Advisors turn their attention to helping younger women form good financial habits and protect what’s important to them.
PAGE 8
Annuities: Unlocking the tech advantage with SILAC’s Dan Acker PAGE 4
How health care costs change the face of women’s planning PAGE 26
Offshore reinsurance booms as regulators play catch-up PAGE 34
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4 Annuities: Unlocking the tech advantage
Dan Acker, president of SILAC, describes the company’s growth in the annuity market and why technology is the key.
12 Leading from the front
By Susan Rupe
Sam Philbrook took the lessons in leadership and service he learned in the Army to serve his clients and community.
By Susan Rupe
Advisors are finding younger women to be a demographic that needs help planning and protecting.
18 Overcoming ‘I need to think about it’
By Drew Gurley
The most common objections to buying life insurance and how to turn them around.
30 Weathering the storm: Investing with confidence in volatile markets
By Nicholas Breit
Adhering to an investment plan is crucial during periods of market stress.
32 The six golden rules of client scheduling By Gina Pellegrini
Ways to ensure a steady flow of opportunities while nurturing your client base.
22 Defined benefit annuity: The next great innovation
By David Macchia
Transformative technology creates the first personal defined benefit pension funded by a fixed indexed annuity.
26 How health care costs change the face of women’s planning
By Holly Westervelt
Rising health care costs and unpaid caregiving responsibilities impact women’s retirement security.
34 Offshore reinsurance booms as regulators play catch-up
By John Hilton
Regulators are growing concerned about the increasing amounts of life and annuity blocks reinsured outside the U.S.
The landscape of wealth management is undergoing an enormous transformation, driven by the “great wealth transfer.” This shift, involving the transfer of trillions of dollars from baby boomers to younger generations, is placing women at the forefront of financial decision-making and wealth administration. For agents and advisors, understanding these evolving roles is crucial to effectively supporting their female clients.
About 70% to 80% of widows change their financial advisors within a year of their husband’s death, according to a number of studies. This often happens because many women believe their previous advisors primarily communicated with their husbands and didn’t build a strong relationship with them. This signals a significant opportunity for agents and advisors to build stronger relationships with both partners. Reaching out to ensure that women are involved, informed and educated about family finances before they become the primary decision-maker is crucial to ensure continuity and support during such transitions.
The great wealth transfer is projected to involve the transfer of approximately $124 trillion over the next few decades. By 2030, it is estimated that two-thirds of private wealth in the U.S. will be held by women. This shift is not just about the transfer of assets; it represents a fundamental change in who controls wealth and how it is managed.
The great wealth transfer comes with unique challenges and opportunities that financial advisors must navigate to provide effective guidance.
1. Increased financial responsibility: Women are now responsible for managing significant assets, often for the first time.
This includes making investment deci sions, planning for retirement and ensur ing long-term financial security. Advisors should provide comprehensive financial education to empower women with the knowledge and confidence needed to man age their wealth effectively.
2. Longer life expectancy and lon gevity risk: Women, on average, live longer than men, which means women’s retirement savings must last longer. This increases the risk of outliving their savings, making it essential to plan for long-term income sustainability. Advisors should consider strategies such as delaying Social Security benefits to maximize payouts and exploring annuities and other lifetime income options.
3. Navigating emotional and finan cial complexities: Wealth transfers often occur during times of great loss, such as the death of a spouse. Managing financial transitions while navigating grief can be daunting. Advisors should provide support and guidance to help women manage immediate complexities while planning long-term strategies.
for longer life expectancy, career breaks and caregiving responsibilities. Use holistic approaches that consider both emotional and financial aspects.
4. Career breaks and caregiving responsibilities: Many women take time off to care for children or aging parents, leading to gaps in earnings and reduced Social Security benefits. Advisors should encourage continued contributions to individual retirement accounts or spousal IRAs during career breaks and consider longterm care insurance to cover future caregiving expenses.
To effectively support female clients in their new roles as wealth administrators and decision-makers, financial advisors and insurance agents should adopt a proactive and empathetic approach. Here are some strategies.
1. Educate and empower: Provide financial literacy education tailored to women’s unique needs. Empower them to take control of their financial futures by
3. Maximize Social Security benefits: Help clients understand their Social Security options and optimize their benefits. Explore spousal or survivor benefits for those who have taken career breaks.
4. Diversify income sources: Encourage diversification of retirement income sources beyond Social Security and pensions: annuities, insurance, investments and other income-generating assets.
5. Support during transitions: Provide compassionate support during major life transitions, such as widowhood. Offer guidance to navigate emotional and financial complexities in order to ensure longterm financial stability.
By understanding the unique challenges women face and adopting strategies that empower and educate, advisors can help their female clients achieve financial independence and security in retirement.
John Forcucci Editor-in-chief
The insurance industry, already girding for the impact President Donald Trump’s tariffs will bring to its business, is facing even broader repercussions from the administration’s policies, well beyond what tariffs could bear.
Auto and home insurance are likely to be affected by the shifting policies, raising prices for consumers and eating into insurers’ profits.
Because homes and cars are “bundles of lumber, steel, aluminum, and semiconductors,” the president’s plans to tax all those materials at double-digit rates will spur inflation that will course through repair or replace costs for autos, said Rep. Jay Auchincloss, D-Mass.
Home insurance may be even more sensitive to the president’s agenda, said Auchincloss, who was an executive at Liberty Mutual, where he led product development before running for Congress. Because nearly 15% of total U.S. imports are in construction-related goods (Canada alone accounts for 50% of wood imports), the material costs of home construction and repairs will surge, along with labor costs.
Pandemic cash has run out and inflation has taken its toll on household finances. The result is that more Americans are finding it difficult to come up with money to cover an unexpected expense, the New York Federal Reserve reported.
The bank’s Survey of Consumer Expectations found that the average likelihood of Americans being able to come up with $2,000 within a month if an unexpected need arose hit 62.7%. That’s the lowest level since the survey began tracking the data point in October 2015.
The inability of households to keep up financially, combined with uncertainty
about the future, has spilled over into the retail arena as well. Walmart CEO Doug McMillon recently told an audience at an Economic Club of Chicago event that he has seen some customers who are under budget pressures exhibit stress behaviors.
“You can see that the money runs out before the month is gone. You can see that people are buying smaller pack sizes at the end of the month,” he said.
Americans reported losing $5.7 billion to investment scams in 2024, according to the Federal Trade Commission, with the typical victim losing more than $9,000 on average.
We need policy clarity. Until then, markets will have a hard time finding their footing.”
— Brian Levitt, Invesco global market strategist
The FTC warned of what it called “pig-butchering scams,” a common investment fraud whereby scammers develop a relationship with victims, entice them to invest money and then swindle them.
Three common signs of fraud that can help people avoid being duped are: an investment pitch that has a sense of urgency attached to it, an offer that asks you to pay in cryptocurrency or gift cards, and anyone who asks you not to tell others about the offer.
While more than 4 in 10 Americans surveyed named inflation as a major economic concern, the U.S. political environment topped inflation as their top financial worry
These were the findings according to a new report by Hearts & Wallets, “Advice, Technology & Actions: Engagement with Human and Digital Influences and the Connection to Outcomes.” Top financial worries, in order, were:
• U.S. political environment: 47%
• Inflation: 44%
• Future of Social Security: 39%
• U.S. economy: 39%
• Future of health care in the U.S.: 35%
• U.S. deficit/future tax increases: 34%
• Conflict around the world: 33%
Building on SILAC’s annuity success, President and Chief Marketing Officer Dan Acker sees technology as the key to unlocking future growth.
When Dan Acker met Conseco founder and current SILAC CEO Steve Hilbert in 2016, it led to a relationship that eventually brought Acker to SILAC and an opportunity to help build an annuity juggernaut.
Today, riding high on the crest of annuity growth, Acker sees technology as key to building on the company’s current success.
“The average age for someone who’s buying one of our annuity products is
69 years old,” explains Acker. “And that’s probably consistent across the industry. But in my mind, there’s no reason more people in their 40s shouldn’t buy our products. They may not have $100,000 or more to put into an annuity, but there’s no reason they can’t start smaller and have a safer component within their portfolio.”
Technology is also key to working with independent agents, he says. “At SILAC, we’re trying to put ourselves in the shoes of a producer at that point of sale. How can we make it easier?”
In this interview with InsuranceNewsNet
Publisher Paul Feldman, Acker describes his journey into the top echelons of the industry and how he and SILAC are working to “change the industry for the better in our own way.”
Paul Feldman: How did you get into the industry?
Dan Acker: I was going to school at the University of Utah to finish my bachelor’s degree, and in 1998 I needed a job
to pay for school. There was a company that was advertising at the University of Utah named Educators Mutual. I joined the company in August 1998 as a billing clerk. I worked there up until 2005. And when I left in 2005, I was assistant vice president of finance — I had been given an opportunity to be controller that I probably didn’t deserve. But I had a great boss who gave me that opportunity, and that’s what really set the stage for my future career in the insurance industry. So it was not by design that I got into the industry, it was out of necessity. The industry has been tremendous to me professionally and personally. And I think it’s undervalued, underestimated. It seems like a boring industry, and it’s not that.
Feldman: Tell me about SILAC. You were involved in the early days of the company, correct?
Acker: Yes. Prior to joining SILAC, I worked for a company called Sentinel Security Life. When I joined Sentinel in 2005, it had 12 employees, and it was selling final expense coverage. I was hired to try to figure out a way to grow the company because they were losing more policyholders than they were gaining every year.
I already had the finance side, the statutory accounting side, down from working at Educators Mutual in the finance accounting area. Since Sentinel was such a small company, I had the opportunity to work in all other areas of insurance and have hands-on experience developing new products: Medicare supplement, hospital indemnity and, most importantly, annuities.
When I left in 2018 to join SILAC, Sentinel had gone from 12 employees to close to 300. I met the CEO of SILAC — our current CEO, Steve Hilbert — in 2016, just by chance at an industry event. Steve had previously founded Conseco, one of the largest insurance companies in the country. In 2017, he acquired a company called Equitable in Salt Lake City that was just down the street from Sentinel’s headquarters. After he acquired Equitable — which is now SILAC — in 2017, he’d come to Salt Lake City and we’d get together every once in a while. Fast-forward to 2018,
I called Steve and said, “Look, if you’re ever looking for somebody or there’s an opportunity, I’d love to join your team.” I joined SILAC in June 2018. For me it was a chance to learn from one of the greatest CEOs our industry has ever seen, and it was also an opportunity.
At the time, Equitable was not in the annuity space; it was in long-term care, Medicare supplement, traditional senior
is complexity of the annuities and getting the story out there. There are a lot of misperceptions. Our products are complex by design, just given their nature. So we don’t need to make them any more complex. Our goal from the start was to make these products as simple as possible and easier for the producer to understand and sell, and easier for the consumer to understand.
market products. My directive was to eventually close down all those product lines and get SILAC into the annuity space. For me, it was an opportunity to be part of building a second annuity carrier — Sentinel being my first, SILAC being the second.
It was a unique opportunity: one, working with Steve Hilbert; two, getting to help another carrier in the annuity space. SILAC/Equitable has a long history, with more than 87 years in business. I would say we’re still in our startup phase. Our goal is to change the industry for the better in our own way. That’s what we’ve been doing since 2018.
Feldman: How are you trying to change the industry for the better?
Acker: Early on, I had the opportunity to hire some great people who I’ve known for a long time and worked with, one being Carrie Freeberg, senior vice president of product and marketing at SILAC. She heads up our product development department and works with our marketing team with me.
But, looking at products, I think one of the challenges facing our industry
One of the positive things about SILAC coming into the industry is to get back to the basics of what a fixed indexed annuity does and that safe accumulation — lifetime income with principal production. No loss of principal. Sometimes a loss of principal comes in the form of fees. That’s another thing we have been able to do with SILAC, which is roll out some very competitive fixed indexed annuities. But we do not charge the consumer any fees. Let’s say we have a year where the S&P is down and we know with an FIA, the consumer is not going to lose any principal. But then the advisor has to sit down with that consumer and say, well, good news, you didn’t lose any principal, but you actually did lose 1% to 2% in the form of fees. That doesn’t leave a good taste in anybody’s mouth. Another way we’re trying to make things better is through education, and not only for advisors. I just finished a call with a young advisor who does business with SILAC and who is very good at teaching agents how to sell annuities, or how to sell a different type of annuity. Early in my career, I used to think the big carriers were providing that type of education, but I’ve come to learn, nobody
is teaching agents how to sell and keep it simple. As an industry, I think we can do a lot more to talk positively about our products and what they do, because there’s no other product in the market like an FIA that offers some upside, some growth, lifetime income and zero downside risk.
Feldman: There are so many advantages to owning an annuity. What can the industry do to better educate the public about annuities?
Acker: There are a lot of positive things going on. For example, the Alliance for Lifetime Income, which carriers have partnered on. I think initiatives where the industry comes together and works to promote our products — not a particular carrier’s product — are positive. We need to take our carrier hats off, set our egos aside, and work together collectively to educate our country about these products and what they do.
