LifeHealth.com : Life Insurance

Featured Stories:
Shapiro: Client Retention Strategies
Only 39% recall opportunity to buy life insurance
Shapiro: What Life brokers can expect in 2012
Heslin: Making a case for fixed GUL
Ernst & Younf 2012 outlook: Uncertainty persists
Traditional life insurance has new appeal to the young
Joyce: ID Theft: Consumers need to step it up to curtail this epidemic
54% of serious shoppers bought life insurance over past 2 years
Whole Life propels overall life insurance growth
Shapiro: Strategies for retaining top clients

Strategies For Retaining Top Clients

Consumers buy as many as six life insurance policies in a lifetime,

many from different advisors

By Kenneth A. Shapiro
Kenneth A. Shapiro is president of First American Insurance Underwriters, Inc., a national life insurance brokerage firm based in Needham, Mass. He can be contacted at 1-800-444-8715 or kshapiro@faiu.com.

If there's a dark side to life insurance sales, it's the unavoidable fact that we make a sale and move on. Once they buy, we abandon them. To make the point, experience suggests that many clients buy five or six life policies in a lifetime, many of which are from different advisors. While there may be exceptions, this seems to be the pattern.
To put the matter as bluntly as possible, just when we think we're moving forward, it's quite possible that we may be going in the opposite direction. It's easy to focus on the next client and forget about those who have already put their trust in us.
Early on, I realized that life insurance was a relationship business. I talked about building relationships, but I didn't always do it. Making the sale was all-important. I began to wonder why some of my clients weren't seeking me out when they had a need. That changed, once it hit me that my future rested with relationships.
Here's the crux of the matter: if relationship building is a core value for life insurance producers, what does that mean? Perhaps the most practical way to understand it is to quantify it. Here are some of the components:

1. Take time to understand their concerns, objectives - and needs. Before passing this off as 'ridiculously elementary,' just think how many times you've reviewed a new client's existing life program and wondered how an advisor could have sold them a policy that was so clearly off target in terms of their needs. There just may be an advisor out there who is thinking the same thing when they review your work.
Uncovering what a client wants to accomplish or worries about has value because it leads the astute advisor to the need factor. At the crucial point of recognizing what a client is really saying a producer's expertise comes into play. 'To get you where you want to be with your retirement,' a producer might say to a client, 'Here are the steps we need to take and here are my recommendations.'
The producer's unspoken message to the client is clear: "I hear what you're saying and we're going to work together to create the future you want."

2. Be proactive in providing your clients with useful information. There's no more effective way to earn your client's continue trust than being a valued resource.
Every client has unanswered questions about their future and connecting with questions is an advisor's key role. For example, every Boomer has questions about healthcare and long-term care, in particular. Would they welcome information about the new hybrid or blended life products that include provisions for long-term care? Such flexibility has a strong appeal because it avoids having two policies. If you don't provide the information, someone else will.
Whether it's with a simple newsletter or regular eBulletins, you can keep them informed. You can also invite small groups to a breakfast or luncheon, making it clear that the purpose is educational. You may want to invite an elder law attorney or a CPA to speak and answer questions. Succession planning makes an excellent subject for a business owners' seminar.
The goal is to let your clients know that you care about them and that's what being a valued resource is all about.

3. Build deeper client relationships. It's easy to talk about having 'a good relationship' with clients. Yet, the word 'relationship' is often little more than a high level abstraction like love, patriotism or hard work. We all have our own definitions of what the words mean.
As producers, making the words we use concrete can help us become better salespeople. Take the word 'relationship.' Having a good relationship with clients is quantifiable:
Do you know their hobbies and special interests?
- Where do they go and what do they do on vacations?
- How aware are you of an 'issue' in their lives?
- What do you know about their 'dreams'?
- What do you know about their family?
- Do they turn to you when they want to speak with someone they trust?
- If they happen to enjoy wine, what are their favorites?
- Do they have sports' interests? If so, what are they?

Just saying we have a good relationship with clients isn't enough; it needs to be filled with specific content. If it isn't quantified and made specific, a client may not feel a bond with you.
This is why client appreciation activities can help you foster relationships, whether it's social events such as dinner parties, wine tastings or golf outings, you are sending the message that you care.
Nothing is more important today to be visible to clients. If they sense you only see them when you want to make a sale, you will find yourself sending the wrong message.

4. Continue to educate yourself. Any producer who has been in the life insurance business for 10 or 15 years knows that the business has changed dramatically in terms of products, client expectations, regulations and tax issues. When you think about it, it requires an enormous amount of current knowledge to serve clients properly.
Unfortunately, too many producers have fallen behind and are not taking steps to catch up. The consequences of lagging behind are enormous. Here are a few red flags that can serve as a wake up call:
- Another agent enters the picture with solutions that are more attractive to the client.
- I tend to avoid getting involved with the more 'difficult' cases.
- I often suggest term products when I am not sure about making other recommendations.

You don't want a doctor who does not keep current, which is why patients check on physicians before they make an appointment. Your top customers and prospects are no different. They talk to their peers, people they trust, for recommendations. That's the number one source of referrals for advisors who excel in their work.
Whether it's attending seminars and workshops, taking part in webinars, aligning yourself with a one-on-one coach, seeking out a study group where you feel comfortable or having a relationship with a brokerage firm that offers support resources, the opportunities are there for the asking. If you see you're not getting the results you want, move on. There's too much at stake, not to increase your value to clients.

If you don't stay current, your practice will suffer.
While it's important to know the right people, that's not enough in itself. Retaining top customers and attracting high-level prospects is more demanding than ever and that's why these four strategies are the critical components of building a highly successful practice.

Only 39 Percent of U.S. Households

Recall Opportunities to Buy Life Insurance Over the Past Two Years

LIMRA identifies an emerging market: Single Moms

WINDSOR, Conn., - Despite a broad array of ways to buy life insurance, in person, by phone, by mail, through seminars, at the workplace and online, LIMRA's 2011 Life Insurance Buyer/Nonbuyer study found that only 39 percent of U.S. households recall having an opportunity to buy life insurance in the past two years.

"This phenomenon is especially true for single people, a growing segment of the population because of a decline in marriages and an increase in divorce during the past few decades," noted Cheryl Retzloff, senior research director, LIMRA Markets research. "Only 26 percent of single people recall having an opportunity to buy life insurance (compared to 74 percent of married people). We also found that those singles who did recall having an opportunity to buy life insurance are almost as likely to buy life insurance as married households (51 percent versus 58 percent). Companies could grow their life business by more aggressively pursuing this untapped market."

Earlier this year, LIMRA uncovered another growing market: single mothers. Having children is a key reason people start shopping for life insurance and a recent LIMRA study found single mothers have unmet life insurance needs. One third of single mothers who are the primary wage earners in their families had no life insurance coverage at all. And even single mothers with life insurance coverage are underinsured: Two thirds felt that their families could not cover everyday living expenses for much more than a few months should they die.

