client may be able to capture more of the growth in a volatility-controlled index due to the higher participation rates.” Barnes said he often explains volatility-controlled indices using a baseball analogy of “you probably have fewer home runs, but you also have fewer strikeouts and more singles and doubles.” Is a volatility-controlled index better than a stock market index? Barnes said he isn’t suggesting that. “But I think it’s important to understand where the differences lie between the two types. When somebody looks at an index, it’s important to understand what drives that index. “And some of those volatility-controlled indices add more than just an equity base to them. They might have things like commodities or real estate or bonds and then cash. So again, I’m not saying one is better than the other. But it’s important to know how the two of them work.”


INDEX CREDITING STRATEGY: WHICH ONE IS BEST FOR YOUR CLIENTS? ANNUITY When looking at a specific volatility control index, Barnes said, an advisor shouldn’t rely on the best illustration or the best historical performance. “Make sure you have a good understanding of what the mechanics are behind the index,” he said.

Pros and cons of each index tracking model

Index tracking model

Barnes listed three different index tracking models, as well as the pros and cons of each strategy.

» Point-to-point. A point-to-point mod-

el performs well when the index experiences strong, steady growth, he said. But the downside is that this model is dependent on how the market is performing at the annuity’s contract anniversary date. “A disadvantage to a point-to-point approach would be if the index sees some strong growth throughout the year, but then tapers off toward the end,” he said.

» Averaging. An averaging model can

provide some index credits even through a year of market volatility, Barnes said. This model often has slightly higher crediting rates compared with a point-to-point model. However, he said, the averaging model doesn’t maximize index credits in a strong, stable year. “Averaging takes out some of the high highs and the low lows,” he said. “Averaging sometimes can help prop up some growth for the year because there is a little bit of volatility control going on. In an averaging tracking model, the carrier generally can provide slightly higher crediting rates compared with a point-topoint track model.”

» Monthly cap. A monthly cap model

provides a strong return when the index grows month over month, he said. But one bad month can eliminate several months of growth. “With a monthly cap, when it hits, it usually hits really well, but there are times when it doesn’t — when you have some volatile months that wipe out the good months,” he said.

Crediting mechanisms

A crediting mechanism, Barnes said, is the calculation applied to the index growth to determine a crediting rate. “Is it a cap rate? Is it a participation

Source: EquiTrust

rate? Is it a spread? And then, what rates are offered with the various strategies, the end-buyer environment impacts the crediting strategy as well.” Barnes presented comparisons of various crediting mechanisms.

» Cap rate versus participation rate.

A cap rate mechanism may perform better in a low-growth year by capturing all possible growth up to the cap, while a participation rate mechanism would capture only a small portion of that growth. But in a high-growth year, a participation rate may outperform the cap rate because it allows the ability for growth to exceed the cap.

» Cap rate versus spread. In a low-

growth year, a cap rate may perform better by capturing all possible growth up to the cap, while a spread may limit or eliminate growth. A spread may perform better in a high-growth year, because all growth beyond the spread is captured.

and various combinations of indices, tracking strategies and crediting mechanisms. Rather than picking just one index account, consider allocating among a few accounts. Don’t diversify just for diversification’s sake; diversify with your clients’ outlook in mind.” For clients who believe the markets are poised for a strong year, Barnes suggested using a point-to-point strategy using participation rates. For clients who believe the markets aren’t poised for a stellar year, using an averaging strategy or using a cap rate could be better for them. “Because no one has a crystal ball, diversifying among multiple strategies and indices can provide the best chance to produce steady accumulation,” he said.

Sell the safety first

» Participation rate versus spread.

“If there is one thing I can’t emphasize enough, is sell the safety first,” Barnes said. “Indexed annuities offer rates linked to the results of various indices without actually investing in those indices. Index credits are never less than zero, which means clients are protected when indices decline, upside potential and downside protection. “With that foundation laid down first, you will manage your clients’ expectations more effectively and hopefully make annual reviews go much more smoothly.”

The importance of diversification

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents’ association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on X @INNsusan.

The participation rate will still capture some growth in a low-growth year, while a spread may absorb most or all of that growth. Both crediting mechanisms are strong options in a high-growth year, Barnes said. In order for the spread to perform better, it must be at a level where growth beyond the spread exceeds the participation rate. “Someone once said, ‘Diversification is the only free lunch in investing,’” Barnes said. “And the beauty of indexed annuities is the broad choice of accounts,

January 2024 » InsuranceNewsNet Magazine

23


HEALTH/BENEFITSWIRES

Few have started preparing for LTC Long-term care planning: Most Americans are aware of its importance, but few

have started preparing for the day when they will need help. That’s the word from Transamerica, which reported 91% of Americans believe that LTC planning is crucial, but only 45% have actually given thought to planning for their 45% of adults surveyed said they plan to use long-term care needs. insurance to pay for A shift in thinking about longextended care, although term care seems to occur when just 22% said they people hit their 50s, the Transamerica actually have insurance report found. Fewer than half of those to cover those costs. Transamerica surveyed thought about Source: Transamerica long-term care until they reached the 50-to-59-year age bracket, when 55% said they began to consider their potential care needs. According to Transamerica’s survey, 1 in five respondents felt confident they will have enough money to pay for extended care. Eighty percent of insured respondents and 54% of uninsured respondents said they plan to use personal funds such as retirement accounts and pensions to fund their long-term care costs. However, Transamerica found that 37% of respondents who plan to use their own funds have an annual household income under $75,000.

3 TRENDS DRIVING COST HIKES FOR EMPLOYER-BASED CARE

Health care is costing more for U.S. employers that pay for their workers’ health care, and three trends are driving those cost hikes, according to Aon. Inflation is the first trend driving cost increases. Another driver of increased health care costs is an increase in medical utilization, which is returning to pre-COVID-19 levels. Finally, escalating drugs costs also drive increasing worker health care costs. A continued tight labor market means that many employers may be reluctant to pass higher health care costs to their workers, said Janet Faircloth, senior vice president of Aon’s health innovation team.