Feldman: Indexed annuities are coming off four consecutive years of record growth. Our markets are changing. We have a new administration. Where do you see the market going over the next two years?
Acker: Our industry has seen tremendous growth, but I don’t know how much of that growth is truly organic and new growth. Given the interest rate changes, there’s a lot of replacement going on in our industry, which is great because it’s allowing consumers to move into products with the much higher current rates. However, there’s also a downside, because that means folks are leaving contracts early, which is not always a good thing from a carrier perspective. I would love to see more organic growth, see the number of first-time annuity buyers grow. I think if that was up 300%, that would be tremendously positive for our industry. As the replacement business begins to die down, there are fewer opportunities to move consumers to higher rates. I think overall we’ll probably see sales come down slightly within the next year, but I don’t view that as necessarily negative if we can continue to focus on first-time annuity buyers and increase that number.
Feldman: As an industry, we must do better at communicating the benefits of annuities. I think we would have more organic growth, and I do think that’s a problem in the industry.
Acker: There has been a lot of news obviously since 2016 and even before that with the Department of Labor and various rulings. But I think one thing that has come out of the various conversations and the potential regulation from the Department of Labor is that it has raised awareness of our product. Producers who hold more than an insurance license are beginning to understand the importance of our products and what they do. That’s a positive for the industry. SILAC operates in the independent agent channel, which is made up of insurance producers but also those who hold various securities licenses. The more traditional financial advisors, if you will, who are marketing our products, the better it is for our industry. Again, it’s just another avenue of raising awareness of what fixed indexed annuities and other annuities can do for a consumer.
And annuities shouldn’t be the only thing in a consumer’s portfolio, but there definitely is a place in every consumer’s portfolio, in my mind, for a fixed indexed annuity or other annuity. As an industry — at least at SILAC, traditionally — we haven’t marketed to that younger generation, but that’s something that we plan to change. And we’re trying to come up with some annuity products specifically tailored for a younger generation, allowing more flexibility with what kind of premium, how often it comes in and the amount of the premium.
Feldman: What are some of the features that would be great to offer to somebody to get that buying age down?
Acker: I think technology is the key. Annuities are not bought, they’re sold. Advisors and producers play a very important role in educating the consumer on our products and what they do. These products are complex. I don’t really see a direct-to-consumer model. I know there are carriers out there doing it, and I think with certain annuities, it might
make sense, but for a younger generation, I think there is an opportunity to use technology.
If you think about how many people in this country today don’t have a traditional job. They’re driving for Lyft, they’re driving for Uber, so they don’t have a 401(k), they don’t have traditional retirement. If we could come up with a way where the minimum amount was zero, essentially, they can contribute $20 a week through an online platform. I think that’ll go a long way in attracting a younger generation. I think an annuity could be a step in the right direction for them if we can make it flexible enough and cost-effective for the carrier. And I think technology is where we can do that.
Feldman: How do you see multiyear guaranteed annuities performing in the upcoming year? Now might be the best time to get them.
Acker: There are two things happening in the MYGA space. As you know, with MYGAs — I’ll call them a commodity — the highest rate typically wins. There aren’t a lot of bells and whistles with a MYGA, and that’s the beauty of them. I think there are two things at play with MYGA rates. They’re at very attractive levels. They have been for the last couple of years, primarily because of how fast yields have risen, which is allowing a carrier to pass on higher rates. But I think given the replacement business that’s happening, some carriers have a lot of business going out the door; it’s moving to other carriers. And so the MYGA is a way to generate positive cash flow. As long as we can compete with CD rates, the other advantages of a MYGA, such as the tax-deferred status, should make it an easy decision for consumers.
Feldman: What are the biggest challenges SILAC is facing to compete in this annuity space?
Acker: The annuity space is as competitive as I’ve ever seen it. And not only with some carriers that have been in this space for a long time. There are a lot of new entrants every year or every month, it seems. And we’ve been able to compete. We started in 2018; our sales were
all MYGA in the second half of the year when we started. And our sales in 2018 were just over $150 million. The following year in 2019, we went to $1.7 billion in sales, and we’ve grown ever since. By design, though, a couple of years ago, we became less competitive just to slightly slow sales as we were raising capital, with the goal of improving our ratios and ultimately improving our rating from AM Best.
like Fitch Ratings, from KBRA, which are nationally recognized and have very stringent processes that they go through, like AM Best, but they have other views. And so I think it’s important that producers weigh all of the ratings that a carrier has; speak directly with the carrier, with their management team; and become comfortable with their financials and what their business model is.
The MYGA is a way to generate positive cash flow. As long as we can compete with CD rates, the other advantages of a MYGA, such as the tax-deferred status, should make it an easy decision for consumers.
Even though we’re a new entrant and a small carrier, we’ve been able to compete very successfully and became a top 10 annuity carrier relatively quickly. I think today we’re in the top 15 based on sales, even though that’s not what we focus on. For us, it’s about focusing on the right level of sales based on our capital. Our biggest challenge right now, though, to answer your question specifically, is ratings. And specifically, AM Best. Rating agencies right now are a challenge, and that’s something we’re working through. Given some changes they’ve made over the last couple of years, it’s made it challenging for a company like SILAC, which does rely on reinsurance. We have very strong reinsurance partners, but based on the changes AM Best has made, it’s impacted our rating. And there’s a role AM Best plays in this industry.
They have a view, but it’s one view. There’s a lot to look at when evaluating an insurance company. AM Best is one tool but should not be the only tool. There are five or six other large rating agencies that have different views, and it’s not our job to tell a rating agency their view is wrong. We accept their view. But what we’re trying to do is obtain more ratings from companies
That’s something we try to do at SILAC: give our producers access to the CEO on down. It’s important that producers are comfortable with our model, who we are as people and what our outlook is.
We’re not going to presume to try to change their rating process, because that doesn’t feel appropriate. But in no way should a rating agency undermine an insurance department. We’re already put through very stringent financial tests, examinations, etc.
Feldman: How do you see technology affecting distribution?
Acker: Positively. SILAC is a new entrant, if you will, with a long history. But as a new entrant, I’d say we’re behind the eight ball. There’s a lot we can do with technology, and we’re trying to catch up quickly. As an industry, we’re traditionally not known to be a technology leader.
But I think there’s a tremendous opportunity in direct-to-consumer. I think there may be a path there for certain products, but that’s going to be a challenge. I think using technology to partner with our producers through
the education process, to educate consumers on our products, is where we’re focusing at SILAC. We’ve had electronic apps out there for awhile that make the sales process more efficient, easier. At SILAC, about 70% of every annuity sold is on an electronic platform through Hexure, who we’ve partnered with, and their FireLight eApp.
Besides focusing on products, at SILAC we’re trying to put ourselves in the shoes of a producer at that point of sale. How can we make it easier? For the producers, teach them how to sell our products, teach them how to allocate across various indices. There are more than 100 custom indices in our industry that carriers work with outside of the S&P. And I think that’s a challenge. How do I pick among 100 different indices that are available? We’re coming up with ways to help the producer at the point of sale.
Feldman: SILAC also has an AI index, correct?
Acker: We do. We launched that index about three years ago, roughly, and it’s been a very successful index for us. And there are ideas in the works to expand on that AI index.
Feldman: How has AI impacted SILAC?
Acker: We have a team that is responsible for developing the AI initiatives within SILAC. We’ve been spending the last year testing different ways AI can help us, primarily through our customer service team and internally. And so now we’re rolling that out to all 325 associates. We must streamline as much as we can, whether by extracting emails, reading through emails to just get to the point of the email and save time. AI will be used in a bigger way going forward for SILAC, mostly internally for our associates. As this initiative progresses, I think it’ll then shift to how we can help the producer partner with that point-of sale-process.
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Advisors turn their attention to helping younger women form good financial habits and protect what’s important to them.
BY SUSAN RUPE
“Your future self is already grateful for the decision you’ll make today.”
That is one message that Grace Vandecruze includes in her newsletter, “Thrive,” which is aimed at women.
Vandecruze is managing director of Grace Global Capital, a New York consulting firm providing mergers and acquisitions financial advisory, restructuring and valuation to insurance executives, boards and financial regulators. She is the author of “From Homeless to Millionaire: 6 Keys to UPLIFT your Financial Abundance.”
of their time is spent on medical care and expenses, and it is a painful time for them. Many women finish their lives in a way they had not envisioned, and it’s not a positive thing.”
Older men often have an easier time than women in the final stages of their lives because men are more likely than women to have a partner or companion to help them navigate the challenges of older age, Vandecruze said.
But outside her practice, Vandecruze works to empower young women through financial education. She believes women must understand “that they are the drivers of their financial destinies.”
“As young women pursue their dreams, it is more important for them to be less of a consumer and take more of an ownership of their finances, think more long term and be entrepreneurial about their life’s goals,” she said.
Vandecruze said she believes younger women’s financial education would benefit not only from professional advice but also from observing the financial realities of older women.
“They’re not seeing older women who are in their later years and what the reality of that is,” she said. “The reality of women in their later years is that much
“Some women don’t have the luxury of having a partner, and they often don’t have the finances to afford the medical care that they need. And what’s missing in this discussion is that we’re in the middle of a longevity revolution, living longer than any past generations. However, financially, we are so lagging behind. In a woman’s lifespan, she will have more financial detours than a man will. Childbearing years may bring a financial detour to her life, potential illnesses and diseases, caregiving to her children, plus caregiving to her parents — the challenge for women financially has never been higher.”
Young women also must understand what Vandecruze called “the time value of money.”
“It’s about how saving incrementally — saving what you can when you can on a consistent basis over time will make a substantial difference in the way you’re able to spend your latter years and the quality of your life as you age.”
Although Vandecruze provides financial education to young women outside her practice, she believes the industry must understand a few things about that demographic in order to serve them.
“First of all, young women are savvy,” she said. “They understand and grasp the basics of investment. What they’re lacking is education. But I think once you
It’s about how saving incrementally — saving what you can when you can on a consistent basis over time will make a substantial difference in the way you’re able to spend your latter years and the quality of your life as you age.
Another challenge to women’s financial security is that younger women often think they have more time to prepare than they actually do, Vandecruze said.
“When you’re a young woman in your 20s and 30s, your thinking of time is elongated,” she said. “You think you have time. You think, ‘60 is old; it’s going to be a while before I get there.’ But time goes by quickly. When you’re in your 20s and your 30s, you’re probably focused on launching a career, finding your footing in your job, repaying your student loans or getting your first car and your first home. Those are great goals to have; however, they bring a financial burden on you. So one of the things I talk about is there are some debts that will add value to your life and add value to your wealth, and there are some debts that will deplete them. For example, it’s important for young women to distinguish between credit card debt and mortgage debt.”
teach young women the benefits of investing, the benefits of securing a future by insurance, the benefits of compounding savings over time and how that makes a substantial difference in the quality of our life, it will accrue substantial benefits to young women.”
Women in younger generations are poised to receive about $47 trillion in inherited wealth by 2048 as part of the great wealth transfer, according to Bank of America Institute’s most recent “Women and Wealth” report.
As a result of the great wealth transfer, which is already underway, “women will soon control more money than ever before,” the report said.
In addition, the report said, women are achieving increasing levels of education and working as much as if not more than their male counterparts, which has
resulted in their rising wages and greater representation in senior leadership positions.
“Increased wage gains, coupled with the ‘great wealth transfer,’ position women to be key drivers of economic growth,” Bank of America Institute’s report said. “As wealth increases, women’s prosperity will help to ‘grow the pie’ of total affluence.”
In her newsletter, Vandecruze said the U.S. is entering what the Federal Reserve Bank of St. Louis specifically identified as a “significant wealth restructuring period” with particular opportunities for women investors
Three forces are creating a once-in-ageneration wealth opportunity.
1. The volatility advantage: Market swings are creating undervalued assets that large institutions are overlooking. According to Bloomberg Financial Analysis, these inefficiencies particularly benefit smaller investors who can move quickly.
2. The $84 trillion transfer: We’re in the early stages of the largest wealth transfer in history as baby boomers pass down assets. The National Bureau of Economic Research projects $84 trillion will change hands by 2045, with the largest portion transferring between 2025 and 2030.
3. The women’s wealth revolution: For the first time, women control more than 51% of U.S. personal wealth, according to McKinsey’s 2024 Women in Finance Report. This is creating new financial products and opportunities specifically designed for women’s needs.
“This 24-to-36-month window offers rare wealth-building opportunities that could literally change your family’s financial future for generations,” Vandecruze wrote in “Thrive.”
Cathy Mendell enjoys working with two types of women she describes as “accomplished women.”
Mendell’s advice for young women who are raising families and forging their career paths is fourfold: Take control of debt, be intentional about where your money is going, track your spending and your living costs, and realize that your retirement is your responsibility.
been putting money into for the past 10 years or so, and she’s looking at her next job. But she also is saying, ‘Let me set myself up for the future.’ She doesn’t want to save haphazardly. She really wants a plan that says, ‘All this money that I’m accumulating will someday result in a lifestyle that I want to live when I retire.’”
