InsuranceNewsNet Magazine | March 2021

E N R O EA ER Y ATes whdo Ltheroonspere

March 2021

How To Stand Out And Grow With Kristin Andree

20 20 2 0 2 1

PAGE 8

p

18 e g pa

Solving The Remote Hiring Challenge

PAGE 44

Working With Neurodiverse Clients

PAGE 26

Changing the industry, one agency at a time.

There’s only one original Agency Builder™ and that’s Brokers International. For nearly 40 years, we’ve been helping field organizations grow their businesses with our innovative Builder series of proven sales and marketing tools and services. Let us put our years of experience to work growing your agency.

For Financial Professional use only, not for the general public. ©2021 Brokers International, Ltd. All rights reserved. #21-0023-011422

With 2 proprietary Simplicity Group products that include... › THREE indexes under a weighted formula which can help increase predictability › INSTANT coverage, paid in 48 hours › TOP compensation

Contract today and get › A complimentary copy of National Best Seller Book Tax-Free Retirement › Get paid to attend Simplicity Group's IUL Sales Forums

Visit InstantIUL.com or dial 844.858.4498 today to get your slice of the action.

The compensation paid cannot be the basis for any recommendation to purchase insurance or annuities. For carrier information, index specifics and product features, please contact your Simplicity Representative. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

Carrier and Indexes described are managed separately from companies independent to Simplicity Group Holdings.

1498540-0121

IN THIS ISSUE One Year Later: The 18 Ones Who Prospered

View and share the articles from this month’s issue

» read it

online

www.insurancenewsnetmagazine.com

MARCH 2021 » VOLUME 14, NUMBER 3

HEALTH/BENEFITS

FEATURE

34 2020’s Health And Financial Challenges Likely To Linger

By Stephanie Shields High medical costs or bills adversely affected more than half of the U.S. workforce last year, and workers have growing concern about covering health care costs in 2021.

By Steven A. Morelli The pandemic showed a new way of doing business. Read the stories of those who thrived while the world hit pause.

ADVISORNEWS INFRONT

38 Help Clients Bridge The Retirement Knowledge Gap

IN THE FIELD

6 For 2021, Retirement Security Takes Center Stage In Congress

14 T he Fateful Date

By John Hilton A meeting with a woman led Stephen Kagawa to renew his ties to his family’s insurance business.

By John Hilton The financial services industry wants to cut retirement red tape while the life insurance industry wants to help more people get coverage.

LIFE

26 Differences Not Deficits: Working With Neurodiverse Clients

By Andrew Komarow Given that nearly 1 in 8 people in the U.S. fall under the list of conditions that would identify them as neurodiverse, the chance is fairly strong that you have clients who fit under that umbrella.

INTERVIEW

ANNUITY

8 How To Stand Out And Grow

30 A nnuities And Unmarried Couples: The Right Planning Can Avoid Headaches

Kristin Andree sees many advisors falling into the same traps that keep their businesses from growing. In this interview with Publisher Paul Feldman, she describes how advisors must embrace their unique qualities in order to attract more business.

By John Williams The idea of buying an annuity may be attractive to unmarried couples, but there are considerations to discuss.

By Susan Rupe Americans tend to overestimate how many years they will be able to keep working, while they tend to underestimate how long they will live.

INBALANCE

42 Americans Are Split On Return To Normal Life

By Susan Rupe Not everyone is optimistic about a return to pre-pandemic life, but most agree that they miss seeing family and friends.

BUSINESS

44 How To Solve The Remote Hiring Challenge

By Sharon Emek What you need to know when vetting and onboarding new hires.

INSURANCENEWSNET.COM, INC.

275 Grandview Ave., Suite 100, Camp Hill, PA 17011 717.441.9357 www.InsuranceNewsNet.com

PUBLISHER Paul Feldman

EDITOR-IN-CHIEF Steven A. Morelli

MANAGING EDITOR Susan Rupe

SENIOR EDITOR John Hilton

VP SALES Susan Chieca

SENIOR COPYWRITER AD COPYWRITER CREATIVE DIRECTOR SENIOR MULTIMEDIA DESIGNER GRAPHIC DESIGNER DIGITAL CAMPAIGN MANAGER MANAGER/ACCOUNTANT

James McAndrew Matthew Fishgold Jacob Haas Bernard Uhden Shawn McMillion Megan Kofmehl Jen Wingard

MARKETING PROJECT MANAGER MEDIA OPERATIONS MANAGER NATIONAL ACCOUNT DIRECTOR NATIONAL ACCOUNT DIRECTOR NATIONAL ACCOUNT DIRECTOR DATABASE ADMINISTRATOR

Kelly Cherrup Ashley McHugh Sarah Allewelt Samantha Winters David Shanks Sapana Shah

Copyright 2021 InsuranceNewsNet.com. All rights reserved. Reproduction or use without permission of editorial or graphic content in any manner is strictly prohibited. How to Reach Us: You may e-mail editor@ insurancenewsnet.com, send your letter to 275 Grandview Ave., Suite 100, Camp Hill, PA 17011, fax 866.381.8630 or call 717.441.9357. Reprints: Copyright permission can be obtained through InsuranceNewsNet at 717.441.9357, Ext. 125, or reprints@insurancenewsnet.com. Editorial Inquiries: You may e-mail editor@insurancenewsnet.com or call 717.441.9357, ext. 117. Advertising Inquiries: To access InsuranceNewsNet Magazine’s online media kit, go to www.innmediakit.com or call 717.441.9357, Ext. 125, for a sales representative. Postmaster: Send address changes to InsuranceNewsNet Magazine, 275 Grandview Ave., Suite 100, Camp Hill, PA 17011. Please allow four weeks for completion of changes. Legal Disclaimer: This publication contains general financial information. It should not be relied upon as a substitute for professional financial or legal advice. We make every effort to offer accurate information, but errors may occur due to the nature of the subject matter and our interpretation of any laws and regulations involved. We provide this information as is, without warranties of any kind, either express or implied. InsuranceNewsNet shall not be liable regardless of the cause or duration for any errors, inaccuracies, omissions or other defects in, or untimeliness or inauthenticity of, the information published herein.

Address Corrections: Working remotely? Working Remote? Get your magazine delivered to your doorstep! Update your address here: subscribe@insurancenewsnet.com.

2

InsuranceNewsNet Magazine » March 2021

BYPASS UNCERTAINTY SIGNATURE GUARANTEED UNIVERSAL LIFE

American National understands how important guarantees are. While other providers are discontinuing their Guaranteed Universal Life products, we are still committed to providing a great guaranteed death benefit universal life product.

Guaranteed Cash-Out Rider Three opportunities to fully surrender the policy and receive a partial or full return of premiums paid.1 Male, Non-Smoker $1,000,000 to Age 100

Age 50 Preferred Best

Guaranteed Death Benefits Between ages 95 and 121 to ensure your client does not outlive their policy.

Annual Premiums

American National

$7,922

Protective Penn Mutual Nationwide Nationwide (ROP) AIG

$8,532 $8,917 $8,977 $9,130 $9,695

Accelerated Benefit Riders Should your client become seriously ill, a full or partial accelerated death benefit may be available.2 Annual Premiums

Male, Non-Smoker $1,000,000 to Age 100

Age 60 Preferred Best

American National

$13,703

Protective Penn Mutual Nationwide AIG Lincoln Financial (ROP)

$14,532 $15,019 $15,074 $16,000 $20,591

There’s no reason to wait. Call 1-888-501-4043 today or visit img.anicoweb.com for more information or to run a quote.

The competitor Guaranteed UL comparison from carrier illustration software is current as of 12.01.2020. Premiums are rounded to the nearest dollar American National cannot guarantee the accuracy and completeness of the premium comparison. Data is subject to change at any time. The companies listed are believed to offer comparable products to Signature GUL. 1) CashOut Rider may not be available on all substandard rated policies and some may only qualify for the Cash-Out option in the 15th Policy anniversary. 2) The riders are offered at no additional premium. However, the accelerated payment will be less than the requested death benefit because it will be reduced by an actuarial discount and an administrative fee of up to $500. A request for an accelerated benefit may only be advisable if the qualifying event results in a significant reduction in the insured’s life expectancy. A shorter life expectancy will result in a larger benefit offer. The amount of the actuarial discount is primarily dependent on American National’s determination of the insured’s life expectancy at the time of election. Outstanding policy loans will reduce the amount of the benefit payment. Policy Form Series: SGUL18; GCOR15; ABR14-TM; ABR14-CH; ABR14-CT (Forms may vary by state). American National Insurance Company, Galveston, Texas.

AMERICAN NATIONAL INSURANCE COMPANY 888-501-4043 | img.anicoweb.com

IMG22690 | INN 03.2021

WELCOME LETTER FROM THE EDITOR

When Closing Down Means Opening Up

I

magine going back to early March of last year and talking to the 2020 you about the year you were about to have.

What would you say to yourself?

Would either of you believe what you were saying? What would you talk about first? Would it be the highlights or the lowlights?

For some agents and advisors, the year 2020 was the struggle of their lives. As restrictions closed or limited traditional methods of prospecting and selling, the practices of conducting dinner seminars or sending postcards to get kitchen table leads became extremely difficult, if not impossible.

Although there is no clear data to show the level of attrition, we all have heard stories of agents dropping out of the business rather than overhauling their approach and operation, such as adopting and using the tech they need to make it these days.

And, hey, I understand. I’m a baby boomer. I remember when faxes and telexes were leading-edge tech, and to use a PC you first had to slide a floppy disc in it to load the operating system every time you used the computer. Now we have platforms to work with and smartphones that do, well, everything.

So I can understand what it’s like to constantly learn something new just to keep up. As soon as you become accustomed to Zoom, they move, add or subtract something that you just learned to use. Then there are Teams, GoToMeeting, Slack and an inexhaustible list of what’s next.

It is not just tech that is changing for agents and advisors. The whole approach to selling life insurance and annuities is changing profoundly.

Putting The Whole Into Life

Many of those lowlight-focused advisors might lament about the shift toward a more holistic practice, along with the loss of favorite products as carriers 4

InsuranceNewsNet Magazine » March 2021

deemphasized some of the features that prospects liked. A substantial change to products is the reduction or loss of guaranteed minimums. Now we have “less capital-intensive” products that are easier on the reserves because they are lighter on the guarantees.

The feature article in this month’s magazine shines the light on advisors who are more likely to tell their 2020 selves about the adventurous year they had with experiencing exciting challenges and seeing the industry react in positive ways to the lockdown. They were enthusiastic about trying something new, whether it was different technology or a new way to reach people. They were happy to see carriers scramble to simplify underwriting and offer digital tools.

They were likely to give value without expecting a measurable return on investment, by efforts such as starting a support network for small businesses.

One of the advisors in the feature is Meredith Moore, a New York Life agent who considers herself a financial planner first. Because life insurance is only one of the tools at her disposal, insurance makes up 25% of her income. When COVID-19 hit, the conditions dragged on her insurance sales, but she was also busy doing whatever she could to help individuals and businesses in the Atlanta area. When this pandemic is over, she will be remembered for her outreach and not for how she tried to sell a particular product.

This example is not to bash insurance-only people. Those agents can also have client-centered practices, but that is difficult to do if they are selling only one or two products to every prospect.

That approach becomes even more difficult when carriers change products dramatically and regulators scrutinize sales practices.

When I started with InsuranceNewsNet in 2008, I was surprised by insurance agents. I certainly had absorbed many of the stereotypes about agents over my life,

especially that they’re about nothing but selling life insurance.

Instead, I ran into many people who really cared about their clients. That was obvious by the way they talked about their clients, particularly after they delivered their first death benefit check.

Often, that experience converts salespeople into insurance evangelists, leading them on a mission to save families.

Now, it’s often the company that sends the money, bypassing the agent.

I see the same compassion for clients in these new advisors. They describe themselves more like financial healers because they know money means more than dollars to people; it reflects their values. Or at least it should in a healthy relationship to money.

Looking Forward, Then Back

So, what would the 2022 version of you say to the 2021 you? Would it be that you were able to survive 2021 by waiting for things to return to normal? That is not even possible. 2019 is not waiting on the other side of 2021.

The pandemic has changed our lives and this business forever. Tech is not going to get less complex — and it certainly is not going away. There will probably be a day soon when an agent will ask someone to fax something and the other person will not even know what that means.

Most likely, future you will be telling current you about an existence you could not even imagine, much like March 2020 you would be baffled by March 2021 you.

There will be no waiting for the dust to settle and for all of us to get back to business. Business is happening now.

People need help now. Let’s make 2022 you proud.

Steven A. Morelli Editor-in-Chief

Open the Door To Single Premium Life With Just Two Questions

l these “Do you have assets assets earmarked help cover “Will these assets thehelp cover the ial costs for children or of grandchildren?” a chronic potential illness?” costs of a chronic illness?”

Single Premium Life May Be the Solution! he Solution!

Both Products Feature ducts Feature WealthMax Bonus Life® • Probate-freeones death benefits for loved ones e-free death for loved 5% Premium Bonus – benefits No Vesting • Living benefits rider included for health events benefits rider included for health events Return-of-Premium Guarantee 1 • Index-linked, tax-deferred growth nked, tax-deferred growth 8% Street-level Commission • No medical exam or test dical exam or test • Point of sale underwriting f sale underwriting ®

WealthHorizon Life

Higher Rates for Greater Accumulation Higher Face Amounts 9% Street-level Commission2 For more information, call EquiTrust Sales Support at 800-811-9733 or visit the Agent Gateway Website at Agents.EquiTrust.com

Street level through applicant age 75; 7.50% ages 76-80.

Street level through applicant age 75; 8.50% ages 76-80.

Not a available in all states.benefit.

Policy and riders may vary by state. Policy must besubject in force at the time of death to pay aclaimsdeath benefit. Guarantees subject to the claimsh to pay death Guarantees to the paying ability of the issuer. Withdrawals before age 59 1/2 may be subject to an rider additional 10% federal tax penalty. Accelerated Death Benefit rider provides payments x penalty.

Accelerated Death Benefit provides payments the event of either terminal illness or chronic illness, but not both.and EquiTrust does not offer investment advice to any individual or agent and this material should adviceinto any individual or agent this material should not be construed as investment advice.or WealthMax Bonus Life Policy issued on Policy Form Series ICC19-ETL-IUL-2000(01-19) 9-ETL-IUL-2000(01-19) ETL-IUL-2000(01-19), with ridersor ETL-IUL-2000(01-19), with riders ICC17-ETL-PBR(01-17), ICC17-ETL-FPW(01-17) and ICC11-ETL-ADBR(03-11).

WealthHorizon Life Policy issued on Policy Form Series ICC19-ETLalthHorizon Life ICC19-ETL-MCSV(01-19), Policy issued on Policy Form Series ICC19-ETLIUL-2000(01-19) or ETL-IUL-2000(01-19),and with ridersissued ICC17-ETL-FPW(01-17) ICC11-ETL-ADBR(03-11).

ProductsInsurance underwritten and issued by EquiTrust Life Insurance roducts underwritten byand EquiT rust Life Company, West Des Moines, Iowa. Products distributed

by EquiTrust Insurance Marketing Services; in California doing business as EQT Insurance Marketing Services. alifornia doing business as EQT Insurance Marketing Services.

EquiTrust.com. For Producer Use Only. IC21-SPL-1010 1 2

INFRONT

For 2021, Retirement Security Takes Center Stage In Congress Retirement Act of 2020, the bill included the following: » Allow people who have saved too little to set more aside for their retirement.

By John Hilton » Offer low- and moderate-income workers a tax credit for contributions to etirement security enjoyed Securing A Surprise a 401(k) or similar plan. a healthy run in the spot- One could argue that the SECURE Act » Help people with student loans save light as one of the few issues was one of the biggest accomplishments by letting employers make retirement Republicans and Democrats of the Trump era — after the Tax Cuts plan contributions equal to what an emcould agree on — but that’s over now. and Jobs Act of 2017. Passed in the ployee pays on their loans.

Not that retirement security isn’t still waning days of 2019, SECURE includes » Further support the use of annuities a bipartisan issue. It is. But so much a wide range of changes to retirement that provide guaranteed lifetime income has changed inside the Beltway since regulations. By far the biggest for the in retirement.

President Joe Biden began putting his ad- insurance industry is that it opened the » Create a new incentive for small busiministration together. door for annuities to be sold in retire- nesses to offer a retirement plan.

For starters, Democrats won control of ment plans.

The bill died without further action at the Senate, giving them one-party conAlthough companies already can of- the end of the year. Neal’s first bill of the trol over Congress as well as the White fer annuities in their 401(k) lineups, just 116th Congress is the Emergency Pension House. That means Democrats get Plan Relief Act of 2021, which had their shot to push an agenda that not been passed as of press deadCutting Retirement Red Tape has been ignored since 2016. line. The legislation would address The Biden team is already pushThe financial services industry is trying to loosen reg“the worsening multiemployer ulations governing retirement accounts. The Insured ing forward with an aggressive pension crisis that threatens the Retirement Institute’s legislative goals include: agenda that starts with COVID-19 savings of more than a million 1. Increase the Required Minimum Distribution pandemic relief and related ecoAmerican workers and retirees,” (RMD) age to 75. nomic recovery. Beyond that, the Neal said.

2. Remove barriers that limit consumers’ ability to administration is pursuing myriAssuming SECURE II is reintroinsure against outliving retirement savings. ad objectives on the environment, duced, it has an uphill climb to pas3. Expand eligibility for retirement plan catch-up tax policy, immigration and racial sage. SECURE I passed the House contributions for COVID-19-affected employees. reforms. in May 2019, then languished for It isn’t outlandish to wonder 4. Expand opportunities for 501(c)(3) organizamonths while the Senate tended to tion employees to save for retirement. whether there’s room for a reother business. That came during tirement security bill. A spokesa time of divided government and 5. Clarify retirement plan startup credit to incentivize more small businesses to offer man for the Insured Retirement heightened partisanship. Some retirement plans.