INFLATION FORCES AMERICANS TO DELAY MEDICAL CARE

Inadequate health coverage is a particular problem for commercially insured DID YOU

KNOW

?

24

children, but coverage gaps affect publicly insured children as well, according to a study by Columbia University Mailman School of Public Health. The study showed 1 in 5 children in the U.S. have inadequate health insurance, defined as insurance that either has unreasonable out-of-pocket costs or doesn’t have benefits that meet the child’s medical needs. Inadequate coverage is particularly high among kids with commercial insurance, with about 1 in 3 commercially insured children having inadequate coverage versus 1 in 10 publicly insured kids. In addition, insurance gaps, or periods without coverage, are more common for publicly insured children. Both commercial insurance adequacy and public insurance gaps decreased significantly during the COVID-19 pandemic when there were additional subsidies for commercial insurance and requirements for states to keep Medicaid beneficiaries enrolled.

QUOTABLE

That is the real problem, this false [Medicare Advantage] advertising that is out there on TV, where seniors can see it every day, all day. — Ronnell Nolan, president and CEO of Health Agents for America

HEALTH CARE AFFORDABILITY, FINANCIAL WELL-BEING ARE TOP WORKPLACE CONCERNS

Employers are showing greater concern over their workers’ financial well-being as well as their workers’ ability to afford health care. Those were among the takeaways from the Mercer 2023-24 Inside Employees’ Minds study. Financial concerns continue to weigh heavily on workers, with short- and long-term financial security continuing to top the list of issues keeping employees up at night, the study showed. Health care affordability remains a key issue for lower-income workers, and employers are making it a priority, Mercer said. The survey showed 51% of workers making less than $30,000 annually said they can afford the health care they need without financial hardship. This compares with 91% of those earning $200,000 or more a year who said they can easily afford their health care. Employers are paying attention to this concern, the study showed, with 56% of employers saying they will not shift any health plan cost to employees in 2024, despite faster cost growth.

15% of employers surveyed offer free employee-only coverage in at least one workplace medical plan.

InsuranceNewsNet Magazine » January 2024

Source: Mercer


AIG posted a strong third quarter based in part on strong annuity sales

1

Indexed annuity products power sales surge through Q2, set records

Your # Source for INSURANCE NEWS Annuities: Maximizing retirement income in 2023 and beyond

Allstate Corp. rebounded from a challenging Q2 to post a profit that beat Wall Street expectations.

Advisor says SEC has no authority to regulate his insurance sales

Get the latest news and insights delivered to your inbox! Sign up for our FREE newsletters at:

insurancenewsnet.com/subscribe


HEALTH/BENEFITS

Workplace benefits help get employees in the door — and keep them there Research reveals what benefits attract and keep employees. By James Reid

I

n today’s competitive hiring environment, attracting and retaining top talent are key concerns for employers. And while offering a comprehensive benefits package has long been a significant tool to help attract talent, more employees — particularly younger employees — are looking for additional protections and options from their employers. According to research from Lincoln Financial Group, our current economic climate has led 83% of workers surveyed to reevaluate at least one aspect of their life, finances, work or retirement. This number is even higher among the younger generations, with 91% of Generation Z and 89% of millennials reevaluating their finances and goals. Workers are placing a greater emphasis on what they value most in life and helping ensure they are financially prepared for the future.

26

This heightened interest in improving personal finances offers employers a significant opportunity to present employees with tools and resources to help secure their financial future. Offering workplace benefits and retirement plan options can also lead to an increase in employee satisfaction and a decrease in attrition. In fact, Lincoln Financial Group’s Small-Business Owner Survey found 82% of small-business owners see employee benefits as a top strategic priority, as these benefits play a critical role in impacting culture, morale and employee well-being and in attracting and retaining talent. To help employers get new hires through the door — and keep them there — it’s important to communicate how benefits offered at the workplace can protect an employee’s finances today and help secure their tomorrow.

Benefits influence job decisions

Offering a well-rounded benefits package sends a clear and deliberate message that a company cares about employees

InsuranceNewsNet Magazine » January 2024

both inside and outside of the office. In the current competitive hiring market, this benefits package can move the needle for an employee choosing between job offers. Research shows 77% of employees surveyed see insurance benefits other than health insurance as a must-have or very important when deciding to take a new job. As employees progress through different life stages, they are increasingly focused on things that may have an impact on their present and long-term financial well-being. Currently, more than 1 in 3 American labor force participants (35%) are millennials, making them the largest generation in the U.S. labor force, Pew Research found. To attract and retain this generation of employees, employers must not only offer benefits but also educate workers on benefits and investment, provide digital options, and illustrate how benefits can help instill confidence when it comes to unforeseen health issues or accidents. This is an impactful concept in the post-COVID-19 environment. Small businesses are no exception,


WORKPLACE BENEFITS HELP GET EMPLOYEES IN THE DOOR HEALTH/BENEFITS with more than a quarter (28%) of small-business owners surveyed offering better benefits to attract and retain talent following the pandemic. Here are some of the benefits offered:

» Disability insurance provides paycheck protection. If some-

one is unable to work due to an illness or injury, they won’t lose their source of income.

Developing a digital guide to understanding benefits can also go a long way toward winning trust. Providing information through a variety of digital and mobile channels can help alleviate worker frustration.

