Up to 1,000,000 Face Amount Issued Instantly
Triple Digit Commissions on Instant Decision (IMO & BGA opportunities available)
Chronic & Terminal Illness Riders INCLUDED with up to 90% acceleration Applications Issued in Minutes not Days or Weeks
Never a Paramed, APS, or Phone Follow-up
10, 20, and 30 Guaranteed Level Term
They recognize that insurance professionals are integral to making quality sales. A pretty website alone isn’t going to cut it. InstaBrain’s flexible platform allows agents to be involved in every step of the sale, or their clients can complete the quote and application entirely on their own.
• YOU own your clients, not the platform
• 100% digital end-to-end application
• Real-time reflexive underwriting engine
• Competitive commissions paid weekly
• Pay by credit/debit or EFT
• Instant decision term with living benefits featured product
• Faster, consistent support provided by insurance and tech professionals
InstaBrain blends Generative AI and digital risk assessment technologies with traditional sales philosophies to rethink how insurance is sold.
Enjoy proprietary products with the flexibility to be actively involved, guiding your client through the sale, OR allow your clients to complete the application end-to-end on their own.
Set yourself apart from the competition by providing your clients a guaranteed income for life with Kansas City Life Insurance Company’s Lifetime Income Rider that:
• Offers 7.2% guaranteed increase to Lifetime Income Amount for the first 10 rider years if no withdrawals in years 1 – 10.
• Provides a secure, guaranteed retirement income stream for life.
• Helps clients grow their retirement savings with a competitive fixed interest rate.
• Protects the value of a fixed annuity during market turmoil.
• Allows clients the ability to maintain the flexibility and control of their deferred annuity contract even after they start receiving income.
The Lifetime Income Rider provides guaranteed income for life and is an optional benefit available on all of Kansas City Life’s fixed annuity portfolio.
8 The insurance industry’s best-kept secret
Terrance Williams is CEO of TruStage, whose name is meant to represent trust at every life stage. In this interview with publisher Paul Feldman, Williams describes his company’s commitment to building its share of the middle market.
By Susan Rupe
Advisors are crucial to helping older clients and their families avoid a care crisis.
18 Planning for a full house
By Susan Rupe
Alex Chan understands the financial and social dynamics of multigenerational households as the son of Chinese parents.
32 Two key pillars for growth beyond annual enrollment
By Ilya Filipov
Effective cross-selling is the way to harvest more business beyond Medicare enrollment season.
36 Holistic solutions to grow an advisor’s business
By Susan Rupe
Integrating a suite of financial wellness solutions will help retirement plan advisors elevate their offerings.
24 Building sustainable wealth for high net worth clients
By Shawn Goheen
Life insurance is one tool that wealthy clients can use for tax mitigation.
28 Anatomy of an FIA
By Susan Rupe
Fixed indexed annuities may be confusing for clients. How to answer their questions.
38 Retirement: Planning for the third half of life
By Susan Rupe
How one advisor teaches clients to approach retirement with optimism and joy.
As the financial landscape continues to evolve, so does the perspective of seniors approaching retirement. To provide the most relevant and effective guidance, advisors and agents must stay abreast of these shifting attitudes. Today’s retirees face a unique set of challenges and opportunities that significantly influence their retirement planning strategies. These include concerns about financial adequacy, longevity risks and a growing trend of extending work life for financial stability and personal fulfillment.
One of the foremost worries for many seniors is whether they have enough savings to sustain their retirement. The traditional three-legged stool of retirement income — Social Security, pensions and personal savings — is increasingly wobbling. With the decline of defined benefit pension plans and the unpredictability of Social Security benefits, many seniors find themselves heavily reliant on personal savings.
Furthermore, recent surges in inflation and the rising cost of health care pose a significant financial burden. Seniors must account for potential medical expenses, long-term care and unforeseen health crises, all of which can deplete their savings.
Advances in health care and a better understanding of wellness mean that people are living longer than ever before. This raises the risk of outliving one’s retirement savings. Financial advisors must incorporate longevity risk into their retirement planning strategies, helping clients understand the importance of sustainable withdrawal rates and the potential benefits of annuities to provide a steady income stream throughout their retirement years.
Educating clients about the potential for a retirement period that could last 20, 30 or even more years is crucial. This longevity risk requires careful financial planning and a diversified investment portfolio designed to provide growth and income over an extended period. Advisors should also address the possibility of phased retirement or part-time work as strategies to mitigate the financial impact of extended longevity, especially as preretirees are considering these options more frequently.
A growing number of seniors are choosing to extend their work lives beyond traditional retirement age. This trend is driven by a variety of factors, including financial necessity and the desire to stay active and socially connected. Many seniors find that working longer not only provides additional income but also a sense of purpose and engagement.
Financial advisors should recognize this trend and help clients explore opportunities for continued employment. This could involve transitioning to parttime work, consulting or even starting a new business. Highlighting the benefits of staying professionally active can encourage clients to consider how they might incorporate work into their retirement plans.
The latest generation of retirees is redefining what it means to retire. Inspired
by figures such as Paul McCartney, Mick Jagger, and numerous actors and public figures who continue to work well into their 70s and 80s, many seniors are embracing the concept of a “second act.” This could mean continuing in their current career, pursuing a passion project, expanding a skill initially developed as a hobby, or embarking on an entirely new venture.
Financial advisors should encourage clients to think creatively about their retirement years. This involves helping them identify their passions and skills that can be translated into postretirement careers or hobbies that could also generate income. Advisors can play a pivotal role in facilitating this transition by offering guidance on financial management, business planning and the practicalities of starting anew at an advanced age.
For financial advisors and insurance agents, understanding the evolving outlook of seniors on retirement is essential. The traditional retirement model is being reshaped. By staying attuned to these changes, advisors can better support their clients in crafting retirement plans that are not only financially sound but also personally fulfilling. Helping seniors navigate these complexities will ensure they can enjoy a secure and satisfying retirement, whether that means winding down, staying active or embarking on a new adventure.
John Forcucci Editor-in-chief
Along with the vexing rise in excess mortality numbers after COVID-19, there has been a curious and significant increase in the number of working people with disabilities in the past three years. Health and policy experts are puzzled by whether there’s a connection between the two, and some are scratching their heads over what has caused the number of workers claiming a disability to balloon.
The numbers are indeed compelling. In the 12 years from January 2009 to January 2021, the civilian labor force reporting disabilities was fairly stable, around 6 million a year, according to the U.S Bureau of Labor Statistics. Since 2021, the numbers have steadily climbed to the most recently reported level of 8,517,000 in January of this year.
What accounts for the sudden increase? Theories abound, with some believing the pandemic can be blamed for various reasons and some contending there are more mundane causes related to greater acceptance or more job openings for disabled people.
“We’re seeing a few things,” says Mike Ghesser, CEO and co-founder of Cleanlogic, a skin care company with a mission to increase the number of employed workers with disabilities. “First is a rise in Equal Employment Opportunity disclosure rates. This doesn’t mean there are more disabled people necessarily, but it can indicate more people with disabilities have been formally diagnosed and are disclosing that to ask for accommodation. The second is a rise in awareness of disabilities and the work many activist groups are doing to raise that awareness.”
The U.S. Supreme Court, in a recent decision, ruled that insurers are parties in interest in bankruptcy plans and can object to reorganization plans..
The ruling in Truck Insurance Exchange v. Kaiser Gypsum Company, Inc., et al, allows insurers who are impacted by a reorganization plan under Chapter 11 of the Bankruptcy Code to participate in the bankruptcy proceedings as a party in interest and to comment and object reorganization to plans that affect their interests.
What insurance companies need to know in the wake of the Truck ruling “is that when they are involved as an insurer in a bankruptcy proceeding which involves asbestos, but also in other mass
tort type of situations, they now have a definitive right to be heard by the bankruptcy court and the right to object to any of these reorganization plans that may impact the insurer, who may be the only party who has a real financial stake in the matter at the end of the day,” said Bruce Engel, partner with the law firm Goldberg Segalla.
An estimated $84 trillion is expected to change hands in what many call “the great wealth transfer.” Who is expected to gain the most? Generation X. The average age of children expected to receive the most substantial inheritances — from parents worth $30 million or more — is 47.6, according to Wealth-X.
There’s nothing real right now in terms of a tax bill that will come out after the election.
Millennials won’t miss out on the wealth transfer either. More than half of millennials are expecting an inheritance of at least $350,000, according to Alliant Credit Union.
In the next 10 years, 1.2 million individuals worth $5 million or more will pass down a total of more than $31 trillion in wealth, Wealth-X reports. Of that amount, nearly two-thirds, 64%, will be from the ultrawealthy, defined as those worth $30 million or more. In other words, nearly $20 trillion will be passed down from 155,000 people in that upper echelon of wealth.
Americans are feeling more comfortable with the economy and less nervous about investing, an Allianz Life survey revealed. Compared to this time last year, fewer Americans are worried about an imminent recession. The percentage who worry that a major recession is right around the corner is down from 64% in Q2 2023 to 55% in Q2 2024. More Gen Xers (62%) than boomers (51%) or millennials (55%) worry about a recession being right around the corner.
At the same time, fewer Americans feel pessimistic about the market. The percentage who say they are too nervous to invest in the market right now has fallen from 46% in Q2 2023 to 37% in Q2 2024. Black American (43%) and Asian American respondents (44%) are more likely to be too nervous to invest than white (36%) and Hispanic (38%) respondents are.
benefits, competitive compensation, fully digital underwriting guidelines and so much more
In an industry where traditional insurance sales methods often result in prolonged waiting periods and cumbersome processes, Brokers Alliance, Inc., in partnership with InstaBrain, Inc., is making waves. With its revolutionary InstaBrain Term product, decisions are truly instant–within seconds of hitting “submit”. This innovative solution leverages advanced data-driven technologies, real-time underwriting, and robust industry partnerships to redefine how insurance products are sold and purchased.
InstaBrain Term is the flagship product of Brokers Alliance Inc. offered through a strategic partnership with InstaBrain, Inc. InstaBrain’s digital platform is designed to streamline the insurance sales process, offering a seamless, user-centric experience for both consumers and agents. With InstaBrain Term, clients can obtain policies instantly, a significant departure from the traditional model where clients often wait weeks or even months to learn about their eligibility.
InstaBrain Term stands out because of its reflexive, real-time underwriting engine, which hosts a variety of leading and proprietary term products. These include term and permanent life, disability, critical illness, and guaranteed issue insurance products. The fully digital, 100% instant-decision sales journey makes it a powerful tool for financial professionals.
behaviors and attitudes change.” Parker notes this is particularly applicable to Millennials, who are more likely to have minor behavioral health or chronic illnesses reflected on the MIB.
Brokers Alliance, a brokerage firm with over 115 years of combined experience, has always been at the forefront of product building and support for independent life insurance advisors and agents. This partnership with InstaBrain is its latest endeavor to provide agents with cutting-edge tools and products.
• Living benefits (chronic and terminal illness*)
• 100% instant decision
• No underwriting
• 20 minutes or less to complete application
• Competitive premiums
• Pay by credit/debit card or EFT
• Evolved underwriting guidelines
• Top-tier commissions
• Client confidentiality. Your book of business is your own. We won’t contact your clients or retain their information.
• Distributor loyalty. We make sure your agents work through contracted channels.
*Living Benefits not available in all areas. Please consult the agent guide for details.
“Agents can guide their clients through the 100% digital sale, or allow them to complete the application end-toend on their own,” said Meteena Watson, Chief Operating Officer of InstaBrain. This adaptability meets agents and clients where they are, facilitating a more accessible and user-friendly sales experience.
“We’ve added some latitude around lifestyle behaviors. It’s just another way that this is a leading product,” said Parker Adams, Marketing Director at Brokers Alliance. “Brokers Alliance actively looks at the underwriting guidelines, listens to agent feedback, and recognizes that
Adams underscores the significance of this partnership: “What’s unique is that the independent distribution channel can come to Brokers Alliance to get all the tools necessary to get the highest compensation available for this product.” This partnership is rooted in a shared commitment to product development, service, and support for distributors.
InstaBrain Term: A Revolution in Selling
One of the standout features of InstaBrain Term is its AI-powered, machine learning platform that provides instant decisions. This product suite includes term and is growing to include permanent life, disability, critical illness, and guaranteed issue insurance products, all featuring competitive premiums, top-tier commissions, and true instant decisions.
Living benefits are a crucial aspect of today’s insurance landscape, and InstaBrain Term excels in this area. The product includes built in living benefits, providing additional protection for clients facing critical, chronic, or terminal illness.
InstaBrain Term addresses one of the biggest pain points in the industry: the disconnect between promised “instant decision” and actual practice. According to Adams, most so-called “instant decision” products require additional medical exams or telephone interviews, leading to delays and frustration for both agents and clients.
“InstaBrain Term is truly an instant-decision product,” says Adams. “It eliminates the wait time, providing a yes or no decision within the 15- to 20-minute window it takes to complete the app.” This efficiency allows agents to pivot quickly if a client is declined, maintaining momentum and reducing the hassle of follow-up calls.
Brokers Alliance and InstaBrain have also embedded a unique chronic illness rider into the InstaBrain Term product. This rider allows clients to access a portion of their life insurance
80% of older adults have at least one chronic disease.70% have at least two.