Institute insists that there is, addpundits speculated that SECURE ing that the trade group expects was resuscitated in December Rep. Richard Neal, R-Mass., to reintro- 9% do, according to the Plan Sponsor 2019 to give congressional candidates a duce his bill this year.

Council of America. The SECURE Act success to campaign upon.

Chairman of the powerful House Ways aims to boost that figure and improve To say the atmosphere has changed a & Means Committee, Neal released an retirement readiness by eliminating great deal since then ambitious retirement policy agenda in companies’ fear of legal liability if the would be an underJanuary. annuity provider fails or otherwise fails statement.

It calls for implementation of au- to deliver. to-IRAs and auto-401(k)s as part of the In October, Neal and Kevin Brady, I n s u r a n c e N e w s N e t framework. Neal also wants to make the R-Texas, introduced SECURE II to Senior Editor John Hilton has covered busiSaver’s Credit refundable and build on build on the changes in the SECURE ness and other beats in changes from the SECURE Act. Act to boost retirement savings options. more than 20 years of daily journalism. John “Beyond Social Security, families of Officially known as Securing a Strong may be reached at john.hilton@innfeedback.

With Democratic control, what direction will the federal government take in retirement security?

R

color are far less likely to have retirement savings and access to employer-based retirement plans,” Neal said. “Policies to remedy these inequities will help increase their savings for retirement.”

com. Follow him on Twitter @INNJohnH.

6

InsuranceNewsNet Magazine » March 2021

INSURANCE COALITION TARGETS LIFE COVERAGE GAP INFRONT

Insurance Coalition Targets Life Coverage Gap A seven-association group says the industry should take advantage of heightened mortality awareness.

Over the past decade, the number of Americans with life insurance has dropped significantly Source: 2020 Insurance Barometer Study, LIMRA and Life Happens

By Steven A. Morelli

T

oo few American families have been adequately covered by life insurance for too long, Declines in ownership are highest among those ages 45 and older and in households with annual income under $100,000. and a coalition of trade associations plans to do something about it this year.

The group launched Help Protect Our Families on Feb. 1 with an outreach cam- reach those families that are at risk of not Consumers are ready to talk to an paign to close the gap in under- and un- having proper coverage. agent, with 41% saying they want to work insured households. About 60 million One of the reasons to act now is the in- with an agent to buy coverage. households fall into that group, with an av- crease in consumer awareness during the The coverage gap might actually be a erage coverage gap of $200,000, amounting COVID-19 pandemic. In 2020, one-third knowledge gap. More than half of conto a $12 trillion opportunity for the industry. of Americans (32%) said COVID-19 was sumers said they haven’t bought because LL Global, the parent organization the primary reason they began shopping they don’t know what they need. In fact, of LIMRA and LOMA, the American for life insurance.

34% of Americans said they don’t unCouncil of Life Insurers, Finseca, Life Also, according to LIMRA and Life derstand the basic concepts about life Happens, Million Dollar Round Table, Happens research: insurance.

National Association Millennials have said they are interestof Insurance and ed in insurance, but 52% said they haven’t U.S. Households Financial Advisors, and bought because no one has approached National Association them. More than a third (35 percent) of 30 Million 7 Million Own & of Independent Life married couples with dependent children Do Not Own Underinsured & Not Brokerage Agencies want to speak with a financial professionUnderinsured are pulling together for al about their life insurance needs.

57 Million the yearlong effort.

Coalition members have not specified Own & Not Underinsured Although the coverthe full plan as of the rollout, but they 30 Million age gap has been an issaid that agents and advisors will be able Do Not Own & Source: Turn Up the Volume: sue for several decades, to get informational resources from their Underinsured $12 Trillion Sound Opportunities it has accelerated over associations’ websites. LIMRA’s sec(2017), LIMRA the past few years. In tion for information is www.limra.com/ 2020, just 54% of Americans had life in- » Seven in 10 Americans agree that the helpprotectourfamilies. surance coverage, a significant decline pandemic has been a wake-up call to reSteven A. Morelli is from 63% just a decade ago, according to evaluate their long-term financial goals. editor-in-chief for research by LIMRA and Life Happens.

Insurance NewsNet. Even those who have life insurance may » Three in 10 Americans say they are He has more than 25 not have enough coverage to adequately more likely to buy life insurance due to years of experience support their families.

COVID-19, with seven in 10 saying they as a reporter and editor for newspapers The seven trade associations plan to want to increase what they already have. and magazines. He was also vice presileverage their expertise and resources to dent of communications for an insurance develop and share consumer insights and » Three in 10 Americans have discussed agents’ association. Steve can be reached industry best practices that will help car- life insurance coverage with their family at smorelli@innfeedback.com. riers and financial security professionals during the pandemic.

March 2021 » InsuranceNewsNet Magazine

7

INTERVIEW

How To Stand Out And

Grow Kristin Andree reveals the keys to a bigger and better practice An interview with Publisher Paul Feldman 8

InsuranceNewsNet Magazine » March 2021

K

ristin Andree thought what her dad did for a living was boring. She remembers thumbing through the CLU and the CFP exam prep books and thinking, “Why would you do this?”

It wasn’t until decades later that she recognized the good life her father had and had given his family. They had a nice lifestyle.

But what really impressed her was that her dad was able to coach her and her brother’s sports, and he never missed a game.

Now Andree is an industry veteran herself, having started as a financial advisor who built a successful practice. She grew to love helping other advisors build their business and started Andree Consulting Group, based in the Atlanta area.

Even as a financial advisor, Andree loved the insurance side of the business, the part that helps families.

She found that the business also helped advisors’ families by giving them more quality time, like she had with her father. Now among her clients, she has a few generational practices with a parent bringing on a daughter or son.

Andree is spreading the good word on financial advising with her consultancy and speaking engagements, a podcast, and two books.

She said if more people saw the success and lifestyle advisors can enjoy while helping others, more recruits would join the business. That is particularly the case for women.

As a consultant, Andree said she sees advisors getting in their own way by not taking the extra step, such as building training before hiring people.

In this interview with Publisher Paul Feldman, Andree reveals the traps that some advisors fall into and the best practices to scale up their business.

FELDMAN: Tell us about your experience in the industry and how you got to where you are today.

ANDREE: I’ve been in the industry a little more than 20 years, but I feel as though I’ve been in it my whole life. My father retired a year and a half ago after a 52-year

HOW TO STAND OUT AND GROW INTERVIEW career in the industry, so I was one of those kids who grew up in it, and actually I was a career-changer.

I got into the industry as a second career, after about 10 years in the health care industry. I started looking at it and it just was so familiar and such a great industry where you can make a big impact on people. So I joined in 2000.

FELDMAN: Can you tell us about your journey in the industry and how the industry itself changed over the past 20 years?

ANDREE: The industry has really progressed. When I went into the industry, I honestly went into it more to be able to make an impact and to have some upward mobility financially and make a good income.

I remember when I first started looking at the industry, I was more interested in having some freedom and flexibility. But, as I got in and progressed, I found the industry was really interesting.

I loved working with clients, but then I got to the point where I loved working with advisors and agents even more.

I built a really good book of business, but I started to like the building-businesses piece a lot more. At the same time, I know how impactful the industry is to the general public, and I believe not enough people know about it.

FELDMAN: Who are your typical coaching clients?

ANDREE: Most are people with established businesses or established practices who are looking to scale. The majority of them have 20-plus years in the industry.

My most long-standing client has been in the industry 50 years.

They all are people who have a really nice business but are looking to make a broader impact and grow a little bit quicker, both from a revenue and an impact standpoint.

FELDMAN: What are some things you see advisors struggling with today?

ANDREE: The biggest thing is struggling to stand out in a very crowded marketplace. How can they stand out from the sea of other advisors?

What’s interesting is, I thought the sales language I learned when I came into the business was very exclusive to my former firm, but now I see everybody using the same thing. It’s really the advisors — how they stand out and how they market themselves. So what they are doing in today’s environment, which is very different from the early ’70s when my dad started and everything was door to door.

FELDMAN: What are some strategies that they can use to stand out?

ANDREE: I always start with somebody by telling them, “We need to find your uniquifier.” And it’s a word I made up, but it’s a word that’s so critical.

All of us have something that’s unique about us and sets us apart from our competition. Too often, people are trying to figure out what sets their products apart or their company apart, and it’s really not that. With insurance and financial services, clients are buying the agent. They’re buying the advisor. So if I can help them figure out what makes an advisor as a person unique, it’s a lot easier to go to market with that.

FELDMAN: What do you look at when finding someone’s “uniquifier?”

ANDREE: The first time I meet with somebody, I say I’m going to ask them questions for about an hour and we’re just going to get to it. Sometimes, it’s something in their personality. Sometimes, it’s a very unique story. For example, maybe they were divorced, so they work with a lot of divorced women.

Sometimes it’s just them. One of my clients is really into fishing. He’s a big fisherman, and he has this big boat and goes on these incredible trips. Once we were able to kind of start talking about that and weaving that into his business, he found a whole market of people who loved exactly that. So the prospecting became easy because he was simply attracting prospects.

People want to like and trust the people they do business with.The more authentic we can be and let people get to know us, the easier it is to do business.

March 2021 » InsuranceNewsNet Magazine

9

INTERVIEW HOW TO STAND OUT AND GROW Then we also get into staffing, outsourcing and things of that nature.

FELDMAN: What are some strategies for hiring staff and making sure the staff members are successful?

ANDREE: First and foremost, where staffing is concerned, you really must know your strengths. Know what you’re really good at, what you’re uniquely qualified to do, and hire everything else out.

If I’m an overly analytical person, then I need to hire somebody who may be more of a people person.

For me and my practice, I was not ana-

you need challenging. When I still had my practice, I had an assistant who was fantastic. If I wasn’t doing something, she’d be right there fussing at me to get things done. You need somebody who will either bring you up to the next level or push you to the next level.

FELDMAN: Training is critical for staff members. What are some strategies to successfully train them?

ANDREE: The main thing is, most people just “think” about training their staff.

I have one client who goes through staff rapidly, and when he hires them, he

It baffles me that people expect to come in and know it all without having that on-the-job training. That’s what allowed me to scale pretty quickly, because I came in and said, “Just show me what I need to know.” lytical. I’m the relationship person. I love to talk to people. I love to build a relationship. So my team needed to be people who could handle all the analytical pieces. If you know your strengths, then you hire to them.

The mistake I see people making is, they hire somebody exactly like them, or they hire somebody who they think is a little bit lower, or not quite as smart. I want you to hire somebody the polar opposite, who’s the smartest person in the room, and then you can really start to scale that business.

You want them to be able to challenge you. You must have someone on your staff with whom you can have an open dialogue. They’ll challenge you when 10

doesn’t train. Then, a couple of months later, he says, “He’s not working out.”

I keep pushing back on him, saying, “You’re the common thread here.” A lot of times, people are hiring, but they’re not training.

Before you hire, know the skill sets that you need and know the duties you aren’t going to perform. I have a matrix that I have people fill out even before they think about hiring someone, so they really hire the right person. Then I have them make a list of everything that person needs to be trained on and who’s the appropriate person to train them on it. So we’ve got a schedule for training developed before the person is even onboarded.

InsuranceNewsNet Magazine » March 2021

FELDMAN: I think that bringing new people into the business is critical to scale and create a valuable business.

What advice would you give to agents and advisors looking to bring other advisors into their practice?

ANDREE: I’ve seen a lot in the industry about “teaming,” or whatever label you want to put on it. It’s huge and it is, without question, going to be the wave of the future.

We know that a lot of those in the industry are aging and getting closer to retirement age. Depending on what happens in the world, some of the people I know who are in their late 50s to early 60s are thinking about exiting the industry early. So we must start looking at that next generation of people and how we can bring them in and grow them.

I believe bringing in a younger advisor or agent is one of the best ways to grow.

It’s one of the best ways to transition out, both in a good, strong position for whoever is retiring, as well as the right thing for the client.

FELDMAN: Every advisor should look closely at succession planning. I think a lot of people run through their career with the dream that someone will show up one day and buy their firm. What advice do you have on this issue?

ANDREE: I’m finding that people are looking at it too late. I want them to start thinking about it early on. People say something like, “I’m going to retire in a year or two.” I believe people must start looking at succession planning five to 10 years prior to retirement.

If you are going to sell your practice, we need to scale it as quickly and as big as we can before you sell, then your evaluation is better. But if you’re going to transition it to somebody, we need time to make sure that you’re finding the right person to take over, and that all the processes are seamless, and that all the clients have been introduced to the new person so you have a nice, smooth transition.

FELDMAN: Do you have strategies for training new agents?

ANDREE: We do, and what’s interesting is, I hate to call it “on-the-job training,” but it is. I went through a wonderful training

HOW TO STAND OUT AND GROW INTERVIEW class in my former firm when I first came on board. But I learned so much more by watching my veteran advisors do meetings than I ever learned in training class, and the training class was great.

Since I was a career changer, I didn’t know what I didn’t know. I did a lot of my meetings and cases collectively or jointly, where I just sat and soaked everything in.

I feel like we’re teaching a lot of classroom, and classroom is great, but until you get out in front of a real client or prospect, it’s really hard to learn. I believe that if firms aren’t doing that kind of training, they’re missing a big opportunity.

FELDMAN: I think a lot of people in this business have been lone wolves for so long that they don’t feel comfortable about bringing someone else into a client meeting to train them. But if you go to any world-renowned hospital, you will find residents in training in all departments. What do you say to those agents?

ANDREE: What is interesting about our industry is we’re the only skilled, high-level industry where you’ve get a job and then you go to school. If you’re a CPA or an attorney or a physician, you had years of schooling, and then you get a job. To your point, you’re doing your internships and everything. Insurance and finance are the opposite; you get a job and then we teach you.

It baffles me that people expect to come in and know it all without having that on-the-job training. That’s what allowed me to scale pretty quickly, because I came in and said, “Just show me what I need to know.”

There are certain people, usually not the clients though, who are leery about having somebody else in the meeting. It’s typically like you mentioned, the advisors who don’t want to embrace the training.

FELDMAN: Advisors might think, “Oh, if I have to teach somebody, then it’s going to detract from my success and I don’t have enough time,” when it’s really a great investment for your business.

ANDREE: Absolutely. I’ve been on both sides of it. I came in and brought more-seasoned people with me on my appointments. Then as I grew and was running

my own office, I would bring in people and I would go with them on appointments until I felt like they were at a level where they knew what they were doing.

FELDMAN: Let’s change gears a little bit. I know you don’t like the phrase work-life balance, but how do you manage that in these crazy times?

ANDREE: The reason I don’t love the word “balance” is because I think balance is a misnomer. I feel as though nobody really can achieve balance.

They’re always going to have days that are more work-heavy or other days that are more family-heavy. But everyone must figure out what they want their life to look like and then move in that direction. So what do you want your work life to look like? What do you want your home life to look like? Once you’re clear on what you want things to look like, then it’s easy to execute on the things that get you there.

Some days are really heavy workdays where I’m telling my kids, “Don’t you come in here until I finish this.” But there are some days where I’m telling my clients, “Hey, I’m taking the day off because I’m taking the kids on a trip.” It’s more about blending than about balance.

FELDMAN: What are some challenges that women face in this industry, and what are some ways to overcome them?

ANDREE: I personally feel this is a phenomenal industry for women. For me, I got into the industry because it allowed me upward mobility. Financially, this industry allows you to make as much as you want. There are not a lot of places where you can do that. You can also have freedom and flexibility with your schedule.

The challenge for women in the industry — and men too, but specifically for women — is you can abuse the freedom and flexibility early on. I used to tell my advisors when I brought them on, “You’ve got to earn that flexibility. You’ve got to get the business built and then you can take it back a little bit.” So I believe the flexibility is a blessing and a curse.

For women, it’s a phenomenal industry. The challenge, without question, is time management. How do I blend my business and my family? That’s one of the

areas in which I do a lot of work with all my clients, not just the women.

This industry, unfortunately, still has a lot of diversity and inclusion challenges.

I’m still seeing them. I hate to say that 20 years later. I think the industry has made a little progress over the past 20 years. But we have a long way to go.

There are some great organizations such as Females and Finance, and Women in Insurance and Financial Services that are helping push that along. We’re not there just yet. I think it’s less about diversity and more about inclusion. It’s figuring out how we can make things fit and make everybody feel they’re contributing to the industry.

FELDMAN: How do we attract more women to this industry?

ANDREE: We must showcase people who are doing really well. But the reason I did well in the industry was not because I’m a woman. It was because I put in the strategies and I got to know my clients, and I really engaged with them. But we must be willing to say, “Hey, here’s what it can look like,” because I believe the reason we don’t attract as many women is, they only see the guys doing it.

A lot of my clients and some of my closest friends are very, very, high-producing women who are moms with young kids who work three days a week and outproduce a lot of the guys. So, showcasing women, I think, will help attract them.

Not showcasing them because they’re women, but showcasing them because they are good producers.

In this industry, we talk a lot about recruiting, but it’s really about attraction.

I went into the industry because I was attracted to what it offered. The people I know who are best at recruiting are the ones who people look at and say, “Oh, I want to be like them. I want to have a life like that. I want to be able to take the summers off with my kids.”

That’s an attraction quality. So the more we can showcase the really cool stuff and the good people, the easier it will be to recruit.

Like this article or any other?

Take advantage of our award-winning journalism, licensure and reprint options.

Find out more at innreprints.com.

March 2021 » InsuranceNewsNet Magazine

11

NEWSWIRES Real GDP: Percentage Change From Preceding Quarter

US Economy Sees Biggest Drop In 74 Years

35 25 15 5 -5 -15 -25 -35

The U.S. economy grew at a 4% annual rate in the final three months of last year but shrank in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 by the largest amount since 2019 2020 the end of World War II. The U.S. Commerce Department reported the economy contracted 3.5% and clouded the outlook for 2021. The economic damage resulted from 10 months of the COVID-19 pandemic and the deep recession it triggered, with tens of millions of Americans left unemployed.