The second type of woman Mendell serves is still working but is thinking ahead to retirement.
“They are ready to think about retirement, but the problem is that while they’ve saved money, they don’t really know what to do next. Do they just start taking withdrawals and hope that everything works out? They didn’t go to work every day and just hope it worked out. They knew what they were doing. But now they go into a new phase of life where now the stock market is in control of their money. That’s a particular group of women we work with closely because we can make a huge difference for them.”
Mendell equates retirement planning to driving a car through fog.
Mendell is founder of Theia Financial in Jacksonville, Ore.
The first type of accomplished woman she works with is in a career transition.
“She is transitioning from one job to another. Maybe she has company stock, and she might have a nice 401(k) that she’s
“You’re driving down the road and you run into low clouds. Suddenly you can’t see, you hunker down over the steering wheel, your blood pressure goes up and you slow down. It’s very disconcerting. I think that’s how a lot of women feel about investments and money. They know they need to do it. They do it. They’re good with it. But the question is, what does that actually translate to later in their lives?”
Mendell described her clients as “women who are making an effort toward their future. They’re doing the hard work, they’re saving money. And I love working with those people.”
Her advice for young women who are raising families and forging their career paths is fourfold: Take control of debt, be intentional about where your money is going, track your spending and your living costs, and realize that your retirement is your responsibility. That last piece of advice is the most important, she said.
“I’ve had some younger people say, ‘I don’t see myself ever stopping work.’ Well, I hate to tell you this, but someday you’re going to be 79 and you’re not going to be employable. So you must have an eye for the future and get into the habit of having money that goes from your checking account into a savings account where you don’t have to do anything with it. It just is an automatic withdrawal. It’s possibly the smartest thing you can do, because there’s no decision to be made.”
An ‘interesting demographic’
Caroline Tanis said that working with women in the 50-and-younger age bracket “is really cool because you get to be there for so many of the big moments in their lives.”
Tanis is founder of Tanis Financial Group in New York, where she focuses on advising the women she describes as “the chief financial officers of their families.”
“My main demographic is women 35 to 50 years old,” she said. “This is an interesting demographic to work with, because it’s women who are having kids, buying a house, trying to save for college. My clients are mainly either the breadwinner or co-breadwinner of their families. They’re trying to build wealth and set themselves
up well with everything they have going on. It’s fun for me to put these different goals in their financial plans and then, for example, see their kids get accepted into the college they want to attend. And you know you’ve been working with them to plan for that for years, and now you see that moment come to fruition.”
Another reason Tanis enjoys working with women in her target age group is that they have access to so much financial information, yet they have so much going on in their lives that they are happy to work in partnership with a professional instead of trying to plan their financial futures on their own.
happen to you during retirement when you can no longer take care of yourself? It might be far away, but it’s something we have to think about because it’s a different scenario if you are going to be in a nursing home or assisted living versus
or grandmother who had the same set of dynamics they’re facing, so I want to create a safe space for them to be able to say, ‘I don’t have anyone else to talk to about this.’”
Scott said many of her female clients “are managing financial responsibilities beyond themselves.”
Tanis on her most important client need: “It’s to the point where in my practice, I will not work with someone unless we take the time to build this financial plan, because I’ve had clients who breeze through it and they don’t want to do the work. And it is work!”
“They need someone who will be their advocate and fight for them,” she said.
Tanis said the most important thing her clients need is to build their financial plan.
“It’s to the point where in my practice, I will not work with someone unless we take the time to build this financial plan,” she said, “because I’ve had clients who breeze through it and they don’t want to do the work. And it is work! You have to get your documents together, and you have to make time to have that conversation with me.”
As her clients take on life’s financial milestones, such as buying a house or having a child, Tanis will revisit the plan with them.
“It’s the root of everything we do. We want to see how on track we are, because there is only so much time until retirement and a lot of choices need to be made. We don’t want to be scrambling — like, ‘Oh no, the kids are going to college in two years! What do we do?’ It’s taking the time now so that when college comes around, it’s smooth. I can tell my clients, ‘This is exciting. Go and enjoy. Let me know who to write the check to from the appointed accounts.’”
Tanis said that many of her clients are “living in the here and now,” so she gives them a list of questions to help them think about financial concerns that might be decades away.
“A big question is, what’s going to
being at home with a nurse. You need to plant those seeds in their minds because younger women are living in the here and now and they’re limited on time. That’s our job, though — to help them and ask those questions so we can work with them on the answers.”
Nicole Garner Scott is a Northwestern Mutual advisor in Atlanta. She specializes in working with women in the 35-to-45-year-old age bracket, describing her typical client as being “a first-generation success in her family.”
“They are possibly the breadwinner for their family and often the most successful in their family,” she said. “They have a unique set of challenges, whether it’s breaking barriers, hitting a new level of ambition, navigating being in the sandwich generation and having to be the first to figure out their financial blueprint,” she said.
“Many are supporting other family members. A lot of them are planning for career shifts. And I think many of that generation are attuned to understanding long-term financial security. There’s an awakening of younger generations to understand that a lot of the responsibility for planning their financial security will fall on them and they need to map out what they want the second half of their life to look like.”
“Integrative planning” is what Scott said she offers her clients. “Many of them are looking at their executive compensation packages and not understanding what they mean. Clients need to understand what they need to do now, from a retirement strategy standpoint, and also understand how to take their risk management into account.”
Scott said she wants her clients to feel empowered, and that means not using jargon or having conversations that go over clients’ heads.
“I want them to feel seen and heard, because a lot of our female clientele might be the first generation to discuss these issues with a professional,” she said. “They might not have had a mother
Insurance also is part of the plan, she said. “It’s important to obtain insurance while they’re still young and while health is on their side.”
Scott said so many of her clients are victims of “information overload,” and her job is to help them understand that information and break it down for them.
“So many individuals who come to me are confused with all the noise that’s out there, and they need to have a trusted partner that can talk through all this with them.”
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.
Sam Philbrook took the lessons in leadership and service he learned in the Army to serve his clients and community.
By Susan Rupe
Many children dream of growing up to become a police officer or a firefighter. Sam Philbrook said he couldn’t wait to become a soldier. Four generations of his family have served in the armed forces, and his goal was to join their ranks.
After 13 years in the Army, Philbrook found that the leadership and organizational skills he learned as an infantry officer transferred well into a new career in the financial services world.
Philbrook is managing director of Commonwealth Financial Group in Boston, where he is responsible for coaching and developing new financial advisors as well as serving a clientele of business owners and young families. He is a registered representative of and offers securities, investment advisory and financial planning services through MML Investors Services.
He was honored with one of Advisor Today’s 4 Under 40 awards for 2023 issued by the National Association of Insurance and Financial Advisors Sept. 20, 2023, and covering the time period between Aug. 31, 2022, and Aug. 31, 2023.
To be considered, an advisor must be under 40 years old and a current NAIFA member. Candidates can self-nominate or be nominated by industry peers and are selected based on professional credentials, industry involvement, volunteerism and community involvement. The award is not an endorsement or indicative of the future performance of the financial adviser. MassMutual is a member firm and pays an annual fee to maintain its membership. MassMutual is not involved in the nomination or final selection process. A fee was paid for consideration.
Growing up in the coastal town of Marion, Mass., Philbrook was eager to follow his other family members into the service. He graduated from Norwich University, a small military college in Vermont, and entered the
Army soon afterward.
“I began as an infantry officer and then graduated to a scout platoon leader, which is typically reserved for the No. 1 infantry lieutenant in the battalion,” he recalled. “I then went on to become a company executive officer for a headquarters company, which is the best [post for a] lieutenant after scout platoon leader. It’s a very diverse role with a lot of moving parts.”
From there, Philbrook became an operations officer, then was deployed to work intelligence in the Middle East, a role that he said is a unique path for an infantry officer.
“Typically, an intelligence officer is an intelligence officer, and an infantry officer is an infantry officer,” he said. “But the Army liked the way I thought about things. I could present data and
Philbrook soon found out that although he thought he was unqualified to work in financial services, the skills he obtained in the Army helped him in his new career.
“It comes down to leading from the front,” he said. “Selfless service is always doing the hard stuff. I’ve always said I will probably outwork everyone around me. This is the reason why I needed something entrepreneurial, because I do not work very well underneath someone when I’m going to outwork them. I will put the team on my back and move forward. If that means working 14-hour days or whatever it takes to get the job done, I will do that. Because that’s what you’re taught in the military. It’s that you will continue to think through different ways of achieving the objective, whatever the objective is.”
talk the language of movement and maneuver as an infantry officer, but I also could look at a data feed and understand what the enemy was doing or trying to accomplish.”
After 11 months in the Middle East, Philbrook was redeployed to Macedonia when Russia invaded Ukraine, and he spent a month or two in that country.
When his military career was over, some friends suggested to Philbrook that he could earn a lot of money doing tech sales in Boston. But he soon found that was not the career for him. Another friend told Philbrook he might be better suited to a financial services career.
“I told him ‘I don’t know anything about the S&P 500, I don’t know anything about mutual funds, I am the least qualified person when it comes to financial planning,’” he said. “But he told me if you’re good at dealing with people, they’ll teach you the rest. And that is how I entered financial services.”
In his practice, Philbrook said he has the best of both worlds. He and his wife are living and raising their three children in his hometown of Marion, an hour’s drive from Boston. He travels to Boston three or four times a week to work in his office.
“My team and I do a lot of work with business owners and with families,” he said. “Our clients want to make sure that if anything happens, they don’t want to be a financial burden to their loved ones. They want to make sure they retire on time; they want to make sure they’ve saving money to the right areas.”
Philbrook said his philosophy about planning is rooted in the principles of protection, savings and growth.
“Are we protecting your income in the right way? Are we saving money to the right vehicles, and are we invested correctly? Our job is to pull our clients off the treadmill of life and help them financially plan by design, rather than by default.”
He said many clients are on the default path. “They’re pumping money into their 401(k) account, they’re putting money into savings and their fingers are crossed, thinking they really hope this all works out. Our job is to make sure they’re saving in the right area, they’re protected in the right way and they’re invested correctly.”
Leading by serving
Philbrook has always had a passion for serving others, and one of the most notable ways he spearheaded service was during the U.S. military’s withdrawal from Afghanistan in 2021, ending 20 years of U.S. military involvement in that country.
His unit was assisting in the evacuation of civilians from Afghanistan, most of whom fled with nothing but the clothes on their backs and their meager possessions stuffed into plastic bags.
Philbrook’s birthday was approaching, so he made a social media post requesting that his family and friends donate supplies to the Afghan civilians in honor of his birthday. The request went viral and was shared by several influencers on Instagram. More than $82,000 worth of supplies were donated.
“It was hygiene products, flip-flops, hydration salts — Red Bull donated a pallet of energy drinks,” he said. “We had all these supplies shipped to us to distribute to the displaced population. So that one social media post ended up having a huge impact on those families who were sitting in hangars or on airport runways with nothing.”
Back home in Massachusetts, Philbrook realized he and his family lived in what he called “a kind of bubble.” He looked for a way they could help others and discovered an organization called the Friends of Jack Foundation, whose mission is to provide and support overlooked programs that enhance the physical, mental and emotional health and well-being of children across the South Coast region of Massachusetts and Rhode Island.
Commonwealth Financial Group’s founder started Rally 2 Give, with the goal of raising funds to benefit organizations in the Greater Boston area. Last year, the rally generated $500,000, $30,000 of which was donated to the Friends of Jack Foundation.
The rally attracts about 50 cars. The drivers race over a four-day period through southern New England up into Montreal, Canada, or Burlington, Vt.
“It’s all about an experience and bringing people together to network and enjoy each other’s presence,” Philbrook said. “You stop at a dinner venue, you go to a hotel, and you kind of do the same thing for three or four days throughout New England, up into Canada. All the cars have to raise money, so they reach out to their networks and activate their ambassadors or their communities to donate money, and it has snowballed.”
Between his family, his practice and his community activities, Philbrook leads a busy life. His guiding philosophy is “Time is your greatest asset.”
“You always want to acknowledge the fact that if everything is important, nothing is important,” he said. “There are four priorities I always have, which are: Focus on priorities, not emergencies. Get organized. Delegate, don’t detour. And I think the most important thing is to foster a culture of accountability and excellence in your practice, and if you’re leading a team, infuse that into your team.”
CRN202803-8400425
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 srupe@insurancenewsnet.com.
1. “Life expectancy for men in U.S. falls to 73 years – six years less than for women”, per study. Statnews.com. November 13, 2023.
2. “Gender pay gap statistics in 2024”. Forbes.com. March 1, 2024.
3. “Caregiver statistics: A data portrait of family caregiving in 2023”. Aplaceformom.com. June 15, 2023.
Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.
Product features and availability may vary by state.
Life insurance products contain charges, such as Cost of Insurance Charge, Cash Extra Charge, and Additional Agreements Charge (which we refer to as mortality charges), and Premium Charge, Monthly Policy Charge, Policy Issue Charge, Transaction Charge, Index Segment Charge, and Surrender Charge (which we refer to as expense charges). These charges may increase over time, and these policies may contain restrictions, such as surrender periods. Policyholders could lose money in these products.