Focus on financial wellness

Employees across all generations are increasingly focused on improving their finances, but they may need help navigating the » Accident insurance helps pay for expenses that aren’t covchallenges they face. ered by health insurance, such as high deductibles. Balancing financial priorities is one of the main causes of stress among workers, with an overwhelming 93% of employ» Critical illness insurance provides funds to cover day-toees surveyed saying they feel stressed, and 34% saying this day expenses — such as mortgage payments, childcare, food and stress has negatively impacted their ability to focus on improvmore — while someone recovers from an illness. ing their health and well-being, Lincoln Financial’s Consumer Sentiment Tracker found. These workplace beneThis heightened financial fits don’t only attract new stress can make it difficult employees; they help retain for workers to balance the them as well. Research needs of today with saving shows that 80% of employfor the future. ees said being offered group Offering financial wellbenefits — including life ness resources can help. Of insurance — positively imthose surveyed who have For many, the pandemic has emphasized the pacts their loyalty to their used financial wellness reimportance of planning for the unexpected, which employer. sources, 77% said they’ve likely accounts for the strong overall interest in Offering these benefits seen a positive impact supplemental benefits. is an important first step, and 69% said the support but for employees to take helped reduce the amount The supplemental benefits that respondents full advantage of these proof stress they feel about fiare most interested in include: tections, they first need to nances, Lincoln Financial’s understand them. Wellness@Work survey Critical illness insurance................................... 89% showed. When employees Education for the improve their financial Access to a team of health care benefits, evolving workforce wellness, they’re able to and behavioral health experts who can Choosing the right workbetter manage everyday exprovide one-on-one support............................ 86% place benefits can be a compenses. This reduces worker plicated process. In fact, 54% stress levels and gives them Hospital indemnity insurance........................... 86% of those surveyed say they confidence to plan ahead. would enroll in more benOffering financial wellAccident insurance............................................ 86% efits at work if they could ness solutions can also understand them better — have an impact on employSource: Lincoln Financial that number increases to ee retention, with 56% of 58% among Gen Z and 62% employees surveyed saying among millennials. they would be more loyal It’s important for employers to offer simple, relevant and to an employer who provided financial wellness benefits. By personalized information that helps workers make informed offering these resources, employers have a significant opdecisions and achieve their long-term objectives. In an era of portunity to improve employees’ financial health while also digital communication, it is also important to understand how strengthening their businesses. to reach our audiences — and to reach the younger generation, Employers don’t have to go it alone — insurance carriers companies must be online. and benefits brokers are here to partner with them and ensure On-demand digital resources, virtual documents and digitheir employees have the options and education they need to tal tools showcase the added services that come with certain take charge of their financial wellness products and can help employees get the most value from and benefits options. their benefits. Employers can partner with their carriers to James Reid is executive vice president offer tools and resources that can help employees make these of Lincoln Financial Group and president selections and understand the impact to their paycheck, inof Workplace Solutions. Contact him at cluding videos and digital calculators that can help estimate james.reid@innfeedback.com. life insurance and disability coverage needs.

How do employees feel about supplemental benefits?

January 2024 » InsuranceNewsNet Magazine

27


Financial facts and figures powered by AdvisorNews.com

Most are unconcerned What, me worry? about longevity risk Most seniors are not as concerned about longevity risk — i.e., outliving retirement resources — as they should be, as most are not accurately predicting their life span. That’s according to a study by Jackson Financial and Boston College.

Next-gen advisors are Generation AI

Outliving savings is one of the biggest risks for Americans who are approaching retirement or already retired, according

to the study. However, the majority of respondents disagreed, with only 22% of respondents identifying longevity risk as their major concern. The death of a spouse or partner was the biggest concern for 47%, and the need for long-term care was the biggest concern for 35%. At the same time, most underpredicted their life expectancy. Younger participants, aged 55-59, were most likely to underpredict their life expectancy, and only 12% of all respondents had predictions that were more closely aligned to standard actuarial tables.

Americans worried about higher taxes on IRAs, 401(k)s As many Americans continue to be concerned about a big market crash or recession, they are increasingly worried about taxes on retirement income from 401(k) plans and individual retirement accounts increasing in the future, according to an Allianz Life study.

Seven in 10 Americans (72%) worry that higher taxes in the future will impact their retirement income from

tax-deferred accounts, such as a 401(k) plan or an IRA, according to the Quarterly Market Perceptions Study from Allianz Life. At the same time, the majority (72%) of Americans said they

can’t count on Social Security benefits when planning retirement income. Even more (79%) worry about the future of Medicare and

Social Security.

LGBTQ+ investors say they feel financially secure

More than 6 in 10 LGBTQ+ investors (61%) report feeling financially secure, and their marital status has a lot to do with that feeling, a CFP Board survey revealed.

Marriage and long-term relationships play a significant role in creating this sense of security for

LGBTQ+ investors — an overwhelming majority of married LGBTQ+ investors (81%) feel that their marital status has a positive impact on their financial readiness. 28

InsuranceNewsNet Magazine » January 2024

Artificial intelligence may not be the threat that some in wealth management assume it to be — at least, not according to younger financial advisors. A survey by Advisor360° reveals that 64% of younger advisors call generative AI “a help” to their practice, while 57% believe AI is a benefit to the industry. Only 21% of advisors surveyed consider generative AI to be a threat to their personal livelihood, and only 31% call it a threat to the industry. Having access Plan for AI to these tools and • 53% of advisors using them are two say their firms do different things. not have established policies Advisors’ top chalon how to use lenge with generagenerative AI. tive AI is that they • 27% of advisors are hamstrung by surveyed say generative AI firm policies on the policies are in technologies they development at their firms. can use. Their frusSource: Advisor360 tration is evident: While nearly all respondents (97%) say their firms have AI strategies, 43% say advisors should be more involved in shaping them.

This feeling of financial security extends to a heightened sense of retirement preparedness in the LGBTQ+ community — 2 in 3 LGBTQ+ investors (66%) feel they are more prepared for retirement than their non-LGBTQ+ peers. As perhaps an indication of broader financial security in the LGBTQ+ community, 56% of all LGBTQ+ investors surveyed currently work (or have worked) with a financial planner. This increases for married investors, 84% of whom currently work with a financial planner, compared with only 38% of single respondents.