Online Shopping Less Effective
The study found that twice as many households shopped for life insurance in 2011 as in 2003 (22 percent versus 11 percent). But fewer households that shopped bought in 2011 than bought in 2003 (54 percent versus 70 percent). The eight years between the two studies have seen tremendous growth in opportunities to buy online and probably in consumer awareness about the ability to buy life insurance online. These online opportunities may be the main reason more households report shopping for life insurance in 2011. Online opportunities may also be why fewer households bought after shopping. Shoppers who shopped only online were considerably less likely to buy (36 percent bought) than were shoppers meeting face to face with sales reps (74 percent), or even those dealing directly with insurance companies or sales reps without meeting face to face (67 percent).

Who is more likely to buy?
There were only slight differences separating buyers and nonbuyers in regard to age, household income, and marital status. As noted, the key differentiator between those who buy life insurance and those who don't is whether they have children under age 18 in the household. Almost half of buyers have children in the household, compared with 38 percent of nonbuyers. Not only does having or adopting a child trigger households to shop for life insurance, it motivates them to buy: Seventy-three percent of households that shopped for life insurance because of births or adoptions actually bought policies.

Nonbuyers comprise two segments, the 70 percent who are still deciding whether they will purchase and the 30 percent who have already decided not to buy. Only 14 percent of nonbuyers actually decided they did not need life insurance and would definitely not buy.

LIMRA's research indicates that following up with prospects who had investigated or inquired about life insurance is extremely important, whether that inquiry was face to face, on the telephone, through the mail, or online. About one fourth of each generational group and middle- and high-income households' most important reason for not buying was because they were still shopping.

"There are clearly opportunities for insurers to reach out to underserved segments of the population, like single people, who are in need of life insurance," Retzloff said. "In addition, insurers and producers need to be cognizant that some life insurance shoppers, especially those under age 46 who have dependent children in the household, may be slow to make a decision and may need someone to help them make the final decision to move forward and buy."

About the Study:
LIMRA's U.S. Life Insurance Buyer-Nonbuyer study looked at the life insurance shopping experience from the consumer's viewpoint and how consumers' experiences during this shopping process influence whether they will buy or not. LIMRA surveyed only those consumers who 'seriously shopped' for life insurance. There were 6,666 households that seriously shopped for life insurance, 3,581 bought and 3,085 did not buy after shopping. The results were weighted to represent the U.S. population.

What Life Insurance Brokers Can Expect in 2012

A new year should bring more than just a new start for old habits

By Kenneth A. Shapiro
Mr. Shapiro is president of First American Insurance Underwriters, Inc., a national life insurance brokerage firm based in Needham, Mass. He can be contacted at 1-800-444-8715 or kshapiro@faiu.com.

Whoever said, 'Many people look forward to the New Year for a new start on old habits,' may have got it right. While beginning a new year may be little more than a faint line in the sand, it can be useful for adjusting old business habits and assumptions. While most future gazing is only slightly less successful than trying to understand teenage behavior, here are four significant signposts that deserve life insurance brokers' attention in 2012:

1. More consumers are paying attention to their future. As a recent Forbes' report points out, "With the economy in the state of flux, consumers are being understandably conservative in using their credit cards." The Federal Reserve indicates that household liabilities, which rose to 135% of disposable income in 2007, has been sliding steadily and was at 119.3% most recently. While this focus shift has retailers reeling, it may indicate that some consumers are thinking more about their future, rather than just about today. This is a good omen for life insurance producers since it creates an opportunity to gain prospects' attention and to share with them strategies for financial security.

2. The federal estate tax- year two. As of December 31, 2012, the $5 million per person estate, gift and generation skipping tax exemptions end and revert to $1 million with a 55% maximum tax rate as of January 1, 2013. This means that time is of the essence since no one knows what the future holds, particularly when the Fed has a seemingly insatiable appetite for revenue.
To give clients breathing room and greater flexibility, it may be appropriate, for example, to suggest survivorship policies. With low prices, this strategy will maintain client insurability and give them time to weigh possible options.

3. Life products more effective in meeting expectations. As carriers continue their focus on consumer needs, we can expect the evolution and innovation of life products to continue unabated:
Term Life. Look for a slight bump in Term Life sales, since some carriers are introducing Term insurance on a UL platform. This allows insurance companies to put away lower reserves. Rates should be fairly stable or even drop slightly in 2012.
Guaranteed Universal Life fading away. If there were ever a product with high consumer appeal, it is Guaranteed UL. And why not? It gave clients the assurance they wanted, particularly as they reached retirement age. Even though the demand exists, some carriers are either exiting this market or pricing themselves out of it and producers will be seeking alternative solutions.
Whole Life lives. With a breadth of product choices, it's interesting to note that whole life sales showed 5% growth in the first quarter of 2011 and 10% in the second quarter, according to a LIMRA report, while term life sales continued its long decline. It can be particularly valuable in providing supplemental retirement income and meeting estate and business planning needs.
Current Assumption UL has consumer appeal. Offering control and choice of options, Current Assumption UL plans offer a high degree of flexibility including cash value provisions. Since the cost is based on current interest and mortality rates, consumers benefit from greater product transparency.
With current interest rates at an all-time low, these plans should still perform well if rates increase in the future.
- Indexed Universal Life steals the show. IUL has a strong appeal since it can serve as an income stream for retirement and college planning, as well as a permanent death benefit.
At the same time, this is a product with a substantial number of 'moving parts' that make it more difficult to understand. There is a learning curve for the producer.
- Life/Long-Term Care hybrids offer sales kick. While individual LTC policies have been on the market for about 20 years, sales have never taken off, mostly because of cost, policy provisions and a track record of failed products and repricing. Producers complain about the amount of time they spend with clients, only to have their efforts fail to produce sales as prospects change their minds.
Although there are variations in policies, all send the message that a purchaser can have it both ways permanent life insurance and long-term care protection.

4. Competition in the year ahead. To quote the late comedian, Jimmy Durante, "Everybody wants to get into the act!" That's just the way it is with the marketing of life insurance products today. Along with life agents, the list of players includes banks, wirehouses, accountants, property & casualty agencies, and online marketers, among others.
The message should be crystal clear: avoid complacency at all cost. Ignoring new products and strategies can prove dangerous. Producers must be competent in knowing what works and what doesn't. Some products are flawed, while others may not be a good fit. A producer's value rests in knowing the difference.
While it's popular to talk about Boomers, Millennials and other segments, such discussions may be overrated because they miss the point. Perhaps far more significant is a basic economic shift that has occurred. A growing segment of consumers now recognize an essential fact: they are responsible for their individual economic destiny.
They are looking for financial products that give them flexibility and the ability to decide how to tailor those products to their needs. The life insurance industry has the tools to deliver what consumers want. However, it remains an open question if we have the will and determination to meet the challenge.