$12,000 out-of-pocket cost some patients may face for one cancer drug.
43% of people needing long term care are under the age of 65 years old.
$360,000 expected healthcare costs for a healthy couple retiring at 65 years old.
76.7% of patients survive a first-time stroke for longer than six months, requiring long term care.
$48,000 yearly cost per year for long term care at an Assisted Living Facility.
policy while alive, transforming a traditional death insurance product into a more versatile life insurance solution.
“The chronic illness rider is designed to be triggered by the same conditions that would qualify for long-term care or disability benefits,” said Adams. “What sets this rider apart is its guaranteed percentage payout. Clients know upfront that they can access 50% of their death benefit for chronic illness needs, with the option to receive a reduced lump sum if preferred.”
The 100% all-cause level term product provides up to $1M and the ability to accelerate up to 90% of the death benefit by exercising the terminal illness rider for qualified illnesses make this an attractive option for consumers and agents alike.
InstaBrain provides two options for submitting an instant decision application: agent-led or consumer-directed. Agents can guide clients through the application process or provide a consumer link for clients to complete the application independently. This flexibility is particularly beneficial for agents who manage large books of business across multiple insurance lines.
“Agents can guide their clients through the 100% digital sale, or allow them to complete the application end-to-end on their own.”
— Meteena Watson, Chief Operating Officer of InstaBrain
The platform also offers advanced tracking and analytics tools, enabling agents to monitor client interest and follow up on incomplete applications. This feature helps agents capture additional sales opportunities and maintain a high level of customer service.
InstaBrain Term through Brokers Alliance is setting a new standard for insurance sales. By combining cutting-edge technology with a deep understanding of the industry, InstaBrain Term offers a seamless, efficient, and user-friendly experience for both agents and consumers.
“It’s very apparent whether it’s insurance, car sales, even health services like doctor’s appointments with telehealth, that we’re moving into an age of convenience with clients wanting things immediately,” said Adams.
As the insurance landscape continues to evolve, products like InstaBrain Term will play a crucial role in driving innovation and improving accessibility. For agents and distributors, embracing these advancements is not just an opportunity but a necessity to stay competitive and meet the changing needs of their clients.
Brokers Alliance and InstaBrain Term are poised to lead the way, ensuring that the future of insurance sales is bright and efficient. And taking the next step is easy.
Visit InstaBrain.info or call a Brokers Alliance relationship manager today at (800) 290-7226 We’ll get you appointed in one business day!
Previously a collection of relatively anonymous brands, TruStage — now unified under its new branding and helmed by a new CEO — is working to build its share of the middle market as it builds on a loyal base of credit union members.
The name “TruStage,” said its president and CEO, Terrance Williams, “is meant to represent trust at every life stage If that’s our brand and what it means to be TruStage, we’ve got to live up to that by ensuring that we are catering to these individual consumers at all their various life stages.”
TruStage distributes its products through credit union partners. As an example, Williams said, “65% or so of our $5 billion in revenue is distributed through the credit union system. We reach an agreement, a partnership, with a credit union, and then that allows us to market to their end members. The remaining 35% or so of our revenue is driven by partnerships. We distribute through partners like Ethos.com.”
“We are the best-kept secret when it comes to $5 billion companies in the country,” he continued, “and some of that is because of our go-to-market approach. We are a B2B2C company. We are not a company that you’re going to hear about during an NBA basketball game. You’re not going to see a TruStage commercial or an ad. Because our focus is getting to that middle-market consumer through a partner.”
In this interview with publisher Paul Feldman, Williams discusses TruStage’s approach to the middle market.
Paul Feldman: You started as CEO of TruStage in October after joining the company in June 2023. You’ve had an impressive career. Tell me a little bit about how you got into the industry and a little bit about where you were before joining TruStage.
Terrance Williams: My path to the insurance industry is somewhat unique. Most people fall into the insurance business. But that’s not true for me. Through the influence of some family members, I actually planned to pursue a career in insurance. When I was looking for a college, I sought out a school that had a risk and insurance program, which again was not the norm, particularly back in the 1980s. But that’s what I did.
My career path took me to Nationwide and Allstate. I’ve lived all over the United States. I worked for a small regional right out of college, so
four companies, but about 10 different moves during that time. Those moves afforded me the opportunity to work in all aspects of the insurance business — product underwriting, sales, various general management roles. All this allowed me to have a holistic view of the industry and of the business.
Feldman: You said your career started out in some part due to the influence of family members. Tell me about that.
Williams: I had an aunt who had a significant influence on exposing me to the industry. She went on to become an executive at a well-known, publicly traded
instincts when you join an organization is to take a step back to listen, to observe, to learn, to understand. I spent the first six months or so doing just that, understanding the organization as a whole. I also spent considerable time out in the marketplace — meeting credit union CEOs, meeting our employees, meeting partners — to begin to craft a framework for understanding our strengths. What are we good at that’s not easily repeated? What are the opportunities for us? What are the headwinds that we may face? Through that work, the leadership team and I crafted a long-term vision for the company and a road map that we are now following so that we can maintain relevance.
My belief is that we must find ways to create broad access ... what’s most important is to be able to create an omni-like approach and to meet that customer wherever they are.
insurance company based in New York and spent 30-plus years with them. During the summer months, my mom’s side of the family would often return to South Carolina, where I grew up.
Often during those visits, I would hear her perspective about her career, about the various aspects of insurance and, more importantly, the societal impact that insurance can have, particularly on communities that haven’t had access around wealth building and some of the benefits that insurance can bring to the table. As a 17-year-old, I was exposed to that, which again is unique. That sparked my interest in insurance, why it matters and how I wanted to be part of that industry.
Feldman: Now that you’ve had a little bit of time in your new role as president and CEO, how’s it going?
Williams: Things are going very well. As you might imagine, one of the natural
I talk a lot about the importance of relevance within an organization. Especially considering a company that has been around for 90-plus years, I believe it’s necessary that you maintain the essence of who you are as a company. But yet you find ways to evolve and to recommit yourself to your end consumer, your end member, realizing that your members’ expectations have changed dramatically over the last five, 10, 20 years.
Feldman: To follow up on that point a little bit, we’ve been doing some reporting on the direct-to-consumer aspect of the business, companies such as Lemonade and Ethos. They’re not doing quite as well as I think everybody expected — maybe because the human factor is missing. I think we are finding that you need a human voice in the process to help a consumer understand what life insurance means. How are you finding that?
Williams: I would agree with that. My belief is that we must find ways to create broad access. Broad access, in essence, means that you meet the consumer where they are. In some instances, that means a completely digital experience. In some instances, that means being able to call someone on the phone, and perhaps in some other instances that may mean walking into a credit union branch to take care of your needs. But what’s most important is to be able to create an omni-like approach and to meet that customer wherever they are.
As you point out, some of the solutions that we sell are not as easily understood, which means you must continuously find ways to create a simple approach to your products. But you also must find ways to make sure that you create that access to meet the customer.
I have a 23-year-old son. All his life efforts are done on his phone. If we wish to cater to my 23-year-old son, we must ensure that there is a crisp digital journey that allows him to engage in a manner that he feels best engaging in. Also, we do business with 94% of the credit unions in the United States. Our credit union members, whether they prefer face-to-face interaction or engaging with a piece of direct mail or calling a phone number, we
I believe that many of our target consumers would be adversely impacted due to this potential rule change that’s coming down the pipeline right now. Because in my view, it will create less access as opposed to more access.
want to cater to them in that way. Again, meeting the member where they are.
Feldman: TruStage is a mutual company. Talk a bit about the advantages and challenges of selling insurance products as a mutual company.
Williams: I view it as more of an asset than a liability. I’ve spent time at a mutual organization as well as a publicly traded company, and there are advantages to both. However, my experience has led me to believe being a mutual company allows you to take a long-term view of the end consumer. Recognizing that there are times when you’re making an investment that will yield longer-term benefits. Realizing that perhaps you won’t see some of those benefits for the first 24 to 36 months. But being able to take that longterm view, I believe, is an advantage. Now how you strike the best of both worlds, in my opinion, is when you maintain the executional excellence, the financial discipline, that some would associate with public companies, but yet you have that mutual structure that allows you that long-term view. Having spent time in both types of organizations, our goal is to blend the best of both worlds.
Feldman: ZoneChoice is an interesting concept for your flagship annuity line. What is unique about ZoneChoice?
Williams: ZoneChoice is a flagship in that it gives the end consumer the opportunity to select and choose the types of investments based on their comfort level around returns. Because we know that many of our consumers — middle-market consumers — are those who may not have the investable assets to be able to absorb a certain loss or a life-changing event. So we believe we should create solutions that allow those consumers to get into this space to prepare for the future, while also giving them options that meet their comfort level with gains or losses overall — recognizing that everyone comes to the table at a different starting point and with a different level of comfort as it relates to investment.
Feldman: I noticed the company lists its annuities under an investments tab on the TruStage website. Talk about how you view annuities as an investment in retirement.
Williams: When you’re introducing the concepts of wealth building and longterm planning to some consumers who aren’t historically engaged in that, I believe that annuities are a sound entry foray into helping them to prepare for the future through an investment product. It’s not only about what we call our historical investment products. I believe that a life insurance product is just as important a part of your portfolio as an investment product or an annuity product.
So many middle-market consumers and households are devastated in the event of the loss of a primary breadwinner. A $50,000 life insurance policy, or even a $25,000 life insurance policy, can make the world of a difference for that household. We sell tons of those policies, realizing that sometimes these customers don’t even have access to policies at those levels because some carriers have opted to only play in the higher face amounts place.
Feldman: I’ve heard from a lot of different IMOs, FMOs that the upcoming Department of Labor fiduciary rule will limit financial services to lower-and middle-income people. Are you concerned about that?
Williams: The short answer to your question is, I believe that many of our target consumers would be adversely impacted due to this potential rule change that’s coming down the pipeline right now. Because in my view, it will create less access as opposed to more access. One of the things we solve for is creating access for this consumer who may not have the ability to invest or may not have the investable assets that some firms cater to. I’m concerned that these rules could have a negative consequence for that access piece.
It’s something we’re having a lot of dialogue about. The goal here is to ensure that we are providing a perspective as an industry expert and to ensure that we are trying to paint that picture of what the unintended consequences could look like as far as the impact on consumers. It’s a very fair question and one that we’re concerned about.
Feldman: Tell me where you see the life insurance industry going — where are the opportunities that you’re leveraging and that you’re moving toward?
Williams: We have this unique advantage that others don’t have in that we have access to 94% of the credit unions in the United States. This means we have access to millions of members who trust their credit union. We have a distribution methodology that allows us to cater to these members that is in alignment with their credit unions. I think that’s unique. Where is it going? You asked specifically about life insurance, but I could make this answer about any of our solutions. I believe that we must continue to help the credit union movement and credit union system evolve. Recognizing that in many credit unions, they still maintain a brick-and-mortar approach where they engage with members in a branch location. Some members want that. But how do we find ways to evolve that model to create and meet the customer, the member, where they are?
I want to be part of the solution with our credit union partners in helping to build that digital journey, allowing us to meet members in a different way. Also, I believe that you’ll continue to see innovation and advancements in underwriting from a life standpoint. I wear a ring
on my finger that not only represents my commitment to my wife of 28 years, but it also measures my steps, my heart rate and a number of other health-related items for me. The data that my ring collects is incredibly valuable to be able to underwrite me as a life insurance customer. I believe that wearables, technology and artificial intelligence will continue to advance our ability to get crafty and specific on how we go about underwriting consumers of the future.
Feldman: There are a lot of direct response components that I assume go into communicating with those credit union customers and your other customers. What have you learned from that?
Williams: It’s interesting because what we see is that our experience with our credit union members differs from the other 35% of our book of business in a positive way. We see stronger persistency. We see credit union members who are simply more loyal to the products that they acquire through us. I believe it’s due to this connection through the credit union to these end members. It drives a different outcome that the data clearly tells me is an advantage for us. These members tend to be more loyal, more engaged and more committed. I’ll give you an example. I can send out two pieces of direct mail to a credit union member. I can send something out that’s branded solely TruStage and something that’s co-branded. If I put the credit union logo on it and my logo on it, it’s not even close. By far, direct mail that includes the credit union logo does significantly better. There’s this loyalty, this commitment from these credit union members that I believe is a unique advantage for us as well.
Feldman: TruStage is a big brand in the insurance industry, but not a lot of people are familiar with the brand.
Williams: It’s interesting. I would say that we are the best-kept secret when it comes to $5 billion companies in this country. Some of that is because of our go-to-market approach. We are a B2B2C company. We are not a company you’ll see during an NBA basketball game. You’re not going to see a TruStage commercial or an ad.
Because our focus is getting to that middle market consumer through a partner. Now, once they become a policyholder for us, I believe that should change how we engage with them. This is somewhat new for us. This is our focus now.
We have 39 million relationships across the country. That’s the good news. The bad news — for most of those 39 million relationships, it’s one customer, one product. In other words, we historically haven’t thought about that customer through a holistic life cycle approach. Now that’s what we are beginning to do, particularly since the brand name change in May 2023. We were marketing 12 or 13 brands before; now we go to market under one brand.
Feldman: Tell me about those other brands.