ADVISORNEWS

4% 4% is a safe starting withdrawal rate for retirees, research finds The surge in the withdrawal rate is attributed to higher fixed-income yields and a reduced long-term inflation estimate. • Doug Bailey

W

hen trying to figure out the optimum starting withdrawal rate for your retirement account, you might hear the voice of Lawrence Olivier from the film “Marathon Man” in your head: “Is it safe?” The optimum, or sustainable, withdrawal rate is the estimated percentage of savings a retiree can safely draw down each year throughout their retirement without running out of money. The variables in such a calculation are numerous. When will you retire? How much money do you have? How much money do you need per year? How old are you? How long do you expect to need retirement income — 10 years? 20 years? 30 years? Where’s the economy likely to go? And that’s just for starters. “Retirement is inherently about making

decisions today in a state of uncertainty,” said Luke Neumann, wealth planner at Crestwood Advisors in Boston. “We can only make educated guesses about what long-term returns might look like, while short-term returns are a random walk.” Neumann advises his clients to focus more on the things they can control when making decisions in uncertain times. “Am I making purchases that feel important to me?” he asked. “Am I living my best life and creating lifelong memories with friends and family? Do I feel as though I am overspending?” Leave it to the experts, economic prognosticators and advisors to come up with an actual withdrawal rate. The good news is Morningstar has done just that and calculated that the safe starting withdrawal rate for retirees is currently the highest it has been in years — maybe ever. Morningstar’s latest research reveals that the highest safe starting withdrawal rate for retirees is now 4%, signaling an increase from the 3.8% reported in 2022 and the 3.3% in 2021. The surge in the withdrawal rate is

attributed to higher fixed-income yields and a reduced long-term inflation estimate compared with the previous year. The safe withdrawal rate may in fact be an economic indicator of its own.

Three key variables

“History demonstrates that the ‘right’ withdrawal rate depends on three key variables: the market environment that prevails over a retiree’s drawdown period, the length of the drawdown period, and the portfolio’s asset allocation,” the report said. The report underscores the importance of understanding the impact of withdrawal strategies on portfolio performance and highlights the delicate balance between starting withdrawal rates, ending portfolio values and cash flow volatility. One notable finding is the impact of dynamic withdrawal strategies, which can enhance portfolio consumption efficiency by considering both portfolio performance and spending. However, the downside is the introduction of variability in cash flows,

January 2024 » InsuranceNewsNet Magazine

29


ADVISORNEWS 4% IS A SAFE STARTING WITHDRAWAL RATE FOR RETIREES, RESEARCH FINDS

a factor that may not be acceptable for all retirees. The highest starting safe withdrawal percentage comes from portfolios that hold between 20% and 40% in equities and the remainder in bonds and cash. Portfolios with equity allocations other than 20% to 40% have slightly lower starting safe withdrawal rates. In compensation, portfolios with higher equity weightings provide higher median residual balances at the end of the 30-year period than do bond-heavy portfolios. “Absent greater GDP growth, we may see lower equity returns over the coming

market are a sobering counterpoint to the generally positive findings from this year’s study,” it concludes.

Build a ladder

For those seeking a higher withdrawal rate than the base case of 4%, Morningstar and others suggest building a ladder of Treasury Inflation-Protected Securities (TIPS). This strategy provides a 4.6% withdrawal rate with a 100% probability of success but liquidates the portfolio entirely by the end of the 30-year period under all conditions. “I am a big fan of investing in TIPS

Pros and cons of the TIPS ladder Pros (+)

• 100% success rate • Delivers steady “paycheck equivalent” throughout retirement • Lowest cash flow volatility of any method, along with base case

Cons (–)

• No upside; withdrawal rate can never be increased without future decreases • Ending portfolio values are lowest of any method

Best for

Retirees who seek a relatively high withdrawal rate with 100% assurance, while not being worried about either longevity risk or bequeathing a legacy Source: Morningstar

period,” Neumann said. “Investors use prevailing interest rates to appropriately value equity investments — and that value will remain lower while interest rates are higher. For diversified investors, though, higher yields on bonds should help offset these lower equity returns.” Nevertheless, many investment consultants and retirement advisors agree that 4% sounds right for a starting withdrawal rate at the moment. “Given where interest rates are, this is about right,” said Doug Carey, a chartered financial analyst at WealthTrace, headquartered in Boulder, Colo. But there are caveats. “It is important to point out that a big part of the increase in interest rates is due to inflation,” Carey said. “Part of the increase in the withdrawal rate is also due to inflation. As inflation recedes, it is likely that interest rates will decline, and the withdrawal rate will need to decline as well.” Indeed, even Morningstar agrees. “The ongoing negative effects of higher inflation and the 2022 bear 30

right now,” Carey said. “Investors can get a 2.3% after-inflation yield on 30year TIPS. This means they can lock in this real return for 30 years. We haven’t seen real yields this high in more than 15 years. Looked at another way, if we add the current inflation rate of 3.2%, this is a 5.5% total yield on a 30-year Treasury bond. Those close to or in retirement can especially benefit from locking in a real yield this high so they know exactly what their income will be over time.” Indeed, TIPS seems to be the tip of the day. “You can get more than 4% annually either inflation adjusted or not inflation adjusted,” said Michael Edesess, managing partner/special advisor at Chicago-based M1k LLC. “Currently, a single-premium immediate annuity purchased by a 65-year-old can yield more than 7% annually for the rest of their life — a $100,000 purchase yields more than $7,000 annually — though it will not be inflation adjusted, so the purchasing power of that $7,000 will deplete over time. But alternatively, one

InsuranceNewsNet Magazine » January 2024

can buy a ‘ladder’ of TIPS — that is, a series of TIPS of different maturities — that will yield 4.5% annually for 30 years in inflation-adjusted dollars, so the purchasing power of the annual interest will not deplete.” “I think life is far too ambiguous to use a strategy such as the 4% rule when planning for retirement withdrawals,” said Jake Falcon, of Falcon Wealth Advisors in Mission Woods, Kan. “Instead, individuals should seek out a wealth advisor who is acting in a fiduciary capacity to create a financial plan. Once a plan is established and investments are aligned, a proper withdrawal strategy can be applied. Most importantly, the financial plan should be reviewed at least once a year to make adjustments as life changes.” Morningstar’s report highlights that retirees often decrease their inflation-adjusted spending over time, leading to considerably higher safe withdrawal rates. The appropriate level of flexibility in a retiree’s spending system is contingent on individual circumstances, including the extent to which fixed expenses are covered by nonportfolio income sources. The study employs Morningstar Investment Management’s forward-looking asset-class return assumptions, ref lecting current yields, valuations and inf lation forecasts. A key change from 2022 is a slight drop in the inf lation forecast, from 2.84% to 2.42% in 2023. “I think it is fair to increase the safe withdrawal rate given higher yields on bonds,” said Crestwood’s Neumann. “It has been 15 years since we’ve been in a ‘normal’ interest rate environment for clients, and that’s refreshing. Investors are earning a real return — nominal return less inflation — on bonds across the yield curve currently. But don’t stop at withdrawal rates for retirement planning. The more granular you get, the greater confidence you will have.” Doug Bailey is a journalist and freelance writer who lives outside of Boston. Contact him at doug.bailey@innfeedback.com.