Making the Case for Fixed Index GUL in 2012

When buying life insurance, some clients want it all

by Tim Heslin
Mr. Heslin is Vice President, Life Product Manager, for American General Life Companies. He can be reached at Tim.Heslin@aglife.com

When considering life insurance, some clients want it all: security, flexibility and the opportunity to accumulate cash value. Let's take a look at each of these needs in the context of the current economic climate and the anticipated outlook for 2012.

Security is critical because recent economic events have demonstrated the importance of the safety net that guarantees provide. Clients purchase life insurance to protect their estates, fulfill long-term needs and pass their legacies to their heirs. Their coverage needs to be there. They don't want to take undue risks with it. And with all the chatter from economists and financial analysts lately about the potential for a continued bearish climate in the coming year, that may be truer than ever.

Flexibility is important because clients' lives change; their needs may change. They may need to adjust premiums, take a distribution to help cover medical needs, fund their children's college education, etc. They often want their insurance policy to be flexible to meet these needs. And with the deep dips in so many nest eggs over the past couple of years, the savings that might have been available in the past to meet such needs are not always there anymore.

One solution that can provide security, flexibility and the opportunity for cash accumulation is fixed index interest, flexible premium, adjustable universal life insurance with secondary guarantee provisions, commonly referred to in the marketplace as Guaranteed Universal Life (GUL). The most flexible design for this type of product provides policyholders long-term guarantees plus the ability to allocate premium to index accounts, resulting in the potential to accumulate significant cash value.

The policy features that offer the potential for cash value build-up provide strong death benefit protection, along with options to customize coverage guarantees to fit individual needs, and make fixed interest index adjustable GUL one of the most flexible products on the market.

This type of product is particularly attractive because clients often want higher returns, but are worried about the volatility of today's equity markets. Index GUL products offer the opportunity to take advantage of some of the upside of the equity markets yet provide a minimum guarantee to help reduce negative exposure to volatility.

Index GUL products can be particularly appropriate for clients seeking permanent, guaranteed protection at an affordable price, as well as the opportunity to grow tax advantaged, supplemental income for their retirement. I'll bet you have clients like that!

One of the newer types of index GUL products enables clients to choose from three premium allocation choices to best suit their needs, a declared interest account, a one-year index account and a five-year index account. Besides providing guaranteed death benefit protection, these interest-crediting accounts offer the opportunity to accumulate cash based in part on the performance of one or more global indices, with the ability to revise the allocation instruction at any time.

The best features of today's more attractive index GUL products include:
- Guaranteed death benefit coverage up to age 121, with issue ages from 0-90 (in most states)
- A flexible continuation guarantee that allows policy holders to choose their guarantee period and premium funding period
- One-year index interest crediting based partly on the one-year, point-to-point growth of a domestic index with cap rate and guaranteed interest rate of 1 percent (index does not reflect dividends)
- Five-year index interest crediting based in part on three global indices with automatic overweighting of the two best-performing indices
- Minimum death benefit protection of $100,000, with a choice of two death benefit options (level or increasing)
- A unique combination of death benefit guarantees with the potential to accumulate significant cash value
- Multiple loan options that offer policy owners choices of how to access their cash accumulation
- Monthly index accounts which permit flexible scheduling of premium payments
- 24-month rolling targets (may not be available in all states)

One of the most client-friendly features is flexibility regarding premium payments. Many families are dealing with financial challenges, so for certain products, any premium payments received within 28 days after the date of issue, and each subsequent premium due date, are treated as received on time for purposes of maintaining the death benefit guarantee.

Another customer-friendly feature has to do with the way that 1035 premium exchanges are applied to specific policies. For purposes of maintaining the death benefit guarantee, 1035 exchange premiums received during the first 12 months after the date of issue of certain index GUL products can be treated as though they were received on the date of issue.

Further, depending on the specific index GUL product, policy withdrawals can be permitted (subject to restrictions and conditions) anytime after the initial policy year, and clients can choose from two loan options to access cash values. What happens with a typical loan is that the client's loan collateral is moved to the fixed account. This provides a stable, but typically low-interest credit to his or her loan collateral.

With certain attractive types of loans, however, loan collateral remains in the index account and continues to have interest credited based on movements in the equity markets. This provides more upside potential, although with more risk. Optional riders can ensure that policies won't lapse with hefty outstanding loan balances, and numerous other riders are offered to help meet individual needs.

With their unique combination of security, flexibility and the opportunity to build significant cash accumulation, index GUL products can offer clients peace of mind plus solid growth potential. Based on the less-than-optimal economic climate that we have continued to experience and the features that clients have indicated they are seeking as a result, 2012 appears to be a good time to consider adding index GUL products to your portfolio.

E&Y 2012 Outlook

Life Insurers Will Grapple with Managing Capital and Risk

Continued Uncertainty on economy, political scene

In 2012, the U.S. life and annuity insurance industry will be challenged to find ways to manage both capital and risk in an economically and politically uncertain year, while continuing to lay the groundwork for future growth, according to Ernst & Young's new Global Insurance Center US Outlook.

"Pressures such as low interest rates, volatile equities markets, and a political and regulatory environment in flux will continue to impact the industry, making it difficult for insurers to boost earnings," according to Doug French, Financial Services and Insurance and Actuarial Advisory Services Leader at Ernst & Young LLP (US). "In spite of the current environment, insurers should take advantage of opportunities to drive efficiencies through greater use of customer analytics and leveraging technology to develop stronger ties to clients."

Ernst & Young has identified five issues the US life and annuity insurance companies will need to master in order to succeed in 2012:

Managing the company in a low-interest-rate environment
Low interest rates should persist until at least 2013, increasing the risk of spread compression for existing products. At the same time, efforts to increase sales of fixed annuities and universal life insurance are hampered by low rates. While interest rates are likely to remain low through 2013, they could climb rapidly after the Federal Reserve's Treasuries buying spree come to an end, French says. In such an event, disintermediation risk could be a concern, as policyholders jettison existing products in favor of investing in new ones with higher rates. Understanding the interaction of the asset and liability cash flows under a variety of scenarios will help prepare insurers to weather these stormy financial times.

Prepare for the impact of accounting and regulatory convergence
Regulatory ambiguity will likely persist through 2012. Although the Dodd-Frank legislation has passed its first anniversary, many key rules have yet to be formalized, several of which will impact insurers. The Federal Insurance Office (FIO), created under Dodd-Frank may contend with the National Association of Insurance Commissioners (NAIC) around the Solvency II issue of 'equivalency' for US insurance regulation. In addition to global regulatory developments on a macroeconomic scale, insurers may also want to consider specific regulatory changes at the microeconomic level and use them to their advantage.