The nation’s gross domestic product slowed sharply in the fourth quarter after a record 33.4% surge in the third quarter. That gain had followed a record-shattering annual plunge of 33.4% in the previous quarter, when the advent of COVID-19 shutdowns put the economy in freefall.

The estimated drop in GDP for 2020 was the first such decline since a 2.5% drop in 2009, during the recession that followed the 2008 financial crisis. That was the deepest annual decline since the economy shrank 11.6% in 1946, as the nation was transitioning away from World War II. The Commerce Department said its outlook for the 2021 economy remains hazy. Economists warn that a sustained recovery won’t likely take hold until vaccines are distributed and administered nationwide, and federal financial aid spreads through the economy — a process that could take months.

CNBC STAR WARNS OF CORPORATE ‘LAZINESS’

The Wall Street party is going to end eventually, and careless executives and starryeyed traders might be accelerating an economic calamity, said CNBC “Fast Money” panelist Guy Adami.

Appearing on the inaugural 2021 Allianz Global webcast, Adami did not hold back his concerns about corporate recklessness. Fueling that recklessness is a Federal Reserve that has been “extraordinarily accommodative” over the past 12 years or so, Adami said.

“It’s made corporate America extraordinarily lazy,” he added. “What it’s done for a lot of companies, they’ve taken their eye DID YOU

KNOW

?

12

off the ball. They’re able to borrow money cheaply, they’re able to pay a dividend and buy back their stock. Their stock goes higher and everything appears to be going well. But the world might be passing them by and the laziness that free money creates has put them in an untenable position.”

In 2020, there were 10 million new trading accounts created, Adami said, 6 million through Robinhood. The Robinhood app and website makes it much easier for more people and those of lesser financial means to buy and sell stocks and ETFs. “For the majority of people, outside of a couple days here or there, they’ve never really seen the market go lower,” Adami said.

“And that is a wonderful thing for wealth creation. But it leads to this level of complacency. Now people are borrowing money to trade. You have to wonder at what point do people start pushing themselves further and further down the risk curve. That concerns me.”

Americans owe nearly $1 trillion in credit card debt.

Source: LIMRA Source: Federal Reserve Source: National Association for Business Economics

InsuranceNewsNet Magazine » March 2021

QUOTABLE Annual growth of U.S. cash in circulation always peaks at the start of economic cycles.

— Nick Colas, co-founder of DataTrek Research

JOBS MARKET WILL REBOUND BY 2022

How long will it take for the pandemic-battered jobs market to return to where it was when employment hit record highs prior to COVID-19 shutdowns? Give it a year, said the Congressional Budget Office.

U.S. economic growth will recover “rapidly,” and the labor market will return to full strength more quickly than expected, thanks to the vaccine rollout and stimulus legislation, CBO said. Looking into its crystal ball, CBO analysts predict GDP will reach its previous peak in mid2021, and the labor force is forecast to return to its pre-pandemic level in 2022.

The CBO further predicts real GDP will grow 3.7% in 2021, GDP growth will average 2.6% over the next five years and the unemployment rate will fall to 5.3% in 2021.

MORE CASH IS CIRCULATING — AND THAT’S A GOOD THING The amount of currency in circulation increased in 2020 at a rate not seen since the end of World War II. That’s a good sign as big increases in demand for cash usually signal a turn in the economic cycle and have led to booms.

Total currency in circulation soared to $2.07 trillion by the end of the year, according to Federal Reserve data. That marked an 11.6% gain from the previous year and was the biggest one-year percentage increase since 1945, as the U.S. was emerging from the war.

A major reason was the $2.2 trillion stimulus bill the government passed in May. In addition, an increased demand from foreign central banks contributed to the cash run. Also, in times of uncertainty, consumers have a greater demand to keep cash on hand.

CLARK FINANCIAL GROUP 2020 Agency Building Award Winner

The Agency Building Award is Kansas City Life Insurance Company’s most prestigious agency honor, bestowed only to agencies that embody the spirit of entrepreneurship, growth and building for the future.

CONTACT RICK CLARK, CLU®

937-843-3999 Clark Financial Group

7465 St., Rt 366, Ste. A Huntsville, OH 43324

“I have worked with many companies throughout my career, but none come close to the service level we enjoy with Kansas City Life. It never ceases to amaze me how so many different people working for one Company can have such a great attitude and bring it to work every single day.”

– General Agent Rick Clark, CLU® Clark Financial Group

Clark Financial Group achieved ABA Honorable Mentions in 2011, 2014, 2017 (above) and 2019.

Pictured (from left): Field Manager Michael Krouse, General Agent Rick Clark and President, CEO and Chairman of the Board Phil Bixby. In 2020 the agency ascended to the top of Kansas City Life Insurance Company by winning the ABA.

the Fıeld

A Visit With Agents of Change

F

The Fateful Date

By John Hilton

How a less-than-romantic evening helped STEPHEN KAGAWA love his family’s insurance business 14

InsuranceNewsNet Magazine » March 2021

or young Stephen Kagawa, the date meant a chance to have a nice dinner with a lady and who knows where things might lead?

That the evening changed his life is not the surprising part. That it matched him to a lifelong love for life insurance and financial planning is.

Stephen was attending the University of Southern California at the time but coming no closer to choosing his life’s work — that’s when his father, Siegfried Kagawa, finally stepped in.

Known as “Sig,” he set Stephen up with a paid internship with Transamerica’s home office in Los Angeles. His life-changing client invited Stephen to her home for dinner. The date didn’t pan out romantically, but it gave Stephen a new perspective on the power of life insurance.

She told him about her late husband, a stubborn man who refused to pay an extortion demand for “protection” of their garment district business, and also refused to get life insurance for his family. The woman eventually convinced her husband to get a family policy, and he was later shot and killed.

“She said, ‘Stephen, my life insurance saved my life and those very people that came to push the sale on us are now the heroes in my life,’” Kagawa said. “I ran out and got my license right away.

Because all I could think about is what would happen if she died?”

That was more than 35 years ago. Today, Stephen Kagawa sits atop a thriving financial and charitable network that starts with his Pacific Bridge Companies. He was recently named the 2020 Diversity Champion by the National Association of Insurance and Financial Advisors.

“In addition to serving the needs of his first-generation immigrant clients, Stephen mentors a diverse group of younger professionals and advises several insurance companies seeking to improve their reach into ethnic markets,” said Cammie Scott, NAIFA president.

Homeroom With Obama

By his own admission, Kagawa was a “spoiled kid” who grew up in Hawaii in a well-to-do family. The source of the family’s good fortune came from the life insurance business.

His father nourished a flourishing Transamerica satellite life insurance business on the island. His grandfather, Lawrence Kagawa, began the business but was forced into an internment camp during World War II. Young Stephen was unaware of this family history until he was a young adult.

“Actually, I read that my family was in the insurance business in the papers. I was astonished

THE FATEFUL DATE — WITH STEPHEN KAGAWA

that we were selling life insurance,” he recalled. “Everything I had heard about life insurance was not good. And I vowed to myself that I’d never get in that business.”

Hawaiian culture stresses strong family bonds and a rugged individualism.

The Kagawa elders gave Stephen plenty of space to find his own way, and his journey included an important stop at the famed private Punahou School in Honolulu. His time there during the late 1970s coincided with the future 44th president, Barack Obama.

“He was a super nice guy,” Kagawa said.

“He was like a gentle giant.”

As Kagawa matured, he realized his family’s Japanese heritage was not always welcomed on Hawaiian shores. Following the attack on Pearl Harbor and the U.S. entry into World War II, President Franklin D. Roosevelt made the controversial decision to order the internment of Japanese Americans.

Lawrence Kagawa, who started Occidental Underwriters of Hawaii in 1933, and his family were among the 800 Japanese Americans from Hawaii who were sent to camps. Most lost everything they owned, but Transamerica stood by Kagawa and he returned to the business following the war.

Stephen Kagawa was out of college before he heard the full story of his grandparents’ wartime detention. Sig and Stephen would become dogged supporters of Japanese American history preservation. In the mid-1980s, Sig was instrumental in securing funding for the Japanese American National Museum in Los Angeles.

“If I don’t even know what happened to the very community that I come from, my own family, how in the world would other people know?” Stephen said. “And if we don’t know, what if we did it again to ourselves? I mean we looked upon our own fellow citizens as enemy aliens, calling them ‘non-citizens.’”

Stepping Out

Once he embraced life insurance and how it can help protect families, Kagawa was on his way. After graduating from USC, he returned to Hawaii and worked for five years at the family business,

Occidental Underwriters.

In 1992, Kagawa moved to Los Angeles to help expand his family’s business on the West Coast. Later, he spun off and created what is now known as The Pacific Bridge Companies. The wealth management venture grew rapidly with a unique international reach into Asia. As the years went by, Kagawa built a mini-empire of financial advisors and specialists in banking, insurance, investments, tax and law.

The Pacific Bridge umbrella encompasses several companies to provide full planning services across the two continents.

Headquartered in Monrovia, Calif., Pacific Bridge has offices in Honolulu, Tokyo and Hong Kong. The idea is to provide a comprehensive financial advisory framework for cross-nationals, and it is an idea that Kagawa hit on at the right time.

Migration from Asia to the United States rose dramatically with passage of

IN THE FIELD

country, surpassing Hispanics in 2055.

“One of the missions that we’ve been on for about 15, 20 years now is how can we fill gaps,” Kagawa explained. “Are there things from one country that we could bring into another country?

“At the same time, we learned about the differences in all these regulations and the opportunities that came about because of that. In order for us to navigate that, we realized we needed a lot of different companies, because of the different regulations — because of the things that we need to do to do it right.”

A typical Pacific Bridge client is a high net worth entrepreneur, or couple, who want to divest assets, transfer wealth or set up a philanthropic plan. Normal stuff, with a twist. Many have U.S. business interests or American partners. Some are Asian residents aiming to retire in the United States, where they have children and grandchildren.

Stephen Kagawa, far right, takes a 1994 family photo with his father, mother, sister and brother.

the 1965 Immigration and Nationality Act, which removed national-origin quotas established in 1921 barring immigration from Asian and Arab countries and sharply limiting arrivals from Africa and eastern and southern Europe.

The number of Asian immigrants grew from 491,000 in 1960 to about 12.8 million in 2014, representing a 2,597% increase. In 1960, Asians represented 5% of the U.S. foreign-born population; by 2014, their share grew to 30% of the nation’s 42.4 million immigrants, according to the Migration Policy Institute.

Looking forward, Pew Research Center projects that Asian Americans will become the largest immigrant group in the

It can add up to a complex web of legal, financial and tax implications. Pacific Bridge will often produce multilayered plans that utilize life insurance, trusts, buy-sell agreements and other tools to achieve the desired results.

“We’re not providing solutions to problems,” said Kagawa, who lost his wife to cancer five years ago. “We’re providing alternative paths to get to life fulfilled, wherever you might be around the world.”

Making Connections

After that early dinner date, Kagawa made a lot of pitches to single mothers. His passion for the products and the protection hardly seemed like selling at all, he said.

March 2021 » InsuranceNewsNet Magazine

15

the Fıeld

A Visit With Agents of Change

Kagawa speaks during a Million Dollar Roundtable session in 2018.

The size of his first commission check came as a surprise, Kagawa said.

“I couldn’t believe it,” he recalled. “My mind was blown. I said, ‘Wait a second.

All I’ve got to think about is helping people? And if I just care about that and do the right thing, that I might get paid well?’”

It became the right career choice for the right person. A gregarious man with an easy laugh, Kagawa devotes a lot of Pacific Bridge and personal resources to the many people with modest means.

He serves as the chair of the Circle of Ambassadors with the Go For Broke National Education Center, sharing stories across the United States and around the globe of World War II American soldiers of Japanese American descent. He is a

Kagawa makes a toast at his company’s 25th anniversary celebration.

16

InsuranceNewsNet Magazine » March 2021

trustee of the Japanese American National Museum, as well as a member of the inaugural board of directors and current council leader for the U.S.-Japan Council, founded in 2009 to strengthen U.S.-Japan relations via a range of cultural and networking initiatives.

“Throughout the time I have known Stephen, I have developed a profound respect and admiration for his dedication to his community, his belief in the core principal that everyone should be treated equally, and his tireless passion and dedication to innovation in the industry,” said Michael J. Gordon, group chief operating officer and U.S. chief executive with Lombard International.

With more than 35 years in the business, Kagawa moves into the final chapter of his career with firm goals. He gave up the president title in February 2017, but remains chairman of the board and CEO of Pacific Bridge Companies.

He has seen plenty of change in the business and hopes to see more.

“I think that we have a long way to go to rectify that salesman attitude and really focus in on the other person and what’s important to them, and their realities in their life,” Kagawa said. “Sometimes the reality is they come from a different world. … They need help and they need a different kind of help.”

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

Insurance products issued by MINNESOTA LIFE INSURANCE COMPANY. Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.

Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.

Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods.

Agreements may be subject to additional costs and restrictions.

Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.

SecureCare may not be available in all states. Product features, including limitations and exclusions, may vary by state.

SecureCare Universal Life Insurance includes the Acceleration for Long-Term Care Agreement. The Acceleration for Long-Term Care Agreement is a tax qualified long-term care agreement that covers care such as nursing care, home- and communitybased care, and informal care as defined in the agreement. This agreement provides for the payment of a monthly benefit for qualified long-term care services. This agreement is intended to provide federally tax qualified long-term care insurance benefits under Section 7702B of the Internal Revenue Code, as amended.

However, due to uncertainty in the tax law, benefits paid under this agreement may be taxable. Please ensure that your clients consult a tax advisor regarding long-term care benefit payments, or when taking a loan or withdrawal from a life insurance contract.

The death proceeds will be reduced by a long-term care or terminal illness benefit payment under this policy.

This policy has exclusions, limitations and reduction of benefits, under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, call or write your producer or Minnesota Life Insurance Company.

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 affiliates, have a financial interest in the sale of their products.

The purpose of this material is the solicitation of insurance. An insurance agent or company may contact you.

Policy form numbers: ICC17-20103, 17-20103 and any state variations; ICC17-20111, 17-20111 and any state variations.

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 affiliates. Minnesota Life Insurance Company and Securian Life Insurance Company are affiliates 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.

securian.com 400 Robert Street North, St. Paul, MN 55101-2098 ©2020 Securian Financial Group, Inc. All rights reserved.

F87549-124 2-2020 DOFU 2-2020 ICC20-1087609

INSURANCE INVESTMENTS RETIREMENT

Your clients want benefits, not hassle.

That’s why SecureCare Universal Life offers a cash indemnity benefit for long-term care.

There’s no fine print about how the benefit can be used. No restrictions or receipts. Just cash.1 And the care they choose.

Help give your clients freedom today.

Call 1-888-900-1962 to get started.

1. Monthly cash benefit will be paid upon the insured being certified by a licensed health care practitioner as a chronically ill individual.

March 2021 » InsuranceNewsNet Magazine

17

E N R O EA ER Y AT L

COVER STORY

20 20 2 0 2 S E N 1 O O E H H W RED T E 18

BY LI P S L E O R PR TEVEN A. MO

InsuranceNewsNet Magazine » March 2021

S

ONE YEAR LATER: THE ONES WHO PROSPERED COVER STORY

As the pandemic grew, a new kind of advisor leaned in

S

ibyl Slade got her start in insurance and finance because she saw the future and wanted to be the change she felt the world needed.

Slade was working at the Federal Reserve in community economic development when, in 2004, she noticed about half of the loans on the books were stated income/stated asset loans, or “liar loans.”

She saw the shaky foundation undergirding the housing boom. She rang the warning bell in 2007, but it was unheard as mortgages started failing, tipping over that first domino that led to the crash of September 2008.

“I kept screaming this to my upper management, who thought, ‘Oh, well, the market will correct itself,’” Slade said, recalling her frustration.

Slade’s role at the Fed was eventually changed to a research role that was less focused on consumer protection. So, she decided to try working directly with people as a financial advisor. She left the Fed in 2014 and joined an advisory, but she became uncomfortable with the focus on proprietary products. She did not feel that she had free rein to help people with their real issues.

“They really wanted you to utilize their product, and any time you wanted to use something else that you thought benefited the client, then you had to get an exception and go through this red tape,” Slade said. “I couldn’t talk about student loan debt because we didn’t have a product to sell toward that. But I can’t sit down with young professionals and effectively work with them, asking them to redirect their income to investments when they’re looking at this student loan debt price tag and they’re asking, ‘How can I eradicate this debt?’”

She wanted a more client-focused practice that helps the underserved and others who felt as unseen as she did by the world of finance. Now, she is vice president of LifePlan Financial Advisors in Atlanta, and about 70% of her clients

are people of color.

Slade is focusing on how to serve a varied clientele on their terms. Virtual meetings are essential for busy professionals. Holistic advising is healthy for families all along the financial spectrum.

She already had morphed a few times, so she was ready to pivot to a new future when it arrived abruptly a year ago as COVID-19 prompted a worldwide shutdown. Slade and other agents and advisors who have been operating outside conventional insurance and Sibyl Slade increased her online outreach finance were ready — even if as the pandemic encroached. both of those industries, especially insurance, were not.