THE SCIENCE OF SUCCESSFUL HABITS IN THE KNOW

The science of successful habits The beginning of a new year is the perfect time to set that Big Hairy Audacious Goal for yourself and your practice. But you won’t achieve it overnight. By Joe Templin

Y

ou are going to fail. There, now that we have appropriately set expectations, let’s look at why that is and how you can reduce the probability of big failures so that you can build procedures and habits that will yield more wins and minimize the opportunities for lapses while ultimately helping yourself succeed. The first thing we must address is the fact that you are probably setting yourself up for failure because of the binary approach most people take combined with an arbitrary date on the calendar. Almost half of people give up on their New Year’s resolutions by the end of January (Jan. 19 is the most likely drop date) because of the “all or nothing” approach of:

1. Not drinking after tonight. 2. Going to the gym every day starting Jan. 1. 3. Reading X number of books in a year. 4. Implementing a radical diet change to lose 40 pounds in 45 days. Too much too quickly is a recipe for failure. Both Jim Kwik, author of Limitless, and James Clear, author of Atomic Habits, write about what is essentially a slow change in identity by making tiny sustainable changes on an incremental basis. Some examples of these are:

1. Choosing one night a week to not drink. Then two. Eventually making it three. 2. Signing up for a fun class that gets you moving, beginning twice a week. 3. Reading at least one page a day. 4. Making slow diet changes, such as smaller plates and more vegetables. Few people have the willpower to go “cold turkey,” whether from cigarettes or doughnuts or soda or to get up at 5 a.m. every day. But weaning yourself requires much less willpower and is much more forgiving. Know that messing up and giving in to temptation are normal, so not having a

January 2024 » InsuranceNewsNet Magazine

31


the Know In-depth discussions with industry experts completely unforgiving pass/fail personal grading system allows you to get off and then back on track much more easily. You will have the latitude to forgive yourself and move forward as “better” instead of “perfect.” Eating a cupcake is not a total failure that indicates you should just throw up your hands, give up and eat half a cake a day because you believe you’re a loser and will always fail.

to making 35 calls this week and 15 more per week thereafter until you are up to the level you wish. Or getting up 10 minutes earlier every Monday until you’ve shifted your sleep patterns to be an early riser. Yes, it will take you six or eight weeks to change your mindset the same way your body would change while ramping up the mileage that you run over a two-month period.

Radical changes fail. Tiny tweaks work. Take little steps. Small, continuous improvements or changes barely register as alterations or tweaks rather than something entirely new.

Just be better with your eating habits tomorrow than you were two weeks ago. So first off, don’t commit to making 150 calls a week if you are accustomed to making only 28, or getting up at 4:45 a.m. if you are now waking at 8:12 a.m. That’s like going from only walking around the block to running a 5K every morning. It’s a recipe for failure and probably injury. Take it slower to start, then ramp it up. A better idea would be to commit 32

Incremental changes are sustainable. It generally takes 14 to 66 days to establish a new habit, depending on how radical a departure the new behavior is from the old ways. But small, continuous improvements or changes barely register as alterations or tweaks rather than something entirely new. As such, these small changes are easy to adopt. As the saying goes, Rome wasn’t built in a day. Neither did it fall overnight, so give

InsuranceNewsNet Magazine » January 2024

yourself time to get into your groove. Radical changes fail. Tiny tweaks work. Take little steps. The brain has evolved to operate efficiently, so that we can have smaller heads and not kill our mothers during childbirth. So we literally imbed habits at the nerve level, and the ability to form effective habits creates the efficient brains needed to perpetuate the species. And there are three steps to this neural pathway creation. Craving. Action. Reward. CAR. You can remember it this way: A CAR can take you almost anywhere, and good habits will take you everywhere. If you are a smoker, you crave nicotine. Thus, you smoke a cigarette, get the dopamine hit reward and feel good, which is why it becomes really difficult to stop smoking. This is an example of CAR. As a musician, you feel uncomfortable and on edge if you aren’t practicing, so you take out your instrument and get a fix. Feel-good chemicals flood your brain, and the habit is strengthened. Another example of CAR. Research from the National Institutes of Health shows that only 9% of people who make New Year’s resolutions actually achieve them. But one common theme among those who succeed is big goal/ little steps, an idea that financial professionals are already familiar with. To make it more interesting — and therefore actionable — let’s make it relevant. You commit to making 35 calls, and you make them even if it takes some struggle. You sit back, smile, and raise your hands in triumph and pride. You’ve experienced CAR. Yet after achieving this small goal, you need a bigger reward and so you need to take bigger action, but you crave that moment of finishing and succeeding, so you focus on 50 calls as the next challenge. You hit this 50-call challenge, so you raise the goal and increase the effort. As a result, the biochemical reward becomes stronger and the neuropathways become more efficient. Voila, you are becoming addicted to the process of successful habits. Within two months, you are making 150 calls a week and have gone from $4,000 of weekly production to $9,000. You are about to break through $10,000, then $12,000, and remarkably end up with $500,000 by the end of the year.