Williams: The company went to market under these various brands due to acquisitions, and several other things that have happened over the last decade or so. In many instances, people wouldn’t even recognize that this is all under what was then the CUNA Mutual group umbrella. Now we should cater to an individual consumer to meet their needs throughout. I’ll give you an example. Let’s assume that we sell a $10,000 term life insurance policy to a credit union member. Let’s assume they’re in their 30s. We have data that would allow us to understand perhaps they have a need for auto insurance. Perhaps they have a need for an annuity product.
We need to use the data that we have access to for that individual member and then cater to them based on what they are most likely to buy, personalizing it and ensuring we can cater to them based on the life stage that they are in. Not simply looking at it through this lens of, well, they have a life insurance policy with us, let’s move on to the next customer. We do need to move to the next customer, but we also need to cater to that existing customer.
The TruStage brand is meant to represent trust at every life stage. If that’s our brand and what it means to be TruStage, we must live up to that by ensuring that we cater to these individual consumers at all their various life stages.
The financial services industry continues to buzz with excitement after Annexus and John Hancock announced their first-ever collaboration in June: John Hancock’s Protection indexed universal life insurance (PIUL) with access to Annexus’ cutting-edge indices.
This strategic partnership combines the innovative experience of Annexus with the enduring financial strength and legacy of John Hancock. For producers, this first-time alliance presents new opportunities and benefits through the integration of Annexus’ indices and the all-new PRISM Booster Strategy.
Annexus has long been celebrated for its cutting-edge financial products, particularly in the realm of indexed annuities and indexed universal life insurance. These products offer clients the dual advantage of growth potential linked to market indexes and protection against market downturns.
“Just as a chassis forms the foundation of a car, Annexus provides the underlying structure for innovative financial products. We have almost 20 years’ expertise in product design and development that sets the stage for building robust and effective solutions,” said Ron Shurts, co-founder and CEO, Annexus. “A solid year went into the research and design of the new indexed accounts for this John Hancock PIUL product.”
John Hancock, a household name in insurance and financial services, brings to the table a robust portfolio of products and services, extensive market experience, and a strong distribution network.
“We saw this collaboration as an amazing chance to work with an innovative pioneer in product design, while broadening the reach of our strong brand recognition and the impact of our unique Vitality offering,” said Fred DeMinico, head of sales, John Hancock. “We believe we’re in one of the strongest positions to lead in the powerful combination of protection and performance.”
The synergy between Annexus’s innovative product design and John Hancock’s established market presence is poised to create new financial solutions that cater to a wide array of client needs.
“Once we cracked the code with annuities, the next step was taking on IUL to address consumer value,” said Shurts. “So, with this latest product — John Hancock’s quality and stellar reputation, product competitiveness, underwriting competitiveness, Vitality and the never-seen-before PRISM Booster Strategy — we feel like we’ve found a winning combination.”
New indexed accounts available on the product are tied to the S&P PRISM SM Index, which is a rules-based index designed to
help provide consistent growth through changing market environments. It is designed to look beyond volatility, evaluate a variety of market indicators and strategically allocate for consistent performance potential.
“We wanted something different than the more than 200 indices in the life and annuity market out there, so we partnered with S&P to launch the S&P PRISM Index in 2018,” said Shurts. “The PRISM Booster is a more competitive structure than a typical S&P cap structure based on the efficiency of the booster coupled with PRISM’s ability to use key market indicators to strategically weight between the S&P 500, bonds and commodities to help provide more consistent growth through changing market environments.”
But what makes John Hancock’s PIUL solution unique is its launch of the new PRISM Booster Strategy (PRISM Booster) — the first index strategy designed to provide interest credits when the index is up, flat, or even some years when the index is down.
PRISM Booster can help increase the number of positive return scenarios by adding 4% to the index return in each year. In any year that the index returns are better than -4.0%, the account receives a positive interest credit.
The PRISM Booster was designed to help offer more stable and consistent returns in a variety of market conditions. By applying a booster, the S&P PRISM Index with PRISM Booster provided positive 1-year returns in 91% of historical and back-tested periods.**
“Annexus is strong in tactical innovation, and the PRISM Index and Booster Strategy are great examples,” said DeMinico. “It is very creative and we’re proud to collaborate with them on it.
John Hancock’s PIUL product with access to Annexus’ cutting-edge indices is designed for today’s more discerning clients who demand both innovation and security from their financial products. John Hancock’s long-standing reputation for financial stability and integrity provides an added layer of appeal beyond the product features.
“We saw a significant opportunity with Annexus’s innovation like the PRISM Index — and of course, the new Booster Strategy — combined with John Hancock’s industry leading death benefit IUL,” said DeMinico. “Our reputation for protection and performance plus our behavior-based Vitality options aligned exceptionally well with both companies’ customer-first mindset.”
Launched almost ten years ago, John Hancock Vitality is available with this new PIUL product. Vitality’s revolutionary approach to life insurance goes beyond traditional financial protection. With two versions of the John Hancock Vitality program to choose from, policyholders can receive benefits that range from discounted wearable devices to access to an early cancer detection test.
“Since its inception, the John Hancock Vitality program has expanded significantly, integrating with various fitness tracking technologies and enhancing its reward system to better incentivize healthy living,” said DeMinico. “The program has evolved to offer more personalized healthy living goals and broader resourc-
es, providing policyholders with greater opportunities to improve their health and potentially reduce insurance premiums.”
By integrating and incentivizing healthy living, John Hancock Vitality provides policyholders with a comprehensive solution that promotes long-term health and financial well-being. Engaging with this innovative program not only helps policyholders improve their quality of life but also enhances the overall value of their life insurance policy.
One of the most exciting aspects of this collaboration is the expanded market reach. John Hancock’s extensive distribution channels will now be complemented by Annexus’s relationships.
“John Hancock is among the top five brokerage manufacturers in the US, so we wanted to take a very intentional and strategic approach to distribution,” said DeMinico. “We did our due diligence to understand the market and the resources and support required to launch.”
This means brokers will have access to a broader range of products that can meet the diverse needs of their clients, from those seeking secure retirement options to those looking for growth
opportunities with downside protection. This collaboration ensures that brokers can offer some of the most competitive and comprehensive products available in the market.
For producers, the newest PIUL offering from John Hancock means staying ahead of the curve and offering clients solutions that continue to meet their evolving needs. In addition, producers can expand their market reach, and build deeper trust with clients.
To learn more about the exciting possibilities that this groundbreaking collaboration brings, visit www.annexus.com/INNlife
* The PRISM Booster Strategy is only available on the PRISM Booster One Year Indexed Account. To calculate the PRISM Booster return, any index return better than -4% is increased by 4% and then multiplied by the current participation rate (currently 115%). The guaranteed 0% floor on annual interest crediting protects the policy from downside market performance in any segment where the S&P Prism Index return is less than -4%.
** Source: Bloomberg and S&P Dow Jones Indices. Percentage of positive periods based on a historical analysis of the S&P PRISM Index for the period from 12/31/90 to 12/31/23. The S&P PRISMSM Index was established on 2/12/18. Information before this date is back-tested by applying the Index methodology, which was designed with the benefit of hindsight, to historical financial data. Past performance is not an indication or guarantee of future performance. Please see the performance disclosure at https:// us.spindices.com/regulatory-affairs-disclaimers/ for more information regarding the limitations of back-testing. See https:// us.spindices.com/indices/strategy/sp-prismindex for additional information, including the Index methodolog, which includes the manner and timing for rebalancing.
The “S&P 500 Index” and “S&P PRISM Index” are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by John Hancock Life Insurance Company (U.S.A.). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“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 John Hancock Life Insurance Company (U.S.A.). The Indexed Universal Life Insurance Policy Series (“the Policies”) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Policies or any member of the public regarding the advisability of investing in securities generally or in the Policies particularly or the ability of the S&P 500 Index or S&P PRISM Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices only relationship to John Hancock with respect to the S&P 500 Index and S&P PRISM Index is the licensing of the Indices and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 Index or S&P PRISM Index are determined, composed and calculated by S&P Dow Jones Indices without regard to John Hancock or the Policies. S&P Dow Jones Indices has no obligation to take the needs of John Hancock or the owners of the Policies into consideration in determining, composing or calculating the S&P 500 Index or S&P PRISM Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Policies or the timing of the issuance or sale of the Policies or in the determination or calculation of the equation by which the Policies are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Policies. There is no assurance that investment products based on the S&P 500 Index or S&P PRISM Index will accurately track index performance or provide positive investment returns. The S&P 500 Index is an index of 500 stocks that are generally representative of the performance of leading companies in leading industries within the U.S. You cannot invest directly in the S&P 500 Index. S&P Dow Jones Indices LLC is not an investment advisor or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR S&P PRISM INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY JOHN HANCOCK, OWNERS OF THE POLICIES, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR S&P PRISM INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND JOHN HANCOCK, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
FOR AGENT USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Insurance policies and/or associated riders and features may not be available in all states. Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.
Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock. Rewards and discounts are subject to change and are not guaranteed to remain the same for the life of the policy.
Insurance products issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116.
MLI061824881-1
Advisors are crucial in helping older clients and their families navigate the challenges of aging.
By Susan Rupe
Over the 30 years she has been in the financial services business, Barbara Pietrangelo has grown up with many of her clients.
“I wouldn’t say I started out looking to serve the senior market, but I’ve been doing this for 30 years. So now I do have a lot of older clients,” she said. “In fact, my oldest client died last year at 104 years old.”
Pietrangelo is a financial planner with Prudential in Ada, Mich. Her client base has grown to include three and sometimes four generations of the same family. She believes that one of the best ways to serve older clients is to involve their families in making the difficult decisions that most people face as they age.
“It’s important to get to know the next of kin or the family member or whoever is going to help take care of them and help them make decisions as they get older,” she said. “A lot of my older clients still make very good decisions. But sometimes it’s good for them to have a second set of ears around. If you’re doing the right thing for your clients, it makes them feel good, but it also lets their family know you’re looking out for their best interests.”
With more Americans living longer — and often managing complicated health conditions along the way — it’s crucial for them to have an advisor to help them manage the maze of investment vehicles, protection products and care options that are available to them. And those who serve the senior market not only advise their aging clients, but they also advise the family members who might not be prepared to deal with their loved one’s financial and care needs.
When someone thinks of serving a senior client, they most often think about advising that older client about Medicare. But Pietrangelo said she no longer works in the Medicare market, referring that business to other advisors. What she focuses on is investment management and estate planning.
“I work with clients to make sure they’re invested in the right products, to make sure they won’t run out of money as they get older, and to make sure their tax issues are addressed,” she said.
Pietrangelo tells her clients, “If you call me in advance with questions, I can help you make good decisions about your money.
“But sometimes it’s hard for me to help you after you’ve made a decision that maybe isn’t so good. It’s much easier to talk those decisions ahead of time than it is to try to unwind things that aren’t so good.”
During her time in practice, Pietrangelo has seen the range of options to help senior clients fund their later years become more complex.
“And there is so much information out there that sometimes people become paralyzed in making decisions,” she said. “So, I try to make things easy and talk them through things, so they understand what they are doing and the implications of their decisions.”
Sometimes older clients fear making a change in the investments that they might have held for years, she said.
“We look at what they have and often we see that they could get a better rate of return by making a change, but they sometimes are reluctant to do that,” she said.
Anyone who wanst to advise the senior market “should be a good listener and involve the family members as well,” Pietrangelo said.
Talking about money and discussing the “what ifs” of aging are taboo in many families. That is, until someone is faced with a situation where they are no longer able to care for themselves or live independently.
“It’s important to get to know the next of kin or the family member or whoever is going to help take care of them and help them make decisions as they get older.”
Barbara Pietrangelo
That’s where Annalee Kruger comes in. Kruger, of Bonita Springs, Fla., is cofounder of Care Right and Plan 4 Life, where she advises family caregivers as well as family members of an older person who is in a crisis situation because of an unplanned health event. She is the author of The Invisible Patient, which outlines the emotional, physical and financial toll experienced by family caregivers.
Kruger began her career as a social worker in a continuing care retirement community, where she was struck by how little families understood about paying for long-term care for a loved one.
“I would ask them whether their parents had longterm care insurance, veterans’ benefits, a reverse mortgage, were their funeral arrangements paid for — and the answer was always, ‘I don’t know. Our family never talks about stuff like that.’”
Annalee Kruger
“They thought Medicare would pay for everything. I would ask them whether their parents had long-term care insurance, veterans’ benefits, a reverse mortgage, were their funeral arrangements paid for — and the answer was always, ‘I don’t know. Our family never talks about stuff like that.’ Or they said they had tried to get that information from their parents but received so much pushback that they stopped asking.”
After spending 22 years working for care communities, Kruger founded her company 11 years ago.
“I created Care Right to solve all the problems I saw for 22 years,” she said.
Kruger said she believes families are not having the tough conversations around aging, and that the financial services industry as well as the health care industry must do a better job of educating people about the issues surrounding long-term care.
“People must talk about these issues proactively, not reactively — such as when Mom is in the hospital,” she said.
Kruger usually meets with clients and their family members together, virtually. This way, everyone can discuss their concerns and questions openly, and everyone is on the same page.
“The kids don’t have to take time from work or fly in and out to meet with me,” she said.
