Ask the Experts!
Question: What are the most exciting product trends in the life insurance (or annuity) marketplace?
Answer: Probably the most exciting product trend in the life insurance marketplace is the explosion of indexed universal life products. Several carriers have introduced new IULs in 2011, thus creating an even more competitive landscape in this market segment. Also, there is talk of a few carriers who will enter this space in 2011 who’ve never had IULs in their portfolio. Finally, the advent of guaranteed income riders on life insurance policies will definitely make for a unique opportunity in the income planning arena.
In the estate planning and wealth transfer marketplace, the concept of no-lapse guarantees is still prevalent, however we are seeing more and more advisors and clients intrigued by having flexibility in their policies – that is, having access to cash value in the form of a withdrawal or return of premium. This is especially true for those in the 55 – 65 year old market. Because of these client concerns, we are also seeing resurgence in whole life because of the guarantees on both the death benefit and cash value.
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