Investing in customer analytics to drive efficiency and improve risk management
Analytic and predictive modeling techniques continue to improve, creating opportunities for increased sales, improved efficiency and expanded capabilities. Life insurers are looking to use predictive modeling to improve the speed and accuracy of underwriting, which is traditionally time-consuming and expensive. Beyond underwriting, life insurers are increasingly using analytics and predictive modeling to create opportunities for increased sales and improved efficiency, and even mitigate strategic risks. Given the extensive modeling of multiple scenarios required by the developing principles-based regulations, insurers will find that they can improve their risk management processes by gaining insight into the range of outcomes that can occur in the current volatile environment.

Monitoring developments in life insurance taxation
Insurers may be challenged by future Congressional efforts to reform the federal tax code. Implications exist for both corporate-level taxes and policyholder tax issues. Budget deficits and revenue generation are serious concerns, yet they will remain in flux because of the economic and political changes underway. The health of the economy will be a central political issue in the 2012 General Election. That hot button could set in motion changes in the tax code, which may have significant repercussions for the life insurance industry.

Fully embracing the web
Insurance companies have historically operated via a very traditional sales model involving agents and face-to-face sales to consumers. At present, the extent of life insurer presence on the Internet largely consists of financial calculators of insurance needs; lead-generating activity like educational materials and product information; and proprietary web applications that support the sales force through online insurance application forms and illustrations. While insurance in its current form does not lend itself well to web sales, life insurers can leverage the technology to develop stronger ties to customers and build a better brand- especially with younger, web-savvy generations of insurance buyers.

"Insurance accounting standards and regulatory uncertainty will likely persist through 2012, given the present contentious reform efforts and attempts by competing interests to converge systems in divergent directions," said Shaun Crawford, Ernst & Young's Global Insurance Sector Leader. "Changes are being implemented at all regulatory levels, and navigating these changes will yield challenges, but, will present opportunities for insurers."

The complete Life Insurance Industry 2012 Outlook report can be found at www.ey.com/insurance.

Traditional Life Insurance Has New Appeal to Younger Buyers

Survey Shows Under-40s Want Financial Security Sooner Rather Than Later

According to a new national survey of owners of whole life insurance by The Guardian Life Insurance Company of America, today's policy buyers under the age of 40 are choosing whole life over other asset alternatives, based in large part on a strong desire to be financially secure as soon as possible. The survey also revealed that a significant number of these younger policy holders are opting to pay for their policies quickly, often over ten years or less. Of those surveyed by Guardian, 35% of whole life purchasers under 40 said they wanted to pay off their premiums as quickly as possible, rather than using the more traditional approach of paying over a lifetime.

"This finding underscores a pronounced desire among Millenials and Gen Xers for financial security at an early age," said Michael Ferik, senior vice president of individual life at Guardian speaking at Guardian's second annual Whole Life Forum here today. At Guardian, purchases of 'limited pay' policies, which can be paid-up over a shorter term, were up 152% as of June 30, compared with the same period in 2009.

The survey, spurred by an increase in Guardian whole life purchases by younger buyers in recent years, revealed that insurance buyers under age 40 are motivated by the desire for financial security 'as soon as possible' (74%), as well as a desire to be debt-free as soon as possible (76%). These figures contrast with 68% of those over 40 who seek financial security as soon as possible and 69% of over 40s who believe it’s important to be debt-free as soon as possible.

"Perhaps due to the historically high college loan burden carried by today's graduates, this appreciation of financial security and desire to be debt-free reflect a sea change in attitude from the 'live for today' ethos Boomers were known for," said Ferik.

The Guardian survey of whole life buyers found that, while those under 40 see a multitude of benefits in owning whole life insurance, their first priority in buying a policy is to protect their families (72%), which is also the number one reason those over 40 buy it (79%). The guaranteed cash value of whole life insurance is the second most important reason for both those under 40 (66%) and over 40s (71%). Today more under 40s view whole life as a way to supplement retirement income (54 %), compared with half of those over 40. Younger buyers surveyed said they considered mutual funds, stocks, other types of life insurance and CDs before purchasing whole life.

Overall whole life sales have rebounded at Guardian and elsewhere this year. According to the Life Insurance Market Research Association (LIMRA), whole life sales across the industry were up 23% in the second quarter this year, the fourth consecutive quarter of double-digit growth. This brings whole life's market share up to 31 % of total life US insurance sales, the highest share since 1998, LIMRA reports.

The Guardian survey shows this is partly because whole life insurance is not viewed as an 'insurance product' by younger purchasers, who tend to view whole life as an alternative, low-risk asset class that can be used to help build long-term financial security. Given their reliance on social networks and ability to absorb multiple points of information from various media, younger buyers of life insurance spent more time researching the purchase and discussing it with family and friends than older buyers did.

For example:
58% of under 40s talked to family/friends vs. 26% of 40-plus; 51% spent a 'long time' considering whether to buy vs. 41% of 40-plus; 46% did online research vs. 31% of 40-plus; 37% visited carrier websites vs. 27% of 40-plus; 36% read articles about whole life vs. 28% of 40-plus.

"Satisfying long-range needs was more important than short-term rewards, and returns less important than safety among the young buyers we surveyed," said Ferik. "It is clear from our survey that whole life purchasers understand its value not only as an insurance product, but as an alternative low-risk asset for long-term financial security," he said. "They see whole life's benefits for meeting unanticipated financial needs that arrive while still alive as better than borrowing from a 401(k) plan or, for now at least, betting on the stock market," Ferik said.

The Guardian survey was conducted in August 2010 of 242 whole life policy holders by The Melior Group, Philadelphia, Pa. The national survey sample included 155 non-customers and was supplemented by interviews with 87 Guardian customers. A total of 109 whole life owners under the age of 40 and 133 over the age of 40 participated in the survey online and by telephone.

About Guardian
A mutual insurer founded in 1860, The Guardian Life Insurance Company of America and its subsidiaries are committed to protecting individuals, business owners and their employees with life, long term care insurance, disability income, group medical and dental insurance products, and offer 401(k), annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than six million employees and their families at 120,000 companies. The company has more than 5,400 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide.

ID Theft: Protection and Diligence

Consumers need to step it up curtail this epidemic

by Mike Joyce
Mr. Joyce is Executive Vice President, Distribution, Employee Benefits division for Sun Life Financial. He can be reached at mike.joyce@sunlife.com

Despite relentless efforts to thwart cybercrime, widespread hacking still plagues individuals, corporations, local and even national governments. Average citizens are especially vulnerable, losing more than $37 billion as a result of ID Theft in 2010, so they need to take action to safeguard their personal and financial information.