“We solve for families that need a neutral third party to facilitate family meetings. I help everyone understand the pros and cons of aging at home. I talk them through ways of paying for care. People need to understand that you must plan ahead so that someone doesn’t end up plunked into whatever care facility has an open bed when they need care.”
Kruger said the biggest problem she sees in her practice is that families wait until they are in the midst of a crisis before they seek advice.
“At that point, they have limited options and they have limited options that are good,” she said. “And by that time, family relationships are strained. There are always family dynamics that come into play at a time like this.”
She said most families who come to her for advice “are in total crisis mode.”
“They’re burned out, she said. “They’re overwhelmed. I’m doing family mediation while I’m helping them put a plan in
place. I tell them, ‘Right now, we need to stay centered and focused on what Mom or Dad needs. We can address the family stuff later.’”
The crisis stage usually begins after a family member is discharged from a hospital but is unable to return home, she said. “At this point, they have 48 hours to come up with a plan, and they need help.”
Kruger said she wishes more individuals had long-term care insurance or hybrid life insurance that would help pay for care.
“The financial services industry has the same challenges that I do — denial. Nothing will ever happen to me. I will always be healthy.”
Much of her practice involves helping people face the reality of aging and then coming up with a plan to address that reality.
“Let’s be realistic about that. And then let’s put a plan in place. We ask our clients whether it’s important for them to have a say in what happens to them as they age and whether they want to retain as much independence and dignity as they can. Who’s going to say no to that?”
‘I’d better get some insurance’
The experience of having to provide care for an aging parent often prompts adult children to seek solutions to pay for their own future care, said Rhonda Vry-Bills
She is president and CEO of Long Term Care Strategies in Altoona, Iowa.
Vry-Bills said she sees two issues when people come to her for help.
“No. 1, they’re either in crisis mode or in triage mode because they are dealing
“They offer what I call the perfect trifecta: you get tax-free benefits; depending on the policy, you can share it with a spouse; and if you don’t use it, there is a death benefit.”
Rhonda Vry-Bills
with parents who need help. They’re trying to figure out how they will manage their job and their family while having to delay using their parents’ resources and assets and ultimately having to put their parents in a facility and deal with Medicaid paperwork. So now they say, ‘I don’t want this to happen to my kids. I’d better get some insurance.’”
The other issue is that some people wait too long to plan. Then, at some point, they experience a medical crisis and are faced with the need for care.
“They say, ‘I’d better get some insurance,’ but it’s a lot more difficult to do that when you have a medical history that doesn’t allow it.”
When Vry-Bills started her company, she dealt almost exclusively in traditional long-term care insurance. But she is seeing hybrid life insurance and annuities gaining traction.
“They offer what I call the perfect trifecta: you get tax-free benefits; depending on the policy, you can share it with a spouse; and if you don’t use it, there is a death benefit,” she said.
Short-term care policies are not as well known to consumers, but Vry-Bills said they can be a good alternative for someone who needs some coverage but can’t afford a longer-term policy.
Short-term policies provide coverage for one year or less. The majority of short-term care insurance policies have a 0-day deductible (elimination period) option and a full year of benefits. Simply, that means the policy pays on the very first day that someone qualifies for benefits. Short-term care policies can pay in addition to Medicare — something a traditional long-term care insurance policy is prohibited from doing.
Sometimes a client has assets that can be repositioned to help pay for care, and Bills said she helps them to move funds to pay for a qualified long-term care product.
“The reality is that we have so many more strategies today than we had 20 years ago,” she said.
Vry-Bills recommended that advisors who want to serve older Americans partner with a specialist who “knows the industry, knows the different products out there, and can help intertwine what the client needs and how to match up those puzzle pieces.”
When you think about serving older clients, Medicare is usually the first thing that comes to mind.
The Centers for Medicare and Medicaid Services announced that beginning in 2025, Medicare Advantage beneficiaries will receive notifications in the middle of the calendar year that list all supplemental benefits they have not yet used.
Christy Wilbert, senior vice president at URL Insurance Group in Harrisburg, Pa., told InsuranceNewsNet she believes CMS’ rule “will improve the Medicare Advantage platform and push the carriers to further educate customers on the benefits they have and are not using: benefits such as gym memberships; dental, vision and hearing discounts; cards that help you pay for groceries or over-the-counter medications.
“Medicare Advantage benefits have become so rich at this point, but people often don’t know they have these benefits to use,” she said. “CMS is pushing the carriers to further educate consumers on what they are paying for.”
In January 2025, people with Part D plans will find that they will not have to pay more than $2,000 in out-of-pocket costs. This policy is part of the Inflation Reduction Act of 2022.
As Medicare plans offer more choices, carriers enter and leave the market and the lists of in-network providers change from year to year, the role of the advisor in helping consumers make the right choice continues to be crucial, Wilbert said.
“People need a professional they can trust, who can walk them through everything and help them figure out their risk and what they can afford to pay,” she said. “People shouldn’t try to do this on their own.”
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.
“Medicare Advantage benefits have become so rich at this point, but people often don’t know they have these benefits to use. CMS is pushing the carriers to further educate consumers on what they are paying for.”
Christy Wilbert
helps his clients plan and protect multiple generations of their families.
By Susan Rupe
Kids grow up, graduate from school, leave home, get married, have kids of their own — it’s what many of us think is the natural order of things. But in some cultures, the “leave home” part of the equation is often left out. In some ethnic groups, it’s a given that parents and grandparents will move in with the younger generation or that adult children and their own spouses and children will remain at home with the older generation.
It adds up to a full house — and a unique set of financial and protection needs.
Alex Chan understands this dynamic well. Chan is an advisor with Northwestern Mutual in Allen, Texas, a northern suburb in the Dallas-Fort Worth metroplex. A first-generation American, Chan serves many Asian American clients and multigenerational households.
Chan’s mother was born in China and grew up in Guangzhou, a small town outside of Hong Kong. She often told Chan stories how she worked and took care of her younger brother while her mother lived and worked in a different city. In 1993, the family moved to the U.S.
“They said, ‘We’re going to make life work here,’” Chan said. They lived in New York and then California before settling in the Houston area.
Chan’s love of cars led to his becoming a mechanical engineering student at the University of Texas at Dallas. His habit of rising at 5:30 a.m. each day caught the attention of a Northwestern Mutual advisor who attended the same church as Chan did.
“He said, ‘I think you’d be great at this career; you seem to have some discipline in your life.’”
Chan interned at Northwestern Mutual and soon abandoned his plans to become an engineer as he went on to study economics and finance. He continued his career with Northwestern Mutual after graduation.
“It was too great of an opportunity to pass up,” he said of the internship that led to the career he hadn’t originally planned on. “I like working with people, and I like hearing their stories.”
Chan started in the business at age 21 and has always worked with a young clientele. Now at age 30, he said his clients are close to his age or a little older. Between one-quarter and one-third of his clients are Asian American, and many of his clients are involved in insurance and financial planning for multiple generations.
His experience as a first-generation American helps him relate to many of his clients’ experiences and situations; for example, the expectations placed on the first generation.
“I think part of it is parental pressure, as far as making sure that I live up to my family’s expectations and honor my family — that’s a big thing,” he said. “Another part of it is not sacrificing the hopes, dreams and desires that they’ve placed on me as they moved from a different country to plant here and learn a new language and culture.”
Chan said that when he was growing up, his mother worked as a server in a restaurant. “Every dime that she had went to making sure the family was taken care of,” he said. “We weren’t thinking about Roth IRAs or retirement planning investments because to a degree my brothers and I became the retirement plan for my mom.”
its own culture, his Asian clients’ needs are mostly the same.
“I don’t think their needs are necessarily any different from those of any other group,” he said. “Asian clients are like other types of clients in that they like to work with someone who speaks a similar language and understands their culture.”
Chan said that more of his clients are planning for multiple generations of their families, and that planning can take different forms.
Chan’s experience as a first-generation American helps him relate to many of his clients’ experiences.
The Asian community in the Dallas area is relatively small but is growing rapidly, the U.S. Census Bureau reports. Between 2000 and 2022, the number of Asian residents in the Dallas metro area increased to 665,000 — a gain of 224.6%.
The overall population of the Dallas metro area grew to 8 million during that same time, an increase of 53.2%. Most of the Asian population comes from China, the Philippines and Vietnam.
Chan said that although each ethnic group within the Asian community has
“In the Asian American and Pacific Islander community, there is a lot of discussion around everyone living in the same household,” he said. “A lot of the conversations we have and the stories I hear are similar to mine growing up as a first-generation American, where there are a certain respect and desire to make sure the family is taken care of. Being the oldest son adds an additional responsibility of making sure the household is taken care of.”
Chan said many of his clients who are planning for multiple generations are in the middle of taking care of their parents and raising their children. Other clients have children who are getting married and having their own children, so those clients are planning to set up their children and grandchildren for financial
security. He understands the challenges those clients face in trying to protect their multigenerational families.
“A huge part of my job is to consider the story of where they came from,” he said. “If they’re anything similar to my parents, there’s this idea of ‘I moved from a different country and came to America for a better opportunity, to see my kids do better than I did.’
“There’s also a difference in culture, a difference in language to consider. And there’s also simply the idea of their trying to make life work.”
Generational planning is not one size fits all, Chan said.
“We work with many clients whose children are about to graduate from college and who are starting their own families. It’s an interesting balance between the parents and these children who are starting out, where we ask how do we plan so your kids can start flourishing as they start their own families, yet we make sure you don’t run out of money?”
Chan said that he often thinks of how his mother was diligent about saving as much money as she could from her
“I think advisors should encourage families to do thoughtful planning and consider how the family dynamic plays a role in how family members approach planning and saving.”
He recalled, as an 18-year-old intern in the insurance business, watching his parents figure out how to care for his grandparents as they were getting older.
“There’s a taboo around sending a family member to a nursing home,” he said. “I remember my family really struggling around how to plan for the future and make sure everyone would be OK on a day-to-day basis without jeopardizing their financial situation.”
When helping clients plan for multiple generations, Chan said every situation is different.
“We typically begin the conversation with where they’re coming from and where they want to go. From there, we develop a road map to put in place things to cover long-term care for family members, to do generational planning and estate planning. For clients who have a growing family, we have a conversation about how we protect your income if something were to happen to you. Do you have an estate plan? Do you have life insurance? We discuss ways to pay for the children’s education. How do clients juggle the needs of both generations while not sacrificing their own retirement?”
earnings at the restaurant when she was new to the U.S. But he said he wants to emphasize to clients that financial planning for their families is about more than putting money into savings.
“I think advisors should encourage families to do thoughtful planning and consider how the family dynamic plays a role in how family members approach planning and saving,” he said. “I think sometimes clients believe ‘We’re just going to stick with what we know.’ I remember conversations with my mom that included this thought of ‘If you could just save, save, save and set aside money in cash, that would be great for a rainy day.’ But we need to think about how we can make those dollars more efficient, and how we can be thoughtful and intentional about our approach to saving and investing.”
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.
These materials are for informational and educational purposes only and are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. Securian Financial Group, and its subsidiaries, have a financial interest in the sale of their products.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.
Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries. Minnesota Life Insurance Company and Securian Life Insurance Company are subsidiaries of Securian Financial Group, Inc.
For financial professional use only. Not for use with the public. This material may not be reproduced in any way where it would be accessible to the general public.
In its continuing effort to encourage proactive health care and promote longevity, John Hancock said it is the first insurer in the U.S. to offer discounted access to advanced whole-body MRI scans as part of its healthy lifestyle program, called Vitality.
Hancock Vitality members will receive a $500 discount on comprehensive wholebody scans by Prenuvo, the innovative San Francisco-based health technology firm. The company said the initiative complements Hancock’s previous investment in preventive health care technologies, such as offering access to GRAIL’s multicancer early detection test, Galleri.
Qualified John Hancock Vitality members will have the opportunity to review their scan results with a nurse practitioner arranged by Prenuvo, which has offices and clinics throughout the country. Individual reports will remain confidential and will not impact the customer’s current life insurance coverage, pricing or status in the John Hancock Vitality Program.
A recent Supreme Court decision could have a major impact on the structuring of buy-sell agreements for closely held companies and the way life insurance is used to fund such arrangements.
In June 2024, the high court handed down its decision in Connelly v. U.S., a case that questioned whether the proceeds of a life insurance policy on a shareholder taken out by a closely held company constitutes an asset of the company when calculating the value of the shareholder’s shares for purposes of the federal estate tax.
The court ruled unanimously that “a corporation’s contractual obligation to redeem shares is not necessarily a liability that reduces a corporation’s value for purposes of the federal estate tax.” This means that the proceeds the company received from the policy increased the fair market value of the company because the cash received is considered an
asset of the company. The parties were not able to offset that asset with the liability related to the repurchase obligation.
A decade ago, direct-to-consumer platforms were the next big thing in life insurance. Fast-forward to 2024 and directto-consumer sales are flat at best and nowhere near expectations. And many of those startup companies are either gone or struggling to survive.
Momentum for the direct-to-consumer insurance market grew with the development of digital tools that allowed for online quote comparisons, artificial intelligence-based underwriting and telematics.
