Life Insurance Update

Transcription

1 Life Insurance Update Presenter: Liz Michel, JD Chief Marketing Officer AgencyONE, LLC A Solutions Driven Company February 25, 2014 The Educational Series Insurance Trust Monitor, Inc. 809 W. 1st Street, Suite B Cedar Falls IA This course qualifies for Continuing Education for both CFP and CTFA (under Financial Planning) Designations. The Institute of Certified Bankers (ICB), a subsidiary of the American Bankers Association, is dedicated to promoting the highest standards of performance and ethics within the financial services industry. This statement should not be viewed as an endorsement of this program or its provider.

2 Insurance Trust Monitor Life Insurance Update February 2015 Liz Michel, JD / liz@agencyone.net / Agenda What s Trending New Products New Features Instant Issue One Last Thing Comparing Apples to Oranges Questions 2 TRENDS 3 1

3 What s Trending Transamerica s surprising February 4 th announcement Transamerica suspended sales of all TransACE products effective immediately. Why? Current interest rate environment and lack of profitability of no lapse guarantee contracts (NLG) due to rate lock guarantee. Trans discovered that all new TransACE business was being added at a loss. Trans is tinkering with NLG product line to see if they can reenter market with a revamped product. Impact of continued low interest rate environment. Fewer stand alone Long Term Care (LTC) products, more blended products. New express underwriting programs and underwriting niches. Repricing and No Lapse Guarantee options 4 Seven Trends That Will Change How Life Insurance Is Sold In Repositioning distribution strategies to expand market opportunities 2. Embracing digital as the new storefront 3. Developing simplified products to expand customer markets 4. Transforming the back-office 5. Enhancing data security 6. Adjusting to new competition from alternative capital sources 7. Proactively addressing the still uncertain U.S. regulatory environment 5 New School Estate Planning Old School is DEAD 6 2

4 Innovative New Products 7 The Trifecta Hedging Longevity AG s innovative new product Die Too Soon Live Too Long Get Sick Along The Way 8 The Trifecta, continued "Die Too Soon Provides long-term protection with maximum flexibility Guaranteed Death Benefits Guaranteed Cash Value Guaranteed Enhanced Surrender Value rider (no charge) 50% Return of Premium - year

5 The Trifecta, continued "Live Too Long" Provides an income stream Must live to age 85 Up to 10% of death benefit per year for 10 years Tax-free up to basis; current income thereafter 10 The Trifecta, continued Get Sick Along The Way Chronic illness rider Funds can be used to pay for: adult daycare, assisted living, family care, nursing home care or virtually any expense, even those unrelated to illness To qualify must be unable to perform 2 out of 6 ADLs or severe cognitive impairment Indemnity - no receipts required 11 AXA Indexed Universal Life product with an increasing death benefit linked to LTC as an inflation hedge 12 4

6 John Hancock Always competitive 13 Mutual of Omaha Get your premiums back 14 Revolutionary LTC Insurance Option Nationwide has introduced the only linked benefit, indemnity-based LTC solution that keeps clients in control of their premium, benefits and care choices. The power of this new product: 55 year old female, Non-Tobacco, married $100,000 single premium If the LTC benefit is accessed $520,439 LTC benefit / $7,228 monthly benefit for up to six years $34,696 death benefit for her heirs If the LTC benefit is NOT accessed $173,480 death benefit for her heirs OR, if she cancels the policy $100,000 plus any growth is returned to her 15 5

7 Protective Competitive guaranteed UL products 16 Prudential 17 Product Comparison WL v. IUL Product MATTERS! Case design MATTERS! Male age 50, Preferred Non-Tobacco Income solve ages MetLife Promise Whole Life Select pay, $49,570 per year John Hancock Accumulation Indexed UL 10-pay, $49,570 per year 6% assumed interest rate 18 6

8 WL vs. IUL, continued John Hancock Accumulation IUL MetLife Promise WL Select 10 - INCOME MetLife Promise WL Select 10 - Dividends 10-Pay Premium Initial Death Benefit Non- Guaranteed Death Benefit Age 70 Income Ages Non- Guaranteed Death Benefit Age 95 Guaranteed CSV at Age 70 $49,570 $1,000,000 $1,548,115 $76,679 $380,288 $221,108 $49,570 $1,000,000 $1,572,521 $79,615 $644,774 $611,000 $49,570 $1,000,000 $1,572,521 See Dividend Table Appx $30,000 Per Year to Age 100 $1,575,269 $611, Instant Issue 20 The Wave of the Future is NOW! Buying Insurance on the Web 21 7

9 The Need and The Opportunity Don t have Need It s not price It s where to buy it 22 Introducing Instant Issue! 23 Instant Issue Advantage 24 8

10 The Customer Experience 25 All That Is Required 26 What It Looks Like 27 9

11 28 29 Real Banks, Real Results Large Regional Bank 400 term policies PER MONTH. Average face amount is $250,000 Average premium is $550 Annual revenue = $1.5MM 30 10

12 Comparing Apples and Oranges 31 Disclaimer For Agent/Broker use only - not intended for use in solicitation of sales to the public. Products and programs offered through AgencyONE are not approved for use in all states. Prepared for general information and education. No attempt is made to set forth solutions for individual circumstances. This material does not constitute tax, legal or accounting advice and neither AgencyONE nor any of its employees are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional tax or legal advisors. 32 Liz Michel, JD liz@agencyone.net / AgencyONE Rock Spring Rockville Drive Pike Suite 450 Suite 500 Bethesda, MD Rockville, MD