Those industries started 2020 with of brokers and advisors leaping from legacy problems, principally a failure to broker-dealers to become independent modernize processes. Insurance agents advisors. Eventually, most carriers unwere still relying on dinner seminars, hooked their field force, one of the latin-person meetings and taking it all est being MetLife when it sold its agent down on paper applications. Then clients force to MassMutual, where it became would endure as much as six weeks pro- Brighthouse Financial. viding more information and submitting In the life insurance sector, the growth to medical exams. of the independent channel meant no Carriers had already made slow prog- single segment could call the shots. If a ress on underwriting. The pre-pandemic carrier or a distributor required elecrule of thumb for expedited underwrit- tronic processes that the agent did not ing was $250,000 for term or some per- like, that agent could move on to many manent coverage (which expanded to of the other companies that were glad to $500,000 to $1 million during the pan- take the business on paper. The agents demic). Even as consumers became more and advisors who wanted these tools and tech-savvy and demanded the ease of efficiencies found few options. The more service they were accustomed to else- savvy ones were left to figure it out on where, the industry was slow to evolve. their own.

Financial services were faster to take The ones who were successful in buildon tech and lower barriers to investors. ing a different kind of practice tended to The life insurance industry, however, was be those who were already on the outside bundled up in a knot that tightened over looking in — young people, women and several decades from the strands of dis- people of color, just to name a few. tribution — independent distribution, to be exact.

Thriving Amid The Pandemic The independent agent channel grew Sheryl Hickerson, founder of the supout of the stream of career agents who port group Females and Finance, saw jumped to create their own practices, many of her group members thrive in the much like the accelerating phenomenon pandemic.

March 2021 » InsuranceNewsNet Magazine

19

COVER STORY ONE YEAR LATER: THE ONES WHO PROSPERED “I have to say the people of color, women of color, were very quick to pivot on the pulse of the pandemic,” Hickerson said. “They’re an awful lot more nimble, with the agility and the ability to be able to pivot.”

She attributed that agility to the experience of working outside the establishment within the business. As those newer advisors focused on underserved demographic groups, they developed new ways to reach and serve them. Many of those methods stood the test when COVID-19 appeared a year ago.

“I’m very encouraged,” Hickerson said.

“People are saying, ‘This has to end. We have to get our people back to work,’ and I do believe that for a lot of the majority, especially retail environments, because those are our clients. But for actual insur-

were not accustomed to using tech had a large learning curve to tackle in a hurry.

BIG CASE FOCUS The life insurance industry has been criticized for focusing on the big sales rather than extending coverage to more families.

By percentage of total population, fewer families in America are covered by life insurance than were at the end of World War II. But big cases need time to find, develop and underwrite. These were all difficult to do in pandemic conditions.

DIVERSITY Life insurance sales tend to be peer to peer. Quite often, the agent and client are at about the same place in life, which makes the advisor that much more relatable. It also means that new business tends

challenges during the pandemic. By law, medical underwriting was not possible in some areas for a period of time. But the already-existing reluctance to give fluids to get life insurance also became revulsion for some prospects. One large paramed company failed in the early months of COVID-19. Carriers that had been slowly introducing expedited underwriting to more products scrambled to raise the limit on simplified underwriting from $500,000 to $1 million.

Those who have been successful in the pandemic tended to be advisors who were already in the new normal. For example, agents who focused on term coverage and sold by telephone or virtual meetings often found more business coming their way from consumers who were suddenly very concerned about mortality and pro-

I think that this pandemic was its own correction in the making. It sort of corrected our thinking. Maybe we can do business in a different way, and it might actually be better.”

— Sheryl Hickerson ance, risk management, investment professionals — I think that this pandemic was its own correction in the making. It sort of corrected our thinking. Maybe we can do business in a different way, and it might actually be better.”

The aging field force has been a subject of debate for the past few decades, when the average agent age has hovered around 60, give or take a few years. Change had been glacial until the pandemic, when simmering issues came to full boil.

TECHNOLOGY The business model has been to get leads, call them and go meet the prospects. All those aspects changed to some degree, but none as much as meeting prospects and clients. The ever-present resistance to meeting a life insurance agent became a wall — people either could not meet with someone in person because of risk, or became accustomed to doing everything digitally or virtually. Agents who 20

to come from this demographic, particularly because advisors will go back to their book for new business, or referrals come from peers of these clients.

The pandemic not only made it difficult to get new business from a smaller pool of older, well-off consumers who lack coverage, but it also made it apparent that the industry had a problem with inequality across the board. With the growing awareness of civil rights and equal access issues, the spotlight is on the life insurance industry for the gaps in coverage across age, race, culture and gender. It has been glaringly apparent that agents and advisors gravitate to older, wealthier men, who tend to be white.

But there was also a problem with finding carriers willing to cover older people for any money, with almost all companies pulling products and raising prices.

UNDERWRITING Underwriting has been one of the largest

InsuranceNewsNet Magazine » March 2021

tecting their families. Those advisors tend to target a wider range of demographics, so they had more placement options with simplified underwriting.

Holistic advisors are another group that has fared well. Focusing on clients’ big picture by nature involved a wider array of products, and that client-centered focus also helped inspire trust in an uncertain time.

Variety Is The Spice Of Life (Insurance)

Larry Rybka was a perfect candidate to become one among the “pale, male, stale” category, but he decided early on to reshape his business, ValMark Financial, which grew from his father’s insurance practice.

His father was an innovator himself.

Even though his dad was Minnesota Life’s leading agent for 21 years, he did not think advisors should be tied to one company, so he was a pioneer in going

ONE YEAR LATER: THE ONES WHO PROSPERED COVER STORY with multiple carriers.

Rybka joined his father in 1987 and later changed the direction even more by adding a broker-dealer component.

“I recognized that more and more products would be securities,” Rybka said. “I said, ‘It’s not just enough to distribute multiple fixed products.’ So, we built a business model that allows us to sell variable products, or even products that we’re paid fees on.”

He saw that the future would require less focus on product and more on planning. That required a wide array of licenses. The focus on planning also opened the door to many more products that his practice can offer. That shift served the business well from the holistic service standpoint — and it allowed the advisors to pivot when insurance companies re-

had popped by 65% year over year as of October. The focus on variable products was a major reason for the increase, but the quick change the company was able to make during the pandemic also contributed.

Another factor that helped the company pivot was a backup plan that was already in place.

“As a broker-dealer, we had to have this emergency plan filed with FINRA in case our building blew up or caught on fire so we could still be able to operate,” Rybka said. “When the pandemic hit, within days our entire workforce was working out of their home offices, all the systems were up. We just kept right on going.”

Meanwhile, some life brokerages were struggling to fax documents to people and

If clients wanted to buy life insurance, especially a big policy, they almost couldn’t buy a big policy with general account products, because there were some of these premium limits.”

» We give you bottomless high networth individuals who are expecting a call from YOU and we do all the paperwork so you can focus on closing » PROVEN 90% closing ratio

basically work by cellphone, Rybka said.

“They were blind for a period of time and not able to process their business because people just couldn’t take it all home and make it work,” he said.

Technology also helped with processing large cases as doctors’ offices closed.

ValMark was still able to get data to the carrier.

“We can say, ‘Hey, Steve, I’m going to send you a link that has an e-signature.

When you click on this, it’s going to authorize us to pull down your medical records from your client portal at Cleveland Clinic,’” Rybka said. “If you have that technology, it allows you to proceed and keep that underwriting moving.”

Another future-looking practice is Gateway Financial, which is not a broker-dealer or insurance brokerage, but

March 2021 » InsuranceNewsNet Magazine

End prospecting with unlimited high net-worth clients

We’re looking for six-figure closers to join our exclusive LIFE SALES program that has an endless stream of certified big case leads to make as much money as they want.

— Larry Rybka

treated as the pandemic expanded.

“If clients wanted to buy life insurance, especially a big policy, they almost couldn’t buy a big policy with general account products, because there were some of these premium limits,” Rybka said, adding that advisors who sold only fixed life insurance products were stuck.

“He couldn’t take the money. The insurance company wouldn’t take the money.

So it sent more business down this variable track, which has led to an increase in business for us.”

In fact, variable universal life was the only product line to have a banner year in 2020. As of the third quarter, the latest available, VUL sales were up 16% in face amount, year to date. Fixed universal life was down 24% year to date.

ValMark’s life insurance business

MAKE AS MUCH MONEY AS YOU WANT

21

» $30,000 average Target Premium » Best compensation package in the market » And more...

Visit InfiniteLeadProgram.com to download your free “How six-figure closers can make all the money they want” whitepaper and learn how one agent just closed a $60 million deal with a $45 million net-worth client who had ZERO planning in place!

COVER STORY ONE YEAR LATER: THE ONES WHO PROSPERED

U.S. Individual Life Insurance Growth Rates by Product Percentage Change 2019–2020

Product

Face Amount

Universal Life

-8%

» Indexed UL

1%

» Fixed UL

-24%

Variable Universal Life

16%

Term

7%

Whole Life

0%

Total

5%

Sources: LIMRA’s U.S. Retail Individual Life Insurance and Individual Disability, Insurance Sales Summary Reports, Third Quarter 2020

an office of supervisory jurisdiction for LPL Financial. It provides back-office and tech support for about 100 advisors, said David Wood, Gateway founder and chief visionary officer.

“We didn’t plan for COVID-19, but we planned for the future of the industry,” said Wood, adding that the company had been ramping up to a virtual environment for years. “We moved to a virtual setup. We’re on the Microsoft Teams environment.

We also host our own phone system on Amazon’s cloud. Some of the things that happened when we ran into this pandemic, where we had to operate differently, was that our advisors could simply pick up the phone off their desk, take it home, either plug it in or connect to their home Wi-Fi, and they operated the same as they did in an office. We just created an environment where we could work really wherever we are.”

Not only were the advisors able to work, but also they increased their efficiency by cutting travel time; they were able reach farther for clients.

“I asked one of our top advisors this morning how many appointments she 22

had pre-COVID,” Wood said. “On a busy day she’d meet with four clients. Today, it is not uncommon to do 10 virtual meetings. She said, ‘I’ve done 10, 12 meetings a day that are literally a half an hour, and they’re back to back. And we can make a lot more connections in a much shorter period.’”

A New Kind Of Agent

Meredith Moore, CEO of Artisan Financial Strategies in Atlanta, is a New York Life agent but considers herself a financial planner first. She also works through Eagle Strategies, a registered investment advisory.

During her more than 20 years in the business, she worked to scale up her practice to the point where her typical client has either $500,000 in income, $1 million in assets or a business doing at least $5 million in revenue.

Even though Moore has a wealthy client base requiring significant life insurance coverage, she has not run into the obstacles that other agents operating in the big case realm have experienced. That is largely because she is not dependent on commissions.

As a planner, she charges a retainer starting at $625 a month. The retainers make up only about 15% of her income, but it is the basis for the relationship with a client. Assets under management is 60% of her income and the remaining 25% is insurance.

By spanning the insurance-finance spectrum, Moore has a unique inside view of the various disciplines. One of the things she saw was that women were underserved in all the sectors. Moore started a luncheon series where women senior leaders in Atlanta could meet and share “goals, pivots and wins.”

One of the webinars in a series she did last year also focused some of her attention on the issue.

“There’s a big problem right now and it started with the pandemic,” Moore said. “Women are coming out of the workforce right now, especially in technology. It’s going to be a really big problem in the next five to 10 years, because they’re opting right now to stay at home with everything going on, especially if they have younger kids.”

The issue fits in well with her niche of women breadwinners and their unique challenges. In 2019, the only people she could find who knew anything about those challenges were academics. So she interviewed 25 academics and ultimately wrote a white paper and built a public

Women are coming out of the workforce right now, especially in technology. It’s going to be a really big problem in the next five to 10 years.”

— Meredith Moore

InsuranceNewsNet Magazine » March 2021

A YEAR LATER: THE ONES WHO PROSPERED COVER STORY tion with their advisor because of the intimacy of money.”

She also sees the disconnect with her junior advisor, who is a black millennial man. He does well in Atlanta because he does not have a lot of competition. His niche is black enterprise — and he is so busy that he has a wait list.

Meredith Moore dug deeper into her niche of serving women leaders.

A New Way Forward

presentation on the subject.

“It’s called basically ‘women, money and power in relationships,’” Moore said.

“I have worked with a lot of women in senior leadership. And there’s a funkier dynamic, whether we want to talk about it or not, when she makes more money than he does.”

Not only is there the difficulty in family dynamics, but also a systemic sexism that financial institutions are starting to address. Moore said she has clients in their 60s and 70s who had to get a man to cosign for business loans. And the man did not even have to be a spouse — even a minor son could sign for the loan.

Moore combines her research and professional experience into a presentation that outlines the unique financial problems women face, along with some advice on improving the family financial dynamic. She converted these issues into speaking engagements and rolled it out to women’s employee resource groups at Fortune 500 companies, where partici-

pants can sign up for her weekly newsletter and use free financial tools.

Although Moore focuses on public outreach, it is not in the same way traditional insurance agents have done with events such as dinner seminars, where appointments are the direct objective.

In fact, she finds it difficult to relate to fellow agents, and it is not only because

they tend to be older white men.

“I have different interests than they do, and probably a completely different set of values, different set of goals, a very different kind of ambition,” Moore said.

“Ultimately whether it’s insurance or advisory, client want to feel a connec-

Sibyl Slade, the advisor in Atlanta who came out of a career with the Fed, pulled together what she has learned from a long career to create a new approach to advising.

A natural teacher, Slade gravitates to opportunities to help audiences understand the complicated world of finance.

An example of that is a Facebook pop-up session that she does on Saturdays.

Slade also had a career in community service, so she formed a business services collective, consisting of a CPA, human resource consultant, small business lender, executive coach and attorney, among others. They did a series of webinars focusing on business issues such as the Paycheck Protection Program.

Many of Slade’s clients are younger professionals, so she learned to communicate with them in the way they preferred. For example, she found that those clients tended to prefer Google Meet rather than Zoom.

Those are some of the ways that Slade found to align with her clients when traditional methods were not working for her.

“Because everyone else who wants to tell you how they can make you become a successful advisor, they want to tell you about lead generation and sales funnels,” she said. “Those did nothing for me. Not that I don’t understand those concepts.

That’s not the edge. You’ve got to find something to take you to the edge. Over my entire professional life, even before the Fed, I was better at problem-solving when I listened. So, that’s what I did.”

Steven A. Morelli is editor-in-chief for Insurance NewsNet. He has more than 25 years of experience as a reporter and editor for newspapers and magazines. He was also vice president of communications for an insurance agents’ association. Steve can be reached at smorelli@innfeedback.com.

March 2021 » InsuranceNewsNet Magazine

23

LIFEWIRES

Pandemic Prompts More Young Adults To Buy Consumers didn’t stock up only on toilet paper and

baking supplies during the pandemic. They also added life insurance to their COVID-19 shopping lists. Life insurance applications rose by 4% in the U.S. in 2020. It was the highest year-over-year increase since 2001, according to MIB. The Wall Street Journal reported that COVID-19 prompted many younger adults who previously were reluctant to buy life insurance to finally make the purchase. In addition, many who had life insurance through their employers bought coverage to maintain protection in case of a job loss, the Journal said.

MIB reported that young adults fueled the growth in life applications.

Applications were up 7.9% for those under age 45, while applications rose 3.8% for consumers ages 45 to 59 and declined slightly for those 60 and older.

Lincoln National reported its term life applications were up 25% year-over-year through September for buyers age 40 and under.

December 2020 was the best December ever for New York Life, which had doubledigit percentage increases in both the number of life insurance policies sold and newsales premium. Principal Financial announced its life insurance applications hit a record high in 2020, driven by record term sales of nearly $100 million.

New-sales premium topped $1 billion at Northwestern Mutual for the first time, an increase of nearly 8% over 2019.

LAWSUITS: INSURERS LAPSED POLICIES WITHOUT NOTICE

A pair of insurers are defendants in new lawsuits filed in California over whether proper notice was given in cases of lapse or termination of policies.

The plaintiffs, who seek class-action status, claim American National Insurance Co. and Lincoln Benefit Life Co. violated a 2013 California law that beefed up notification requirements.

The law establishes a new minimum grace period during which individual and group life insurance policies must remain in force after a premium payment is missed; gives certain policy owners the right to designate additional persons to receive notices of lapse, and provides that notices of lapse and termination that are not mailed to the designees and known assignees are ineffective.

DID YOU

KNOW

?

24

STIMULUS BILL CONTAINS GIFT TO WHOLE LIFE INSURERS

Life insurers will start redesigning permanent life insurance products as a result of new calculations enacted via the Consolidated Appropriations Act, 2021, Moody’s Investors Service reported.

Although the CAA was largely a spending and stimulus relief bill, it also contained a provision that changed the determination of a minimum interest rate used in certain tax-related calculations for life insurance contracts.

The determination of the new rate, which had not been updated since 1984, was changed to reflect the current lower-interest-rate environment. Moody’s said this is a credit positive for insurers, which will benefit from sales growth of permanent life insurance products because the new calculation makes these products more

Allstate will sell its life insurance unit to entities managed by Blackstone for $2.8 billion. Source: Allstate Source: The Wall Street Journal

InsuranceNewsNet Magazine » March 2021

QUOTABLE The silver lining of the year was that it did help people realize they need to prioritize planning for the worst days as well as the best days.

— Chantel Bonneau, a Northwestern Mutual financial advisor in San Diego

viable for insurers and potentially more attractive to consumers.

For sales starting at the beginning of the year, the CAA provision lowers the minimum rates that are used in determining whether permanent life insurance meets the requirements under Internal Revenue Code section 7702 to qualify for tax-advantaged treatment as insurance rather than being taxed as an investment.

Lowering the rate leads to a higher cash value relative to the death benefit and allows consumers to put additional funds into a life policy without triggering modified endowment contract status, which has adverse tax consequences for the policyholder.

MCKINSEY SAYS: GET YOUNGER, DIGITAL, FLEXIBLE

The insurance industry must get younger and more digitally savvy and come up with more versatile products. Oh, and employees will probably not be coming back to the office. Otherwise, it should be business as usual for the next decade.

Training its viewfinder on 2030, McKinsey & Co. analysts see these changes as core focus points for the insurance industry and those who wish to remain competitive along the distribution chain.

Analysts zeroed in on three themes: personalizing every aspect of the customer experience, developing flexible product solutions, and reinventing skills and capabilities.