These materials are for informational and educational purposes only and are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. Securian Financial Group, and its subsidiaries, have a financial interest in the sale of their products.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.
Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries. Minnesota Life Insurance Company and Securian Life Insurance Company are subsidiaries of Securian Financial Group, Inc.
For financial professional use only. Not for use with the public. This material may not be reproduced in any way where it would be accessible to the general public.
With the launch of turnkey templates and strategic guides, LIMRA’s AI Governance Group continues to lead efforts to help U.S. life insurance companies safely and effectively adopt artificial intelligence.
Whether for developing AI in-house or with a vendor, these resources are designed to help companies make informed decisions regarding AI adoption, LIMRA said. These turnkey frameworks include comprehensive cost-benefit analysis templates that can help leaders identify the potential benefits and risks of various strategic paths when considering AI. The AIGG plans to release several more industry frameworks this year.
AI has the potential to transform the financial services sector, modernizing organizational processes and offering significant opportunities to improve customer experience, LIMRA said. This is just the latest AIGG effort to create a foundation for sustainable and inclusive AI practices to improve the life insurance industry.
LIMRA’s AIGG draws expertise from more than 100 business and technology executives representing more than 50 U.S.-based member insurance companies. The group’s goals include educating its members about the current state of AI in the industry and providing a forum for open and collaborative discussion about the most effective uses for the technology.
The insurance industry faces four possible future scenarios. Insurance executives are optimistic about the major trends influencing their industry but remain aware of critical risks to their organizations. A panel of experts reviewed the findings of The Economist Impact research on the future of the industry.
Those four possible scenarios are:
1. Fractured resilience.
2. Digital harmony.
3. Adaptive alliance.
4. Stagnant turmoil.
Two main drivers of change — the pace of technological change and the level of global cooperation — impact all of these scenarios.
The fourth quarter is nearly always the best quarter of the year for sales.”
of supervised release.
The lawsuit alleges that Penn Mutual and Boll, along with several other law, lending, accounting and financial planning firms also named as defendants, constituted a high-premium insurance enterprise.” Penn Mutual whole life policies were aggressively marketed as offering “significant tax advantages,” plaintiffs say. One type of “sham tax-avoidance strategy” incorporated premium financing life insurance loans to finance the policies, the lawsuit alleges. Using life insurance in a premium financing strategy to manage tax obligations remains a controversial tactic within the industry.
A group of 29 plaintiffs claim that Penn Mutual and several codefendants ran a tax-avoidance scam around whole life insurance policies . The amended complaint, filed in U.S. District Court for the Central District of California, alleges fraud and negligence as well as violations of the Racketeer Influenced and Corrupt Organizations Act. Plaintiffs, which come from states around the country, ask the court for $23.5 million in damages.
The defendants include former Penn Mutual agent Randall Scott Boll, who was indicted in 2021 on four counts related to violations of federal money laundering laws and banking regulations. Boll pleaded guilty to one count of conspiracy to cause a financial institution to fail to file currency transaction reports and to structure financial transactions. He was sentenced to one day behind bars in California, court records say, and two years
Profitability will be the biggest top-ofmind issue for insurers in 2025, while advanced data and analytic technologies will be insurers’ top strategic priority this year. That’s according to a Majesco poll of insurers on their strategies and investments for the year.
Insurers also reported they plan to develop new products and new business models for existing markets as well as new markets in 2025. Digital payments is another area of insurer focus in 2025, with more insurers accepting payments through their own apps or digital wallets.
life insurance premium increased 3% in 2024, to $15.9 billion, setting a record for the fourth consecutive year.
By Drew Gurley
These six words to salespeople are like fingernails on a chalkboard: “I need to think about it.”
It’s the most difficult common objection to overcome for most life insurance agents, especially those who are new to the business or part-time. It might even be worse than “I’m not interested.” At least with that, you know where you stand and can look at yourself in the mirror and start to figure out where you messed up.
A great sales call rolls like a snowball off the top of a mountain. It starts slow and easy, then gains speed and size to a point where it is unstoppable.
But here’s the key: If you don’t pack the snowball tightly at the top of the mountain, the likelihood of it falling apart when it hits a big rock on the way down is higher.
Let’s zero in on how to set yourself up for success in your sales presentation from the top of the mountain.
You are all too familiar with these if you have been selling life insurance (or any type of financial services or insurance products).
The key here is to build an approach that assumes you will hear all these objections at some point in the discussion. We harp on this in sales training: Create a conversation that focuses on preventing objections before they become objections. Here are the four we hear most and how you can begin preventing them.
» Fear of commitment: Discussing life insurance in general can make people uncomfortable. Most clients do not
know how it works, which creates an internal fear of making the wrong decision on a long-term financial commitment. You must address it early in the discussion, making sure they understand it in the simplest terms. If they can explain it to their spouse or friends, then they will feel empowered to make a purchase decision.
» Financial concerns: These should be addressed early in the discussion. Affordability and the cost of life insurance will always come up. Don’t let “I can’t afford life insurance” snatch defeat from the jaws of victory. LIMRA reports that 72% of Americans overestimate the cost of life insurance and 54% of those are relying on their gut instinct or a guess. This is an opportunity for the agent willing to take the time to better explain how it works and review accurate costs.
Try an approach like this: “Most people I meet with are in two boats. The first is the majority of people believe life insurance is too expensive. The second is that about one-fourth are unsure how it works, which prevents them from making a decision. Which one of those boats would you say you are in?”
» Genuine need for time: This is one of the most common insurance sales objections. And it is legitimate. For example, it’s common for older folks to want to include their loved ones in the discussion. And it’s common for younger folks to want to ask their parents for advice.
This goes back to the first point. You will experience this more often when you haven’t done a thorough job of explaining the “how it works” part of life insurance from the start. The more your prospects understand how it works and can explain it in simple terms, the more confident they will be when making a decision. This won’t eliminate 100% of these concerns, but you can certainly influence the number of times it comes up.
» Going to stay with current life insurance policy: Most agents think the client was just price shopping their current insurance coverage. We disagree. Most people don’t like to deal with life insurance, so if they are talking to you, they have an issue of some sort. This should be dealt with early in the discussion. You should thoroughly review their current policy with them. It will build their confidence for the discussion.
Many older policies, specifically permanent policies such as universal life, are vastly underperforming and set to lapse. This is a fantastic time to call their life insurance company with your prospect on the phone and find out how long the policy is set to stay in force based on their current funding. Your role is to facilitate the discussion with the current insurance company and allow them to tell your prospect (their customer) the news.
Acknowledging these common life insurance objections will help you empathize with the prospect and tailor your response. More importantly, addressing these thoughtfully will dramatically improve your chances of success.
The rock stars of the life insurance sales process build their fact finding around — wait for it — life. They know the path to solving a customer’s issue is through a serious, sometimes involved discussion about where they are and where they want to go.
Too often, agents are in a hurry. Sometimes they jump to conclusions. Or worse, they assume. And we all know where that path ends. The insurance industry is littered with former agents who didn’t have patience.
Football coaches will tell you the greatest quarterbacks are those who can let the game come to them. They analyze the entire field. They are patient. They lure the defense in like a worm does a fish. They can’t be rattled or surprised.
One way of handling objections at the end is to ask thought-provoking questions at the start. These questions invite prospects to share their goals, concerns and aspirations, helping you understand their priorities on a deeper level.
Here are five examples of such questions, with a couple of follow-ups for each:
1. What does financial peace of mind look like for you?
• Specifically, what does financial stability look like in:
° 5-10 years?
° 20 years?
• Where are you on this financial planning journey?
2. What keeps you up at night when you think about your family’s future?
• Describe the three most worrisome scenarios.
• What are you doing currently to address those concerns?
3. How well have you planned for the unthinkable if something were to happen to you?
• Describe the situation your family would face if it happened tomorrow.
• Where are you in the process of planning for this?
4. What kind of mistakes have you seen others make that you won’t make?
• Professionally?
• Intellectually?
• Personally?
5. What kind of legacy would you like to leave?
• For your family?
• For others?
By starting with these high-level questions, you set the stage for a meaningful conversation and show genuine interest in the prospect’s life and goals.
In addition to asking the right questions, there are other proactive steps you can take to minimize objections.
» Build rapport and trust early. Establish a strong connection with your prospect. Demonstrate genuine care by listening actively and showing empathy. Share relatable stories that illustrate the importance of life insurance. Make it personal and memorable.
» Simplify the decision-making process. KISS. Be clear and avoid jargon. Get objections out of the way early, such as explaining how life insurance fits into their budget or how it aligns with their financial goals.
» Create urgency without pressure. Address the risks of delaying without resorting to scare tactics. Share real-life examples of families who benefited from timely decisions. In conclusion, managing “I need to think about it” requires preparation and finesse. Uncover objections through a thoughtful discussion. Remember, each objection is an opportunity to build trust, improve your craft and help your clients make decisions they won’t regret.
Drew Gurley is a licensed life insurance expert with nearly 15 years of experience. During his career as both a licensed life insurance agent and industry executive, he has helped thousands of clients with their life insurance needs through his work at Redbird Advisors and Senior Market Advisors. Contact him at drew.gurley@innfeedback.com.
Annuity sellers made history in 2024. For the first time ever, total quarterly annuity sales surpassed $100 billion in all four quarters.
Total annuity sales finished at $434.1 billion, up 13% yearly, according to LIMRA’s U.S. Individual Annuity Sales Survey, representing 83% of the market. It marked the third year of record-high annuity sales, which together represent $1.1 trillion.
Equitable Financial and Allianz Life were two of the big winners, moving into the top five. Athene Annuity & Life again topped the sales charts with $36 billion in sales. But those sales were basically flat year over year.
Meanwhile, the rest of the top five made strong gains. Equitable and Allianz both improved sales by 20% to 25%, respectively, propelling them past New York Life.
In the fourth quarter, U.S. annuity sales totaled $102.1 billion, down 12% from the record-setting results in the fourth quarter of 2023. Falling interest rates dampened fixed-rate deferred and income annuity sales, pulling down overall results.
The Life Insurance Consumer Advocacy Center filed a lawsuit against the California Department of Insurance over access to complaints by consumers concerning life insurance and annuities.
The lawsuit claims that CDI’s refusal to provide this data is unlawful based on the California Public Records Act.
LICAC requested the consumer complaint data to “assist in efforts to advocate for consumers of life insurance, including annuities, and to work for passage of laws and regulations that protect life insurance consumers,” the group said in a news release.
The requested information concerns the number and types of complaints received by the department as well as
reports and data used in the department’s annual report.
The statistics requested by LICAC are “important information that could be used, among other things, to establish a baseline against which to compare complaints in the future,” the group said.
American National Insurance Co. will stop writing new life insurance policies at the end of May and focus on other products, including the red-hot annuity market.
Based in Galveston, Texas, American National held a 1.34% market share of the $427.7 billion market that is indexed annuities, said Sheryl Moore, CEO of Moore Market Intelligence and Wink Inc. She cited data from Wink’s Sales & Market Report, fourth quarter 2024.
American National recently announced that it is offering fixed annuity products through a secure online platform in addition to its network of agents and advisors.
In May 2022, Brookfield Reinsurance completed the acquisition of American National Group Inc., the parent company of American National Insurance Co., in an all-cash transaction valued at approximately $5.1 billion.
New research from the American Council of Life Insurers finds that benefits from annuities enable retirees to postpone receiving Social Security payments, saving the program $100 billion over time as the greatest surge of baby boomers retire.
By delaying Social Security payments until age 70 with the help of annuities, retirees can increase their benefit payments with each year of delay. As a result, the net lifetime payouts from Social Security are less than those of retirees who begin receiving payments at age 67.
“Life insurers are putting life into America, and this research is further evidence of that,” said ACLI President and CEO David Chavern. “Along with the financial and retirement security we provide consumers, life insurers are supporting the long-term financial strength of an important public program.”
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How transformative technology creates the first personal defined benefit pension funded by a fixed indexed annuity.
By David Macchia
Sometimes fate intervenes to give people what they deserve.
I believe that after having their retirement security taken from them, Americans deserve more guaranteed income. It’s time to bring back the defined benefit pension — in a new way.
Here is an innovation that accelerates the growth of annuities without cannibalizing other products. Instead, this strategy expands the market, ensuring that all parties benefit. There are two key markets in which annuities will gain greater prominence: the 401(k) system and individual annuity sales.
In the 1960s and 1970s, insurance companies were the dominant custodians of Americans’ pension assets, primarily managing them through group annuity contracts. Leading insurers such as Metropolitan Life, Prudential, Equitable Life and New York Life played a central role in securing retirees’ financial futures. At the time, 62% of private-sector workers benefited from the financial security of a guaranteed pension, with major corporations such as General Motors, AT&T and IBM covering millions of employees through defined benefit plans.