Last year, more than 8.1 million people in the U.S. were the victims of identity theft. That's one in every 38 Americans. And although the number of cases dropped compared to 2009, the average cost per theft spiked to $637, a 63% increase. No one is safe:

- Epsilon, a permission-based data marketer housing more than 235 million emails, was breached. Data from Epsilon feeds hundreds of companies, including numerous banks and credit lenders. Even though hackers snatched only names and email addressees, it was a violation that may have far-reaching consequences. Criminals may continue to use these addresses to target customers with fraudulent emails on a wide range of subjects in order to 'phish' for more information.

- At least five U.S. government organizations, the U.S. Senate, the Department of Defense, the CIA, NASA, and the FBI, experienced an attempted breach in 2011. Although these attempts were thwarted before sensitive information was pilfered, each incident caused website disruption.

These are two stunning examples of an epidemic. Corporations and the U.S. government limited the damage because they guard against hacking 24/7. Consumers need to be just as alert. Many people don’t even realize they've been robbed until weeks afterward. That's because new account fraud, the most costly type of ID larceny, usually takes longer to detect. New accounts are opened with stolen identities, but unlike suspicious charges made to established accounts, automatic alerts may not be triggered, so consumers may be unaware they've been fleeced until the first bill arrives weeks later. New account fraud accounted for $17 billion in losses in 2010.

The price tag for ID Theft has ballooned in the age of e-commerce, totaling an estimated $384 billion since 2003. Costs dropped for three consecutive years beginning in 2005, only to rise anew in both 2008 and 2009, making it impossible to predict future losses. So consumers need to take some basic precautions to safeguard their name and monitor their financial information:

- Get out of marketing databases: find out which financial databases are selling your name and opt out of any that are passing along information about you.
- Unsubscribe from any commercial lists
- Stop direct mail: got to www.dmachoice.org to opt out
- Stop your bank from selling your name: you must provide your bank with notification in writing
- Stop telemarketing calls: go to www.donotcall.gov to be added to the National Do Not Call registry.
- Keep your personal and financial information secure, both on-line and in paper copies. Cyber thieves and house burglars are everywhere, so don't make it easy for them. Don't share personal or financial information on social networks.
- Limit the use of your debit card as well as your credit cards. Debit card fraud is on the rise and you may not have as much liability protection with a debit card as with a credit card.
- Report any suspicious activity or transaction immediately.

These actions will surely reduce exposure to data breaches, but more protection may be needed. They should also register their credit cards with an online theft prevention service. These firms can provide an extra level of protection by monitoring credit activities, providing alerts about potential fraud and helping to block ID theft. Registering credit card information by phone will makes it easier to retrieve information and cancel and/or replace a credit card if it’s lost or stolen.

Financial companies have offered ID theft protection insurance to consumers in conjunction with homeowner's policies since at least 19994. As the threat of ID theft has grown, more insurers, including Sun Life Financial, have begun offering ID theft protection as a value-added feature. In the case of new account fraud, buying added ID Theft protection may be essential. Fraudsters are shifting away from opening bank or credit-card accounts, which are more readily detected, and opting for smaller accounts, such as phone and cable subscriptions or health club memberships. These types of accounts may not show up on credit reports, but may be flagged by a service that scans public records.

Sadly, many bogus new accounts are opened by 'friendly fraudsters,' who are known to the victims. Statistics show that consumers ages 25-34 are the most apt to be exploited by a roommate or even a relative who uses their Social Security number to create the scam. The best advice for consumers is to be vigilant, according to Javelin Strategy & Research, an industry-leading expert on ID theft and fraud. Closely monitor every account and consider acquiring additional protection services that include credit monitoring, fraud alerts, credit freezes and database scanning.

Producer Report Card

New LIMRA Study Finds 54 Percent of 'Serious Shoppers'

Bought Life Insurance Over the Past Two Years

Those consumers who receive a needs analysis and amount recommendations

are more likely to buy life insurance and more likely to buy larger policies

WINDSOR, Conn., - Despite half of U.S. households saying they need more life insurance coverage, only 22 percent of households seriously shopped in 2011, and of those, 54 percent bought, according to LIMRA's 2011 U.S. Buyer-Nonbuyer study.

"What surprised us was that only 43 percent of consumers received a needs analysis from the sales rep they met with about buying life insurance. Our research shows that consumers who received a needs analysis were considerably more likely to buy than consumers who didn't," said Cheryl Retzloff, senior research director, LIMRA Markets research. "Moreover, producers who recommended an amount to buy to their clients not only had more clients close the deal but on average those clients bought 60 percent more coverage." (chart)

Prior LIMRA studies have shown that over half of consumers prefer to buy life insurance face-to-face. LIMRA's new study found that life insurance shoppers who meet face to face with sales reps are the most likely to buy. In fact, if there was any face-to-face contact during the shopping process, more than 7 in 10 bought.

- Life insurance shoppers who use only the Internet while shopping and never meet with anyone are the least likely to buy after shopping - only 36 percent bought.

- Those consumers who started shopping on the Internet and then met with a sales rep were 1.5 times more likely to buy than those who only shopped online.

Not surprisingly, 41 percent of consumers said life triggers- getting married, buying a home or having or adopting a baby, receiving substantial assets, or experiencing the death of a relative or close friend- were the reason they began to shop for life insurance. But the many consumers won't initiate the process on their own. One quarter of life insurance shoppers consider life insurance because sales reps or financial advisors initiate contact or suggest the need for life insurance. Also, 1 in 10 shoppers are prompted to consider life insurance because it is offered at work.

Consumers struggle with various elements of the decision process when shopping for and buying life insurance. The most difficult decisions cited by life insurance shoppers are:

- Determining whether they are getting their money's worth
- Understanding the policy details
- Determining what type to buy
- Deciding how much to buy

LIMRA found that younger shoppers struggle more than older shoppers do with buying decisions.

While consumers listed a number of sources where they seek information when shopping for life insurance, they considered financial advisors, life insurance agents, brokers, and/or parents as the most useful sources of information to help with decisions about the life insurance purchase. At least 7 in 10 shoppers using these sources rate them as providing very useful information.

Producers Report Card

LIMRA asked life insurance shoppers what producers did well and what they needed to improve. Consumers gave producers high marks on their knowledge and ability to educate, and determining needs of their clients. Consumers also thought their advisors were trustworthy. However, consumers felt that their advisor could work on making sure they review the needs of everyone in the household- almost half of life insurance shoppers said someone else in the household still needed life insurance. Many also felt that their producer didn't consider whether the suggested policy was affordable to them and wanted help determining how to fit the payments into their budgets. Most troubling was the fact that 35 percent of shoppers said the producer should have followed up with them because they were still deciding on whether to buy.