Have You Heard?

You have three new ways to help your clients.

For well over a century, Mutual of Omaha has been helping people protect the things that matter most. And we never stop looking for ways to help our customers protect their families, their finances and their futures.

New DI Product: Mutual Income SolutionsSM This innovative DI product offers increased benefit amounts, expanded occupation classes, several optional benefits and a non-cancelable option.

New Prescription Drug Plan: Mutual of Omaha Rx Premier Our newest cost-saving plan offers low monthly premiums, $0 Tier 1 copays at preferred pharmacies and $0 deductibles for Tiers 1 and 2.

New Multi-Policy Dental Discount Clients can save 15% on their dental premium when they purchase a dental policy along with a Medicare supplement (criteria apply).

Some Things Never Change You can always count on Mutual of Omaha to provide the product solutions your clients need.

Contact your marketer or visit MutualofOmaha.com/sales-professionals to learn more.

Life Solutions Indexed UL | Indexed UL Express Term Life Answers | Term Life Express GUL Express | Living Promise Whole Life Children’s Whole Life

Health Solutions Medicare Supplement | Long-Term Care Critical Illness | Prescription Drug Plans Disability Income | Dental

A+

A1

A+

(Superior)

(Good)

(Strong)

This rating is the 2nd highest of 16.*

This rating is the 5th highest of 21.*

This rating is the 5th highest of 21.*

A.M. BEST

MOODY’S INVESTORS SERVICE

S&P GLOBAL

*as of 1/1/21

Some products may not be available in all states.

S7126_21467085_O 467085

For producer use only. Not for use with the general public.

LIFE

Differences, Not Deficits: Working With Neurodiverse Clients Adults with autism spectrum disorders and other neurodiverse conditions can qualify for life insurance, but you have to communicate with them in the way that makes them feel comfortable and understood.

By Andrew Komarow

W

hen we talk about autism in the insurance industry, most of the time we talk in terms of the “child.” The thing about children with autism, though, is that eventually they turn into adults with autism. I would know — I am one of them.

Insurance companies tend to have someone on their team who works in special care planning, which in itself isn’t a bad thing, but that person is there to serve the parents and caretakers of children or adult dependents with disabil26

ities. They often severely lack education on options specific to the adults in those categories who wish to have power over their own finances.

Although there are many individuals with disabilities who will need care and support from their care teams on financial decisions and more, there is a growing neurodiversity movement that aims to include their community as part of the diversity inclusion initiatives.

Neurodiversity in itself is an entirely new way to consider what we used to look at as deficits within a disability. Also worth noting is that although your training has probably taught you to use person-first language (for example, “a person with autism”), 90% of those surveyed said they preferred the term “autistic” to describe themselves. That is because the autism is a part of us, and we can’t separate ourselves from it.

Neurodiversity is often linked only to those with autism spectrum disorder, which is true. All individuals with

InsuranceNewsNet Magazine » March 2021

ASD are neurodiverse, but not all who are neurodiverse are on the spectrum.

Neurodiversity encompasses several neurodevelopmental disorders, including (but not limited to):

» Autism spectrum disorder. »A ttention deficit hyperactivity disorder. »D yslexia.

Conditions that fall under the neurodiversity label aren’t abnormal, but are natural variations of the human brain. The term neurodiversity helps us frame challenges as differences instead of deficits.

The neurodiversity movement promotes that the goal shouldn’t be to cure differences, but rather embrace them and reduce the stigma behind them. It emphasizes strengths in differences, and it promotes the idea that people under that umbrella should be in charge of their own lives — including but not limited to finances.

WORKING WITH NEURODIVERSE CLIENTS LIFE Given that nearly 1 in 8 people in the U.S. fall under the list of conditions that would identify them as neurodivergent, the chance is fairly strong that you have clients who fit under that umbrella. There are several things that are important to consider for these clients and things that you can do to help make them not only more comfortable but also thrive while working with you.

individual can seem odd. For example — some of my clients really hate talking on the phone. It gives them stress and anxiety. They prefer to communicate via email or text chat. Is that typical for the industry? Absolutely not. To someone uneducated, it would likely look like they’re just avoiding a sales call. This isn’t the case at all. Be direct. Ask your client how they wish to be contacted and how

Given that nearly 1 in 8 people in the U.S. fall under the list of conditions that would identify them as neurodivergent, the chance is fairly strong that you have clients who fit under that umbrella.”

Some things that are often spoken of but not always addressed are sensory processing issues. Think about this for a second: Have you ever worked in or are you currently working in an office that uses bright fluorescent lights? It’s pretty uncomfortable.

For individuals like myself, it can go beyond discomfort. It can be completely unbearable and cause physical and emotional pain. Think of the way you feel when you hear nails across a chalkboard — now think of hearing that for the entire duration you are forced to sit under that light. I accommodate this in my own life by putting light-filtering shades on fluorescent lights in my office, or wearing tinted glasses or a ball cap.

Let’s say I proposed getting rid of all overhead lighting in my building. Do you think everyone would embrace this?

Of course not. These accommodations make me comfortable, while not disturbing anyone else. The same principle can be applied to our financial planning and the environment we do it in. These are simple accommodations we can make so that someone can feel significantly more comfortable. When in doubt — ask.

Something else that is not commonly addressed when talking about neurodiverse adults (ironically) is communication. Sometimes, navigating communication with a neurodivergent

they are comfortable receiving communications.

Sticking with communication — language is another thing that is often overlooked. The English language creates room for lots of nuances and, in sales, we like to dance around an actual pitch as a tool so that we don’t immediately turn someone off because they think we are trying to sell them something.

This does not work with neurodivergent clients. Ambiguity and large open-ended questions only cause confusion and anxiety. Typical questions in a fact-finding process (such as “Where do you see yourself in five years?”) can potentially confuse the neurodiverse individual and cause them to pause and feel anxious and frustrated. Be direct and break questions down into smaller parts (“Do you see yourself being interested in owning a home?”).

A major plus to this is that we neurodivergent people tend to be very open and very honest in sharing the information that is asked of us. That being said, we do tend to get stuck on details. Reel your client back in by sticking to asking those small questions without potential for a huge, open response and you will get everything you need.

Your client will likely have lots of questions, and several you may think aren’t relevant. There is a phrase we often use in

March 2021 » InsuranceNewsNet Magazine

27

Become A

Group Medical Master

And bring big business plans to small business budgets

• Top-notch coverage and stacking opportunities • Alternative funded plans, with rates 20%–40% less than traditional plans • Expanded group eligibility • Industry-leading comp Visit SellGroupPlans.com to access a free report, that could put you on the path to group sales mastery!

LIFE WORKING WITH NEURODIVERSE CLIENTS

Tips For Talking To Autistic Adults 1. Address them not as a child but as you would any other adult.

2. Avoid using words or phrases that are too familiar or personal, such as “honey” or “sweetie.”

3. Say what you mean.

4. Take time to listen.

5. If you ask a question, wait for a response.

SOURCE: May Institute

the community — “assume competence.”

Assume that your client means well and they are likely just trying to understand every facet of what they are taking on, while trusting you as the expert.

How Neurodiversity Impacts Life Insurance

Let’s move on to the specifics in your planning. What is there for a neurodiverse person to consider that is different from a neurotypical person when it comes to life insurance? In itself, not a whole lot!

These conditions alone are not precursors to anything that would trigger an actuary.

That being said, there are underlying facts often associated with neurodiverse conditions that must be considered.

Individuals with autism are more likely to be depressed, suicidal and anxious.

There are several medical conditions that are commonly comorbid with autism that would lead to different types of medications and testing history. Life insurance applications often ask whether the client is on any government benefits, including SSI/Medicaid or Social Security Disability. Many insurance companies have a qualifier in which you are not able to get life insurance — or the coverage is much more difficult to obtain — if you are on disability insurance.

It is also important to know that if you run into a client who is on disability, 28

that you inquire about existing policies and disability riders. I often have found that individuals are eligible to have their policies paid for with waivers of premiums and those policies were sold so long ago the client never realized that was an available option for them.

When I myself was underwritten for my individual disability insurance, I fully disclosed my autism and I was approved at the rating expected. The only limitation for me was an existing condition limitation for not being able to work due to autism. These existing limitations are extremely common in disability insurance and something I was expecting.

When it comes to life insurance, it can be a little trickier. Even with conditions that fall under the neurodiversity umbrella alone, a client will likely receive a top rating, as long as the client isn’t receiving disability benefits, is working, and has no other conditions or outlying medications.

Comorbid conditions, however, are another issue, and each case will need to be treated individually. The takeaway from this, though, should be that neurodiversity alone is not enough to disqualify someone, nor for them to receive poor ratings.

Let’s take another look at communication issues. Most insurance companies have phone interview processes

InsuranceNewsNet Magazine » March 2021

now. However, the phone might not be the preferred or potentially even possible method of communication for many neurodiverse individuals. Do not make assumptions that they have a preferred method — just ask.

Break down the individual steps of what is going to happen, with the most exact timeline you can give. Prepare them for the questions they will be asked.

Explain to them what the end goal is. Be clear and concise. When possible, try to use something visual such as a graph, a visual timeline or a chart. Doesn’t this sound like the way that everyone wishes they were communicated with?

At the end of the day, working with someone who is neurodiverse may seem like it is going to take lots of extra effort on your part. The thing is though, it all comes back to the same thing — when in doubt — be clear. Be direct. Ask what your client needs, and keep striving to be the best possible advisor for them that you can be.

Andrew Komarow, MSFS, CFP, AEP, AIF, BFA, CAP, CASL, ChFC, ChSNC, CLU, CNP, FSCP, REBC, RHU, RICP, WMCP, is founder of Planning Across The Spectrum in Farmington, Conn.

Andrew may be contacted at andrew. komarow@innfeedback.com.

ANNUITYWIRES

A Tough Year For Annuity Sales

Product 2019 2020 Variable $84.5 $74.9 Registered index-linked $17.4 $24 Fixed-rate deferred $47.5 $51.7 Fixed indexed $73.5 $55.7 Total annuities $241.7 $219.1 (in billions) SOURCE: Secure Retirement Institute

QUOTABLE

The fourth quarter brought some good news to the annuity world, even if 2020 wasn’t a great year overall. Fourth-quarter variable annuity sales increased 4% from the prior year to $27.9 billion, powered by robust registered index-linked annuity sales, according to preliminary results from the Secure Retirement Institute’s Individual Annuity Sales Survey.

“Current economic conditions have made RILA products uniquely attractive to consumers seeking both downside protection and investment growth, drawing new manufacturers to the market,” said Todd Giesing, senior annuity research director, SRI. RILA sales were $8.3 billion in the fourth quarter, a 68% jump from fourth quarter 2019. In 2020, RILA sales were $24 billion, up 37% from 2019 sales.

Total annuity sales were $58.7 billion in the fourth quarter, 2% above fourth quarter 2019 sales. But those results couldn’t overcome the steep drops experienced earlier in the year. In 2020, overall annuity sales dropped 9% to $219.1 billion.

MASSMUTUAL ACQUIRES GREAT AMERICAN LIFE IN $3.5B DEAL

The pandemic did not slow MassMutual’s appetite for acquisition. The insurance giant acquired Great American Life Insurance Co. in a $3.5 billion deal that came together at the end of January.

Great American, through subsidiaries and affiliated entities, is a significant player in traditional fixed and fixed indexed annuity products.

The transaction is expected to close in the second quarter of 2021, subject to regulatory and other necessary approvals.

Upon the close of the transaction, Great American Life will operate as an independent subsidiary of MassMutual.

This transaction “significantly advances” MassMutual’s strategy, the insurer said, with Great American Life complementing its existing annuity business by broadening and diversifying its product and distribution capabilities, allowing MassMutual to reach more customers in need of lifetime income solutions.

DID YOU

KNOW

?

We know from past research that three out of four investors prefer a protection-focused portfolio over one that outperforms benchmarks.

— Dylan Huang, senior vice president, New York Life

Arkansas, Maine, North Dakota and Nebraska are also working on rules.

JACKSON NATIONAL TO GO THROUGH DE-MERGER

STATES PROCEED WITH BEST INTEREST RULES

While it’s hard to get a majority of states to agree on any single position, a big group of state officials are moving ahead on a best interest standard for insurance sales.

The new standards are based on a model law put forth by the National Association of Insurance Commissioners.

In February 2020, the NAIC adopted the model that articulates a best-interest standard through the following four obligations: care, disclosure, conflict of interest and documentation. With the outbreak of COVID-19, states were slow to adopt the model in the months that followed.

The NAIC began lobbying state officials last summer and then worked on a series of FAQs to help facilitate adoption. Since then, Delaware, Alabama and Rhode Island introduced rules. Michigan,

Jack son Nat iona l, a leading annuity seller, will go through a de-merger process, pa rent compa ny Prudential plc decided in January.

The original plan was for Jackson to go through an initial public offering, Prudential plc announced in August. Prudential plc is a British multinational insurance company headquartered in London, and a separate company from the Prudential Insurance Co. doing business in the U.S. The de-merger will take place during the second quarter of 2021, with shares in Jackson to be distributed to Prudential shareholders. At the time of the spinoff, Prudential intends to retain a 19.9% interest in Jackson that it will fully divest over time.

According to the Secure Retirement Institute U.S. annuity sales rankings, Jackson was the top seller of total annuities in 2019.

Jackson retook the lead position after losing it to AIG in 2018.

Just 26% of U.S. young adult workers think they are on course to achieve their retirement income needs.

Source: Transamerica Center for Retirement Studies

March 2021 » InsuranceNewsNet Magazine

29

ANNUITY

Annuities And Unmarried Couples: The Right Planning Can Avoid Headaches Unmarried couples may face tax hurdles with inherited annuities.

By John Williams

A

nnuities provide many advantages to clients, but those advantages are especially geared toward the individual.

Annuities are often tailored to clients of retirement age, and those most often are seeking a predictable income stream or a guarantee of investment return. Choosing the right annuity, based on goals and risk tolerance, is a personal decision.

Despite this individual focus, there are ways that marital status might factor into annuity selection, as any non-spousal beneficiary may face complications that spousal beneficiaries do not. As of 2018, 45% of the 47.5 million Americans aged 65 and older are unmarried, LIMRA reports. Knowing that, there are factors that advisors can consider for clients — 30

such as those who are partnered but not married — seeking an annuity. In those conversations, advisors can address the following topics to educate clients, and better position and clarify the benefits of annuities.

Considerations For Unmarried Couples

The idea of buying an annuity may be attractive for unmarried couples, but there are considerations that need to be communicated. The tax law currently allows for “spousal continuation” of an annuity payable to a surviving spouse, if the spouse is named the beneficiary.

This means that in cases where a surviving spouse is the beneficiary of a qualified or nonqualified annuity, the surviving spouse can continue the contract in their own name, as though they were the original owner. While the income received from an annuity can be used however the couple decides, designating a non-spousal beneficiary is much more complicated if the owner of the annuity dies.

InsuranceNewsNet Magazine » March 2021

Unmarried couples, though, may face complicated tax hurdles based on current tax laws. Inherited annuities — when the beneficiary inherits the annuity upon the annuitant’s death — are considered taxable income, unless the annuity is from a state-recognized spouse. Unlike spousal beneficiaries, non-spouse beneficiaries cannot simply assume ownership, making the transfer of funds challenging. The non-spousal beneficiary will also have to pay income tax on the gain of the contract, based on the individual’s tax rate. Without planning beforehand, those taxes can drain a sizable portion of the assets.

If an advisor is working with an unmarried couple early in the annuity purchasing stage, it is in your client’s best interest to help the named beneficiary understand the limited death benefit payment and distribution options available, if the couple decides to go this route.

By providing clients with all of the considerations and likely challenges they will face by having a non-spousal beneficiary,

ANNUITY COMING SOON LINES TO THE TETON™ & DENALI™ ANNUITY LINES

re information.

Visit SILACannuities.com today for more information.

iceThe marks and logos related thereto are service “Credit Suisse RavenPack Artificial Intelligence Index” and “Credit Suisse,” and any trademarks, service marks and logos related thereto are service edit Suisse”).

As used herein, title“Credit “artificial marks of Credit Suisse Group AG, Credit Suisse International, or one of their the affiliates (collectively, Suisse”). As used herein, the title “artificial dit intelligence” Suisse Artificial Intelligence Index or “AI”RavenPack does not imply any form of actual intelligence, learning or comprehension.

The Credit Suisse RavenPack Artificial Intelligence Index tic algorithmic rules to language a relies upon an algorithm that is called “artificial intelligence” only in the limited sense that itto applies produce static algorithmic rules to language to produce a editmathematical Suisse has no relationship Insurance result that might indicate relevance, novelty or a given sentiment to about aSILAC company. Credit Suisse has no relationship to SILAC Insurance s for use connection the and certain Company, other in than the licensing of Credit Suisse RavenPackwith Artificial Intelligence and FIAs its service marks for use in connection with the FIAs and certain nothedging be liable for results obtained by using, arrangements and is not a partythe to any transaction contemplated hereby. Credit Suisse shall not be liable for the results obtained by using, no investing responsibility for its contents or Obligations in, or trading the FIAs. Credit Suisse has not published or approved this document anduse. accepts no responsibility for its contents or use. Obligations re nottothe responsibility of Credit Suisse. make payments under the FIAs are solely the obligation of SILAC Insurance Company and are not the responsibility of Credit Suisse. theLicense property of Credit Suisse which Agreement with S&P: The Credit Suisse RavenPack Artificial IntelligenceInternational, Index (the “Strategy”) is the property of Credit Suisse International, which he S&P Sector TR Indices in connection the has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices, LLC) to license the use of the S&P with Sector TR Indices in connection with the ® ® is a registered trademark of trademark of d-party S&P Strategy. The S&Plicensors.