By the 1980s, however, a seismic shift had occurred. The rise of 401(k) plans and the decline of employer-sponsored pensions drastically altered the retirement landscape. Since then, the U.S. has lost 56,000 defined benefit plans — equivalent to losing one pension plan for every resident of Carson City, Nev., or Cedar Rapids,
Iowa. What followed was a catastrophe for American workers but a boon for asset managers such as Vanguard, Fidelity and BlackRock.
Some may argue that 401(k) assets still belong to workers, so this shift shouldn’t be seen as a loss. But that’s the wrong perspective. Wealth does not create a retirement standard of living — income does. Nobel Prize-winning economist Robert C. Merton highlights this critical distinction: While 401(k) plans focus on and report only account balances, defined benefit pensions and Social Security emphasize and report income — the real measure of retirement security.
Imagine a woman named Jane who retired in 2000 with $1 million in savings. At the time, she could safely earn $5,800 per month in interest from certificates of deposit. By 2020, that same $1 million
provided Jane an income of just $75 per month — a 98% drop in income, despite her wealth remaining unchanged. This stark reality underscores why income — not account balances — should be the true measure of retirement security.
So how will insurers and annuities rise in prominence — without hurting asset managers?
Imagine a solution that strengthens the business of asset managers while elevating insurers. This begins by recognizing that the 401(k) system is here to stay. The challenge is transforming it to function more like a defined benefit pension plan.
The current attempts to integrate annuities directly into 401(k)s are laudable, but they have gained little traction. Plansponsor has described how most plan sponsors lack “annuity fluency.”
According to research from TIAA, “63% of plan sponsors surveyed said they are unable to articulate the value and importance of annuities.” This is a sad reality considering that, according to LIMRA, most 401(k) plan participants want guaranteed retirement income. Annuities will once again become preeminent, serving as the logical endpoint of a vast amount of 401(k) assets. This means an entirely new strategy for IRA rollovers and conversion of assets into annuitized income.
A major appeal of this new defined benefit strategy is that it makes 401(k) plans resemble pensions without requiring structural changes to the 401(k) itself. This is achieved by wrapping the participant’s account in technology that transforms it into a funding vehicle for a personal defined benefit pension.
An individual creates a personal defined benefit plan by making five key decisions:
1. Choosing the age at which income payments begin.
2. Selecting the number of years to invest.
3. Choosing a payment option at retirement.
4. Setting a baseline growth assumption.
5. Defining the target annual retirement income.
For example, consider Maryann, age 35, who defines her plan as follows:
» Target annual retirement income: $100,000.
» Income begins at age 65.
» 30-year contribution period (ages 35-64).
» Life-only payout.
» 5% baseline growth assumption.
Using these parameters, the application calculates that Maryann must invest $1,500 per month to accumulate enough capital to purchase an annuity guaranteeing $100,000 in lifetime income.
Because investment performance is unpredictable, the system recalculates her required contributions annually to keep her on track. If performance falls short,
While 401(k) plans focus on and report only account balances, defined benefit pensions and Social Security emphasize and report income — the real measure of retirement security.
she receives an annual report advising her to increase contributions. If returns exceed expectations, her required contribution decreases or she may choose to aim for a higher income. This process continues dynamically until retirement, when her account seamlessly converts into guaranteed lifetime income.
This continuous performance monitoring and real-time guidance introduce a new era of transparency and investor empowerment. This innovation doesn’t only establish a personal defined benefit pension — it transforms the 401(k) ownership experience, shifting from static asset accumulation to active, outcome-driven financial planning.
Focusing on income naturally leads to education about inflation’s impact. Through video-based content and interactive
modeling tools, participants can visualize how inflation erodes purchasing power over time. For example, Maryann might realize that her $100,000 target should actually be $200,000 in order to maintain her lifestyle. This insight incentivizes her to increase contributions, creating a winwin-win scenario for clients, employers and recordkeepers.
Get ready for the term “defined benefit annuity.” This concept is poised to become a sought-after business opportunity.
Imagine giving a client without a pension the gift of a personal pension plan. How many of your private-sector clients and prospects currently participate in a defined benefit pension? Few. But you can change that. You can put every client on the path to a more financially secure retirement. With a defined benefit annuity, agents can now offer a fixed indexed annuity that is more relevant, valuable and timely than ever. It’s a powerful new way to connect with clients, differentiate from competitors and generate referrals. As described previously, clients design their own pensions, making the conversation more personal and impactful than a typical product pitch.
The defined benefit annuity system is not a one-and-done transaction. It’s a continuing financial ecosystem where clients log in to view reports, communicate with agents and model the impact of inflation. By simplifying the retirement planning process and providing actionable insights, the defined benefit annuity empowers clients to take control of their financial future while fostering stronger collaboration with their agents.
In 1995, the first fixed indexed annuity launched a revolution in product design. Now, 30 years later, the fixed indexed annuity is about to be launched again, becoming a true strategic answer for retirement security.
David Macchia, MBA, RMA, CBBF, is the founder of Wealth2k. Contact him at david.macchia@ innfeedback.com.
Flexibility, simplicity and technology are three trends that will shape the market for long-term care insurance in 2025, according to a panel of OneAmerica Financial executives.
LTCi solutions that incorporate caregiver benefits or offer payment options or annuity products will be “absolutely key” to innovation in the LTCi industry in 2025, OneAmerica said. Informal caregivers in the younger generations are increasingly looking for LTCi solutions that can adapt to unique needs and protect assets as well as family members.
A OneAmerica survey found 64% of LTCi consumers acknowledge that long-term care planning is important, but only a third feel confident about their decisions. These results indicate not only a need for more simplicity, but that consumers want to talk about long-term care — they just don’t know how to go about it and can feel overwhelmed by it.
As for technology, artificial intelligence tools are transforming the industry, on the product, carrier administration and end consumer sides, whether it’s predicting LTC needs, building plans of care, comparing solutions or more.
The latest research from eHealth that more than 7 in 10 Americans (72%) give the U.S. health care system a grade C or lower. Within the past 10 years, nearly half (46%) say they’ve had to choose between paying medical bills and paying for basic necessities. A majority reported they are willing to reconsider key provisions of the 2010 Affordable Care Act, if it makes their coverage more affordable.
Of those surveyed, 83% say they should be able to pick a health plan that excludes benefits they don’t believe they’ll use, if it will save them money. More than half (56%) say that people who maintain an unhealthy lifestyle should pay more for their health insurance.
Two-thirds said they would support a
ban on drug advertisements, and those supporting a ban included a majority of both Democrat and Republican voters.
The Cigna Group announced the completion of the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D and CareAllies businesses to Health Care Service Corp. Cigna said divesting these assets streamlines its portfolio and enables it to drive further innovation to support customers.
The Cigna Group will continue to provide pharmacy benefit services and other solutions to the Medicare businesses through its health services company Evernorth Health Services as part of services agreements with HCSC for an agreed period after closing.
About 26.2M Americans did not have health insurance in 2023.
Source: U.S. Census Bureau
Medicare is complicated, and beneficiaries need expert guidance to find coverage that meets their unique needs.”
— Jessica Brooks-Woods, CEO of the National Association of Benefits and Insurance Professionals
“We recognize that the health and wellness needs for older Americans are growing, and we plan to have an important role in helping seniors live healthier, fuller lives,” said Maurice Smith, HCSC’s CEO, president and vice chair.
Having health insurance isn’t enough to protect Americans from health care costs, according to a survey from West Health and Gallup. More than 31 million Americans (12%) report needing to borrow about $74 billion last year to pay for health care despite most having some form of health insurance. Nearly one-third (28%) report being “very concerned” that a major health event could throw them into debt.
The survey found almost 20% of Americans aged 49 and under needed to borrow money to cover medical costs compared with just 9% of those 50 to 64. Women between the ages of 50 and 64 were twice as likely as men in the same age group to say they had to borrow (12% vs. 6%). Two percent of Medicare-eligible adults (those over the age of 65) reported having to borrow.
Black (23%) and Hispanic (16%) adults were significantly more likely to report having borrowed money than were white (9%) adults. The biggest disparities were found among adults under the age of 50.
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Rising health care costs and unpaid caregiving responsibilities impact women’s retirement security.
By Holly Westervelt
Women today face a unique financial challenge that can significantly impact their long-term security: the double burden of rising health care costs and unpaid caregiving responsibilities. These factors not only affect their retirement savings and career trajectory but also necessitate a more strategic approach to financial planning.
As women continue to outlive men and assume the majority of unpaid caregiving roles, their financial needs are evolving. For insurance professionals and financial advisors, understanding these challenges
is critical to developing comprehensive long-term care strategies to help women protect their assets, plan for longevity and ensure a financially stable retirement.
Caregiving is one financial hurdle women face. Women comprise nearly two-thirds of unpaid caregivers in the U.S., often caring for aging parents, spouses or other family members, and most of them continue to work while juggling caregiving duties. According to a 2024 Wells Fargo study, women also account for 82% of paid home health and personal care aides.
This added strain takes a physical and emotional toll that can impact the caregiver’s own health. It also affects their future earning potential, as they may need to reduce their work hours or take an unpaid leave of absence to manage their caregiving tasks. In some cases, they also
end up losing employer-provided insurance benefits, which means they’ll likely spend more on their medical expenses than they otherwise would have.
At the same time, women live longer than men — between five and six years longer, on average, according to the National Center for Health Statistics. And while longevity is generally an advantage, it also correlates with more time spent in long-term care facilities.
A Deloitte report estimates that, cumulatively, women in the U.S. spend $15.4 billion more than men in out-of-pocket health care expenses annually. Health care costs disproportionately impact women for several reasons.
» Longer life expectancy: Women require more years of medical care, increasing their overall spending.
» Greater likelihood of requiring LTC: Because women tend to outlive their partners (who could potentially act as caretakers), they are also more likely to end up in nursing homes than men are. In fact, more than 70% of nursing home residents are women, according to the American Association for Long-Term Care Insurance.
» Chronic conditions: Women are more likely than men to live with chronic conditions like diabetes, arthritis, dementia, depression and obesity.
» Inflation and rising medical costs: The cost of long-term care services and insurance premiums is steadily increasing, making early planning essential.
» Wage disparities: Women still earn less than men do on average, leading to less retirement savings and a greater reliance on Social Security and Medicaid.
In many ways, the data paints a bleak picture about the dual burden that women face. But the situation is far from hopeless. Financial advisors and insurance professionals who take a proactive role can help their female clients develop a financial plan that accounts for longevity, rising expenses and the potential need for professional care.
How can advisors help their female clients? There are several useful strategies worth pursuing.
Women should begin planning for long-term care as early as possible to take advantage of lower premiums and more flexible coverage options. Advisors should educate clients about:
» Traditional long-term care insurance: This type of insurance protects assets and ensures access to quality care.
» Hybrid LTCi policies: These combine life insurance or annuities with long-term care benefits, offering greater flexibility and value if care is never needed.
» Health savings accounts: Women can use tax-advantaged savings to help cover long-term care insurance premiums and other future medical expenses.
Advisors should help women incorporate longterm care planning into broader financial strategies, ensuring that retirement income plans account for rising health care costs. They should also make sure that their estate planning and asset protection strategies align with care preferences and family dynamics. Finally,
Source: Deloitte
they should ask their female clients to discuss caregiving expectations with family members to avoid unexpected financial strain.
Women often prefer a collaborative, relationship-driven approach to financial planning. Advisors who want to build trust with their clients should listen actively to their concerns, explain their options using clear terms, and provide ongoing guidance as their health care needs evolve.
Advisors should also be aware of common financial missteps that women — and sometimes their advisors — make when planning for health care expenses. These include:
» Underestimating longevity: Failing to prepare for long-term care costs can lead to added expenses further down the road.
» Misunderstanding Medicare: Many consumers mistakenly believe that Medicare will cover extended care needs. It won’t.
» Focusing on short-term rewards: Prioritizing short-term financial goals over long-term security can lead to disastrous consequences.
» Delaying LTC decisions: This can result in higher premiums or ineligibility due to health conditions.
By addressing these gaps, financial professionals can help women take control of their financial futures and navigate the challenges of aging with confidence.
Women’s financial planning must evolve to address the dual burden of rising health care costs and unpaid caregiving responsibilities. By proactively integrating long-term care insurance and comprehensive retirement strategies into their businesses, advisors can empower women to protect their assets while maintaining financial security in retirement.
For insurance professionals, this presents a tremendous opportunity to serve women more effectively by offering education, tailored solutions and long-term financial strategies that align with their needs.
Holly Westervelt, MBA, CLF, LUTCF, is vice president of sales for Krause Agency. Contact her at holly.westervelt@ innfeedback.com.
According to a recent study by Jackson National Life, there is a notable gap between individuals’ perceptions of health care and long-term care retirement costs and their overall financial preparedness, underscoring the need for better retirement planning.
Nearly two-thirds of preretired investors surveyed are underestimating their prospective health care expenses in retirement, anticipating health care expenses at least $1,220 below the $8,600 annual estimate and possibly increasing their health care risk. Additionally, only 27% of investors surveyed believe they will require long-term care at some point in their lives.