But even though data from LIMRA showed people want to shop for life insurance online, that desire hasn’t translated into more sales. Those consumers old enough to want and need the products are not always the most interested in shopping online, while those online
shoppers who are younger are not especially interested in life insurance.
LGBTQ+ consumers are more likely than the general population to express financial concerns about immediate issues such as maintaining their jobs, paying monthly bills and mortgages, and the possibility of becoming disabled, saving for retirement or having an emergency fund. Even looking at a comparison with younger generations, LGBTQ+ consumers express greater financial worry. This is according to the 2024 Insurance Barometer Study conducted by LIMRA and Life Happens.
As a result, LIMRA research shows, this group is disproportionally uninsured and underinsured, leaving those who rely on them at financial risk should they die unexpectedly.
Just 40% of LGBTQ+ adults say they own life insurance, which is considerably lower than the general population (51%). Even those who have life insurance coverage may not have enough. LIMRA research shows 46% of LGBTQ+ consumers — representing 8 million adults — say they need (or need more) life insurance.
By Shawn Goheen
The number of high net worth individuals doubled between 2010 and 2022 in North America, Europe, Asia and the Pacific, according to Statista. This trend is expected to continue.
The growth of the high net worth market has also seen a significant uptick in wealth management solutions and services as companies step forward to provide this market with strategic support to further their wealth and legacy planning.
Considering that North America had an estimated 7.4 million high net worth individuals as of 2022, it makes sense for wealth management to become a commodity. However, the value of the service lies in the expertise behind it.
Managing a wealth portfolio that helps ensure demonstrable growth and optimized value for the HNW individual requires a deep understanding of the market, the regulatory requirements and the individual’s custom needs. Life insurance, for example, can be a strategic and reliable wealth management avenue for HNW
individuals in a landscape that is complicated by rising inflation, uncertainty and geopolitical instability.
Life insurance is a trusted way for HNW individuals to allocate funds across various fields and preserve their wealth potential while mitigating risks. It’s an approach that can help empower affluent individuals to extend their assets while preserving them through different asset protection mechanisms provided by life insurance.
Life insurance provides HNW individuals with confidence and stability within an investment asset designed to grow with them and with their wealth portfolio. Leveraging this asset class is an intelligent move for HNW individuals who want to expand their diversification parameters while building stable foundations for the future.
Life insurance is a powerful tool in estate planning as it can allow the HNW individual to secure the transfer of their wealth to future generations, navigating estate tax obligations while helping to ensure their beneficiaries receive the full value of their estate. It is a strategic move that optimizes tax advantages and safeguards against potential tax increases in the future. Versatile and flexible, life insurance is a smart wealth management strategy that continues the HNW individual’s legacy and helps secure their beneficiaries’ future.
However, there are multiple regulations and laws governing the use of life insurance as a tax avoidance strategy, and HNW individuals should have a trusted wealth management partner to help ensure they remain within ethical
A wealth professional should be on top of the ever-changing federal and state tax laws and regulations with an experienced tax professional as part of the team.
boundaries. This means a wealth professional should be on top of the everchanging federal and state tax laws and regulations with an experienced tax professional as part of the team. The latter may be focused on managing all tax-related elements regarding the investments to mitigate any business tax-related risks. Wealth management professionals should also understand everything about a client’s assets, family, goals and challenges before looking at possible structures to help protect these assets.
A lack of due diligence can lead to obstacles, even decades later.
Life insurance as an asset management strategy can help HNW individuals mitigate estate tax because the life insurance death benefit offers immediate taxfree liquidity when a family member or business partner passes away. However, the presence of a large degree of illiquid assets can create challenges when trying to pay these taxes and other costs associated with the transfer of wealth to heirs. An experienced wealth advisor can help high net worth clients invest in a policy big enough to cover the estate tax and safeguard from a possible forced sale of illiquid assets, or even recommend that the policy be owned by a trust as this can help minimize the risks.
As HNW individuals have various income streams from investments, businesses, real estate holdings and more, it can become complex to navigate asset management. Unforeseen challenges could arise if income streams are not correctly managed, which could then impact the wealth of the HNW client’s family. Mitigating these challenges requires a focused approach that adopts several different strategies.
The first is tax mitigation strategies such as restructuring business entities, paying for expenses with pretax dollars, generating tax-free income and restructuring current trusts.
The second step is to take a holistic approach tailored to each portfolio as a custom entity. A HNW individual should have a team comprising estate attorneys, tax attorneys and financial advisors to deftly manage assets legally and with optimum results. Gifting assets, developing trusts, making charitable contributions
1. Estate tax planning: Life insurance provides a tax-free death benefit, which can cover estate taxes. By strategically allocating assets, high net worth individuals can minimize the impact of estate taxes on their wealth.
2. Wealth transfer: For someone who has substantial assets, life insurance allows them to transfer wealth to the next generation taxefficiently. The death benefit bypasses probate and goes directly to beneficiaries, avoiding estate taxes.
3. Charitable giving: High net worth individuals may consider using life insurance to fund charitable donations. The individual can name a charity as the beneficiary, and the proceeds will support the cause while reducing the taxable estate.
4. Business succession: For business owners, life insurance can facilitate smooth business succession. It ensures that funds are available to buy out a deceased partner’s share, preventing disruption and minimizing tax implications.
and setting up life insurance — these are some of the intelligent steps HNW individuals can take to significantly reduce their tax on active income, passive income and sale of appreciated assets. They can also keep a high net worth individual’s assets protected from creditors and outside the taxable estate in a form that is fully usable and controllable by the individual.
A trusted wealth advisor should be a foundational part of any HNW individual’s estate and asset management strategy. In the short term, the advisor can provide invaluable expertise in navigating complex financial landscapes and offering tailored strategies to optimize wealth preservation and growth. With a deep understanding of market dynamics, risks, investments and regulations, a wealth advisor ensures HNW individuals make informed decisions that align with their financial goals and risk tolerance. In addition, during periods of uncertainty and volatility, a trusted advisor ensures HNW individuals
navigate these challenges with confidence. In the long term, it is the wealth advisor who can play an important role in crafting comprehensive wealth management strategies for future generations. Establishing lasting relationships with HNW individuals and their families, wealth management professionals are an extension of the HNW individual’s specialized needs, aspirations and legacy. These advisors offer strategic planning, tax optimization and estate planning that have longevity and value. The value of a trusted wealth advisor goes beyond the in-depth understanding of markets, finance, wealth and assets, and into a commitment to the financial well-being of their HNW individual clients and helping them achieve their long-term financial goals.
Shawn Goheen, CSA, LUTCF, is a partner at, Goheen Insurance, A Simplicity Company. Contact him at shawn.goheen@innfeedback.com.
Registered index-linked annuity sales have been climbing steadily, growing from $1.4 billion in 2014 to $4.74 billion in 2023, LIMRA reported. “I haven’t seen any annuity product grow like this in a 10-year period since I’ve been in this business,” said Kevin Russ, director of the advanced markets group at Brighthouse Financial.
Why the rise in RILAs’ popularity? Russ said three factors influenced RILA development.
1. Interest rate environment. RILAs were developed in response to a prolonged low-interest-rate environment.
2. Projected equity market performance. After the 2008-2009 global financial crisis, equity markets were projected to do well over the next decade, Russ said.
3. Growing aversion to variable annuities. VAs were complex and clients did not understand them. Making matters worse, he said, the industry did not do a good job of explaining how VAs work.
Since they entered the marketplace in 2010, RILAs have become the fastestgrowing category of annuities. RILA sales surpassed variable annuity sales for the first time in the fourth quarter of 2023, LIMRA reported.
Spiking sales have annuities on pace to crack the $400 billion sales barrier for the first time this year. If the first quarter is any indication, producers are motivated by the impending fiduciary rule going into effect starting Sept. 23, said Sheryl Moore, founder and CEO of Wink.
“I think there’s kind of a fire-sale mentality that’s going on,” she said. “The carriers know that this fiduciary rule is going to have an impact on their sales. And the insurance agents know that things are going to change coming in September.” Officially known as the Retirement Security Rule, the rule will allow the Department of Labor to extend fiduciary duty to a majority of annuity sales
Noteworthy highlights for all annuity sales in the first quarter include Athene
USA ranking as the No. 1 carrier overall for deferred annuity sales, with a market share of 9.2%. Nationwide came in second place, while Corebridge Financial, New York Life, and Equitable Financial rounded out the top five carriers in the market, respectively.
Reacting to expanding investor demands, annuity sellers are emphasizing value propositions that strike a balance between managing downside risk and offering opportunities for upside participation. Buffered annuities such as RILAs have seen acceptance that is “rather meteoric,” according to Marci Green, head of retirement intermediary and insurance distribution at Goldman Sachs.
That finding is clearly highlighted in the fourth annual Goldman Sachs Asset Management Annuity Industry Survey 2024, “Driving Retirement Outcomes, which reveals a number of industry trends and insights that are changing the retirement planning landscape.
Most notable is the growing popularity or demand for so-called buffer annuities, or defined outcome investment funds. According to the survey, 45% of
Only 9% of consumers say they feel very knowledgeable about annuities.
Clients are prioritizing risk protection more so than maximizing gains.
respondents indicated that these products are a top priority for the next 12 months. Buffered annuities, including RILAs, are designed to protect investors from market downturns while still offering the potential for growth. This blend of protection and opportunity addresses the dual desires of many investors: to grow their wealth while effectively managing risk.
In today’s environment, many fiduciary advisors are turning to protection products such as fixed indexed annuities and fixed annuities to offset client portfolio risk.
That was one of the findings from Security Benefit’s Registered Investment Advisor Benchmark Study. The study looked into RIAs’ perspectives regarding client practices, economic sentiment, product diversification and the impact of the upcoming presidential election on the markets.
Security Benefit’s research — conducted in partnership with Greenwald Research and DPL Financial Partners — uncovered several findings. The research found RIAs are allocating at least 40% or more of retirees’ assets to fixed income products, with annuities gaining favor. More than half of respondents (55%) said that they either are using fixed annuities or plan to use them in the next six months, and 45% said the same for FIAs.
FOR AGENT USE ONLY. NOT INTENDED FOR THE GENERAL PUBLIC.
The Evolve Income Value has no cash value and cannot be withdrawn as a lump sum and is not part of the death benefit. SILAC® is licensed as SILAC Life Insurance Company in the state of California, license #6244-8. Withdrawal charges, bonus recovery and market value adjustment may apply to withdrawals made during the withdrawal charge period. Interest credit amount is not indicative of future performance. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. See Certificate of Disclosure for more details. This is a product of the insurance industry and not guaranteed by a bank, nor insured by FDIC or NCUA/NCUSIF. Product availability may vary by state. In Idaho, policy form is ELCFIA-ID. Not a deposit. Not insured by a federal government agency. Restrictions apply. May only be offered by a licensed agent.
Fixed indexed annuities may be confusing to clients, but advisors can guide clients to making the right choice for their needs and goals.
By Susan Rupe
There are many investment products out there, but none of them combines the features that a fixed indexed annuity does, according to Branislav Nikolić, head of insurance at The Index Standard, during a recent webinar by the National Association for Fixed Annuities.
An FIA provides six benefits to investors, Nikolić said, which are:
1. Principal protection. An FIA gives an investor the opportunity to gain more than what they can with other fixed-rate products, while protecting the investor from losses.
2. Guaranteed income. One popular way of earning income is through optional income benefits that can provide an investor with regular withdrawals either immediately or at a later date.
3. Market participation. An FIA calculates interest based on an accredited method that is linked to an index, not a performance of an index or of the market itself. But an FIA does allow an investor a certain degree of market participation
that goes beyond that of other fixed annuity products.
4. Death benefit.
5. Access to your money.
6. Tax deferral.
With all the different FIAs on the market, how does an advisor choose the best one for a client? Nikolić gave five considerations for making the right choice.
1. Issuing carrier. Consider a carrier’s financial strength, business practices, customer service, transparency, renewal rates and overall in-force experience.
2. Index lineup. Look for diversity and robustness of index lineup, as well as the variety of trading strategies offered to provide adaptability to changing market conditions and add a layer of resilience to the overall allocation strategy within the annuity.
3. Performance considerations. Understanding the return potential of an indexed annuity is key to the planning process, as is choosing the options inside
the annuity that match investors’ risk tolerance and financial goals.
4. Income. Ask what type of income the investor needs. Are they looking for guaranteed income or performance-driven income, level income or increasing income?
5. Other benefits. Look at various riders including long-term care riders.
Advisors must be prepared to answer client questions about annuities. Nikolić listed a few of the questions clients most frequently ask.
What are the different types of fixed annuities? The key difference between fixed and fixed indexed annuities, he said, is the amount of certainty a client wants when receiving interest credits. In a fixed annuity, the insurer tells you the exact interest rate you’ll get ahead of time. This means that no matter how the insurer’s investments perform, the client will be guaranteed the rate and interest credit. On the other hand, with an FIA the issuer offers a credit strategy on a given index and the rates are offered for a given period.
Where does most of the client’s money go? It goes into the insurance company’s general account and is combined with the money from different sources of insurance premium. And with that, insurers are able to pay for the promises they may make to the clients. In fixed annuities, they assure guarantees that they will return your money with some extra gains, which Nikolić described as “scooped out of the pool.”