"No doubt, producers play a critical role in whether a life insurance shopper actually buys a policy," noted Retzloff. "As an industry, we need to remember that buying life insurance is a big decision for consumers- one they make once or twice in their lifetimes. Our behavioral research indicates that consumers may need time to consider their decision and, as our study found, if we don't follow-up with them, we may be leaving money on the table."

About the Study
LIMRA's U.S. Life Insurance Buyer-Nonbuyer study looked at the life insurance shopping experience from the consumer's viewpoint and how consumers' experiences during this shopping process influence whether they will buy or not. LIMRA surveyed only those consumers who 'seriously shopped' for life insurance. There were 6,666 households that seriously shopped for life insurance- 3,581 bought and 3,085 did not buy after shopping. The results were weighted to represent the U.S. population.

Whole Life Propels Overall Individual Life Insurance Sales

Six Percent Growth in the Third Quarter, LIMRA Reports

WINDSOR, CT- Total individual life insurance premium grew six percent in the third quarter and five percent in the first nine months of 2011, due in large part to robust whole life sales (WL), according to LIMRA's U.S. Individual Life Insurance Sales report.

"The biggest driver of individual life insurance growth in the third quarter was WL, whose premium increased 10 percent both for the quarter and year-to-date," said Ashley Durham, senior research analyst, LIMRA product research. "WL is likely benefiting from premium and cash-value guarantees along with lifetime coverage, which are leading concerns for buyers- concerns that are likely compounded during times of economic uncertainty. It's the only product to produce positive growth in each of the past five years, and, so far in 2011, nearly three quarters of the writers were able to grow their sales; more than half managed double-digit increases."

Mutual companies, representing just a quarter of the WL manufacturers, reported more than half of the new WL premium and are responsible for half of the absolute dollar growth year-to-date. But success has not been limited to mutual companies. Stock companies increased their sales by 11 percent and fraternal companies, while only representing just about five percent of total sales, grew their WL sales by 25 percent.

Affiliated agents sold nine percent more WL premium in the first nine months of 2011, representing three quarters of the WL premium. Independent producers sold 18 percent more WL premium and direct marketing methods brought in seven percent more WL premium. Other channels such as bank and worksite, which represent a small portion of annualized premium sales, enjoyed double-digit growth.

WL policy count is also growing, up five percent for the quarter and six percent year-to-date.

Universal Life (UL) premium improved three percent in the third quarter and grew six percent year-to-date. UL enjoyed the second biggest increase in terms of absolute dollar growth (behind WL) during the first nine months of 2011.

Strong indexed UL sales influenced overall UL sales growth both for the quarter and year. Indexed UL premium rose 30 percent in the third quarter and 35 percent year-to-date. Five years ago, indexed UL represented just seven percent of total UL sales; today, indexed UL makes up over 20 percent of the UL market. With more companies entering this market, LIMRA expects indexed UL to continue to grow market share.

UL policy count also showed improvement, growing eight percent for the quarter and 12 percent during the first nine months of 2011.

Variable UL (VUL) premium jumped 34 percent in the third quarter, resulting in a 17 percent increase year-to-date. While much of the increase reflects non-traditional sales such as corporate owned life insurance, almost half of the VUL writers increased their sales and about a quarter saw double-digit growth both for the quarter and in the first nine months of 2011.

However, VUL policy count remains low, down three percent for the quarter and nine percent for the first nine months of the year. Companies have only issued around 20,000 policies per quarter over the past few years, compared with 160,000 when VUL peaked in 2000.

While term remains the most commonly purchased product after WL, its premium continues to decline, down four percent in the third quarter and seven percent year-to-date. It is important to note that if term/UL sales were included with term instead of with UL, term premium and policy count would only be down one and three percent in the third quarter, respectively.

Term policy count fell five percent for the quarter and seven percent in the first nine months of 2011. Because unemployment, which remains around nine percent, plays a key role in determining terms sales growth, LIMRA expects term sales to struggle over the next few years.

"The good news is overall life insurance policy sales have improved two percent so far this year," noted Durham. "If you look back 25 years, we have only had two other years where policy count has improved; so this is a good sign that we are reaching more consumers."

View the latest data table on U.S. life insurance sales trends.

Strategies For Retaining Top Clients

How can we avoid the dark side of sales?

By Kenneth A. Shapiro

Mr. Shapiro is president of First American Insurance Underwriters, Inc., a national life insurance brokerage firm based in Needham, Mass. Contact him at kshapiro@faiu.com.

If there's a 'dark side' to life insurance sales, it's the unavoidable fact that we make a sale and move on. Once they buy, we abandon them. To make the point, experience suggests that many clients buy five or six life policies in a lifetime, many of which are from different advisors. While there may be exceptions, this seems to be the pattern. To put the matter as bluntly as possible, just when we think we're moving forward, it's quite possible that we may be going in the opposite direction. It's easy to focus on the next client and forget about those who have already put their trust in us.

Early on, I realized that life insurance was a relationship business. I talked about building relationships, but I didn't always do it. Making the sale was all-important. I began to wonder why some of my clients weren't seeking me out when they had a need. That changed, once it hit me that my future rested with relationships. Here's the crux of the matter: if relationship building is a core value for life insurance producers, what does that mean? Perhaps the most practical way to understand it is to quantify it. Here are some of the components:

Take time to understand their concerns, objectives and needs
Before passing this off as ridiculously elementary, just think how many times you've reviewed a new client's existing life program and wondered how an advisor could have sold them a policy that was so clearly off target in terms of their needs. There just may be an advisor out there who is thinking the same thing when they review your work. Uncovering what a client wants to accomplish or worries about has value because it leads the astute advisor to the need factor. At the crucial point of recognizing what a client is really saying a producer's expertise comes into play. "To get you where you want to be with your retirement," a producer might say to a client, "Here are the steps we need to take and here are my recommendations."

The producer's unspoken message to the client is clear: "I hear what you're saying and we're going to work together to create the future you want."

Be proactive in providing your clients with useful information
There's no more effective way to earn your client's continue trust than being a valued resource. Every client has unanswered questions about their future and connecting with questions is an advisor's key role. For example, every Boomer has questions about healthcare and long-term care, in particular. Would they welcome information about the new hybrid or blended life products that include provisions for long-term care? Such flexibility has a strong appeal because it avoids having two policies. If you don't provide the information, someone else will.

Whether it's with a simple newsletter or regular e-Bulletins, you can keep them informed. You can also invite small groups to a breakfast or luncheon, making it clear that the purpose is educational. You may want to invite an elder law attorney or a CPA to speak and answer questions. Succession planning makes an excellent subject for a business owners' seminar.

The goal is to let your clients know that you care about them and that's what being a valued resource is all about.