More than 60% of investors surveyed said they plan to or may consider spending down their assets to qualify for Medicaid as a long-term care funding solution but may be underprepared for the dramatic life changes that would come with spending down their assets.
Two in five financial professionals are concerned that clients will be unable to afford acceptable care, with 56% citing this as a major risk for retirees.
Concern about a market crash has increased in the first part of the year, according to an Allianz Life survey. More than half (51%) of Americans surveyed worry that another big market crash is on the horizon, up from 46% in Q4 2024. At the same time, fewer Americans feel comfortable with investing in the market. Just 26% say they are comfortable with current market conditions and ready to invest now, down from 31% in Q4 2024.
Worries about the market are leading more Americans to connect with a financial professional, with 59% saying they recently have reached out or plan to reach out to their financial professional because of concerns about recent market conditions. This is up from 51% in Q4 2024.
Many Americans face this dilemma: keep working or exit the workforce to pursue travel or hobbies. But many are doing both. Welcome to the trend of microretirement.
“Microretirement is a kind of career break or work hiatus,” said Marlene Pöhlmann, a career expert for the recruitment agency Robert Half. It’s typically taken between jobs, but for several months and not just two or three weeks — time enough to
Inflation continues to sting in America, with many people saying that elevated prices in the grocery aisles, at the gas pump and elsewhere are having a “large impact” on their finances. And of those who don’t own a home, the majority said that homeownership will never be affordable
That’s the word from Northwestern Mutual’s 2025 Planning and Progress Study, which found that more than half (51%) of U.S. adults believe that inflation will increase this year, more than double the 25% who expect inflation to decrease and the 24% who expect it to stay the same.
Furthermore, two-thirds (65%) of U.S. adults said that inflation is the dominant concern that could impact their finances this year, and more than 4 in 10 (44%) rank inflation as the No. 1 obstacle to achieving financial security.
For the second year in a row, more than half (52%) of Americans believe their household income is growing more slowly than inflation . That’s more than four times greater than the 11% who say their income is growing faster than inflation, while nearly 3 in 10 (28%) believe their income is on pace with inflation, the survey found.
71% of Americans said they expect inflation will get worse over the next 12 months.
Source: Allianz Life
travel, give your family your all or take up a new hobby.
Generation Z might find microretirement especially appealing, she said. For one thing, the working world has changed — career paths aren’t as rigid as they once were. What’s more, many Gen Zers also worry that their best years will be behind them by the time they retire.
Help clients tune out the noise and focus on their long-term investment goals. • Nicholas Breit
Entering this year, the S&P 500 Index celebrated an impressive milestone, posting gains of more than 25% for two consecutive years — a feat not seen since the late 1990s. Riding high on such remarkable performance, investor optimism was lofty, with many hopeful that the stock market rally would continue. However, 2025 has presented a more challenging landscape for U.S. equities. The S&P 500 Index fell nearly 9% from Feb. 19 to March 10 amid mounting concerns over U.S. economic growth and elevated equity valuations. Given the recent market tumult and the possibility of further volatility, how should clients respond?
Assess recent market performance and adjust expectations accordingly
To gain a better understanding for future return prospects, it can be helpful to assess the factors driving recent market
performance. Contrary to popular belief, the impressive gains in U.S. stocks over the past two years were not a case of a “rising tide lifting all boats.” An analysis by DataTrek Research revealed that, excluding the substantial contributions
from the Magnificent Seven stocks, the S&P 500 Index would have posted a price return of just 6.3% in 2024 and a mere 4.1% in 2023.
Investors should guard against the “danger of extrapolation,” as those hoping for the S&P 500 Index to continue producing such outsize performance over the next decade are likely to be disappointed.
Vanguard, in its 2024 midyear outlook, projected the possibility that U.S. bonds could outperform U.S. stocks over the next decade (in part due to “stretched” equity valuations), which would be a notable departure from years past.
Clients should regularly revisit their investment objectives, emphasizing long-term goals over short-term market trends. Investor behavior often favors immediate gains, which tends to lead to poorer long-term outcomes.
DALBAR’s Quantitative Analysis of Investor Behavior report consistently shows that the average equity fund investor often underperforms the market. This is typically due to the practice of buying at high prices and selling at low prices, which can significantly affect returns when compounded over longer periods of time.
As author Morgan Housel once observed, “If you can focus on the next five years while the average investor is focused on the next five months, you have a powerful edge. Markets reward patience more than any other skill.”
Hockey legend Wayne Gretzky reportedly remarked on his career success by stating, “I skate to where the puck is going to be, not where it has been.” Investors should adopt a similar approach, as chasing past winners is unlikely to yield consistent success. Regular rebalancing compels investors to reallocate from recent high performers to potentially undervalued investments or asset classes.
Clients with most of their assets in tax-deferred retirement accounts may rebalance with little or no tax implications. Conversely, those with substantial assets in taxable investment accounts must
consider the tax consequences (capital gains) of paring back equity exposure; U.S. stock holdings, in particular, are likely to have significant embedded gains.
One strategy for charitably inclined individuals is to gift long-term appreciated securities from a taxable account to charity. The charity receives the same monetary benefit as a cash donation, while the individual can rebalance the portfolio through the charitable gift.
“Location, location, location.” It’s a wellknown adage for real estate investing but also has important applications for an investment portfolio. Why? Strategically allocating investments among different account types can reduce a portfolio’s
One strategy for charitably inclined individuals is to gift long-term appreciated securities from a taxable account to charity.
The charity receives the same monetary benefit as a cash donation, while the individual can rebalance the portfolio through the charitable gift.
“tax drag,” thereby enhancing a portfolio’s longer-term return (this concept is frequently referred to as “asset location”).
Investors should consider how their investment portfolio is divided among taxable accounts, traditional retirement accounts and Roth retirement accounts. Instead of holding similar investments across all accounts, strategically allocate investments based on growth prospects and tax treatment.
For example, Roth retirement accounts are tax-advantaged accounts with the goal to grow assets to the greatest extent possible. This tends to favor allocation to global equities and other high-growth strategies. In contrast, traditional retirement accounts may be better suited to holding less tax-efficient asset classes, such as taxable bonds and real estate investment trusts, which produce income otherwise taxable at ordinary income rates (if held in a taxable account).
Clients with significant investments concentrated among a few individual stocks should consider the risk that that entails. Possible options for managing single-stock risk include paring back exposure (while factoring in tax consequences), gifting those appreciated securities to charity and implementing stop-loss orders. In recent years, “direct indexing” has become increasingly popular, with investors building around a few select positions to replicate the construction of an index such as the S&P 500.
Clients should evaluate their cash flow needs. Planning ahead can reduce the risk of being a forced seller at an inopportune time. Ideally, individuals should maintain a cash reserve that could cover expenses for the next three to 12 months. With short-term interest rates still at favorable levels, clients should also monitor yield opportunities. Certain money market funds and high-yield savings accounts may offer more than 4% interest, whereas traditional bank accounts may be well below 1%.
Adhering to an investment plan is crucial during periods of market stress. Investors should avoid making drastic changes to their portfolio and should instead adhere to an investment plan anchored to long-term goals, time horizon and risk tolerance.
While clients frequently feel compelled to do something amid heightened market volatility, the best course of action is often staying the course. An investment plan tailored to an investor’s specific circumstances and preferences should be capable of enduring market fluctuations. As Charles Schwab’s chief investment strategist Liz Ann Sonders often reminds investors, “time in the market” is far more important than “timing the market.”
Nicholas Breit, CFA, CFP, is partner and director of financial planning with Fiducient Advisors. Contact him at nicholas.breit@ innfeedback.com.
Ways to ensure a steady flow of opportunities while nurturing your client base.
By Gina Pellegrini
In the busy world of financial advisors, where juggling clients, meetings and administrative tasks is the norm, there’s one activity that outweighs them all: scheduling. It’s the heartbeat of an advisor’s practice yet often relegated to the back burner amid the daily chaos. Why is scheduling so crucial? Simply put, without a consistent stream of appointments, growth stalls.
Here are the six golden rules to masterful scheduling, ensuring a steady flow of opportunities while nurturing the client base. The six golden rules are:
1. Delegate scheduling.
2. Proactively work your client base.
3. Make daily outbound calls.
4. Prioritize calls to maximize impact.
5. Leave brief messages.
6. Don’t give up.
Delegate scheduling. Scheduling shouldn’t monopolize the advisor’s time. Instead, it’s a task best handled by a dedicated scheduler. With tools like Calendly, personal touch shouldn’t be sacrificed for efficiency.
A well-trained team member can handle all the calls to clients, prospects, referrals and seminar attendees. Their role is to nurture relationships and schedule appointments while the advisor focuses on being present and prepared for their meetings and building the business by asking for referrals. The scheduler is selling you, the advisor, not a product or service. And because they are in the office all day, they won’t miss a returned call. Proactively work your client base. Most advisors fall into the trap of cherry-picking their clients and prospects based on time. A structured approach to contacting every client and prospect can uncover hidden opportunities or, as I like to call it, their gold mine. By allocating time each month to proactively call prospects and clients, you will turn prospects into clients and clients into referrers.
I’m a firm believer that anyone worthy enough to be in your database should be called at least twice a year: once for a review and the other to touch base. Because the advisor is not making the calls, their scheduler can be on the phone one hour per day to get the results needed to make appointments as well as nurture future opportunities. Around the 22nd of each month, print a list of prospects and clients to be called the following month. If you pull up people by their birthday and again six months later, nobody will fall through the cracks unless you cherry-pick. If you don’t have a date of birth for someone in the database, use the month and year you first spoke or met with them, or make it today. Whatever your system, they must be called. Make daily outbound calls. Timing is key, which is why I believe 9 a.m. is the golden hour to make outbound calls. By doing so, the calls get made and people have all day to return the call. Even when you have a sizable client base, a consistent effort of 25 calls per day keeps the pipeline flowing steadily. Because the
calls are made daily, you’ll see consistency on the calendar instead of having one week full and the next one empty.
Prioritize calls to maximize impact. Not all calls are created equal. It’s easy to call existing clients to schedule reviews; however, for the most part, that’s maintaining your business with a couple of cross-selling opportunities in the mix. By strategically arranging the calls, you’ll maintain a balanced calendar with growth potential. What’s the priority? Reschedules, follow-up meetings, referrals, seminar attendees, prospects and then your existing clients.
Leave brief messages. Less is more when it comes to voicemail. Have you ever received a long-winded message and hung up before the punch line? The same is applicable to anyone in your database. Keep messages concise and to the point, sparking curiosity without overwhelming the client. A simple prompt to return the call often yields better results than a lengthy spiel.
As an example, if calling a client, most people will say, “Hello, Sally, this is Gina with John Jones. He would like to schedule a time to meet with you. Please call me at 123456. I look forward to speaking with you.” Compare that with “Hello, Sally, this is Gina with John Jones. Please call me at 123456.” If you tell them you want to schedule to meet, they may think they don’t want an appointment or they’re too busy to schedule something at the time. Less is more, and believe me, it works!
Don’t give up. Persistence pays dividends. If you’re discouraged by the lack of a response, get creative. Follow up diligently, mixing up communication channels to maintain engagement. The effort will ultimately bear fruit.
On average, most callers give up after one or two attempts. If they don’t get a return call, they give up or move the prospects three to six months down the road. Persistency pays off when you don’t give up. If you call someone on Monday, call again on Thursday and then the following Tuesday.
If there is no response, send an email. Vary the messages by sounding energetic while being persistent. The email is sent only when you do not get a return call, not in lieu of the call or after leaving a message.
Here are examples of voicemails to an existing client.
First message
Hello, Sally, this is Gina with John Jones. Please call me at 123456. I look forward to speaking with you.
Hello, Sally, this is Gina with John Jones. I know you’re busy; however, I need a couple of minutes of your time. Please call me at 123456. Have a great day.
Third message
Hello Sally, this is Gina with John Jones again. I’ve left you a couple of messages and haven’t heard back from you — are you receiving them? Please call me at 123456 so I know you’re getting my messages.
Hello, Sally, I hope this email finds you well. Yes, I’m a persistent one. I’ve been trying to reach you by phone. Does email work better?
After three calls and an email, I still wouldn’t give up. I may push them out a week and try the sequence again.
To execute these golden rules seamlessly, hire someone or elevate a key team player in your office to do the scheduling. This person needs a blend of personality, tenacity and clarity about the importance of this responsibility. It’s about selling you and the appointment versus selling a product or service.
In all the years I was making outbound calls for my advisor, I learned it was easier for me to make the calls. Why? I made the time daily, and most people on the other end of the phone were courteous and friendly. I think that’s because they didn’t consider me a salesperson, yet I was selling, selling the appointment!
Embrace the golden rules of scheduling and watch your calendar fuel the future success of your business.
Gina Pellegrini is owner of Pellegrini Team Consulting. Contact her at gina.pellegrini@ innfeedback.com.
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Billions of dollars in life and annuity blocks are being reinsured annually — many of the deals are with offshore insurance companies. And regulators are growing concerned.