“But because it’s like a pool of water, the insurer doesn’t necessarily keep track of which dollar was originally yours,” he added. By managing these assets together, the insurance company can make investments that most people don’t have access to. And more importantly, insurers can diversify among many different fixed income investments.
“When you look at the costs of providing an annuity, you think of operating expenses, computer administration systems, legal fees, distribution and sales costs, and the salaries of all the people who make all this possible. All of that must be considered.”
Branislav Nikolic, head of insurance at The Index Standard
Where do the annuity interest rates come from? Nikolić said he believes there are some factors to consider in determining where annuity interest rates come from.
“When we think about a product itself, the insurance company must think about the demographics of who is going to be buying the product, how long these people will stay in the contract, other benefits that are attached to the policy — many of the factors play into that,” he said. “When you look at the costs of providing an annuity, you think of operating expenses, computer administration systems, legal fees, distribution and sales costs, and the salaries of all the people who make all this possible. All of that must be considered.
“The big item on this list is reserves,” he continued. “The reserving requirement is a part of the insurance regulation. It makes sure that a company can make good on its promises. The company also must include compensation for the use of its own money, the capital that’s used to back the guarantees to its clients. Bottom line: It’s not that simple.”
What are the options and option budgets? The cost of the option contract depends on the nature of an index, which is why participation rates or cap rates can be different depending on an index. The less predictable the returns of an index, the more expensive the option contracts are, Nikolić said.
What are renewal rates? Among the things to understand about renewal rates, Nikolić said, is that these are the rates that the annuity will pay if it’s a fixed rate or will be applicable for the index strategy beyond the first term. Some annuities announce higher rates in the first year of the contract.
He said two key reasons why these rates change over time are the interest rates that govern the annuity’s option budget and the volatility of underlying indices that govern the option prices.
How does the insurance company make money? The simple answer, Nikolić said, is that carriers make money by providing insurance.
“They’re in the business of providing insurance, and they make the money
virtually the same way that they do for a fixed annuity and a fixed indexed annuity. In both cases, they calculate how much they need to earn in exchange for using their funds to back the guarantees to their customers,” Nikolic said. “And this is what happens when they figure out the rate for a fixed annuity or index crediting strategies they offer to their customers. They do this through buying the options contracts, they’re there to match the design of your crediting strategies. And it’s important to understand the design and everything that goes into that from index to strategy to the other guarantees involved.”
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.
Health savings accounts can be a significant vehicle to save for health care expenses in retirement, as HSAs have a triple tax advantage, making them attractive ways to invest money toward filling in the gaps in Medicare coverage. That was one of the main takeaways from a new white paper by the Employee Benefit Research Institute in collaboration with Inspira Financial.
HSAs not only cover healthcare expenses not covered by an employee’s health insurance during their working years. They also can help retirees fill in the gaps in their Medicare coverage.
EBRI research has found that the longer someone has owned their HSA, the larger their balance tends to be, because the higher their contributions tend to be, the more likely they are to invest their HSA in assets other than cash. These strategies better position accountholders to withdraw larger sums when unexpected major health expenses occur and can leave accountholders more prepared to cover their sizable health care expenses in retirement.
The newest generation to hit the workforce is also the generation with the highest rate of participation in high deductible health plans, according to the Benefitfocus State of Employee Benefits Report.
The report shows that participation in HDHPs in 2024 — often coupled with health savings accounts — is highest among Generation Z employees (45%), followed closely by millennials (43%) and Generation X (30%). This data suggests Gen Z’s relatively larger adoption of HDHPs may be a result of younger employees gravitating toward lower premiums and potentially less financial burden.
The report also finds relatively few employers are offering solely a traditional (15%) or HDHP (1%), which suggests the need to support an individual’s health care and financial wellness requirements is influenced by life stage.
Although child disability insurance is common in Scandinavian countries, it didn’t exist in the U.S. until Juno launched the first product of its kind in this country. The company began selling coverage this year as a workplace benefit in companies of 200 or more workers. Benefits brokers can offer Juno to their employer clients, and employers either can offer the coverage as a voluntary benefit or can pick up some or all of the premium costs for their workers.
Juno directly pays covered families cash benefits of up to $500,000, typically over a period of several years. The benefits can be used for anything from hiring caregiving support to installing home modifications to paying for
Insurance is not what it used to be. It’s not covering as much as it used to.
— Tori Marsh, GoodRx director of research
treatment that traditional medical insurance doesn’t cover.
Along with cash benefits, Juno provides covered families with one-on-one guidance to help them apply for state and federal programs, find peer groups, identify caregivers and plan for the future.
More than half of U.S. workers are covered by employer-sponsored health plans, but the cost of those plans is putting pressure on small businesses, a JPMorganChase Institute study showed.
Health costs are also on the rise among small businesses that do have employees, the study found. For organizations bringing in less than $600,000 in revenue each year, insurance premiums accounted for about 12% of payroll expenses. By comparison, they were 7% of payroll expenses on average for firms with $2.4 million or more in annual revenue.
Close to half of small businesses reported a loss within the past five years due in part to rising premiums, the study shows.
Source: AHIP
Medicare supplement
Dental plans and vision rider
Mutual of Omaha’s Medicare solutions, with competitive rates and outstanding customer service, make an excellent choice for your Medicare-aged clients.
Medicare supplement — Household discount, value-added programs, fast policy issue. We auto-decision over 70% of our Med supp underwritten applications.
Dental plans — Flexible and competitive dental options that’ll make your clients smile.
Questions?
Contact your marketer of visit mutualofomaha.com/sales-professionals.
Brokers must harvest their richest audience with effective cross-selling, even beyond the AEP.
By Ilya Filipov
Every day, 10,000 Americans turn age 65, making them Medicare eligible, and an evergrowing population of insurance agents are working to serve them. Yet, most brokers follow the same playbook: They shoehorn their energy into the annual enrollment period every year, with “spray and pray” campaigns shouting among all the other providers — and unsurprisingly yielding poor return on investment.
Medicare brokers can break out of this status quo and capture growth by reframing their customer engagement around two key pillars.
First, brokers must look outside the AEP to engage net-new prospects earlier in their journey — as soon as they’re in-market — with more personalized and helpful guidance. Second, brokers must harvest their richest audience — their existing Medicare customers — with
effective cross-selling that expands shareof-wallet and makes members stickier.
Both pillars center on a common strategy: using a deeper level of customer intelligence to build engagement around key life milestones that signal or trigger new insurance needs. This enables brokers to show up for their customers and prospects at the moments that matter (and before their competitors get there).
Life-centric engagement used to be a lot easier. Agents knew every policyholder personally. They talked regularly.
But those connections have been disrupted by the digital-first expectations of today’s policyholders. Also, agents manage hundreds (or thousands) of policyholders and prospects. The result is that very few agents have that same level of familiarity that once defined their customer relationships.
A new breed of analytics tools is helping brokers gain that one-to-one familiarity
with customers by applying modern analytics technology with an age-old insight: Milestones such as turning 65, retiring, having a baby, having a child graduate, changing jobs or moving are the key organic demand drivers. These life milestones inherently change an individual’s insurance needs, putting them in-market for new financial products. The new breed of purpose-built analytics tools gives insurance organizations and their agents clear signals of these key life milestones so they can respond immediately.
Having the insights is one thing. The ability to act on them, in time and at scale, is another. In fact, one of the biggest differences between a top-producing agent and a middle-of-the-pack one is how quickly they act on a customer insight.
With multiple insights received in a day, it’s imperative to act within seconds. Rather than relying on agents remembering to call or email a client or prospect, leading insurance organizations are turning to multichannel, multitouch engagement journeys. These journeys
take a honed insight (a customer who has turned 65, for example) and automatically trigger a hyperpersonalized series of well-timed messages and content on behalf of the agent.
How does this life-centric engagement — combining life milestone signals with intelligently automated journeys — come to life for Medicare marketing? Here are two primary use cases.
Most Medicare marketing spending centers on the AEP, leaving insurance organizations competing for attention in a sea of generic messages. Insurers and brokers can apply the life-centric engagement model to reach net-new prospects earlier — when they’re most open to helpful guidance.
» Turning 65: That magic age triggers the initial enrollment period and starts three months before the 65th birthday. Insurance organizations and brokers should anticipate this major milestone and begin engagement well before that birthday — and even before the IEP begins. Critically, this early engagement needs to follow the “don’t sell — help” mantra. Focus on educational content, helping individuals understand how to evaluate their options and prepare to navigate the enrollment process.
» Retiring: Leaving the workforce — or, more specifically, losing employer-sponsored health insurance — qualifies an individual for a special enrollment period. Insurers and brokers should anticipate this life milestone as early as possible to engage retirees before the SEP. Again, the focus should be helpful, educational content to inform them that they qualify for a SEP and walk them through the process.
» Moving: An SEP is also triggered when an individual moves to a new address outside the service area of their current Medicare plan. This is a prime opportunity for insurers and brokers to identify the earliest signals an individual is planning (or has already begun) a move to a new area — and engage these movers to educate them on understanding the SEP and navigating their options in their new service area.
It’s common knowledge that selling to an existing customer is much easier (and cheaper) than attracting a new one. Crossselling is particularly valuable in insurance, where customer acquisition costs are higher than in any other industry. Cross-selling is a true win-win: Nine in 10 consumers say they want to bundle their insurance products with one provider, according to a Simon-Kucher survey. Yet some of the best estimates suggest fewer than 1 in 3 policyholders have more than one policy with a given agent or insurance provider.
A life-centric approach provides powerful guideposts — turning 65, retiring, moving, changing jobs, having a baby, or a loved one graduating from college or high school — to deliver hyper-relevant marketing campaigns to their current Medicare plan members.
» Offering ancillary health insurance products: Any one of these life events can trigger a broader reevaluation of financial wellness. This is an ideal time to educate clients about health insurance products that can complement or fill gaps in Medicare coverage. These include hospital indemnity plans, final expense plans, long-term care insurance, and dental, vision and hearing plans.
» Offering rollover: Most consumers have insurance and retirement benefits from work. Changing jobs or retiring is an ideal opportunity to explore how
A life-centric approach provides powerful guideposts to deliver hyper-relevant marketing campaigns to their current Medicare plan members.
clients can roll these benefits over to an individual product.
» Offering life insurance: Any change in a life situation warrants the review of a client’s life insurance policies and making sure they provide adequate protection.
» Offering other insurance and financial products: The transitional period around a life milestone such as retiring or moving also presents an ideal time to engage existing Medicare plan members with educational content on supplemental life insurance coverage, the value of annuities or more general financial planning services.
As the challenges of digital distance and scale have grown, so has the typical marketing tech stack within insurance organizations. But the reality is that insurers and their agents don’t need more technology. Instead, they need to focus first on showing up at the moments that matter — seeing the signals that anticipate or predict key life milestones that drive the best opportunities for net-new and cross-sales growth — and connecting that intelligence to a system of action to engage those opportunities at scale.
Ilya Filipov is Total Expert’s general manager of insurance. Contact him at ilya.filipov@innfeedback.com.
A retirement advice gap exists between what advisors tell clients about protected income and what those clients hear about it. But that gap creates an opportunity for advisors. That’s the word from the latest Protected Retirement Income and Planning study by the Alliance for Lifetime Income.
This year marks the beginning of the Peak 65 zone, in which the U.S. will see the largest surge of the population hit age 65 in history. More than 4 million Americans will turn 65 each year through 2029. Peak 65 has implications for people who are entering retirement and already in retirement, as well as for the financial advice industry, said Suzanne Norman, education fellow with the Retirement Income Institute.
But despite having a rosy view of retirement, about half of those in the Peak 65 zone are unprepared for it , the study showed. Half of Peak 65ers have less than $100,000 saved for retirement. In addition, 6 in 10 of the Peak 65 group do not work with a financial professional.
More than half of Generation Z and millennials are excited about the impact artificial intelligence and generative AI tools could have on their financial lives, while older Americans are more skeptical.
Only 38% of Generation X and 23% of baby boomers and older said they are excited. These are the latest findings from Northwestern Mutual’s 2024 Planning & Progress Study. According to the survey, 63% of Gen Z and 57% of millennials said that AI will “improve the customer experience in the financial sector, including with financial planning.” Conversely, less than half of Gen X (44%) and boomers (32%) shared this sentiment.
When asked to identify the potential AI benefits that Americans are the most excited about when it comes to managing their money, “advanced data analysis” emerged as the top choice. Faster response times, increased efficiency, improved customer service and greater opportunities for customization rounded out the top five benefits.
A Nationwide Retirement Institute survey found many older business owners near retirement (aged 60-65) face significant challenges preparing for the next chapter in their careers — and lives.
For example, about a third (36%) of older business owners report they have pushed back their planned retirement date in the past year. The survey revealed several financial reasons why they
A report by Jenius Bank shows financial pressures — among many others — are causing stress and anxiety that may impact nearly every facet of people’s lives, from their relationships to their physical health to plans for the future.
More than half of survey respondents said finances make them stressed and cause anxiety and/or feelings of depression, also reporting loss of sleep (52.8%), feelings of guilt or hopelessness (41.4%), regular headaches (32%) and strained relationships with friends/family (30.1%).
About 1 in 4 respondents said financial concerns have impacted their decision to have children , 36.2% would consider moving to a less-expensive new location because of their concerns, and 55% of unmarried respondents say they’re less likely to get married due to their financial worries.