Build deeper client relationships
It's easy to talk about having a good relationship with clients. Yet, the word relationship is often little more than a high level abstraction like love, patriotism or hard work. We all have our own definitions of what the words mean. As producers, making the words we use concrete can help us become better salespeople. Take the word relationship. Having a good relationship with clients is quantifiable:

- Do you know their hobbies and special interests?

- Where do they go and what do they do on vacations?

- How aware are you of an issue in their lives?

- What do you know about their dreams?

- What do you know about their family?

- Do they turn to you when they want to speak with someone they trust?

- If they happen to enjoy wine, what are their favorites?

- Do they have sports' interests? If so, what are they?

Nothing is more important today to be visible to clients. If they sense you only see them when you want to make a sale, you will find yourself sending the wrong message.

Continue to educate yourself
Any producer who has been in the life insurance business for 10 or 15 years knows that the business has changed dramatically in terms of products, client expectations, regulations and tax issues. When you think about it, it requires an enormous amount of current knowledge to serve clients properly.

Unfortunately, too many producers have fallen behind and are not taking steps to catch up. The consequences of lagging behind are enormous. Here are a few red flags that can serve as a wake up call:

- Another agent enters the picture with solutions that are more attractive to the client.

- I tend to avoid getting involved with the more difficult cases.

- I often suggest term products when I am not sure about making other recommendations.

Whether it's attending seminars and workshops, taking part in webinars, aligning yourself with a one-on-one coach, seeking out a study group where you feel comfortable or having a relationship with a brokerage firm that offers support resources, the opportunities are there for the asking. If you see you're not getting the results you want, move on. There's too much at stake, not to increase your value to clients.

If you don't stay current, your practice will suffer.

While it's important to know the right people, that's not enough in itself. Retaining top customers and attracting high-level prospects is more demanding than ever and that's why these four strategies are the critical components of building a highly successful practice.

New Product Profile

Nationwide: Offer your clients a more balanced life

New Indexed Universal Life solution addresses market volatility

COLUMBUS, Ohio - The recent market volatility has prompted many advisors to look for life insurance solutions that can help clients achieve their goals while minimizing the impact of market fluctuations. Nationwide Financial Services, Inc. today announced the launch of Nationwide YourLife Indexed UL, a fixed life product that can offer clients the potential for growth and protection from market loss.

"In today's market, many advisors have clients who are looking for accumulation potential but are still wary of exposing themselves to market volatility," said Eric Henderson, senior vice president of Individual Products & Solutions for Nationwide Financial. "We designed Nationwide YourLife Indexed UL to make it easier for advisors to find a competitive solution that meets the needs of this type of client."

Product benefits
- Flexible death benefit guarantees: clients have access to a 20-year base policy death benefit guarantee (reduced for issue ages 65 and above) plus the optional Extended Death Benefit Guarantee rider.
- Helps clients with a product that offers cash accumulation potential and minimizes the impact of market loss: this new product features a 12 percent cap rate and a zero percent floor to allow advisors to give clients more stable returns over time. The cap rate allows clients to maximize the interest credits they receive during up markets, while the floor rate protects them from loss during times of market decline.
- Average of three market indexes: Nationwide YourLife Indexed UL uses an annual interest crediting strategy that employs monthly averaging to help protect the interest credited during periods of market volatility. This strategy uses a blended average of three market indexes (S&P 500, the NASDAQ-100, and the Dow Jones Industrial Average) and weights them so that clients always benefit more from the better performing indexes. Itâ€™s important to note that indexed universal life insurance policies are not stock market investments and do not directly participate in any stock or equity investments. One of the most competitive participation rates in the industry â€“ this product features a 140 percent current participation rate which means that clients could potentially be credited interest at 140 percent of the actual index return, subject to the 12 percent cap rate.

Additional features
- Competitive underwriting: underwriting options include simplified issue and guaranteed issue for corporate-owned and corporate-sponsored arrangements.
- Access to an indemnity style long-term care rider: advisors can help clients maintain control of their money and their independence by adding a long-term care rider onto the policy for an additional cost. The long term care rider may be known by different names in different states, may not be available in every state and has an additional charge associated with it.

Target clients
Nationwide YourLife Indexed UL may be a good fit for clients who are:
- Seeking life insurance that offers guarantees and the potential for growth
- Looking for more stable accumulation potential during volatile markets
- In need of flexible death benefit options
- Interested in planning for possible long-term care expenses
- 35 to 55 years of age

For more information about Nationwide YourLife Indexed UL please go here

Corporate Insight Launches Life Insurance Monitor Service

Begins tracking the online and offline user experience offered by life insurance firms

New York, NY - Corporate Insight, the leading provider of competitive intelligence to the financial services industry, is pleased to announce the launch of Life Insurance Monitor, its newest subscription research service. Through Life Insurance Monitor, the firm will track and analyze the website capabilities and marketing materials that insurance firms provide to prospects, clients and advisors. Corporate Insight is able to offer subscribers an unbiased, first-hand view of the user experience by holding live accounts they personally fund and open. Subscribers will also have access to an Advisory Panel consisting of consumers and financial professionals who are available to answer questions and offer unique insights on industry trends and topics.

"In recent years, insurance firms have begun to embrace the Web as a tool to deliver information to current and prospective clients, as well as financial advisors," explains Ian Lundahl, senior analyst for Life Insurance Monitor. "As more of their business moves to the online channel, it's important for insurance firms to understand the best practices in this space and to learn about the resources that competitors provide to consumers and advisors. Life Insurance Monitor will provide this information and analysis to subscribing firms on an ongoing basis."

For Life Insurance Monitor, Corporate Insight will track many of the nation's leading insurance providers, including:

- AXA Equitable - Genworth Financial

- John Hancock - Liberty Mutual

- Lincoln Financial - MassMutual

- MetLife - Nationwide

- New York Life - Northwestern Mutual

- Pacific Life - Prudential

- The Hartford - USAA

Life Insurance Monitor's inaugural report Introducing Public Websites provides an in-depth review of the public websites that insurance companies offer to current and prospective clients. Corporate Insight's analysts evaluated the Life Insurance Monitor firms' websites, identifying best practices and the key advantages and disadvantages of each site. Future reports will focus on a variety of online and offline topics including account opening, client on-boarding, interactive tools and resources, mystery shops, mobile capabilities and social media offerings.

Outside of the life insurance area, Corporate Insight offers eight Monitor services that cover the entire online financial services spectrum, including annuities, brokerage, banking, mutual funds and credit cards; Corporate Insight also plans to launch Property & Casualty Insurance Monitor in November. As with all Monitor reports, Corporate Insight employs a consistent and transparent methodology when grading companies included in every Life Insurance Monitor report.