BY JOHN HILTON
To be a big life and annuity player in 2025 practically requires having a hefty reinsurance partner. Having one based in an offshore jurisdiction might be even better.
The result of the flight of life and annuity blocks to reinsurers based in Bermuda and the Cayman Islands has regulators scrambling to play catch-up. It is a trend that shows no sign of letting up.
Offshore reinsurance gives life insurers more options for investing their capital, with access to increased scale and new business volumes. Transferring blocks of life and annuity policies offshore is a sharply upward trend that Fitch Ratings fully expects to continue.
U.S. life insurers have nearly doubled their ceded reserves since 2019, increasing from $710 billion to $1.3 trillion in 2023, Fitch noted in a recent report. During the same period, reserves ceded to offshore jurisdictions nearly
quadrupled, exceeding $450 billion.
It is a trend that is generating worries about fiscal soundness. Critics note that the Bermuda Monetary Authority uses different accounting methods to calculate reserves, and U.S. policyholders could be vulnerable.
“To me, it’s troubling that the regulators in the U.S. that are supposed to protect U.S.-domiciled policyholders would defer to Bermuda or anywhere else just because of a reinsurance contract with an offshore affiliate,” said Tom Gober, a certified fraud examiner with expertise in life insurance.
Bermuda does not impose corporate income tax, capital gains tax or dividend tax, making it an attractive jurisdiction for reinsurers.
Likewise, Bermuda allows the creation of alternative risk transfer mechanisms such as catastrophe bonds and
insurance-linked securities, which are increasingly popular in the reinsurance industry.
Bermuda’s regulatory framework has been deemed equivalent to the EU’s Solvency II rules, allowing companies to do business in Europe without additional regulatory burdens.
Then there are the financial reporting requirements. In Bermuda, insurance companies file under GAAP (generally accepted accounting principles) rules, Gober explained. Filing under GAAP as opposed to statutory accounting principles required in the United States means insurers can defer billions in liabilities, he added.
For example, let’s say an insurer pays $3 billion in agent commissions. Under GAAP reporting, the company is allowed to defer recognition of those expenses, Gober said, and spread it out over the life of the policies.
“The reason that really matters is
because that money is gone when you pay those agents,” Gober said. “When you pay a commission to an agent, you can’t just suddenly say, ‘Oh, we want that commission back.’”
As long as nothing unusual happens and the reinsurer isn’t needed as a financial backstop, then there’s no problem.
But “if the offshore company has far fewer [reserves] than what they need for that block of business,” Gober noted, “then under a period of economic stress, the U.S. carrier might demand its money back, and the funds won’t be there.”
Bermuda represents approximately 80% of offshore reinsurance by reserves and regulators there are trying to tighten their rules. The BMA’s 2025 business plan includes a proposal for “enhanced public disclosure requirements on investments for long-term commercial insurers.” The authority is also considering strengthening its treatment of structured products and loans.
“In our regulatory initiatives, customer protection will remain at the forefront in 2025,” said Craig Swan, CEO of the BMA. Swan could not be reached for comment.
Suzanne WilliamsCharles, CEO of Bermuda International Long Term Insurers and Reinsurers, spent 10 years as a deputy director at the BMA. The island is very concerned about global perceptions that it permits freewheeling financial impropriety, she said.
key stakeholders and policyholders of the frameworks that are in place and how robust they are.”
The Cayman Islands too Bermuda is not the only offshore home of reinsurance. The number of reinsurance companies in the Cayman Islands has grown year on year, from 58 writing $9.3 billion in 2020 to 94 writing $25.2 billion in 2024 by the end of Q3, Captive Review recently reported.
The Cayman Islands Monetary Authority found itself in the news last month after Marc Rowan, CEO of Apollo Global Management, blasted regulators for being “asleep at the regulatory switch” while “$150 billion of reserves have moved offshore to Cayman Islands with a fraction of the capital of the U.S. or the Bermuda system, putting the system at risk.”
Athene Life & Annuity, a wholly
address this issue in payments, or risking someone stepping in and usurping its authority,” Rowan said.
Perhaps not coincidentally, Greg Mitchell, chairman of the board of directors of the Cayman International Reinsurance Companies Association, joined a Life Actuarial Task Force call in March to reassure NAIC regulators.
“Under the Credit for Reinsurance Model [Regulation], we have to fully collateralize at no less than the U.S. [statutory] reserve,” he explained. “So regardless of what the reinsurer holds as an assumed reserve, we’re still collateralizing with the full U.S. stat.”
LATF is a regulatory body of the National Association of Insurance Commissioners. The task force released a proposal in February 2024 to enhance the testing of reserves supporting reinsurance deals.
The frameworks in Bermuda for transparency are very well established, but I think that there will always be this underlying offshore perception.
Suzanne Williams-Charles, CEO of Bermuda International Long Term Insurers and Reinsurers
A BMA consultation paper is specifically directed at increasing the level of transparency as it relates to the investment portfolios and their liabilities and “essentially what the companies are actually doing,” Williams-Charles explained.
“The frameworks in Bermuda for transparency are very well established, but I think that there will always be this underlying offshore perception,” she added. “So I think that Bermuda has had to work very hard to consistently remind
owned subsidiary of Apollo, remains the No. 1 seller of annuities. Athene Life touts itself as “one of Bermuda’s [l]argest annuity reinsurance companies as measured by capital base.”
In his comments made during a quarterly earnings call, Rowan challenged U.S. regulators to get a handle on the Cayman Islands.
“The state-based regulatory system, which we believe in and are being supportive of, has a choice of evolving to
“The ability of insurers to significantly lower the total asset requirement for long-duration blocks of business that rely heavily on asset returns appears to be one of the drivers of the significant increase in reinsurance transactions,” reads the proposal from David Wolf, acting assistant commissioner for the New Jersey Department of Banking and Insurance, and Kevin Clark, chief accounting and reinsurance specialist with the Iowa Insurance Division.
LATF has collected comment letters for months and hopes to have the guideline in place by the end of 2025.
Larry J. Rybka is chairman and CEO of Valmark Financial Group. His 38 years in the business nearly parallel the rise, mispricing and collapse of long-term care insurance as well as annuities with living benefits and life insurance with long-term guarantees. At the time, company actuaries argued that reserving for these different product innovations was “redundant,” Rybka noted. “Now, 20 to 25 years later, in retrospect, these reserving assumptions were not conservative enough.”
Rybka objects to the ongoing LATF efforts to create an asset adequacy testing “guideline” for offshore reinsurance agreements, calling it “window dressing.”
But Rybka and other critics say it does not even give the appointed actuary the right to require additional reserves. If the actuary finds reserves lacking, they should “reflect that in their actuarial opinion,” the guideline states.
“Essentially, if the actuary hired by the carrier thinks its boss needs to set more money aside to cover the promises made to policyholders, the actuary needs to put it in a report,” Rybka said in a comment letter to LATF. “It’s not hard to envision said report being filed away with little attention given to its ‘recommendations.’”
Meanwhile, Brian Bayerle, chief life actuary for the American Council of Life Insurers, urged regulators to give appointed actuaries “a degree of flexibility … in their assessment of the adequacy of reserves.” The actuary must align their work with the regulatory framework of the offshore jurisdiction, he noted in a comment letter.
Concerns about offshore reinsurance are not just about imaginary worst-case scenarios.
Bermuda and had reinsurance agreements with several U.S. life insurance companies.
The conduct of the parent company attracted regulators and analysts to 777 Re. Some life insurers recaptured their blocks reinsured by 777 Re.
But a pair of insurers owned by
Fitch Ratings expects the offshore reinsurance trend to continue. Booming annuity sales are a main driving force. Annuity sales increased from $255 billion in 2021 to $313 billion in 2022, $385 billion in 2023 and $432 billion in 2024, according to LIMRA’s Fact Tank.
Regulators are actually living the worst case with 777 Re, the Bermudabased reinsurance arm of 777 Partners. The Miami-based 777 Partners faces multiple lawsuits alleging financial improprieties. Notably, Leadenhall Capital accuses the investment firm of fraudulently borrowing hundreds of millions of dollars against nonexistent or doubly pledged assets.
The U.S. Department of Justice issued criminal subpoenas to employees of 777 Partners as part of a money-laundering investigation. Additionally, the firm has been accused of financial misconduct, including fraud and having unpaid debts. Subsidiary 777 Re is based in
Regulators are actually living the worst case with 777 Re, the Bermuda-based reinsurance arm of 777 Partners.
The Miami-based 777 Partners faces multiple lawsuits alleging financial improprieties.
Advantage Capital Partners, known as A-Cap, saw significant impact from its connection to 777. Utah and South Carolina regulators banned Sentinel Security Life Insurance Co. and Atlantic Coast Life Insurance Co., respectively, from writing new business after Dec. 31, 2024.
The two state insurance departments worked together throughout 2024 piecing together the assets and financial strength of the insurers. That led to disputes over valuations, which were argued in administrative law courts in both states.
Both Sentinel Security and Atlantic Coast are writing business, but the case is far from settled.
Within this business environment, however, the rating service has concerns about “unsustainable growth,” or insurers growing much faster than the industry.
“That can be an indicator of insurers potentially sacrificing profitability for top-line growth,” said Jamie Tucker, senior director and life insurance sector head for Fitch Ratings’ North American Insurance Ratings Group. “If someone’s motivated to grow, they could offer the highest credited rate and perhaps easily grow that top line. But over time, that’ll be reflected in the financials.”
Meanwhile, the National Alliance of Life Companies is concerned that its members, more than 50 small and midsize life insurers, could be squeezed out by the push for heavier regulations on offshore reinsurance.
“Smaller and midsize insurers operate with leaner resources compared to larger market players,” wrote Scott Harrison, CEO of NALC, in a letter to LATF. “The guideline introduces significant additional overhead costs needed to perform asset adequacy testing for ceded business.”
The additional cost of regulation would impact other parts of the business and increase the costs passed on to the consumer, Harrison added.
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 X @INNJohnH.
By Elie Harriett
The clients we help by planning for a safe and financially secure retirement are most vulnerable after they reach the age of 65. This is when, for most people, incomes drop and financial risks associated with health care expenses grow substantially. Decades of financial planning begin to pay off, but if those plans don’t consider health care as a vital piece, the entire puzzle may fall apart.
Medicare planning should not be an afterthought. Plugging any leaks in health care is essential to ensuring that your clients’ plans are not disrupted, because at age 65 and older, they will not have time to recover if large expenses arise. There is no financial stop-loss with Medicare, so debts can mount quickly when a medical catastrophe occurs. A lifetime of financial planning can be undone by one bad diagnosis, potentially impacting your client’s quality of life and care options as well as the financial well-being of your client’s spouse, children and future generations.
When it comes to health care in retirement, your clients will have three options to protect themselves and their families’ finances. First, they may have a retirement group health benefit (or a workplace benefit if they are still employed). It is important to evaluate these plans because they may or may not be the best solution. Calculating our clients’ premiums plus out-of-pocket costs and comparing those to private-market options sometimes yields surprising results. Even outstanding workplace benefits packages for people under age 65 are not always best for those over 65.
The other options involve replacing or supplementing Original Medicare
(Parts A and B). Medicare Part A results in a series of recurring deductibles and copays, sometimes amounting to thousands of dollars. These expenses may come multiple times in a year if your client has significant health care needs. Medicare Part B, more or less, leaves a beneficiary with 20% of the remaining unpaid medical costs. But there’s no maximum out of pocket, so 20% for a healthy person can be pocket change, while 20% for a person undergoing cancer treatment (as an example) can be hundreds of thousands of dollars. This is the reason insurance exists and why financial planners recommend insurance to cover these holes.
The second option, a Medicare supplement, often referred to as “Medigap” coverage, helps pay expenses like copayments, coinsurance and deductibles that regular Medicare doesn’t cover. These are policies only available to people who have both Medicare Parts A and B. It is important for clients to understand that each of the 10 different types of Medigap policies, called Plans A through N, offers different benefits and levels of coverage. However, each of the plans is standardized in most states, so coverage under a specific plan is the same no matter where the client buys it.
The third option is a Medicare Advantage plan, which avoids Medicare’s charges but comes with the insurance company’s copays and limits instead. These plans are offered by private insurers. They replace the cost-sharing of Original Medicare and may also offer additional coverages, such as vision, dental or hearing.
Each option has its own merits, and there’s no “correct” option for all, but there is a correct option for each person based on their financial comfort level and health risk tolerance. But regardless, no one gets health care for free. They still pay something; it’s just a matter of when, where and how much.
Finally, the cost of prescription drugs can throw a wrench into a finely crafted retirement health care plan. I generally tell clients to be prepared for annual costs of up to $2,000, although we hope those costs will be less.
Planning to cover health care expenses in retirement is complicated, and it’s something most people should not tackle on their own. If it’s not done effectively, unexpected expenses can derail decades of otherwise good financial planning, drain your clients’ retirement savings and leave them feeling disgruntled that their financial professional failed to account for the health care risk. Not every financial professional needs to be a Medicare expert, but we must understand how health care costs can impact retirees. And it’s a good idea to have someone in your referral network who can help your clients with their Medicare planning.