THE SCIENCE OF SUCCESSFUL HABITS IN THE KNOW

Let’s say you are shooting to do $500,000 of production this year, a big goal, as it makes you a little nervous and excited to even talk about it. That feeling is the cocktail of dopamine (the hormone of striving and desire) and norepinephrine (the fear factor). A little fear mixed in with desire gives us butterflies in the stomach when we talk to that person we desire, or before we go on stage, or anytime we attempt any good BHAG (Big Hairy Audacious Goal per Jim Collins in Good to Great). The BHAG energizes us and gives us motivation, because mitochondria (the powerhouse of the cell) literally convert dopamine into energy for action, while norepinephrine sharpens focus. This balance is why we all need those huge goals, such as: 1. “By the end of the decade we will put a man on the moon.” – John F. Kennedy. 2. Earning your black belt in martial arts. 3. Earning your CLU or CFP designation. 4. Running your first marathon. 5. Getting 5,000 paying subscribers (my personal BHAG). 6. Buying a home. 7. Writing $500,000 of production. By the way, put your big goal on your phone screen, because the average person looks at their phone several hundred times a day. Seeing your BHAG all the time won’t inoculate you with that goal, but it will remind you what you are working toward. Plus, it will help improve your resilience as you encounter the inevitable obstacles, such as birthday cake in the break room tempting you on your diet or a beautiful sunny day when you have a huge meeting the next morning. As the philosopher Friedrich Nietzsche said, if a man has a strong enough why, he will overcome any how. The next thing is to break the big goal into little steps. As anyone that has gone through a recovery program can tell you, it isn’t about staying sober for 10 years, because that is too big to focus on; it is about staying sober today. It’s about doing what

you need to do to win the day, and then days add up to weeks and months and eventually you accomplish the BHAG. Marathons are run one step at a time. To earn a black belt, you train every day. The black belt is the natural outcome of the process of practicing and pushing yourself in each training session. To get my 5,000 subscribers, I need to get 15 a day (you could be one of them). To do $500,000 of production a year, you only need $2,500 a day. But you must do it every day. Not literally, because we are human and sometimes we get sick (or the kids get sick), or a snowstorm comes in, there is a mandatory meeting, or we get hit with something else that we didn’t expect. But if you can meet the little step daily goal 90% of the time, you should hit the big goal without needing to resort to extraordinary measures. Fitness expert Dan Go reminds us that if you are 90% good with your diet and exercise, you’ll be among the best in your peer group. Same with hitting your little steps 90% of the time. If you missed it today, hit it tomorrow. So if you aspire to do $500,000 of production, how do you set yourself up to do $2,500 of production today? And how do you set up today to do $2,500 of production tomorrow? Stephen Covey, author of The 7 Habits of Highly Productive People, calls it balancing production and production potential. Once you answer these questions, you then set up your environment to make it easy to do what you have to do daily, minimizing the motivation required. Process will always be more powerful than emotion or mood; that is why Stephen King and Jocko Willink both write each day even if it’s junk, because they know that the daily activity will eventually yield the results. Have faith in the process. Trust the system. And don’t worry about being behind if you get the proper mindset, because as you get better at getting better, you will exceed the daily goals in the last half of the year (just as runners or musicians get better at getting better and show nonlinear growth after the initial period of adjustment). Then you will hit that BHAG by the end of the year by slowly creating the sustainable environment for success in your office and in your head.

That “too much too quickly is a recipe for failure” is relevant because falling short breaks the cycle. Trying to jump from $4,000 a week to $10,000 a week leads to too much failure and a lack of regular rewards. You don’t get your dopamine flood from winning consistently, so you quit the action since the craving was not strong enough to force you to do what you needed to do. This explains why increasing the goal after each achievement establishes a feedback mechanism like that a drug addict experiences but in a positive and productive way. And it’s why you need little steps to hit the big goals, because each little step hardwires the craving required for a habit loop. The goal is not perfection, because as humans, we will fail if we don’t challenge ourselves to grow. The objective is continuously improving in a maintainable manner by raising the bar for the dopamine reward and hitting the target somewhere around five weeks out of six after the habit loop is established (typically four to six successful weeks in a row are required, hence the lower bar to begin). Find something a little challenging that is a step toward your big goal, and take small steps to move in that direction. Keep ramping up the activity or challenge so that on a biochemical level you need more and more achievement to get the dopamine release and you are wiring your brain to crave the activities that lead to victory, fully knowing that you are going to have to struggle to get the hit and feel good as you progress. You are establishing championship habits. Create a craving, execute the actions and get your reward. Become addicted to winning, and build up your tolerance by winning at little things, then larger ones. Eventually you will get the big goal. This is the science of success and why you will fail if you try to take too big a step too quickly. Now go get a little win to start building the habits of a champion! Joe Templin, MCEC, CEC, CLU, ChFC, CAP, is The Human Kaizen Expert and creator of the daily training program, ”Every Day Excellence.” Contact him at joe.templin@ innfeedback.com.

January 2024 » InsuranceNewsNet Magazine

33


INSIGHTS

More than 850 financial services companies in more than 70 countries turn to LIMRA first to help them build their businesses and improve their performance.

The fear factor: Consumers and their finances Americans share what scares them most about their finances.

What Scares You Most About Your Financial Situation?

By Jennifer Douglas

C

oncern about finances is a common source of stress in America. LIMRA regularly finds about 1 in 3 Americans feeling highly stressed over their household’s finances, similar only to the prevalence of workrelated stress among employed individuals. In an effort to understand the nuances of financial stress, a recent LIMRA survey asked 3,000 consumers to candidly share what, if anything, about their finances “scares” them. Though not a source of high stress in all cases, 7 in 10 adults told us about their greatest financial fears. The nature of consumers’ financial fears differs in important ways by wealth and circumstance that can’t be ignored. Notwithstanding these differences, most adults are scared about something when it comes to their finances, from the financially strained to those with a comfortable nest egg. Their fears fall into the following broad categories: making ends meet, savings and preparedness, economic stability and the stock market, standard of living, and government policies and decisions.

