Ask the Experts!

Here’s the question of the day, answered by guest blogger Paul McGillivray.  Paul is Senior Vice President of Advanced Marketing at Creative Marketing.

Question: What are the most exciting product trends in the life insurance and annuity marketplace?

Answer: When interest rates are at lifetime low levels as they are today, annuities and life insurance sales have to be benefited-oriented solutions to identified client needs.  There are very few interest rate-driven sales possible today.

Lifetime income riders on annuities deliver an income-longevity guarantee, and some of these same annuities or riders add higher potential death benefits too.  A few fixed annuities are offering additional LTC benefits, though these are very hard to market when rates are so as now.  The additional LTC benefits available on some single-premium life insurance contracts provide real value and real protection, and the LTC accelerated death benefits on some life contracts are also very marketable.  You have benefits when you live AND benefits when you die AND money if you quit.

How can an agent market these trends to help a 60- to 75-year-old reasonably healthy client with a life insurance need?  Use a bonus indexed annuity and immediately turn on the guaranteed lifetime income rider to pay for an indexed UL contract with a strong no-lapse guarantee.

For the first twenty years, and maybe much longer, the total benefits at death will be greater than either contract left alone, and the total cash values will be higher.  That’s better for the client, and the agent can earn two commissions—one for the annuity, and one for the life contract.  It only takes a little health, and a little love, and one CD or annuity.

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