Elie Harriett, ChHC, has been a NAIFA member since 2004 and currently serves on the NAIFA National Government Relations Committee. He is the co-owner of Classic Insurance & Financial Services in Mansfield, Ohio. Contact him at elie.harriett@ innfeedback.com.
The Canadian individual life insurance market is shifting toward larger policy sizes and higher premiums.
By Matt Rubino
Arecent LIMRA study found 57% of Canadian adults say they have life insurance coverage. Although this is three points higher than the results from a similar study conducted by LIMRA in 2019, 30% of Canadian adults say they live with a coverage gap. Understanding the product market trends may help the industry focus on the products that will have the greatest success and help more Canadians get the coverage they need.
The life insurance market in Canada expanded 7% in 2024 to a record-high $2.04 billion, largely driven by strong whole life and universal life new premium. Over the past five years, independent distribution market share has expanded to 85%, up from 81% in 2020. This shift has come from career agents, who made 14% of sales, down from 19% in 2020.
Another shift in the Canadian individual life insurance market is toward larger policy sizes and higher premiums. Some of these larger policy sales are occurring as several carriers intentionally focus their efforts on high net worth consumers. Advisors also seem to be shifting toward a more affluent clientele.
Sales in Canada are heavily focused on participating whole life, which represents more than 60% of total market share. Consumers often choose participating whole life products because they are permanent, and the cash value component available for loans also makes this product attractive to consumers. Advisors appreciate participating whole life products because they are often part of a larger retirement strategy and provide greater tax benefits to clients.
Overall, whole life premiums increased
10% to $1.4 billion in 2024, continuing a growth trend for this product line that has persisted since 2019. These products have been buoyed by both ongoing popularity and several companies introducing enhancements or new products throughout the year. This product line is likely to remain the primary source of premium in 2025 as the new products and enhancements introduced in 2024 continue to gain popularity and companies continue to vie for market share in participating whole life products. At the same time, the market for whole life insurance in Canada is extremely consolidated, with the top three companies reporting nearly 70% of all new whole life sales.
Term products, a mainstay for middle-income and younger consumers, account for the majority of new policies, with 53% of new policies being some form of term life insurance. Sales in 2024 were $372.5 million, down 2% from 2023 results. Historically, these products have grown at small, relatively stable rates from year to year.
During the portion of the COVID-19 pandemic with the strictest safety measures in place, term became the simplest product to sell when advisors could no longer meet their clients face to face, and as a result, they had some higher than usual sales growth.
Since the end of 2020, however, term has yet to regain its momentum from before the pandemic and yearly growth has been flat to low. Companies have gone through several rounds of repricing recently. Some of term’s sluggish growth may be a result of advisors and consumers sitting on the sidelines until the dust settles.
With economic conditions in flux, expectations for the Canadian life insurance industry in 2025 are difficult to quantify. It is likely that carriers will continue to compete for market share by enhancing their participating whole life products or focusing selling efforts on these products. However, while the individual life industry has trended toward growth over the years, the current and coming political and economic climate could deeply affect the industry.
Matthew Rubino is a senior research analyst with LIMRA’s Individual Product Research. Contact him at matthew.rubino@innfeedback.com.
Transparency and education are the keys to building trust with female clients.
By Juli McNeely
Women are taking control of their financial futures like never before. A 2024 Bryn Mawr Trust study revealed 99% of women report being involved in their financial planning. This finding demonstrates a powerful shift in the dynamics of wealth management. Women are no longer just overseeing household budgets, but also are making strategic investment decisions, building long-term wealth and reshaping the economy. As women embrace greater financial leadership within their families, advisors must be equipped with the right tools to address the unique needs and goals of female clients. From helping women understand the rationale behind advice to finding the best communications methods, here is my advice on how to create trusting, long-term client relationships with women.
Women, like any other group, have distinct financial perspectives and priorities that influence how to effectively engage and counsel them. My female clients typically value security, often adopting a more conservative approach to their finances with a lower risk tolerance than male clients. As a result, women seek advisors who provide not only expert guidance, but comprehensive education on topics such as savings, investments, budget planning, retirement and more. Simply presenting advice without explanation in a “Here’s my recommendation, sign here” manner rarely resonates. Women appreciate understanding the reasoning behind the suggestions and feeling empowered to seek clarification on unfamiliar concepts.
Invest time in cultivating genuine rela tionships with clients while discovering what strategies and tactics work to help them comprehend the financial advice. Personal finances are among the most private and intimate aspects of one’s life, making it difficult for many to share the details, even with professionals. A tailored approach where the client feels the advisor is making decisions with them and not for them is key.
While women are taking on more prom inent roles as financial decision-makers, advisors need to address potential challenges from past dynamics. For example, according to a 2024 Thrivent survey, 70% of new widows fire their financial advisors within the first year after their spouse’s death. This often reflects a lack of trust or insufficient support from their advisors during a critical life transition. Advisors must actively listen to women and ask insightful questions to understand their emotional state alongside their financial needs. Making assumptions will leave women feeling neglected or unheard.
Exercising patience is vital with female clients in all periods of life, but particularly with those undergoing a major change. It is important to encourage female clients to take ownership of the financial decisions they may have once made with a partner, such as adjusting retirement savings or handling investments, without pushing those who may not be ready. Allow them time they need to process the advice.
According to the CFP Board, Women represent only 23% of Certified Financial Planners. Increasing female representation in the field broadens the talent pool, helping clients of all genders find a better fit for their financial needs. In my experience at my primarily female firm, I’ve seen how female clients thrive when working with female advisors. Actively recruiting
women is essential to supporting female clients on their financial journeys, and it’s also a substantial business opportunity given women’s growing financial influence; bridging this gap benefits everyone. Although many female clients appreciate the unique support offered by female advisors, particularly their empathy and nurturing communication style, it’s important that all advisors are equipped to serve this growing demographic of women in wealth. I encourage male advisors to collaborate with a trusted female colleague to seek their insights and recommendations on how to most effectively serve this rapidly growing market.
The time to invest in women, both as colleagues and clients, is now. As the industry continues to evolve and women accumulate unprecedented levels of wealth, firms that fail to adapt in ways that support women will fall behind. Those who recognize and act on this opportunity will come out as industry leaders and help shape a more inclusive financial landscape for generations to come.
Juli McNeely, CFP, CLU, is an 18-year MDRT member and co-owner of Financial Clarity by Design. She is also the author of No Necktie Needed: A Women’s Guide to Success in Financial Services. Contact her at juli.mcneely@innfeedback.com.
Resilience is nothing short of a superpower, and it is one that Finseca is dedicated to conferring on every American.
By Maggie Seidel
Aclose friend of mine experienced an unexpected financial crisis last year. She had followed all the right steps — worked hard, saved diligently, invested wisely and lived responsibly. But life can be unpredictable. When her husband was unexpectedly diagnosed with a severe illness, everything changed. The emotional toll was overwhelming, and the financial strain made it even worse. A significant portion of their household income disappeared overnight, and mounting medical expenses — many not covered by insurance — threatened the future they had carefully built together.
My friend’s situation is not in any way unique. I am sure we all know someone who has had to face an unanticipated
financial crisis. And I am equally sure we have noticed that some people are markedly more successful than others in dealing with such crises. Some seem to be more resilient than others.
But what does that actually mean? Resilience in this context is not a character trait, like courage (although courage is part of it); nor is it simply an attitude, like optimism (although optimism is the foundation on which resilience is built). Resilience is how a tree is able to withstand a hurricane; how Thomas Edison, perhaps America’s greatest inventor, persevered through 10,000 failed attempts to create a practical electric light before finally succeeding. Resilience is nothing short of a superpower, and it is one that Finseca is dedicated to conferring on every American.
Financial resilience gives you the ability to withstand and recover from financial shocks. What is more, financial resilience is not a luxury reserved for the wealthy; it is a fundamental necessity for individuals and families at every income level.
And most important, financial
resilience is not just about how much you have in the bank — it also is about having a comprehensive, holistic plan that ensures security and stability today and tomorrow and that empowers you to navigate life’s inevitable uncertainties. In short, it’s not just about planning for a rainy day; it’s also is about preparing for the storms you cannot see coming.
Every generation seems to believe that it is living through the times of greatest disruption and uncertainty. As humans, we seem to be hard-wired to perceive reality that way. Nevertheless, the past few years make a strong case for our world being particularly fraught with violent change. We have traveled through what feels like the perfect storm of disruption — from a global pandemic to rising inflation, and from supply chain chaos to the stunning, sudden impact of artificial intelligence and other transformative technologies. And frankly, things have not become any smoother.
My takeaway is that the world is unpredictable and will only get more so. But your financial security shouldn’t be. And in our ever-changing world, financial resilience is more than just a buzzword. It is a lifeline.
At Finseca, we believe that creating a holistic plan is the single best way to build strong financial resilience. Traditional approaches, such as focusing solely on investment returns or short-term financial goals, are no longer sufficient. What is needed is big-picture thinking that considers the full spectrum of an individual’s financial life, from budgeting and debt management to risk mitigation and long-term planning — and the ability to connect the dots and see how all aspects of a financial plan translate into freedom, security and peace of mind.
This is what a financial advisor can provide.
Traditionally, people tend to think of financial advisors as stock pickers or
investment managers. In reality, good financial advisors are so much more. They provide not just knowledge but the wisdom, perspective and strategy that no amount of Google searching or DIY investing can match.
An advisor is like your personal financial GPS
We have all come to rely on our phone’s GPS to get us to our destination. Consider that a financial advisor is like your own personal financial GPS, able to tell you where you are, how you got there and most importantly, the best possible route to where you want to go. Your advisor is your navigator, knowing the terrain and the traffic flow, able to predict delays, guiding
state of affairs, at Finseca we believe that financial professionals are key to improving this statistic.
As noted earlier, skilled financial advisors do far more than simply manage investments; they serve as educators, planners and advocates, helping their clients navigate a complex financial system, avoid costly pitfalls and achieve their desired long-term goals.
In fact, if we think of financial advisors as educators, the holistic plan that they develop with a client is essentially a dynamic and comprehensive syllabus for lifelong financial learning. You don’t have to take my word for it, though; independent research from Ernst and Young proves it.
Consider that a financial advisor is like your own personal financial GPS, able to tell you where you are, how you got there and most importantly, the best possible route to where you want to go.
you past obstacles, alerting you to speed traps, helping in every way to make your journey to financial security as smooth as possible.
When challenges arise, as they inevitably will, your advisor is your financial first responder, confronting your challenges with courage and expertise, protecting you and yours from danger, guiding you through difficult situations, rescuing you if necessary.
One thing that makes the role of the financial advisor even more critical is the startling fact that so many Americans do not consider themselves financially literate. According to a study from the Global Financial Literacy Excellence Center, only slightly more than half of U.S. adults say that they are financially literate. And there are real-world consequences, with the National Financial Educators Council estimating that this illiteracy cost Americans annually an average of $1,819 per person in 2022. Although governments and educational institutions have obvious roles to play in improving this
In a 2022 white paper, EY estimated that in just five short years, by 2030, there will be a $240 trillion retirement savings gap and a $160 trillion protection gap. We see those dire statistics not as inevitabilities but as challenges. We are fiercely determined to help Americans at all income levels, at every stage of their lives, have the secure financial futures they deserve.
Building financial resilience in an era of economic uncertainty is not just a goal; it is a necessity. It is not just an individual responsibility; it is a societal and generational imperative.
The best time to start planning for financial resilience was yesterday. The second-best time is today. You can’t afford to wait for a crisis before you act. The time to act is now.
Maggie Seidel is the executive vice president of external affairs and chief of staff at Finseca. Contact her at maggie.seidel@ innfeedback.com.
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Life insurance settlements might just be one of the most underutilized programs for your clients. If you’re not offering them, you’re missing a huge opportunity—and you could be letting clients down. Don’t let them surrender their policies for just cash value when they could be receiving 5-8x more.
Life insurance settlements are no longer just an option; they’re essential in financial planning.
Every year an astounding $100 billion+ in face value of life insurance is lapsed or voluntarily surrendered by seniors, mostly because they are unaware of alternatives, including the sale of the policy.
You need to offer life settlements.
· Average payout — 5 to 8 times more than the policy’s surrender value
· Free, non-binding appraisal — no strings attached, just a quick, accurate valuation of your client’s policy
· Regulated by 45 states — 100% legal, secure, and fully compliant
· No restriction on proceeds — Fund healthcare/long term care expenses, supplement retirement savings and more
· More revenue streams — opportunities for additional sales like annuities and assets under management
Your clients receive more money. You can earn commissions, unlock new sales opportunities. And, you’re providing real value to your clients. It’s a no-brainer in many cases.
The Life Insurance Settlement Association is the oldest and largest organization with over 30 years of experience. We believe in representing the needs of life insurance policy owners and are proud to serve as a leading voice in the industry.