26% of retired baby boomers blame themselves for running out of money in their retirement.
Source: IRALOGIX survey
have made this decision, including concern they don’t have enough money saved or the need to spend money on health-related expenses.
The survey also found a succession planning gap. More than one-third (35%) of respondents said they don’t have a succession plan but are currently developing one. Another 16% said they don’t have one in place and don’t have plans to develop one.
Integrating a suite of financial wellness solutions will help retirement plan advisors elevate their offerings.
• Susan Rupe
Retirement plan advisors have an opportunity to elevate their offerings beyond “funds, fees and fiduciary.”
That was the word from Vestwell’s leadership, who discussed why integrating a suite of holistic financial wellness solutions will help advisors expand their practice. Vestwell is a provider of 401(k) plans for businesses.
The demand for workplace benefits is shifting beyond retirement plans, said Josh Forstater, Vestwell national sales manager. “We’ve seen holistic benefits increasing in popularity, not only for large market employers but for small and midmarket too,” he said.
Several factors are fueling the demand
for workplace financial solutions beyond offering employees a 401(k) plan, he said.
» Savers are increasingly seeking more personalized financial wellness solutions.
» Workplace retirement plans have shifted from perk to prerequisite.
» Saver demand continues to grow for more comprehensive and inclusive workplace financial wellness benefits.
» Employer-sponsored education savings benefits — such as 529 plans and student loan assistance — are gaining momentum in the response to student debt challenges.
The retirement plan market is exploding, Forstater said. In 2014, there were 362,000 retirement plans in the market. Today, there are more than 700,000. In
addition, 48 states either have a mandate in place or are in talks to pass a mandate for retirement savings plans to be offered in the workplace. SECURE 2.0 requires 401(k) and 403(b) plans to provide for an automatic enrollment or an automatic increase arrangement. SECURE Act significantly expanded the tax credits available to companies that offer retirement savings plans.
“What it means is that businesses that never had retirement benefits now all of a sudden do,” he said. “It also opens the opportunity for more holistic approaches. There are new auxiliary offerings and products that you or an advisor can help with, whether that’s a health savings account, student loan solutions or other things that weren’t possible before.”
Vestwell’s 2024 Savings Trend Report showed that savers increasingly want to think more holistically, Forstater said.
“They don’t just ask, ‘What am I getting in retirement?’ They’re asking,
‘How will you help me save for all my goals? And how will my advisor on the plan do that?’”
The increased demand for financial advice from workplace retirement plan participants is an opportunity for advisors to provide more holistic solutions, he said.
Vestwell’s leaders described several holistic solutions advisors can offer to retirement plan participants.
HSAs are one of the biggest areas for growth in a retirement plan advisor’s practice, Forstater said.
“The HSA is a great way to save for unknown health care expenses,” he said. “We’re seeing advisors fold this into their practice. We see some advisors setting up human resource consulting practices on the side.”
Forstater said HR’s biggest expense is employee health and wellness. “Being able to align to your key constituency as you provide retirement advice is an area we see growing.”
Advisors can have a huge impact on families if they understand some basics about college financial aid, and many workers are interested in incorporating a 529 college savings plan into their savings and investment plan. That was the word from Michael Parker, Vestwell senior vice president of program management.
What should advisors tell clients about 529s? One reason people invest in 529s, Parker said, is for its tax benefit. “The flexibility of the plan is another reason. The fact that the parent or grandparent owns the plan and you can transfer the plan to other family members if the child doesn’t go to college — all those make 529s attractive to workers.”
For a child who doesn’t attend a fouryear college, a 529 plan can help pay for an apprenticeship program or a two-year or one-year academic program, he said. Any money left over in a 529 plan can be rolled over into a Roth IRA for the child’s future retirement.
“This allows families to do more longterm planning,” he said.
Employers can help their workers pay down their student loans, and there are
tax benefits for doing so, said George Lambert, Vestwell vice president of workplace wellness. The tax benefits were included in the CARES Act that Congress passed in response to the COVID-19 pandemic.
In addition, SECURE 2.0 permits employers to make a 401(k) match for an employee who is paying into the plan and also paying down their student loans. This allows employees to focus on paying down their loans while also participating in the plan.
“If you’re helping an employer with that type of match, the SECURE 2.0 qualified student loan payment match will increase overall participation and
eligible for an ABLE account, which is a 529-like plan that enables people with disabilities to save for their needs without losing their eligibility for federal benefits.
“It’s a game changer in that people experience disabilities when they’re working, but because they need that benefit they’re disadvantaged in savings,” said Parker, adding that family members can contribute money to an ABLE account on behalf of a child or grandchild with a disability.
Offering holistic benefits is a great opportunity for you and your business,” Forstater said. “It means more funds on your investment statement. It means retaining assets through lifetime income. It
There are new auxiliary offerings and products that you or an advisor can help with, whether that’s a health savings account, student loan solutions or other things that weren’t possible before.
contributions into the plan and raise overall plan assets, which is beneficial if you are an advisor,” Lambert said.
“Instead of having the typical conversations around retirement, you can go to your client with a new topic that’s framed around financial wellness.”
Offering employers the ability to provide an emergency savings plan is another way to provide a financial wellness benefit to workers, Lambert said.
“If employees have savings, they are less likely to take emergency loans from their retirement plans,” he said.
An estimated 8 million Americans are
means bringing in assets through emergency savings, or helping protect assets through things like the SECURE 2.0 student loan match, both of which allow people to save who otherwise couldn’t. And there’s nothing that makes HR happier than your being the advisor who helped create better outcomes for your clients.”
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.
How one advisor teaches clients to approach retirement with optimism and joy instead of fear and dread.
By Susan Rupe
n rugby, the game is divided into “three halves.” The first two halves are the official parts of the game that are played on the field. But the “third half” takes place when the game is over. Players from both teams meet and celebrate together, establishing relationships and a sense of community.
Just as in rugby, retirement can be thought of as the third half of life, said Campbell Gerrish, cofounder of Third Half Advisors, based in New York. After working in the insurance industry since 1973, Gerrish founded Third Half Advisors five years ago.
just as bright or even brighter than the first two halves they played on the field,” Gerrish told InsuranceNewsNet.
The first half of the average person’s life is education, he said. “During those years, you have to follow a certain curriculum and routine.”
An individual’s working years make up the second half of life, he said. “Once you strap yourself into a desk, you’re there for a long time. Even though you may work for a variety of different companies in your career, you’re mostly in a situation where you’re required to be there.”
He created Milestone Sessions, threehour programs designed to introduce people to alternatives to traditional “aging” choices. The program begins with using the Clifton Strengths Finder, a professional assessment tool to help people identify their current strengths. Out of 34 different strengths, participants filter down to 10 of those strengths and then identify five strengths to focus on as they plan their retirements.
Third Half Advisors’ mission is “helping people approach life in an optimistic way, as opposed to looking at retirement as a drag,” he said. He created a curriculum completed by more than 500 people to guide them to finding joy and purpose in their post-employment years.
“It has been a mission of mine for the last five years to teach people that there really is a third half of life that can be
The third half of life — retirement — is completely different. “After you retire and step back from work, you get to choose what you want to do,” Gerrish said. “That’s what our business is about. It’s about helping people decide what are the activities that will bring them energy in this stage of their life.”
After more than four decades in the life insurance business, Gerrish wanted a change. He chose to form a practice focused on helping people form their vision for retirement and make a plan to thrive in the next chapter of their lives.
“We have determined that if people focus on those areas of life, they will find energy and joy and abundance,” Gerrish said. “We try to teach them how to create a portfolio with a variety of different activities that all bring energy, fun and joy into their lives.”
This is different from many of the aptitude and personality tests that people may have taken in their working years. “It’s the same type of information, but we orient it in a different way,” he said. “At this stage of their lives, the field is wide open. I think that when we’re working, there are many things we may be good at but we don’t like doing very well.”
Gerrish said many of his clients rediscover the passion for something they
enjoyed or wanted to do when they were much younger. “Maybe you always wanted to play the flute, or maybe you played an instrument when you were in school but haven’t done it since you started working. Now you have time to pursue those things.”
One client chose to fulfill a longtime dream of raising funds to create an interfaith worship center in his city. Another client decided she would cut back her business hours so that she could spend every Friday with her mother.
Although preretirees are concerned about having enough money to fund their post-working years, Gerrish said most of his clients are more concerned about finding meaning and purpose now that they no longer have a title or an office in which to spend their days.
“Suddenly, they don’t have appointments on their calendar. They don’t have a community of people to work with,” he said. “Now life is like a whiteboard. It’s complicated because even though you don’t have someone telling you what to do anymore, retirement is baffling for some people. You’ve been working for 30 or 40 years in a particular career, you become good at doing some things and you have things on your calendar for every day. You don’t have to ask what you are going to do today.”
Retirement often is envisioned “as this idyllic picture where you play golf and enjoy cocktails at sunset,” Gerrish said. “But many people I work with are thrown off-kilter by retirement. They don’t know quite what to do. They may have played all the golf they want, or they may have hurt their knee and they can’t do some things they enjoy. They don’t quite know how to approach this phase of life.”
In addition to those who don’t know what to do in retirement, some try to take on too much now that they no longer have to punch a time clock.
“Some people say yes to everything,” he said. “The next thing you know, they’re overloaded with responsibilities for things they might not even like very much.”
Gerrish said his goal is to help clients answer the questions: What are my
strengths? What are my values? How will I make decisions about things I want to do as well as things that I must do, such as taking care of aging parents?
“The most important thing they must decide is what they won’t do anymore,” he said. “It’s about realizing, ‘Here are some things that I had to do for years and I never really liked doing them. I’m not going to do them anymore.’”
The Clifton Strengths Finder also helps clients identify the types of activities they want to engage with as well as what they value most.
“What are the most important things during your working career might be completely different after you retire,” he said.
retiree’s physical health, Gerrish said.
“Having meaning and purpose in life will extend your longevity. I think it has been proven that being lonely and not having companionship is the equivalent of smoking 15 cigarettes a day. So having meaning and purpose and a community of people that you’re engaged with will extend your lifespan tremendously.”
Gerrish said he believes the insurance and financial services industry must help Americans plan for the nonfinancial aspects of retirement.
“We must put more focus on what people are going to do in retirement. With 85 million Americans in the baby boom generation and so many people
Having meaning and purpose in life will extend your longevity. So having meaning and purpose and a community of people that you’re engaged with will extend your lifespan tremendously.
“Some people may want to learn something new, others may want to give back.”
As part of the sessions, clients are asked to create what Gerrish calls “a portfolio life.”
“We want them to divide their lives into different categories. Imagine a pie chart — and then have those elements of their portfolio weighted. For example, someone wants to spend 30% of their time traveling and 30% of their time doing something else and 20% doing another thing. Then, on an ongoing basis, we measure what they’re actually doing compared to what they set out to do. Now they have a time management system. It may not be as structured as it was when they were working. But at least they’re paying attention to what they’re doing day to day and making sure that they’re doing the things that matter to them.”
Having a plan for retirement that goes beyond saving money is important to a
going through this period of uncertainty, I believe we must give them a hand up to get them to a different place and a better place.”
Gerrish played rugby when he was younger, and he reminisced about how much fun he had with his fellow players during the game’s third half.
“It’s the only competitive sport that I’m aware of where you meet your opponents and have some fun with them. And that’s what the third half is all about. It’s the game after the game, and now you can still continue to play.”
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.
Life insurance can serve as a valuable part of a retirement plan, beyond paying a death benefit.
By Thomas F. Levasseur
Helping senior clients through estate planning requires a comprehensive strategy that includes consultations with their legal and tax advisors to ensure proper asset distribution, minimize tax liabilities and provide financial security to beneficiaries.
For financial advisors helping to navigate these complexities, it’s important to recognize the role that life insurance can play as a tool for achieving these objectives. By demonstrating the unique advantages of life insurance in the estate planning process, advisors can fortify their roles as trusted partners in navigating complex financial decisions and ultimately foster loyalty and attract new clientele through referrals.
Although the role of life insurance continues to evolve with changes in estate tax thresholds and rates, it continues to serve a vital purpose in estate planning. By providing an immediate, tax-free payout to beneficiaries, life insurance is essential for creating liquidity
and safeguarding the financial security of loved ones.
Many seniors use life insurance to supplement their income during retirement by accessing the cash values of permanent policies. Unlike term life insurance, which might have lapsed at older ages, permanent life insurance policies can serve as a safety net to cover expenses following the death of a spouse.
Permanent life insurance policies provide lifetime coverage and have a tax-deferred cash value component that a policy owner can access during their lifetime. If purchased early in life, this coverage can be less costly than term insurance in the long run.
I’m currently working with a client who possesses a significant illiquid estate and consistently expresses regret for not securing permanent life insurance when he was younger and healthier. This is a valuable lesson for younger people who, as seniors, might be in the same situation.
Maintaining permanent life insurance after retirement also provides a financial nest egg for beneficiaries at a low cost compared to its value. The leverage of life insurance is well established. It provides an “exploding asset”
at the death of the insured for pennies on the dollar. Life insurance benefits are especially critical for a surviving spouse who faces a reduction in Social Security benefits after their spouse’s death. A well-planned permanent life insurance policy can effectively replace this lost income, preserving the surviving spouse’s standard of living and peace of mind.