Making ends meet

Nearly 2 in 5 adults described the day-today struggles of “making ends meet” — the most prevalent source of financial fear in America. Survey respondents pointed to the unrelenting impact of inflation and insufficient income, making it difficult to cover essentials, pay debts and sustain their families. For others, the fear centers on depleting one’s savings to meet essential needs. It’s no surprise that these concerns are most pronounced among adults who are grappling with the highest levels of financial stress (67%). A significant portion of those interested in working with a financial professional (47%) also shares these concerns. 34

Does not work with a financial professional

Interested in working with a financial professional

Savings and preparedness

The ability to save for the future is a universal concern and a top financial fear for a quarter of adults surveyed, who described being scared about not having adequate savings for expected and unexpected expenses. This fear includes retirement planning — specifically mentioned by 1 in 12 adults — and the need to secure a financial safety net for unforeseen circumstances. It’s worth noting that consumers’ topof-mind scariest financial fears do not include worrying about the financial impact of death, mentioned by only 5 of 3,000 respondents. Still, survey respondents who are considering a life insurance purchase in the near future are more likely to have financial stress, to express fears about their finances, and to have concerns about the broader economy. They are also more likely to have higher incomes, trust the financial services industry and already have (some) life insurance.

Economic stability and the stock market

Concerns related to economic stability and market fluctuations were described less often but were present nonetheless. These fears often grow with age and income, affecting individuals who have a significant stake in the financial markets. For the same reason, concerns of this nature were expressed more often by people who currently work with a financial professional (15%) compared with those who are interested in working with a professional (7%) and those who are not interested in working with a professional (4%).

InsuranceNewsNet Magazine » January 2024

Works with a financial professional

The impact on standard of living

Six percent of consumers described the impact of high interest rates, which affect credit and borrowing as well as their capacity to purchase or maintain homes and vehicles. They also emphasized the strain on managing education costs, high taxes and the overall cost of living, sharing how these factors impede their pursuit of lifestyle goals.

Government policies and decisions

Called out by just 5% of adults, the effect of government decisions on one’s finances is palpable among those who did, encompassing concerns about uncontrolled government spending, dysfunctional politics and geopolitical situations. As people age, these concerns tend to take a more significant role in their financial worries. Consumers who are interested in working with a financial professional are the most likely to say that something about their financial situation scares them. Faced with an array of consumer financial fears, advisors must be attuned to the nuanced narratives that range from immediate survival concerns to long-term uncertainties. By responding to these diverse fears, financial professionals can offer tailored solutions that provide practical support and foster financial resilience in an ever-changing economic landscape. Jennifer Douglas is senior research director, member benefits, LIMRA and LOMA. Contact her at jennifer. douglas@innfeedback.com.


INSIGHTS

Founded in 1890, NAIFA is one of the nation’s oldest and largest associations representing the interests of insurance professionals from every congressional district in the United States.

The new DOL proposal is not in consumers’ best interests We are not opposed to fiduciaries; we are opposed to depriving consumers of choices. By Tom Cothron

W

elcome to 2024! We rang in a new year, but it almost feels as though we’ve gone back in time. Late last year, the U.S. Department of Labor rolled out its newest fiduciary proposal, which is eerily like the one they attempted to enact in 2016. Some of the provisions have changed, but the upshot is the same: The rule will threaten a business model used effectively by many financial professionals to serve their clients’ best interests. The rule also will eliminate consumers’ ability to choose how and from whom they wish to receive financial services. Also, like the last time around, the currently proposed rule would result in many lower- and middle-income investors losing access to services and advice altogether. As it did in 2016, the industry is mounting stiff opposition to the DOL during the rulemaking process and, if need be, will continue to do so after the rule is implemented. Industry leaders, including NAIFA CEO Kevin Mayeux, had discussions with White House officials as the rule was still under consideration. When the administration published the rule anyway, NAIFA members responded en masse by writing to their members of Congress. They took the message directly to Capitol Hill with in-person meetings during the December National Leadership Conference. They will continue their grassroots campaign in May during NAIFA’s annual Congressional Conference, which will feature an even larger Day on the Hill event. However, our sense of déjà vu is not absolute. Many things have changed since 2016. Foremost, the Securities and Exchange Commission’s Regulation Best

Interest and state laws and regulations based on the National Association of Insurance Commissioners’ model for annuity transactions did not exist eight years ago. Today, they are the law of the land — nationwide in the case of Reg BI and in more than 40 states in the case of the NAIC model. Both require financial professionals to act in their clients’ best interests. They provide strong consumer protections without disrupting useful business models. They have broad support within the industry. In fact, NAIFA has been the leading proponent of the NAIC model. We have used our advocacy influence to get it implemented in states around the country. Reg BI and the NAIC model make the current DOL proposal completely unnecessary. We also approach this challenge from a broad base of strength. A coalition of industry partners, including NAIFA, is working to coordinate our message and efforts. NAIFA has merged with the Society of Financial Service Professionals and added Life Happens. FSP bolsters our membership, giving us more financial professionals to deliver our advocacy message, and includes a wider range of financial practice specialties. Life Happens, as the leading consumer-education organization

in the industry, amplifies our influence with the American public. To be clear, serving clients as a financial services fiduciary is not a bad thing. Many consumers are best served by advisors providing advice and services under a fiduciary model. What the DOL fails to recognize, however, is that many other consumers are better served by advisors who work in their best interests without the additional layers of regulation the DOL seeks to impose. We are not opposed to fiduciaries; we are opposed to depriving consumers of choices. Simply, this comes down to doing what is right. It is in the best interests of American consumers to keep all the options they have now, without the DOL’s unneeded restrictions. Regulations are not inherently bad, but they need to be smart regulations and they need to serve the best interests of consumers. The DOL’s latest fiduciary proposal falls short on both counts, just like it did in 2016. Tom Cothron, LUTCF, FSCP, from Ocala, Fla., is NAIFA’s 2024 national president. Contact him at tom.cothron@innfeedback.com.

January 2024 » InsuranceNewsNet Magazine

35


INSIGHTS

Finseca is the home of the top financial security professionals. This member-driven community serves as a credible source for the profession and provides exclusive access to the brightest minds in it.

