Insurable Interest Canadian Insurance Blog

Employees benefit with more voluntary benefits, analysts say. New annualized premium for voluntary insurance products totaled $7.2 billion in 2018, a 3% increase from 2017 sales results, according to LIMRA’s U.S. Worksite/Voluntary Sales Study. LIMRA defines voluntary benefits as insurance products available at the workplace that are 100% funded by the employees. According to LIMRA research, since 2010 the percent of employers offering voluntary benefits as part of their overall employee benefits package has increased 11 percent. “With five different generations in the workforce today, a one-size-fits-all approach to benefits is no longer a viable option,” said Anita Potter, assistant vice president and director Workplace Benefits Research, LIMRA. “Voluntary benefits provide employers with a solution that allows them to meet the increasingly diverse needs of their employees and their families.” In the fourth quarter 2018, new voluntary life insurance premium jumped 8%, compared with prior year. For the year, voluntary life insurance products rose 3%, with substantial increases in accidental death & dismemberment and whole life product sales offsetting declines in voluntary term, UL and VUL sales. New voluntary health insurance premium fell 3% in the fourth quarter but ended the year up 3%, compared with prior year results. For...

Many uncertainties exist when it comes to planning for retirement. LIMRA Secure Retirement Institute research finds the top goal for American pre-retirees is to have enough money to last throughout their retirement. Owning an annuity can help them achieve this. As Americans turn 65 at a rate of 10,000 a day, it is not surprising that annuity sales have increased over the past year. In 2018, total annuity sales were $233.7 billion, increasing 15% from 2017 sales results. Fixed annuity products drove this growth, totaling $133.5 billion, 27% higher than the prior year and an all-time high for fixed annuity sales.LIMRA SRI analysis shows that a majority of these trends will continue over the next few years. In our report, “A Future View of Annuity Sales — Overall Individual Annuity Market Forecast 2019-2023,” we predict the fixed annuity market will continue to thrive. We are forecasting fixed annuity sales to reach $180 billion by 2023, representing more than 60% of total individual annuity sales. Understanding the needs and financial priorities of buyers is critical when selling annuity products. LIMRA SRI published a study of recent annuity buyers, comparing the age, contract size and types of products of individual annuity owners...

There are two kinds of freedom in life: time and financial. Both are dependent on one another. Financial professionals can achieve autonomy, which is a fundamental component of success, through strategic time management. A healthy work-life balance can make all the difference when you work in a demanding industry. It can lead to enhanced productivity, higher revenue and greater personal satisfaction. Streamline Your Time On average, I take one to two weeks of vacation per month. The organizational skills I acquired from The Strategic Coach, Dan Sullivan, enable me to complete my responsibilities in a highly productive timeframe so that I can enjoy ample time away from the office. If you struggle to manage priorities and want to enhance your efficiency, consider organizing your days into three categories. Your focus days should be your money-making days in which you actively meet with clients and enact their financial objectives. Buffer days are those that are not directly tied to profits, but involve necessary obligations such as meetings with lawyers, bankers, accountants and other professional partners. Your free days are then yours to spend as you wish. Color code your day planner to hold yourself accountable to the division you establish for...

We know what we must do to achieve great success in this business: acquire a lot of expertise, work hard and always put the client’s interest above our own. But sometimes, it’s the little things we do that make a big difference and help guarantee our success. For example, the other day, I heard this from one of my clients, an advertising executive: “Barjes, next time you come to my office, please do not wear a suit. You look like someone from the IRS and it weirds people out.” But I still remember the days when wearing a suit every day to see a client was considered “professional.” The thinking was that not wearing a tie or a jacket, or maybe wearing a pair of chinos, was too casual for a meeting. However, as most of us know, wearing a high-end suit doesn’t denote professionalism. What does show professionalism is being presentable in the eyes of your client, and understanding their goals and objectives. Discussing insurance and other financial issues can be an uncomfortable experience for many consumers. When they feel comfortable with you, it will be easier for them to discuss these topics. Because of this, I’ve made it...

To grow your business, you will want to make more presentations to make more sales. You notice I didn’t say you have to “close” more business to make more money. Why? When we focus on our closes, we are chasing the commission, not building our business. We are trying to close “I want to think about it,” “I don’t have the money right now,” “I need to talk to … .” We focus on the close because we are hungry for the commission, we have already spent our time with the prospect, we believe our solution is what’s right for them and, well — if they would only trust us, we would be able to help them! So how will doing more presentations help us build our book of business? To make a presentation, we need a prospect to present to. To get that prospect, we need enough leads to get an appointment. To get the appointment with the lead, we need a script that will get us the appointment. 1 It’s not what you say, it’s how you say it. Many salespeople spend a lot of time and energy on what to say — the words, the script, the...