When purchasing a life insurance policy, the policy owner designates beneficiaries and can change them at any time. In estate planning, a sizeable estate may place life insurance policies in an “irrevocable” trust to avoid having the death benefit included in the total estate value. However, life insurance death benefits generally pass without probate, provide privacy and are paid to beneficiaries quickly.
Life insurance proceeds can be especially crucial for special needs children. This allows senior parents to provide for the security of those children who outlive them and can provide disabled heirs with financial security. However, to afford necessary health care without losing the child’s federal disability benefits, it may be wise to create a special needs trust with a friendly trustee. By integrating a life insurance policy into the estate plan, the owner ensures seamless asset
distribution, protection of key beneficiaries and liquidity to cover any fees or taxes.
For seniors with large savings in conservative investments such as certificates of deposit, converting a portion of those investments, into a singlepremium life insurance policy can be beneficial. This approach maximizes the value of CDs, providing a larger, tax-free death benefit to beneficiaries, while also providing access to cash for emergencies. Many of these single premium life insurance policies have living benefits riders that allow for the death benefit to be paid out during the life of the insured to cover long-term health care needs.
Seniors often hold CDs or large savings accounts as a buffer against health care needs and to pass to heirs if those needs never arise. A single premium life insurance strategy combines competitive earnings, liquidity and a leveraged death benefit, making it a versatile tool in estate planning.
Many retirees take required minimum distributions from individual retirement accounts, even when they don’t need the funds to cover their expenses. This income keeps accumulating in savings accounts over time. If a retiree is healthy enough to qualify, those RMD payments, or a portion of them, could be funneled into life insurance premiums that provide a tax-free liquid estate to heirs to help pay the “income in respect of a decedent” taxes that they will pay on the inherited IRA assets.
Understanding and implementing life insurance best practices for senior estate planning is a must for financial advisors. By offering comprehensive guidance in concert with tax and legal teams, advisors can enhance their value proposition, strengthen client relationships and differentiate themselves in a competitive market.
Most importantly, advisors should
respect seniors’ wisdom, communicate clearly and behave ethically. By integrating life insurance into estate planning, advisors ensure financial security for policy owners during their lifetime, as well as stability for their beneficiaries. Seniors should work with a reputable life insurance agent who understands their unique needs and can tailor policies accordingly. With a professional reputation, such as your status as an MDRT member and commitment to addressing their unique needs, you can position yourself as the cornerstone of your senior clients’ financial security.
Thomas Levasseur, CLU, M.S. Ed., is the founding principal of The Beacon Retirement Group. He is a 35-year MDRT member with five Top of the Table and 21 Court of the Table qualifications. Contact him at thomas.levasseur@innfeedback.com.
Advisors need to keep up with new regulations and new technologies to better serve their clients in a changing world.
By Matthew Drinkwater
Advisors operate within an environment where there are constantly shifting compliance regulations and tax laws, as well as evolving new technologies. The need to keep up with these changes can be espe cially vital for the work conducted with their pre-retired and recently retired cli ents. These clients are in the process of making major — sometimes irrevocable — financial decisions in the context of complicated rules governing securities, insurance and retirement systems.
To what extent are advisors seeking training that will enhance their retire ment income-related services and will help them remain competitive and meet their clients’ needs?
» Income-related training areas. Advisors were asked to identify specific areas where they felt they would benefit from additional training. Of the three training topics specific to retirement income — Social Security claiming strategies, annuitization advice and defined benefit pension claiming strategies — advisors were most likely to cite Social Security planning as a priority.
nuitization advice to keep up with what’s available in the market. In contrast, fewer advisors seek additional training on DB pension claiming strategies. Not only are DB pensions of decreasing relevance for future retirees, but also their claiming rules are they are less complex than those of Social Security, and they are certaintly less complicated.
Optimal claiming can be complicated, particularly for married couples, and the rules are adjusted periodically over time. Advisors with a deep understanding of Social Security benefits will be in a better position to build a successful income plan for their clients. For many of their clients, Social Security represents both a major source and their only lifetime-guaranteed, inflation-adjusted source of income in retirement.
The conversion of deferred annuities into payout status (including the termination
As a result, while future retirement income conversations will increasingly center around lifetime-guaranteed income, they likely will include far less discussion of traditional pensions, making it essential for advisors to gain expertise in incomegenerating investments and products.
» Other training areas. Among the other training areas, artificial intelligence and emerging technology were the most cited topics. AI will have profound effects across the financial services industry, requiring advisors to keep up to speed on recent developments and begin
Financial professionals who are “coast ing” on past training would benefit from adopting a mindset of continuous learning. The most effective advisors will put their recent education and training to work. Pursuing professional development and training opportunities related to retirement planning can help them improve the breadth and depth of their practices and provide more value to their clients, as well as give them an edge on slower-to-adjust competitors.
Matthew Drinkwater is corporate vice president, LIMRA. Contact him at matthew.drinkwater@ innfeedback.com.
Like this article or any other? Take advantage of our award-winning journalism, licensure and reprint options. Find out more at innreprints.com.
The August recess is the perfect time for financial professionals to meet with their representatives in Congress.
By Diane Boyle
Every summer, members of Congress return to their home districts to connect with voters and visit with the constituents they represent in Washington. This is often referred to as the August recess, but in reality, it extends beyond the month of August and is a time when grassroots efforts have a chance to really flourish.
Those of us who meet regularly with lawmakers in Washington understand that we carry only so much influence. Elected officials really want to hear from the voters and employers who they represent and who vote in the elections that determine their political futures. We can talk about what you do, but we generally don’t have your firsthand experiences to share. We lack your hometown connections.
I would go so far as to say that insurance and financial professionals make ideal advocates. You represent your Main Street clients and have personal stories to share about how the products and services you provide help members of your community achieve financial security and prosper. You are also highly knowledgeable about your industry and profession and can educate your senators and representatives on how laws and regulations affect consumers.
The most successful insurance and financial professionals I know understand their clients’ financial needs and goals as well as the products and services that are in their clients’ best interests. They know how laws and regulations intersect with those products and services. They naturally create meaningful connections with consumers, truly care about their clients’ well-being, and are excellent storytellers.
The same things that make you a
successful financial professional will make you a great political advocate.
The summer recess is an ideal time to exert your advocacy influence to benefit your business, clients and community. What makes this a fantastic grassroots opportunity?
» Lawmakers in Washington are continuously in meetings with all sorts of people. When they are in their districts, they are at home and know they are meeting with their actual constituents.
» Meeting in-district reinforces that you are a part of their communities and that you represent the views of clients, neighbors, friends and family who are voters in your district.
» You are building relationships with lawmakers — like you build relationships with clients. That requires you to check in often. Connecting in the home district is convenient and easy.
» Advocacy never stops and repetition is important. We want to continuously reinforce our message and remind lawmakers of the important work you do for your clients and communities.
Connecting with lawmakers during the summer recess is as important as ever. In an election year, it’s especially vital to keep the issues critical to the insurance and financial services industry and your clients front-ofmind for lawmakers. Adding to the urgency this year is the fact that we will soon be facing the Super Bowl of tax reform.
It is very likely Congress will pass major tax legislation in 2025. Congress is in a race against the clock to provide a legislative fix prior to the expiration at the
end of next year of the individual tax cuts in the 2017 Tax Cuts and Jobs Act. Complicating matters, the Congressional Budget Office has raised its projected federal budget deficit for this year by $400 billion, up 27% over its original estimate in February. Concern among lawmakers is growing, and they are certain to be looking high and low for sources of revenue. Insurance and financial services cannot escape scrutiny. It falls to us to ensure lawmakers know how critical the tax treatment of these products and services is to consumers and the U.S. economy.
Ideas being formulated and debated now will shape Congress’ future tax overhaul. Will individual tax rates go up? Will estate tax exemptions go down? Will changes in the law affect the tax treatment of employee benefits or passthrough businesses?
These are all questions that will be answered over the coming 18 months with potentially profound implications for your business and clients. It is critical that as many insurance and financial professionals as possible be involved in the discussion. If you don’t tell your senators and representatives how their tax law decisions will impact your clients, no one will.
Fortunately, NAIFA makes it easy for you to speak out during in-district meetings. NAIFA is coordinating meetings and providing materials you can use to make a strong impression with your lawmakers. Our Financial Security Advocacy Academy provides training to help you be the best advocate you can be. To learn more about how you can get involved and advocate for your business and clients during the congressional summer recess, contact NAIFA at advocacy@naifa.org
Diane Boyle is the senior vice president for government relations at NAIFA. Contact her at diane.boyle@ innfeedback.com.
Our profession continues to be impacted by laws and regulations in every state.
By Melissa Bova
If you watch the news, you understand 2024 is a big year — there is a presidential election, and control of Congress for the next two years will be decided in November. Federal activity is not the only thing you should watch. Our profession continues to be impacted by legislative and regulatory activity in all 50 states. Here are a few things to keep an eye on as we close out the second half of this year.
Unlike the federal government, states must have balanced budgets yearly. 2024 is the final year to use pandemic-related funds, and we are already seeing the impact. In 2023, 46 states saw an increase in revenue, but in 2024, 37 states said they expected to see a decrease. California and New York are already citing deficits in the range of tens of billions of dollars.
It isn’t only blue states that will be struggling to balance the books, though — many red states used COVID-19 relief dollars to reduce taxes for the public and incentivize business investment. If those tax cuts don’t pay off, states of all political leanings must make tough budget decisions or find revenue as they exit 2024 and enter 2025.
Wealth taxes aren’t only a federal concern. In 2024, six states introduced legislation assessing income tax on unrealized capital gains and net worth. So far, governors are generally resistant to these proposals because they would put their states at a competitive disadvantage over neighboring states.
The talk of the town is the latest from
the Department of Labor and its recently finalized Fiduciary 3.0, but standards of conduct continue to be a topic of conversation and activity at the state level.
Thanks to Finseca’s advocacy work in conjunction with our joint trades, 46 states have adopted the National Association of Insurance Commissioners’ Best Interest for Annuity Standard. This adoption is bipartisan in nature and demonstrates the ability to create regulations that protect consumers while ensuring their continued access to a broad range of financial advice. Missouri, Nevada, New Jersey and the District of Columbia have legislation in progress, with expected adoption within the following year.
States are introducing and talking about long-term care more than ever. Medicaid spending in the U.S. is more than $800 billion per year, and 32% of that is spent on long-term care. Medicaid remains the single largest line item in every state budget. You hear talk of activity on funding long-term care in states such as California, New York, Minnesota, Massachusetts and more. However, in all those states, legislation was either not introduced or was introduced but never moved in the legislative process.
We will end this year with all eyes on Washington state. Washington remains the only state that has instituted a state-funded long-term care program (significantly easier to pass because of the lack of income tax in the state). However, a ballot initiative in the November election, if passed, would
make the program optional and, essentially, defunct. Tens of millions of dollars will be spent on both sides of this campaign, and the result will likely trigger or hold off proposals in other states similar to Washington.
What will decide our opportunities and threats in 2025? You guessed it — the election. While the Biden-Trump battle rages on, 11 governors and more than 5,700 state legislators will be elected this November.
If you are a member of Finseca, you have heard me speak many times about trifectas in the states. A trifecta is when the same party controls the house/assembly, senate and governor’s office. In all scenarios, regardless of the party in control, trifectas generally pass legislation quickly and without the debate and consideration that is typically part and parcel of a divided government.
This year, we have 40 states that are trifectas — more than ever. Further, 20 of those states have veto-proof majorities — so even a more moderate governor will have no leverage or control of a legislature that decides it wants to move forward with an initiative that could harm the profession or our clients.
Finseca will continue to build out and advocate for the profession at the state level and keep our members apprised of any legislative or regulatory activity that will impact their ability to serve clients. Leading up to and following the November election, members will get essential insights about what to expect in new leaders, upcoming issues and how to prepare for 2025.
Melissa Bova joined the Finseca government affairs team in November 2021 as its first vice president of state affairs. She may be contacted at melissa.bova@innfeedback.com.
Looking for a level of stability in renewal rates?
Guarantee your clients participation rates and caps for term with the First Trust Barclays Edge Index!
Scan the QR code to learn more about the new Index.
First Trust, Barclays, Bloomberg, Nasdaq, Value Line, and their respective affiliates (the “Companies”) do not make any representation regarding the advisability of investing in any financial products, do not make any warranties or bear any liability with respect to such products, and do not make any warranty as to the results to be obtained by owners of such products. THE COMPANIES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS, COMPLETENESS, AND/OR UNINTERRUPTED CALCULATION OF THE PRODUCT, ANY UNDERLYING INDEX, OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATION WITH RESPECT THERETO. THE COMPANIES EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OF THE PRODUCT OR ANY UNDERLYING INDEX. Please see the indexed strategy endorsements to the annuity contract for complete disclosures related to the indexes associated with the indexed strategies. Products issued by MassMutual Ascend Life Insurance Company (Cincinnati, Ohio), a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual). This content does not apply in the state of New York. © 2024 MassMutual Ascend Life Insurance Company, Cincinnati, OH 45202. All rights reserved. MassMutualAscend.com