Sector TR Indices are the property of S&P Dow Jones Indices, its affiliates and/or their third-party licensors. S&P is a registered ® mark Holdings, LLC. The Strategy is a registered trademark of Dow is Jonesnot Trademark sponsored, Holdings, LLC. The Strategy is not sponsored, Standard & Poor’s Financial Services, LLC, and Dow Jones dard & Services, LLC, or their thirdendorsed, soldPoor’s or promoted by S&PFinancial Opco, LLC, S&P Dow Jones Indices, LLC, their affiliates, including Standard & Poor’s Financial Services, LLC, or their thirdP Dow Jones Indices”). party licensors, including Dow Jones Trademark Holdings, LLC (collectively, “S&P Dow Jones Indices”). third-party licensors and neither S&P Jones The FIAs are not sponsored, endorsed, sold or promoted

by S&P Dow Jones Indices, its affiliates, or theirDow third-party licensors and neither S&P Dow Jones nvesting in the Credit Suisse RavenPack Indices, its affiliates nor their third party licensors make any representation regarding the advisability of investing inArtificial the Credit Suisse RavenPack Artificial Intelligence Index. ade during Withdrawal charges, the bonus recovery withdrawal and market value adjustment charge may apply to withdrawals period. made during the withdrawal charge period.

NCUA/NCUSIF. This is a product of the insurance Not industry and anotdeposit. guaranteed by a bank, nor Not insured by insured FDIC or NCUA/NCUSIF. Not a deposit. Not insured gentbyuse a federal government only. agency.

Products Restrictions apply. May only may be offered by vary a licensed agent. by For agent state. use only. Products Not may vary by state. Not state of intended California, for the general public. SILAC license is licensed as SILAC Life #6244-8.

Insurance Company in the state of California, license #6244-8.

SILAC-RP-Mar2021

ANNUITY ANNUITIES AND UNMARRIED COUPLES: THE RIGHT PLANNING CAN AVOID HEADACHES

Love But Not Marriage The number of Americans age 50 and older who are unmarried but living together grew by 29% between 2007 and 2016.

Nearly 1 in 4 (23%) of the total 18 million cohabiters in 2016 were 50 and older.

In 2016, 4 million adults ages 50 and older were cohabiting — up from 2.3 million in 2007.

SOURCE: Pew Research Center

advisors can help them avoid unpleasant financial ramifications and unnecessary costs.

Positioning Annuity Benefits

This is also an opportunity for advisors to help clients understand that any annuity is really intended for the living person. Annuities are a tax-deferred method designed to grow money safely, creating a lifetime income stream for the annuity owner. Focusing on the true intent and benefits of annuities can refocus the conversation.

Advisors can help explain that fixed annuities are a long-term savings plan for clients, with a built-in future income stream that can supplement retirement income. Clients’ needs may either match with a fixed immediate or a fixed deferred annuity — with deferred having an option for multiyear guarantee annuities or fixed indexed annuities.

By thinking about each of these as matching a target client, advisors can 32

better identify which annuities pair best with the particular client’s situation — and each person in the relationship might have a different situation. It is an opportunity to demonstrate how they can benefit from individual annuities.

Because there is no annual contribution limit of a nonqualified annuity, clients can save more money for retirement and could make up for lost time on other traditional retirement plans, such as 401(k)s and individual retirement accounts, if they started saving later in life.

This factor may be of value to a couple who had disparate career paths, with one potentially seeking a way to make gains to more closely reach their partner’s saving level.

The many other benefits associated with annuities, such as security in building savings, ensuring a lifetime income stream, tax deferred status, and others, can all be positioned to unmarried couples to address individual needs.

After reminding clients that it is dif-

InsuranceNewsNet Magazine » March 2021

ficult for anyone other than a spouse to take over an annuity contract seamlessly, and communicating the benefits around annuities, advisors can help unmarried clients select the right annuity to match their financial needs.

Selling To The Individual

Advisors can approach a conversation with an unmarried couple by selling to each individual. In these conversations, it is imperative to help the clients understand the challenges as noted previously.

Although it may be easier to be married when it comes to naming the partner as the beneficiary, finding the right annuity fit for each of the individuals is key.

Advisors can help clients purchase two individual contracts, with each annuity specifically tailored to each client’s preferences and goals. This means each person is receiving an investment option that is personalized. It can be explained much like if they were to each purchase their own vehicle. Yes, the car serves a similar purpose, but it possesses the qualities and characteristics preferred by each person.

During these conversations, advisors seek to understand each client’s longterm financial planning goals, as well as the goals they have as a couple, to help them select two annuities. As each annuity has its own benefits, clients will prioritize those benefits differently.

Advisors can recommend the right fit based on when clients want payments to begin, for how long, their tolerance for risk and their expected contribution — which might not be the same in a single partnership.

Annuities offer a secure way to build savings into retirement. Their key features provide many benefits that support clients’ goals, regardless of their marital status. But if unmarried life partners seek an advisor’s guidance about annuities, advisors can help by providing information, context and clarity around the purpose of annuities and how they work best.

John Williams is regional sales director, individual annuities, at The Standard. He may be contacted at john. williams@innfeedback.com.

HEALTH/BENEFITSWIRES

QUOTABLE

AHIP Chief Calls For Health Equity Matt Eyles, president and CEO of America’s Health Insurance Plans, said that his

organization wants to assist the Biden administration in its goals of COVID-19 relief and economic recovery, while calling for health equity in America’s communities.

That health equity spills over into COVID-19 vaccine distribution, Eyles said, urging “a conversation about equitable vaccine distribution.”

He said AHIP’s members are ready to work with federal, state and local partners “to make sure that these vaccines are distributed to the communities and populations that need them most.”

AHIP will partner with The Ad Council’s vaccine campaign, which will reach out to communities of color, Eyles said.

INSURERS LOOK AT FOOD AS MEDICINE

Health insurers are doing more than covering the cost of medical visits and prescription drugs. They are increasingly looking at food — in particular, access to nutritious food — as part of a policyholder’s overall health.

For example, as COVID-19 began to lock down the nation, Oscar Health asked its policyholders whether they had adequate food to help them weather stay-athome orders.

More health plans are paying for temporary meal deliveries, and some are teaching people how to cook and eat healthier foods. Benefits experts say insurers and policymakers are growing used to treating food as one way to help patients reduce blood sugar or blood pressure levels and avoid an expensive hospital stay.

Medicaid programs in several states are testing or developing food coverage. Next year, Medicare will start testing meal program vouchers for patients with malnutrition as part of a broader look at improving care and reducing costs. Nearly 7 million people were e n rol le d l a s t year in a Medicare Advantage plan that of fered some sort of meal benefit, according to research from Avalere Health.

DID YOU

KNOW

?

If our job is to keep people healthy, that job extends far beyond the four walls of the doctor’s office.

— Matt Eyles, president and CEO of America’s Health Insurance Plans

Workers Want More Help

meet their needs, while 41% said retiree medical benefits would help. More than a quarter of employees (29%) said access to other savings and investment products would help meet their needs to save for retirement.

46% want employers’ help with work/ life balance 52% want more generous paid time off 44% want more flexibility in how often they work 40% want more flexibility in where they work Source: Willis Towers Watson

MORE SECURITY, LESS COST: WHAT EMPLOYEES WANT

Roughly half of U.S. workers want more help from their employers to save for retirement, balance their work and life issues, and get the most value from their employee benefits. That’s the word from the Global Benefits Attitudes Survey by Willis Towers Watson.

More than a third of respondents (37%) cited reducing benefit costs as their top benefits priority for 2021, followed by receiving greater benefits security from their employer (26%). Roughly two in 10 employees identified receiving more benefit choices (19%) and having more flexibility in where, when and how often they work (18%) as top priorities.

Over half (53%) of the respondents identified saving for retirement as the area in which they would most like help from their employers. When asked what would best meet their needs to save for retirement, more than half of surveyed employees (53%) cited a guaranteed retirement benefit; four in 10 respondents (42%) said receiving more generous retirement benefits in exchange for other benefits and less pay would help

HAVEN SHUTS ITS DOORS

Three years ago, three of the nation’s biggest names in business — Amazon, Berkshire Hathaway and JPMorgan — banded together with the goal of reinventing health care. But the company they created — Haven — ended operations at the end of February.

When leaders of Haven’s three parent companies joined together in 2018 to announce their plans to disrupt health care, Berkshire Hathaway’s Warren Buffett famously described the ballooning costs of health care as a “hungry tapeworm” on the economy.

The plan for Haven was to use the combined companies’ resources to control costs and improve care for the member companies’ employee populations, but the new venture struggled to find an identity. Haven also lost financial backing and had trouble getting commitments from Amazon, Business Insider reported.

Cigna sold its group life, accident and disability insurance business to New York Life for $6.3 billion.

Source: New York Life

March 2021 » InsuranceNewsNet Magazine

33

HEALTH/BENEFITS

2020’s Health And Financial Challenges Likely To Linger The financial and health impacts of COVID-19 are expected to last for some time. Here is how benefits brokers can work with employers to help ease the effects on workers.

By Stephanie Shields

A

fter an unpredictable 2020 and with a COVID-19 vaccine in the early stages of distribution, optimism and fresh starts are the sentiments ringing true right now.

However, the health and financial challenges of 2020 will likely linger for some time. In fact, the 2020-2021 Aflac WorkForces Report found that 67% of U.S. employees experienced at least a minor financial impact because of COVID-19.

Given the importance of every dollar during this time, brokers and agents can work with human resource managers

to ensure all aspects of policies are discussed — from wellness claims to insurance riders. This ensures HR managers have the knowledge and resources to advise employees on how to best use their benefits. Together, agents and brokers can support workforces by highlighting the following:

1. Provide additional support

Even after COVID-19 dissipates, the pandemic will undoubtedly have a lasting effect in the years and even decades ahead. In addition to the chronic health issues that some will face, anxiety surrounding financial security has only grown with COVID-19.

According to the Aflac WorkForces Report, high medical costs or bills adversely affected more than half of the U.S. workforce, and there is growing concern about covering health care costs.

Nearly 1 in 4 employees said they or an immediate family member experi-

Employer attitudes and trends The vast majority of employers plan to maintain or strengthen their benefits programs.

68% 23%

are extremely or very certain they’ll maintain their benefits offerings. are somewhat certain — even in light of the current pandemic environment.

Employees anticipate expanded benefits to help them feel secure at the workplace.

63%

expect at least one expanded benefit, including supplemental insurance or telemedicine options.

45%

expressed high interest in pandemic insurance to help protect their income.

SOURCE: 2020-2021 Aflac WorkForces Report

34

InsuranceNewsNet Magazine » March 2021

enced a serious health event or accident requiring hospitalization. These health care costs caught nearly all of these individuals or families off guard. In fact, 92% said at least one health care cost related to the event surprised them.

One way to help offset the anxiety of health care costs is by offering supplemental insurance plans. Even though most HR managers are familiar with how these policies work, many clients might be surprised to learn that supplemental insurance helps with more than just the basics.

For example, some critical illness policies go beyond offering benefits for heart attacks, with some paying a cash benefit for covered illnesses such as Lyme disease or bacterial meningitis. Hospital indemnity insurance plans often include benefits that help cover prescription drug costs, and can even help cover the cost of a newborn’s routine doctor’s appointments.

Additionally, some supplemental insurance policies include a wellness benefit that pays cash for covered health exams or procedures, such as annual physical, dental or eye exam, mammogram, prostate screening, and more.

Insureds can use this benefit even when their health insurance covers it, meaning more money in their pocket.

New riders may be added to supplemental plans, providing an additional layer of financial protection from out-ofpocket expenses that can result from an unexpected critical health event such as COVID-19.

Offering supplemental insurance is one way clients can demonstrate to their employees that they care about their health and financial well-being.

In addition, research shows it can be an effective retention tool. Among organizations offering supplemental insurance, 50% reported that it helped with employee recruitment and 60% reported that it helped with employee retention.

2020’S HEALTH AND FINANCIAL CHALLENGES LIKELY TO LINGER HEALTH/BENEFITS

2. Embrace total well-being

Between social distancing orders, economic volatility and the constant news cycle, 2020 took an emotional toll on many Americans. Consequently, companies are looking to add benefits that help address not just employees’ physical health but also their emotional and mental health.

Employee assistance programs, commonly known as EAPs, provide shortterm support from work-life specialists who can help resolve personal problems affecting employees’ performance at work. These specialists are trained to assist with a range of issues, including substance abuse, work-life balance, and child care or relationship difficulties.

Another valuable benefits offering is a health advocacy program that provides a personal health care concierge who can assist with numerous tasks, such as explaining a diagnosis, clarifying health care coverage, addressing claim denials, obtaining second opinions, negotiating bills, and finding doctors and treatment centers.

Wellness programs continue to grow in popularity, helping develop and nurture healthier lifestyles through digital workshops, discounts, meal planning, and stipends for gym memberships and online fitness classes. Other benefits such as pet insurance and financial and legal advisory services can help improve clients’ offerings and help provide their employees with comprehensive financial protection and peace of mind should they face a health issue.

3. Launch virtual care offerings

Over the past year, use of telehealth services has surged because it provides easy access to remote consultation and immediate care.

A recent Amwell survey found that the number of consumers who reported having a virtual visit jumped from 8% in 2019 to 22% in 2020. More than half of all consumers said they expect to use telehealth more often following COVID-19 than they did before the pandemic, while 92% of providers said they expect to continue video visits after it is considered safe to

see patients in person.

As a result, 53% of large employers will offer more virtual care options in 2021, according to a Business Group on Health survey. Despite the shift to virtual care, health care costs continue to rise, so it will be important for brokers and agents to highlight how some supplemental insurance policies offer benefits that cover the cost of a telehealth visit.

Get ahead of the curve

By highlighting benefits trends that address the challenges and hardships carried over from 2020, brokers and agents can help clients support their workforce and establish greater trust and collaboration. Ringing in a new benefits package can also give everyone a reason to celebrate.

Stephanie Shields is senior vice president of broker sales at Aflac. Stephanie may be contacted at stephanie. shields@ innfeedback.com.

The Secret to 75 Years as an Industry Leader

Do What’s Best for the Client and the Money Will Follow.”

— Jeff Mohr, President DBS

Diversified Brokerage Specialists is turning 75!

To celebrate, we launched an entire website filled with free resources, strategies and agent tools to help give your career the strength we’ve enjoyed since day one.

Visit DBS75.com today and start elevating your production tomorrow!

Financial facts and figures powered by AdvisorNews.com

Meme Stocks? Stonks?

Financial Anarchy? H ODL! was $17.25 on Jan. 4, and rocketed to $347.51 by Jan. 27 while it was pumped by Reddit users intent on

Bitcoin bounced between $30,000 and $40,000 in January, but has neither plummeted nor skyrocketed as much as bitcoin bears and bulls predicted.

But bitcoin proponents have been optimistic about the prospect of regulation’s light hand and broadening acceptance.

Mammoth institutional investors are seriously considering Bitcoin as a hedge and a

Fiduciary Fight Breaks Out Over SEC’s RegBI

Fidelity Digital Assets said in a report that fintech is providing investors more access to the market.

“Over the last What Can 12 years, bitcoin You Buy With Bitcoins? awareness has increased, narratives Just a few of the goods have evolved and and services offered... infrastructure has • Coffee at Starbucks matured,” accord• Funeral items in the US ing to the report.

• Virgin Galactic Space travel “Simultaneously, • Order food with Bitcoin monetary and fis• Book a flight for BTC cal policy responsSOURCE: • Buy a Tesla car Coinsutra.com es to crises have become even more unorthodox, creating a perfect storm

Whatever their name, the GameStop stock phenomenon has investors, advisors and especially Wall Streeters wondering what it means.

The price of GameStop stock

punishing short sellers and reaping staggering rewards, turning early investors into millionaires within a few weeks. The Redditors’ campaign went viral (hence the “meme stock” nickname), inspiring investors to pile on.

The particular target of the Reddit group WallStreetBets was apparently Melvin Capital, run by Gabe Plotkin, a former star for hedge-fund titan Steven A. Cohen. The firm had shorted the stock, so the Redditors bought call options with the intent of pumping the price and calling the stock in a short squeeze. Melvin Capital lost 53% of its capital, leading it to scramble for an infusion of billions of dollars from supporters.

The effort moved on to other stocks such as AMC, but those efforts were quelled largely by brokers such as Robinhood and thus limiting trades. As of press time, GameStop was trading at $90. And why do Redditors or some people call stocks “stonks”? Apparently, it just sounds funny.

The Least Wealthy Got Wealthier The net worth of the bottom 50% bounced back up in second quarter of 2020, largely because of spiking real estate prices.

InsuranceNewsNet Magazine » March 2021

store of value, potentially replacing gold.

for bitcoin’s widespread adoption, first by retail investors and now institutional investors who now have the tools to in-

clude it in their portfolios.”

Meanwhile, the price predictions are running wild. The latest was from Guggenheim CIO Scott Minerd, who said if bitcoin tracks gold’s trajectory, it could eventually hit $600,000. But he did caution that the recent spike to crest $40,000 “smacks of short-term speculation.”

Percentage Change

Fiduciary advocates are pushing the Securities and Exchange Commission to rework its Regulation Best Interest rule to correct what they see as lackluster consumer protection.

The Financial Services Institute has come to the rule’s defense, saying that it provides adequate protection and cautioned against disruption that another regulatory overhaul would engender.

Consumer advocates are expecting that a Democratic-leaning SEC board would be sympathetic to their cause, but FSI’s senior vice president for policy, Robin Traxler, said RegBI is “fostering conversations between advisers and their clients on their relationships and mutual responsibilities while at the same time significantly bolstering disclosure and transparency.”

36

Bitcoin Ready For Its Next Rally?

Total Net Worth — Top 1% Total Net Worth — 90th to 99th Wealth Percentiles

Total Net Worth — 50th to 90th Wealth Percentiles Total Net Worth — Bottom 50% SOURCE: Federal Reserve Economic Data

®

Expand Your Reach With The

Petersen Platform of Specialty Markets.