The lush green all around you, the birds chirping, crisp air and the familiar crunch of sticks under your feet. Is there anything more tranquil than a walk in the woods? How about a longer, more demanding and cathartic hike to detox from the monotony and hassles of everyday life? Not only is hiking aesthetically pleasing and a great outlet for stress, hiking can make you happier and healthier. Blazing the trail is a great way to log some serious cardio, while lowering your blood pressure and cholesterol. Additionally, regular physical activity substantially reduces the risk of dying from heart disease and decreases the risk for colon cancer and diabetes. Hiking also helps to control weight; contributes to healthy bones, muscles and joints; helps to relieve the pain of arthritis; reduces symptoms of anxiety and depression, and is associated with fewer hospitalizations and physician visits — not bad for a walk in the woods! If you’re looking for a hobby that also boosts your brainpower, look no further. Hiking has been shown to increase attention span and creative problem-solving skills by as much as 50 percent, according to a University of London study. This is a result of not only...

When it comes to making educated choices about their retirement plans, many employees don’t know where to start. Since there are many different investment options to choose from, they often decide on investments that appear safe and familiar — but is familiarity really the best investment strategy? Retirement plan participants often want to invest more conservatively as they grow older. For investors seeking safety, liquidity and yield, many plans recommend investing in a money market fund. Traditionally, this makes sense: Money market funds are familiar, and they offer low volatility and slow, dependable gains. However, despite their popularity, money market funds aren’t necessarily the best fit. They do not always guarantee safety of principal or interest, as their rate of return fluctuates daily. In addition, they do not always ensure a stable rate of return — in fact, even negative returns are possible during harsh economic periods and financial crises. This was the case in the last economic recession, where the government had to step in to protect money market fund shareholders under the Treasury Temporary Guarantee Program. The occasional volatility of money market funds means they are not always the best investment choice for customers looking to retire in...

Mental illness is taking its toll on the American workforce. Benefits providers and disability insurance carriers are paying attention. One of the top causes of worker disability in the U.S. is mental illness, with 62% of missed work days attributed to mental health conditions. In addition, 42% of employees who have a mental health issue say they have come to work with suicidal feelings. Unum released these findings as part of their report, “Strong Minds At Work,” which shows the prevalence of mental illness in the workplace, and the factors triggering mental health issues. Among the key findings: Of workers diagnosed with a mental health disorder, 67% suffer from anxiety disorder and 66% have been diagnosed with depression. More than half (55%) of working adults said their employer did not have, or they were unsure whether their employer had, a specific program, initiative or policy in place to address mental health. 62% of employees said they experienced a period where they felt mentally unwell. Despite these percentages, workers are often afraid to seek help, the Unum study showed. More than 60% of employees believe there’s a social stigma in the workplace toward colleagues who have mental health issues, and 81%...

It’s a choice many people face when they hit retirement age: Keep their funds in a lump sum “nest egg” or put some of that money into a vehicle that provides them with guaranteed income for life. LIMRA research indicates more people are receptive to the guaranteed income option, but certain consumer segments are more receptive than others. Having enough money to last a lifetime was the major goal across all financial segments in a recent LIMRA Secure Retirement Institute survey of pre-retirees and retirees. In addition, as many as one-third of pre-retirees said they fear running out of money in retirement. Yet, despite these concerns, less than half (47%) of Americans said they would be willing to convert at least part of their assets into a guaranteed lifetime income stream. Thirty percent of pre-retirees and retirees said they would be interested in this option. But these somewhat low percentages mask the fact that a strong majority of consumers across all income groups agree that having guaranteed lifetime income gives people peace of mind in retirement. In addition, when presented with a hypothetical choice at retirement between guaranteed income and a lump-sum amount, more than half (52%) of pre-retiree and...

Since the National Association of Insurance Commissioners adopted Actuarial Guideline 49 in 2015, the way indexed universal life is sold has changed drastically, but not necessarily for the better. The original regulations are being reexamined, so the future of IUL hangs in the balance once again. Don’t get me wrong, I do believe that setting uniform illustration standards to curtail misleading sales practices is necessary. However, AG 49 was really born from dueling opinions between insurance companies that believed in IUL and those that were staunchly against it. The original regulations were merely an exhausted compromise after rounds of saber-rattling and laborious deliberations. Although AG 49 clearly states that its purpose is to “aid in client understanding,” I believe that the first wave of regulations actually hurt client understanding more it than helped. As a practicing agent who takes an educational approach with clients, I can tell you first hand that explaining the true essence of how IUL works is much more difficult now than it was before. You see, during the heat of the AG 49 battle, some of the key educational reports inside older IUL illustrations ended up as casualties on the cutting-room floor. Here are the three...