Navigating uncertainty in a presidential election year Financial security is attainable for everyone. And it all starts with a holistic financial plan. By Marc Cadin

A

nd just like that, we’re back in a presidential election year. But what you may not know is that history shows a presidential election year could have a serious impact on the stock market. This means now is a great time to educate your clients on the best ways they can protect themselves against this increased uncertainty. The simple truth is that families who have life insurance and guaranteed streams of lifetime income through things such as annuities are in a significantly better position to absorb the economic challenges that accompany stock market fluctuations. But you don’t have to take my word for it. More than a year ago, Ernst and Young published what I consider to be one of the most important studies of the past several years. It exhaustively analyzed how life insurance, especially permanent policies, and deferred income annuities outperform investment-only or investment-plus-other-products approaches, in every combination. Given this reality, why do we regularly see headlines like these? Forbes: “Why investing and insurance shouldn’t mix.” CNN Business: “What’s wrong with using insurance as an investment?” Or here’s one just for doctors, from White Coat Investor: “Insurance is not an investment … combine whole life insurance with investing and you end up with the worst from both worlds.” These attacks perpetuate the myth that an investment-only, fee-only strategy works best for clients. The data simply do 36

Now is a great time to educate your clients on the best ways they can protect themselves against this increased uncertainty.

not support that conclusion. Remember, the stock market is volatile. That’s a long-held fact, not an anomaly reflecting today’s economic situation. So there must be a different, more holistic, planning strategy for the average American and their family. Our organization, Finseca or “Financial Security for All,” represents the financial security profession — the people who practice holistic planning, which includes the use of life insurance and annuities as part of a comprehensive financial plan. If we’re ever going to break the pattern of lurching from crisis to crisis and

InsuranceNewsNet Magazine » January 2024

truly empower people instead, we must also move beyond the stale, status quo thinking about financial security. No, financial security is not just for the wealthy. It is also not just for those with certain degrees or who come from a particular place or background. Financial security is attainable for everyone. And it all starts with a holistic financial plan. Marc Cadin is the CEO of Finseca. Contact him at marc.cadin@ innfeedback.com.


INSIGHTS

Financial Planning Association® is the leading membership organization for CERTIFIED FINANCIAL PLANNER™ professionals and those engaged in the financial planning process.

Financial professionals can help solve the financial literacy riddle Here are some ways you can help boost the financial knowledge of people in your community. By Claudia Cypher Kane

I

n 2019, only six U.S. states guaranteed a standalone personal finance course for all high schoolers, according to Next Gen Personal Finance. Fast-forward to today, and the landscape of financial education has shifted. Now, 23 states have embraced the importance of equipping today’s students with the essential personal financial comprehension they will need to navigate life’s complexities. But the need for financial literacy isn’t limited to high school students. The 2022 TIAA Institute-Global Financial Literacy Excellence Center Personal Finance Index revealed a concerning reality for many American adults. On average, adults could only correctly answer half of the 28 basic money questions in the Personal Finance Index. Even more alarming, 23% of adults could only answer up to seven of these questions correctly, highlighting the pressing need for improved financial literacy across all age groups and demographics. The good news is that financial planners and other professionals are stepping up to the challenge. They are playing a pivotal role in enhancing the financial literacy of both adults and students by leveraging their expertise and dedication to improving financial literacy and wellness across the country. Financial professionals have a unique opportunity to contribute to the growth of financial literacy in the U.S. Here are some ways they are making a difference — and you can as well.

» Use your knowledge and skill to pro-

vide educational workshops. You can organize and conduct educational workshops on various basic financial topics,

such as budgeting, saving, investing, retirement planning and college funding, among others. If you are thinking about offering such workshops to your clients, be sure to involve their children as well.

» Share valuable information and

resources. While you can personally develop and share resources, such as articles and videos that explain financial concepts, consider leveraging the terrific resources that respected organizations provide. The Jump$tart Coalition for Personal Financial Literacy, the National Endowment for Financial Education, and Junior Achievement are three such organizations that are doing some amazing work to promote and foster financial literacy and wellness among students and adults.

» Get involved in local school pro-

grams. As mentioned, more and more states are developing requirements for students to take a personal finance course as part of their curriculum. Reach out to your local high school to learn about opportunities to leverage your background to support the programs, even if that means supporting and training the teachers tasked with people tasked with teaching the courses.

» Seek collaboration with local non-

profits and community organizations. Within your community, there are likely several organizations that exist to provide education, training and support to adults and children. Review what organizations exist and reach out to see whether there is an opportunity to support existing programs or develop new programs that help their audiences build their financial acumen. If you do this, think about your personal passions and look to work with organizations that match those passions. For example, if you are passionate about working with women in crisis, see whether a local women’s shelter or

support group will want to work with you to offer training.

» Get involved with professional

groups that offer volunteer initiatives. Leverage your professional affiliations with membership organizations and trade associations to see how you can get involved with current or planned financial literacy programs. One such group is the Financial Planning Association, of which I am proud to be the current national volunteer president. Many FPA chapters and members across the nation have taken it upon themselves to proactively engage their local communities to improve the financial literacy of students and adults. In 2022, FPA chapters reported hosting 230 financial literacy workshops, attracting 17,302 consumers — an impressive 212% increase from the 5,546 attendees in the previous year. Moreover, 962 individual FPA members offered 4,424 consumers an impressive 11,506 hours of pro bono financial planning services. While FPA, its chapters and its members are committed to improving financial well-being, so are many other professional organizations with which you may be affiliated. I implore you to consider the positive impact you can have on current and future generations of Americans by taking the time to use your knowledge and experience to benefit others. By empowering Americans with financial knowledge and skills, we can help pave the way for a brighter, more financially secure future for all. Claudia Cypher Kane, CFP, CIMA, CPWA, ADPA, CDFA, is the 2024 president of the Financial Planning Association and is based in Roseville, Calif. Contact her at claudia.kane@innfeedback.com.

January 2024 » InsuranceNewsNet Magazine


Key person disability benefits allow for funds that may be used however the company sees fit such as to scout, hire and train a replacement employee, or simply provide much needed capital to a business in transition. CA License #: 0591207

®

Petersen International Underwriters®

(800) 345-8816 F www.piu.org F piu@piu.org When Traditional Carriers Can’t...or Won’t

®


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.