Disability • Medical • Life • Athletes • Entertainers • Pilots • Contingency Coverages (800) 345-8816 | PIU@PIU.ORG

23929 Valencia Boulevard, Second Floor Valencia, California 91355

Help Clients Bridge The Retirement Knowledge Gap A study shows only about one-third of consumers have a formal written retirement plan in place.

• By Susan Rupe

A

mericans tend to overestimate how many years they will be able to keep working, while they tend to underestimate how long they will live.

That was among the findings of the 2020 Retirement Income Literacy Survey taken by The American College.

The study showed that consumers have a wide knowledge gap in retirement income literacy and they struggle with awareness of basic investment management.

The survey showed four in five Americans ages 50-75 fail to understand the basics of planning for a financially secure retirement. Retirees as well as pre-retirees lacked knowledge surrounding income in retirement, basic investment management and planning for long-term care needs.

Most survey respondents said they are holding their financial plans steady amid the COVID-19 pandemic, yet just one in three report having a formal, written retirement plan in place.

“The biggest trend we saw was that people who have a plan do better,” said Timi Jorgensen, assistant professor 38

and director of financial literacy at The American College. “They feel more prepared and they have a stronger relationship with their advisor.”

When it comes to retirement planning, Jorgensen said, a partial plan is better than no plan. “We asked pre-retirees whether they had just a retirement income plan. Such as, ‘Do you know how much money you will have for spending every month in retirement?’ People who reported yes on that did so much better in retirement than those who said no.”

Having a plan benefits the advisor as well as the client, Jorgensen said.

InsuranceNewsNet Magazine » March 2021

Has Ongoing Relationship With Advisor

“The plan is something that anchors both the advisor and the client. It gives you a reason to call your client, to say something like, ‘The pandemic is kind of shifting the way that we thought this year was going to look like. Would you like to come in and talk about your portfolio? Or would you like to set up a Zoom call and talk about your long-term care solution? I noticed we don’t have anything in your plan to address that.’”

As for the client, Jorgensen said, a written plan “gives them a real sense of security.”

“Even if you have an advisor, you may

Financial Information Sources Financial advisor

57%

Online sources

38%

Spouse or partner

29%

News and media

57%

26%

Friend Banker or trust officer Financial coaches or seminars

More likely to work with an advisor: women, older customers and those with at least $300K in assets.

13% 10% 9%

Work associate

3%

Other

4%

None of the above

6%

Men are more likely to use online sources (50% vs.

28%), news and media (30% vs.

23%) and friends (16% vs. 11%).

SOURCE: The American College Third Retirement Income Literacy Survey

HELP CLIENTS BRIDGE THE RETIREMENT KNOWLEDGE GAP

not know what questions to ask. Having a plan gives clients something to go back to with their advisor and use as a basis for a conversation. What we’re hoping is that the plan strengthens that advisor-client relationship.”

Beyond The Plan

The survey showed consumers have a particularly low level of knowledge about preserving assets and sustaining income in retirement.

• More than half underestimate the life expectancy of a 65-year-old man, suggesting that many do not realize how long their assets may have to last.

• Only 32% know that $4,000 is the most they can afford to “safely” withdraw per year from a $100,000 retirement account, suggesting most do not know how to determine a prudent withdrawal rate.

• Only 35% know that a negative single year return in a retirement portfolio has the most significant impact on long-term retirement security if it happens at the year of retirement, suggesting a fundamental lack of knowledge about investment risk in the pre-retirement and retirement period.

Consumers also displayed a significant lack of knowledge when it comes to understanding investments, despite the fact that a majority said they believe they are at least moderately knowledgeable about investment management.

• Just 26% understand that the value of bonds and bond funds fall as interest rates rise.

• Just 28% know that actively managed mutual funds have higher fees than exchange-traded funds.

• Only 18% know that B-rated corporate bonds have higher yields than AAA corporate bonds or Treasury bonds.

Jorgensen said one survey finding she found particularly concerning is that one in three baby boomer respondents said they believe they will never retire.

“They think that they’ll be able to work forever. And while that may be

Most Helpful In Planning For Retirement An estimate of how much monthly income in a retirement you would receive based on your current level of assets

Retirees

Pre-retirees

Monthly income estimate

51%

43%

Retirement savings target

20%

33%

Retirement expenses estimate

29%

24%

47%

An estimate of how much money you will need to save for retirement

27%

An estimate of what your expenses will be in retirement

27%

SOURCE: The American College Third Retirement Income Literacy Survey

true — that they may be able to bring in some active income — I think a lot more people are going to find themselves in a situation where they haven’t considered retirement planning issues because they thought they had more time. And they’ll find that they don’t have any more time to do it.”

The COVID-19 pandemic led to record numbers of job losses, and many older employees who thought they would remain in the workforce beyond retirement age found themselves without a job.

“I think the pandemic has shifted people to focus on retirement income, such as ‘How much do I have to work with every month?’” Jorgensen said. “Another trend we saw is that people are already thinking in terms of cash flow, a monthly budget, monthly income. So when an advisor can convey a plan to them in those terms, it’s much less ambiguous for them. People can understand what that means for their lifestyle instead of having advisors use planning terms like ‘Are you going to be able to live off of 60% of your pre-retirement income?’ And clients are saying, ‘I don’t know.’”

Weathering The Pandemic

Although it is unlikely that many of the survey respondents saw the COVID-19 downturn coming in advance, most said they felt moderately prepared to weather the storm.

• While many feel prepared, the pandemic has shifted the mindset of many investors. Four in 10 (39%) say they now feel less comfortable taking investment risk. Only 8% say they’ve actually adjusted

their allocations to be more conservative, but a realignment of risk tolerance is noteworthy.

• Consumers have largely stayed the course since the pandemic in terms of financial behaviors, but a large portion (42%) report that they have decreased spending. This could be precautionary or simply a function of being quarantined.

Survey respondents also were increasingly worried about market volatility. Concern about market volatility was up among those ages 60-75 (22% said they were highly concerned in 2017 while 31% said they were highly concerned in 2020).

A third of consumers overall (34%) say that volatility in investment returns is highly concerning, behind only concern for the cost of health care in retirement and concern about potential cuts to Social Security.

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 Twitter @ INNsusan.

Like this article or any other?

Take advantage of our award-winning journalism, licensure and reprint options.

Find out more at innreprints.com.

March 2021 » InsuranceNewsNet Magazine

39

INBALANCEWIRES

Lose The Anxiety In 3 Steps

It seems as though everyone is experiencing anxiety in one form or another. But there are ways you can cope. Here are some tips from Susan Berenstein at Boston University.

1] Practice self-care. Plan your day as much as possible, stretch and move your body, make time for the things you like to do, and connect with loved ones.

2] Practice behavioral activation. Identify things in your life that you value. Think of activities you can do that correspond to those areas. Then make time to do them. For example, if you value being a more attentive parent, you can make time to read to your children every night.

3] Look for soothing strategies that involve multiple senses. Sip your favorite beverage while snuggling with your dog. Or do needlework while watching your favorite TV show.

5 HEART ATTACK WARNING SIGNS YOU SHOULDN’T IGNORE

Heart disease is the No. 1 killer in the U.S., but the symptoms of a heart attack aren’t always obvious. So how do you know whether the discomfort you’re feeling is a heart attack or merely a reaction to some spicy food? Here are signs you shouldn’t ignore, courtesy of the Centers for Disease Control and Prevention.

Chest pain is the top warning sign of an impending heart attack. The pain can be sharp, dull or leave you feeling as though an elephant is sitting on your chest. Breaking out in a cold sweat, dizziness or lightheadedness are other early warning signals. If you find yourself breathless after climbing a flight of stairs or taking a short walk, it may be time to see a doctor.

Heavy or labored breathing, especially while at rest, can be a sign of heart failure or heart attack, particularly if you haven’t experienced it previously or if others are noticing it. Finally, an overall feeling of fatigue – sometimes accompanied by nausea - often is a sign of an impending cardiac event.

DID YOU

KNOW

?

40

THE EASIEST WAY TO LOWER COVID-19 RISK

Most of us are wearing masks and keeping our distance from others as we wait our turn for the vaccine. But what can you do now to lower you r COV ID-19 risk?

Registered dietitian Sydney Spiewak said that the right nutrients can mitigate your risk of adverse symptoms from the virus.

Spiewak’s “Big Three” nutrients are vitamin C, vitamin D and zinc. Vitamin C already helps the body fight off the common cold, and Spiewak said the vitamin also can keep COVID-19 symptoms at bay.

Eating oranges, red bell peppers, broccoli, kale and strawberries on a regular basis will give your body the vitamin C it craves.

As for vitamin D, the best way to get enough is to make some time to get out in the sun every day. If that’s not possible, vitamin-D-fortified milks (dairy and soy) as well as salmon, mushrooms and egg yolks are good ways to get enough of that nutrient.

For those who are unable to get sufficient vitamin C and vitamin D from food, Spiewak

QUOTABLE Soy-based foods are some of the best foods you can eat on the planet.

— Jaclyn London, registered dietitian and nutrition director at Good Housekeeping Institute

recommends taking a supplement.

That’s also what she recommends for zinc, which she said isn’t always easy to get from food. Zinc is necessary for developing the cells that are part of the body’s immune system. A multivitamin that contains zinc is the best way to get a consistent amount of that mineral.

WHAT AN APPLE A DAY CAN DO

Apples can help you lose weight, lower your cholesterol, support your immune system and reduce your risk of heart disease. But that’s not all they can do.

Apples support the growth of “good” bacteria that live in your gut, improving your microbiome health.

How do they do that?

Apples contain two compounds that may contribute to their microbiome-supporting benefits: polyphenols and pectin, a type of prebiotic fiber found in apple skin. Prebiotics are compounds that promote the growth of good bacteria. Pectin has been shown to promote the presence of bacteria with anti-inflammatory properties.

To get the greatest benefit from eating apples, make sure you eat them skin and all and opt for organic apples whenever possible.

Green tea consumption is linked to decreased risk of cardiovascular health problems. Source: National Institutes of Health

InsuranceNewsNet Magazine » March 2021

g n i s s i M e r A You

! s e l a S y Eas

D E T N E T A P RY, A N O I g T n i U s L o l O c V s i E t eR tha h t s t g n n e i g c a u d try. e f i n l u r o o Intro c f e M h t A ss o r c a l PROGR l a s sale Many agents are missing easy cases by dismissing the senior term life conversion market. Why? Because sticker shock between universal life and term can keep most would-be policies from seeing the light of day.

NOT ANYMORE! This groundbreaking program to easy sales…

• Makes converting term policies up to 85% cheaper • Reveals the perfect prospects to you • Customizes policies to fit the insureds’ needs

• Generates large first year commissions • Makes closing the sale easier than ever before

• Targets insureds age 60 and older regardless of health status • And more…

Visit GetTermExtender.com for your no-obligation Sales Kit and find out how a client saved 73% using this program while the agent easily earned an $18K commission!

INBALANCE

Americans Are Split On Return To Normal Life A survey by a health care website shows Americans are uncertain about when we will return to post-COVID-19 life and that many are apprehensive about it.

When do you see life returning to normal?

W

42

21% 18%

Fall 2021 11%

Winter 2021 NEVER!

By Susan Rupe

e have officially hit the oneyear mark for COVID-19 restrictions and shutdowns. What started out as a call for “two weeks to flatten the curve” blended into many weeks of stay-athome orders, restrictions on group gatherings and canceled travel. Remote learning, remote work, mask-wearing and social distancing became part of our nation’s fabric.

Ask the question, “When will life return to normal?” and you will get a divided response. A survey by HealthCareInsider, a health insurance website, shows Americans are uncertain about when we will return to post-COVID-19 life and about what that “normal” will look like.

On the question of when life might return to normal, the greatest number of those surveyed predicted summer 2021.

But that number amounted to just 21% of those surveyed, indicating a split on predicting a return to normal. Twenty percent predicted a return to normalcy not occurring until 2022 or later. The remaining respondents were divided in their predictions — between fall 2021 (18%) and winter 2021 (11%).

Slightly more than one in 10 respondents (11%) were optimistic about a return to normal, predicting it would occur as early as spring 2021. But 7% were more pessimistic, saying they never expect life to return to normal.

Jeff Smedsrud, CEO of HealthCareInsider, told InsuranceNewsNet his company commissioned the survey to get consumers’ perspective on issues that matter to them. He said he was “somewhat surprised” that the survey showed some pessimism on a return to normalcy.

11%

Spring 2021 Summer 2021

7%

“It’s showing people are not as optimistic that the ability to return to normal won’t be until later in the year as opposed to late in the first quarter or early in the second quarter,” he said.

That pessimism, he said, is “driven in part by this frustration that people are feeling that the vaccines are not coming out fast enough. And they are losing a little bit of faith in the believability of government and elected officials in terms of what they say is going to happen versus what they actually do.”

So, what does a “return to normal life” look like? HealthCareInsider examined 10 specific activities that were typical of pre-pandemic life, and asked respondents when they would feel comfortable resuming each of those activities. Here is what they learned.

1. No more masks. As for going without a mask in public, the greatest number of Americans, 23%, said they wouldn’t feel comfortable going maskless until 2022 or later.

2. Live entertainment. It has been a while since most Americans attended live concerts, sporting events or theater. And it might be a while longer if many of them have their way. When asked when they would feel comfortable attending live entertainment again, the highest percentage of respondents (19%) said 2022 or later.

3. Travel. Respondents also appeared to be wary of roaming too far from home.

Eighteen percent of respondents (the highest percentage of respondents) said they would wait until 2022 or later before

InsuranceNewsNet Magazine » March 2021

SOURCE: HealthCareInsider

they felt comfortable packing their bags and taking a trip.

4. Family gatherings. Respondents were more likely to attend family gatherings of more than 10 before they would travel, with the highest percentage — 19% — saying they would resume doing so in the summer of 2021.

5. Summer 2021 is the target.

Pluralities of respondents predicted they would feel comfortable resuming a number of “normal” activities in the summer of 2021, including dining and drinking indoors (16%), working out in a gym (10%), shopping indoors (14%) and hugging someone (14%).

But large numbers of respondents said they already are comfortable engaging in many of the activities listed previously.

Two in five said they already feel comfortable shopping indoors, followed by 30% who said hugging someone and 26% who said they’re already comfortable drinking and dining indoors.

What does everyone most look forward to in resuming normal life? Getting rid of masks. More than one in four respondents (26%) said they most look forward to not wearing a mask in public. Next up were family gatherings at 18% of respondents, followed by travel at 17%.

Smedsrud said that he wasn’t surprised that people most want to get rid of mask-wearing. But he also found it “encouraging and inspiring” that such a large percentage of respondents said they miss seeing family and friends.

The pandemic caused many Americans

AMERICANS ARE SPLIT ON RETURN TO NORMAL LIFE INBALANCE

Which are you most looking forward to?

26%

Not wearing a mask in public 18%

Family gatherings

17%

Travel Live entertainment

8%

Hugging someone close

8%

None of these

7%

Drinking/dining indoors

7%

Going on a date

shopping at 17%, using hand sanitizer regularly at 16% and mask-wearing at 15%.

Smedsrud said the trend toward working from home coincides with the rise of the gig economy, which had been expanding even before COVID-19 hit. “It’s the idea that you can work anywhere, not having to go to the office,” he said.

But some COVID-19 norms will likely go by the wayside after the pandemic is over. The survey showed only 8% of respondents believe people will continue to avoid crowds, 4% said outdoor dining is most likely to continue and 3% said they thought moving out of crowded cities into less densely populated areas would be a trend.

3%

Shopping indoors 2% Working out in a gym 2% Going to a beauty salon/spa 2% to put off major life events. The greatest number of respondents, 53%, said they delayed holiday gatherings, followed by 51% who said they put off travel. Ten percent of respondents said they put off college or education, 8% having a wedding, and 6% having children.

SOURCE: HealthCareInsider

Some Things Are Here To Stay

Some pandemic trends are likely to continue after the pandemic, the survey indicated. Working from home seems to be the most popular, with 26% of respondents saying they expected remote work to be here to stay. That was followed by online

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 Twitter @INNsusan.

Instant Decision Means NO TIME ON HOLD More Time Placing Business With Americo, your dreams of placing more Med Supp business can become a reality with: • Live, instant decision eApplications • Electronic signatures over virtually any device • Competitive Household Discounts • Competitive premiums • Amazing cash incentives

Visit GetAmerico.com today for your complete, 100% free starter kit.

Americo is the brand name for insurance products issued by the subsidiary insurance companies Americo Financial Life and Annuity Insurance Company (AFL) and Great Southern Life Insurance Company (GSL). Policies are underwritten by AFL and/or GSL, Kansas City, MO, and may vary in accordance with state laws.

Some products and benefits may not be available in all states.

For agent use only. Not for public use.

21-003-1 (01/21)

March 2021 » InsuranceNewsNet Magazine

43

BUSINESS

How To Solve The Remote Hiring Challenge Pandemic-related hiring obstacles are not new. Here’s how COVID-19 may give companies reason to improve their hiring.

By Sharon Emek

F

or a year now, many employers have been operating under extremely different conditions. Remote operations are the new business model, at least temporarily, and companies have found their footing in unfamiliar territory. Nowhere is that more true than in the insurance and financial services realm, where traditional business models were the norm. Until March 2020, that is.

Once shutdowns were inevitable and agencies were faced with closing their doors or adopting a new approach, many found their footing quickly. Agencies sent employees home, and business was conducted remotely — in some cases, for the first time ever. Some agencies thrived.

That is, until they needed to hire.

For many who already were tasked with relearning what business as usual looks like from a remote setting, hiring without the face-to-face interaction feels like a bridge too far. In the best of times, hiring processes are less than ideal. The process is slow: 52% of recruiters surveyed say their average time to hire for all open positions is more than three weeks, according to Yello’s 2020 Recruitment Operations Benchmark Report.

The process also doesn’t work well.

44

Bamboo HR surveyed 1,000 employed U.S. workers to find out their opinions about onboarding. The survey revealed 31% of employees have left a job within the first six months of being hired. More than two-thirds of that group (68%) who left their jobs said they quit within the first three months.

Moreover, the process is costly.

Advertising, interviewing, screening and hiring, as well as onboarding and training, add up. So do lost time, lost productivity and errors. Those costs, according to Deloitte, can range from tens of thousands of dollars to nearly twice the annual salary of one employee.

Fortunately, in this remote environment, there is good news for agency managers. An Owl Labs report shows that remote workers stay on the job 13% longer than on-site workers. That same report shows remote workers are happier in their jobs 29% more often than their on-site counterparts.

In an environment that is custom made for better hiring outcomes, how can we optimize those outcomes even further?

Finding Talent

Better hiring starts with recognizing the flaws in your current hiring plan. Agency managers should ask themselves: Are we looking for candidates in the right places? How and where your agency finds its candidates is as important as who you hire. Depending on the position you’re hiring for, not all job sites are right

InsuranceNewsNet Magazine » March 2021

for your search. Does the site you use for job posting return specialized search results that are specific to the position you’re hiring for? Are there sites that are more suitable to your industry from which you might find a more specialized talent pool?

Are our job postings optimized? Now that your operations are being conducted remotely, your search does not have to be limited by geography. Your best remote employee could be living in another state.

Have you removed geographic boundaries from your job posting in order to attract the most qualified candidates?

Are there biases in our hiring practices? Without realizing it, organizations do have hiring biases. One way to reduce hiring bias is to develop a blind selection process for resumes. Remove names and any information that would identify a candidate’s gender, race or age. From there, your agency can select those resumes that show the skills you’re looking for.

Qualifying Talent

Before the interview, your agency should qualify the talent on those vetted resumes.

I recommend an applicant tracking system.

An ATS can save hours in recruiting and candidate vetting. You can communicate with applicants, rank them to match with skills requirements, and rank them based on most important and least important job skills.

Also important in your vetting is determining how well your candidate fits the job and the company culture. How would you

HOW TO SOLVE THE REMOTE HIRING CHALLENGE BUSINESS define your culture? What are the beliefs and behaviors that drive interactions? Are your employees collaborative most of the time, or do you need people who can work independently with minimal guidance?

Assessing Fit

Next, qualify candidates based on soft skills that mesh with your culture. We use cognitive, personality and emotional intelligence assessments to reveal a candidate’s soft skills and mental abilities. How does the candidate you’re considering compare to the culture you’ve defined? How have they developed their careers and the careers of those around them in their previous positions? Does their work style mesh with your team culture?

Selecting Blindly

One of the most overlooked steps to qualifying the best candidates is the blind selection process. We all have inherent, often unconscious biases. We make assumptions about a person based on their age, gender, appearance, college affiliations and more.

To overcome those biases, remove the candidate’s name from the resume. Also remove the college names and year of graduation. Review and rank these candidate packages. Use reference check software to confirm employment history.

Why does this matter? When you use data to drive your interview decision-making, you increase the number of candidates whose experience and skills match your needs.

Interviewing Candidates

Now that you’ve found your top candidates, it’s time for the interview. A first interview conducted in a conference call without video will ensure a blind interview.

That first interview should include: » A structured interview with behavior-based questions. » Questions that identify cultural fit. » A realistic preview of the job.

Now that you have your short list of candidates, it’s time to meet them in person (or on a video call). This is where you’ll be able to dig deeper into the candidate’s background. Prior to the interview, create structured interview questions.

The questions should be set up to draw responses that can reveal the candidate’s ability to perform the job in question.

For all interviews, your hiring managers

What Employees Think Of Remote Work 1. Remote workers in the U.S. work remotely full time 66% more frequently than the global average.

2. Remote workers earn salaries higher than $100,000/year 2.2 times more frequently than on-site workers.

3. 34% of U.S. workers would take a pay cut of up to 5% in order to work remotely.

4. Remote workers say they’re happy in their jobs 29% more than on-site workers.

5. 68% of remote workers say they are not concerned working remotely will impact their career progression, while 23% say they fear it would.

SOURCE: Owl Labs

should be trained in how to conduct structured interviews. They should also understand the importance of being consistent with the process.

Onboarding Employees

Congratulations! You found your best candidate. However, the work is not over. In order for your candidate to succeed, they need to be brought on board in a streamlined, efficient way.

Thanks to the pandemic, companies are embracing video and online capabilities.

In fact, post-pandemic, companies should consider creating videos and training materials that are easily accessible and available from any location.

Your training materials should include: » A virtual tour of the company. » A welcome message from the CEO and executive team. » An onboarding guide video. » Video of employees performing the specified job. » The current team welcoming the new employee. » How-to videos that address the most common questions related to the job.

Along with training materials, your new employee should be assigned a mentor and an onboarding buddy. Shadowing a mentor, done remotely, can help engage the employee in the job and create a more collaborative, open relationship at the outset.

Working with an onboarding buddy can get the new employee off to a good start as well. The onboarding buddy, usually someone in human resources, will check in with the employee regularly to answer questions, address concerns and

make sure things are going smoothly. Any concerns will be addressed before the next check-in, either by the buddy or by the mentor or another team member.

Another key factor to successful onboarding is establishing the new employee as part of the culture. Schedule a team lunch once a week, and hold virtual happy hours and other fun get-togethers. These events not only help your new employee bond with your team but also create a strong employee brand, which helps set expectations and invite collaboration within your agency.

Hiring Success From Anywhere

Employee success is the goal. Whether your agency remains remote or resumes in-house operations, the better your hiring process — and your onboarding of newly hired employees — the better you will be at hiring good employees.

A flexible hiring process can do that. So can understanding your role in making sure that new employees find their footing and feel part of the team, no matter where that team may be located. Today’s challenges can become your advantages, especially when hiring. By reimagining your hiring process, your agency can attract and retain right-fit talent. It can also serve your agency long into the future and help you through whatever disruptions may come.

Sharon Emek, Ph.D., CIC, is founder and CEO of Work At Home Vintage Experts. Sharon may be contacted at sharon. emek@innfeedback.com.

March 2021 » InsuranceNewsNet Magazine

45

The Million Dollar Round Table is the premier association of the world’s most successful life insurance and financial services professionals.

INSIGHTS

Grow Your Practice With Online Reviews

Third-party reviews can validate your credibility, showcase your values and reinforce your reputation.

needs of the best policies for them. This establishes trust in the relationship, which increases the lifetime value of clients who are likely to return to my practice.

By Brian Greenberg

Validate Your Ethics With Reviews

A

dvisors who operate their practices honestly and ethically can grow their business and enjoy success. On the other hand, unethically operated practices that prioritize sales and commitments do not experience longevity, especially when clients can easily share information that influences prospects. Ethical advisors keep kindness and client relationships top of mind, acting in their clients’ best interests to build an ethical foundation for their practice.

To highlight ethical practices, develop a loyal client base and experience business growth, advisors can leverage online reviews to promote their reputation.

Understand Your Code Of Ethics

Many advisors operate under a pre-established code of ethics through an association, as well as a personal code of ethics. Ethical advisors are guided by a moral compass and act in a fiduciary way to build trust with clients. To uphold this concept, ethical actions do not always align with profit in every individual situation, but the overall benefit will promote long-term business growth.

My ethical code inspires me to serve customers first and put their interests before my own. This sometimes involves a monetary sacrifice to match clients’ individual 46

One effective way to highlight your ethical standards is to curate and leverage client reviews, which can result in building trust and gaining new clients. Thirdparty reviews can validate your credibility, showcase your values, and reinforce your reputation as an ethical advisor.

The easiest way to build a collection of reviews is simply to request them from clients. These reviews bring an additional level of transparency to your practice, enabling prospects who seek an ethical advisor and giving clients the opportunity to hold you accountable.

Strategically Request Reviews

Your intentions and motives behind requesting reviews will be revealed in the methods you use. The most effective way to ask for reviews is to speak directly to your client. This shows you genuinely value your clients’ individual experiences and want to receive your clients’ feedback.

Additionally, you should make the process as easy as possible for your clients by sending a direct link to the review page; include instructions even if you already explained the process in person. Clients are more likely to leave a review with their thoughts after receiving a direct request that requires minimal effort. Since prospects will likely conduct an online search before they reach out, your online search

InsuranceNewsNet Magazine » March 2021

visibility will help them make decisions based on the information available. This extends your reach and serves as an ethical method to grow your business.

Vet Review Platforms

When you encourage clients to leave reviews, consider which platforms are best to meet your goals and effectively grow your practice. Local practices can look to Yelp, the Better Business Bureau and Google Business for appropriate sources that lend third-party credibility to online searches. Larger businesses and agencies can also use the Better Business Bureau and Google Business to collect their reviews and demonstrate credibility. Reviews posted on these sites cannot be removed by the business. This motivates accountability and provides a platform to display ethical practices.

Some advisors could be hesitant to open their business up to potential negative reviews, but this vulnerability is what actually lends credibility to the reviews and platforms. Clients and prospects trust ethical third-party websites because advisors and business owners cannot remove or alter a negative comment. Instead, advisors should view any negativity as an opportunity to put their ethics into action, and understand and correct what went wrong.

Hold Yourself Accountable

When advisors can demonstrate their ethical values through clients’ reviews, they can further establish a loyal client base.

Advisors should continuously evaluate ways their practices can emulate values in their actions because ethical standards are not a one-time action or conversation. Ethics are an essential aspect of your everyday operations that will create moral and monetary value for your practice and contribute to the reputation of the financial services industry. By leveraging your online reviews to showcase and accelerate the benefits of your ethics, you will ultimately grow your business.

Brian Greenberg is founder of True Blue Life Insurance. He has been a member of MDRT since 2013 and is the author of The Salesman Who Doesn’t Sell. Brian may be contacted at brian.greenberg@innfeedback.com.

INSIGHTS

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

Three Pillars Of Trust Support This Advisor’s Success How an advisor keeps her focus on providing a personal touch to clients while keeping herself grounded.

By Suzanne Carawan

V

anessa Bucklin, an advisor based in Conrad, Mont., built her flourishing practice using a three-pronged approach: trust in herself, trust in the process of building relationships, and trust in paying it forward for future advisors.

Trust In Herself

After a 15-year career in agricultural lending, Bucklin, with three young children and a husband who runs their family farm, decided to take the leap into insurance at age 35. Given that she lives in a town of 2,500 where seven agencies already existed, the competition was fierce. Told countless times that she would never make it and that there was no room for another agency, Bucklin did what she always does — got up each morning, ran for an hour to train for her next marathon, and then journaled her way back to self-confidence and calm. She obtained her property/casualty license and opened an independent agency.

She quickly gained clients through her willingness to drive long distances and sit at kitchen tables and talk.

Bucklin soon sat for her life and health licenses and joined New York Life due to their training program and support for women who are changing careers. She hired new agents to handle the P/C side of her business while she focused on planning. Despite her expanding business and focus, Bucklin kept to her formula for success: focused effort, personal touch and sheer work ethic.

Trust In The Process

Bucklin kept with the same sales process she had learned early on — primarily focused on the personal touch with a

focus on beating the competition in work ethic. “You get out what you put in,” she said. “If the training said make 10 calls, I made 12. If the training said meet for coffee, instead I brought coffee to the farmers in the field.” Bucklin was well known in her area as the mother of three who ran each morning, dropped her kids off at school, and then would drive seven hours to see a client for coffee. “Many of my clients don’t have time to sit at the kitchen table,” she said. “I meet them where they are. If they need to run the combine that day, I would ride with them and we would go through their financial plan.”

With many advisors moving to virtual meetings, Bucklin noted that although she does more Zoom meetings to cut down on the driving, Zoom is no replacement for in-person interaction. “One of the things I routinely do is bring the farmers harvest lunches,” she said. “We sit around and snack while talking insurance. The trust I’ve built because I fit into their time and not the other way around is immense.” These personal touches are baked into the scorecard that Bucklin still follows each week.

“I practice Three Minute Miracles,” she explained. “Every day, my staff and I take three minutes to just reach out to someone and let them know that we are thinking about them. We do not do this for a new sale, for renewals, or to check in on updating a policy. We do this purely for goodwill.” Bucklin and her team credit their Three Minute Miracles program with building the deep trust that she has established with clients who bring referrals.

To get the word out about her agency using her signature personal touch, Bucklin takes on challenges many other advisors won’t touch, such as selling group policies in underserved populations. “You can’t sell whole life insurance in a 30-second Super Bowl commercial,” she explained. “Instead, I take the time to talk to large groups of people, which may

or may not result in any new business.

What it does do is open a connection to a real advisor who cares enough to listen. Inevitably, new business comes from someone in that group who remembered me talking, has just encountered a significant life event and needs help.”

Trust In The Industry

The last ingredient in Bucklin’s success formula is her belief in paying it forward in relationships. Every year, she hires an intern to get more people exposed to the insurance industry. “I pull kids up in high school and get them involved in the practice,” she said. “I don’t know if they will choose this as a career long term, but they will always have that seed planted about this as a career option.”

Bucklin also believes in giving back to the industry that has given her so much.

She actively speaks to Million Dollar Round Table and NAIFA about the importance of bringing more people into the business and works with colleges and universities to get more insurance programs into the curriculum. “Insurance has had a bad name for too long. We need to be incredibly proud of what we do, and all of us need to get out there and actively and aggressively make a new name for ourselves while inviting more people in.”

Suzanne Carawan is NAIFA’s vice president, marketing and communications. Suzanne may be contacted at suzanne.carawan@innfeedback.com.

March 2021 » InsuranceNewsNet Magazine

47

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

INSIGHTS

COVID-19 Forced Advisors To Adapt In The Midst Of Disruption As advisors changed the way they do business, they have gained a better idea of what has and hasn’t worked, setting themselves up for a successful 2021.

By Peter DeWitt

T

he COVID-19 pandemic has caused dramatic changes to the practices of advisors and agents. As with all change, however, there is an opportunity to adopt and implement new processes to help drive business. LIMRA research shows the many ways advisors and agents have adapted throughout the pandemic.

On average, our research shows the pandemic caused a high level of disruption of 5.8 (out of 10) on the practices of advisors and agents. With a rebound in equity markets, broker-dealers’ and registered investment advisors’ sales, on average, fell below the overall average, and insurance agents found the pandemic to be more disruptive. Based on a subgroup of advisors who responded in March and October 2020, the average level of disruption has decreased by 14%, primarily driven by a 30% decrease for RIAs. One in four advisors and agents reported their sales through the third quarter of 2020 increased compared with the prior year. However, half of agents and advisors said their sales dropped. Not surprisingly, those advisors and agents who reported being the least disrupted have increased sales since the start of the pandemic (compared with the prior year), and their product mix remained fairly unchanged.

The opposite is true for advisors and agents who have been most disrupted; they have experienced a decrease in yearover-year sales and have seen a substantial change in product mix. Big changes to a product mix may not be fruitful.

Advisors and agents would be better off focusing on products they know and un48

derstand and that align with their clients’ long-term goals.

One bright spot could be that clients and prospects gained a heightened awareness of the value of life insurance, thanks to the pandemic. Roughly 40% of advisors and agents said they have seen an uptick in interest about life insurance from prospects and clients. Advisors can use the pandemic as a way to reevaluate or add an insurance element to a client’s current financial plan. Advisors and agents said that for carriers to earn this business, they must remain competitive with their pricing, customer service and support.

Although our research shows most advisors and agents have met with virtual wholesalers in some capacity since the beginning of the pandemic, the results of doing so have been mixed. About half of those advisors conducting these meetings found them more effective and 35% said they were less effective. Based on advisors’ and agents’ experiences meeting with wholesalers virtually, there is significant interest in continuing this trend through at least the first half of 2021.

A large number of advisors said they hope to interact with wholesalers in person during the first half of 2021, but it is worth noting that a similarly sized group wants to continue to meet in a predominantly virtual environment. Another way for wholesalers to connect with advisors this year is through virtual seminars and

InsuranceNewsNet Magazine » March 2021

marketing materials.

For advisors and agents looking to grow their businesses, there has been a correlation between the success of engagement methods with prospecting since the beginning of the pandemic and the likelihood of doing so through the middle of 2021. When bringing on new clients during the pandemic, in-person has been the most effective engagement method, closely followed by phone calls and virtual meetings.

As advisors and agents continue through 2021, we expect to see phone calls becoming the most commonly used method for insurance agents to find new clients. We expect broker-dealers to most likely meet in person and RIAs to meet virtually with prospects. Social media, seminars and marketing materials have not proven to be effective for most advisors and agents.

As advisors and agents have changed and adapted throughout the pandemic, they have gained a better idea of what has and hasn’t worked well for others so they can be better prepared to set themselves up for a successful 2021.

Peter DeWitt is an analyst, distribution research, with LIMRA. He may be contacted at peter.dewitt@innfeedback.com.

Stay on the cutting edge of our industry with the news and insights that matter most to you ———————————————————————————————————————————————————————————

The most successful agents, brokers and advisors are often the most informed.

Get the news, tips and sales strategies you need to keep your business thriving during COVID-19 and beyond. Our award-winning journalists cover topics from legislation to sales techniques — all with the goal of helping you sell more, faster and easier.

Customize your news and stay informed online: » » »

Life, health, retirement, AUM, property & casualty news and more Full access anytime/anywhere on the web, tablet or your smartphone Industry-first access to breaking news, expert tips, and more

Sign up for your custom online news today at

InsuranceNewsNet.com/manage-preferences

Is your RIA missing the mark?

We provide flexible solutions and customized investment choices to meet the demands of your growing business.

Want to learn more? Visit joinbrookstone.com