To request a copy of the report or to speak with Corporate Insight, please contact:

Dan Kaplan, 212-754-5468, dkaplan@intermarket.com

Stephanie DiIorio, 212-754-5181, sdiiorio@intermarket.com

Corporate Insight currently provides a comprehensive selection of syndicated research to 90% of the top financial services companies within the Fortune 500, representing 70% of the brokerage industry and 60% of US banking assets. Its expert analysts compile highly detailed research audits that deliver a unique, firsthand understanding of financial product offerings and websites. All research is compiled through personal interaction with each website. Further information about Corporate Insight is available at http://www.corporateinsight.com.

Motivating Millenials

How different, or difficult, is the younger generation proving to be?

by Joanne G. Sujansky and Jan Ferri-Reed
Dr. Joanne G. Sujansky has more than 25 years of experience helping to create cool workplaces that attract, retain and get the most from their multi-generational talent. As founder of KEYGroup, she and Jan Ferri-Reed, KEYGroup president, provide businesses with insightful information to create engaged, productive and profitable organizations. Together, they're co-authors of the 'Keeping the Millennials: Why Companies Are Losing Billions in Turnover to This Generation and What to Do About It.' Visit: www.KEYGroupConsulting.com or call 724-942-7900.

When Amanda Ross learned that her company was planning to place several recent college grads in her customer service department she started to worry. Amanda herself had joined the company right out of college. Now 37 years old, Amanda has supervised Customer Service for the past five years and has worked almost exclusively with employees her age or older throughout her career. The prospect of supervising these 20-something employees fills her with dread.

Part of Amanda's fear is based on stories she's heard about how different (and difficult) the younger generation is proving to be. Other supervisors in the company have suggested that Millennials expect instant job promotion and aren't afraid to challenge company practices if they don't agree with them. They also say that Millennials are constantly asking for feedback on their performance and demand a lot of face-time with their managers. One supervisor in another department even told Amanda that his new employees have the audacity to request flexible work schedules, even though they're brand new to the job and the organization. Amanda's worried that the challenge of dealing with these demanding new employees will eat up a lot of her time and disrupt the high department morale that she's worked so hard to achieve.
It's not that Amanda lacks managerial skills. She understands how to conduct effective performance reviews and she is skilled at confronting employees to solve job-related issues and problems. However, with this new batch of Millennial workers coming on board, Amanda realizes that she is going to have to figure out how to motivate her new, younger employees before their job performance becomes an issue. But guess what? Amanda isn't the only supervisor facing this dilemma these days.

With Millennials now entering the workforce in large numbers your employee team could turn into a volatile mixture of four different generations. But, employees from the Mature generation (born between 1909 and 1945), the Baby Boomer generation (1946 to 1964) and Generation X (1965 to 1979) have all had time to adjust to each other in the workplace. It's the newest generation - Millennials who were born between the years 1980 to 2000 - that are now shaking things up.
Millennials possess a unique set of skills and a somewhat different work ethic than previous generations. They will have a profound impact over the next five years. There are already around 35 million Millennials populating the workplaces of America and by 2014 there will be more than 58 million members of Generation Y employed in U.S. organizations.
Without question the culture clash between Millennials and earlier generations has already ignited. Veteran employees from the Mature, Boomer and Gen X generations frequently complain about the different attitudes and workplace expectations of Millennials. Many do not understand why they are the way they are, hindering Millennials' full engagement in the workplace. Often this biased thinking prohibits managers from finding Millennials' unique talents and skills that can contribute to company growth and profitability.

Yet, writing off your Millennial employees before they have a chance to prove themselves is a big mistake! Generation Y is already one of the best-educated generations in American history. They're technologically savvy, embrace diversity, and have a strong preference for collaboration to solve problems and seize opportunities. They also have a strong sense of work-life balance or, as they would say, 'we work to live' philosophy. If Millennials seem over-confident that's because they've been taught to expect success by teachers and by 'helicopter' parents (so-called because they hovered over their children).
In short, Millennials may be a challenge to integrate into your work teams, but over time they're just as likely to become among your most energetic and successful employees. It is important, however, to adjust your management strategies to take advantage of Millennial preferences and strengths.
Following are four strategies to help leaders adapt to the unique needs and perspectives of these new Millennial employees:

Ramp Up Your Onboarding Process
This is not your father's new employee orientation program! In the old days new employees watched a video on company history, received a policy and procedures manual, and heard a welcome speech from the CEO or senior manager. Today we bring new employees on-board by assimilating them into the company culture, providing exposure to different parts of the business, providing resources on the intranet for them to use at their own pace, and helping them to build relationships with current employees. Onboarding is ongoing, with lots of feedback, plenty of checkpoints and close mentoring. The goal is to ensure that all new employees - especially Millennials - become valued contributors while reducing turnover and increasing morale.

Profile Your Talent
An important part of onboarding, as well as career management, is to make sure your people are filling positions that are well matched to their talents, skills and interests. You can't always rely on a resume to find the right fit, but you can use employee profiles and assessments to make a good match. But make sure you use well-designed instruments with high reliability and share those results directly with each employee. Profiles are not tests in the strictest sense of the word, but rather learning opportunities that can increase job satisfaction, provide valuable coaching suggestions to employees, and guide career pathing.

Correct Your Corrections
No matter how carefully you onboard your new employees and create a good job fit, the potential for performance problems always exists. But you have to be careful when providing corrective feedback to Millennials. They're accustomed to receiving a great deal of praise from parents and teachers and some may have a hard time accepting seemingly negative feedback, especially if overloaded with it or if provided in absence of recognition for work well done. Your corrective feedback needs to be specific and concrete, creating a clear picture for the employee of what was done well and what needs to be improved. Also be sure to refocus on your Millennials' job goals and career path with the feedback so they can see how their actions affect others in the organization. When you keep your corrective feedback specific, solution-oriented and forward-focused, you can keep your Millennials motivated and engaged.

Create a Fun and Challenging Atmosphere
Millennials, like most employees, prefer to work in an atmosphere that's productive but also fun. That can mean everything from changing the office layout to creating new opportunities for social interaction. Instead of classic 'cubicle farms,' many organizations are adding open workspaces to encourage more employee interaction and collaboration. Managers can also reinforce teamwork by sponsoring 'social' events, such as Friday afternoon 'happy hour' (alcohol-free, of course) or teambuilding activities, such as scavenger hunts, Nerf battles, etc. Fun social activities are also a good way to celebrate victories, such as an important project milestone or a major goal achieved. The only limits are the leader's imagination, but looking for ways to encourage social interactions is a powerful way to build a productive, high-energy workplace.
As you begin to recruit and integrate Millennials into your work team don't be afraid to change up' how you orient, train and manage new hires. Too often in the past, the members of preceding generations were thrown into a new job without much guidance. This 'sink or swim' approach wo''t work for Millennials, who have experienced extremely attentive teaching and parenting styles as they grew up. Given a fair chance the''ll make strong contributions to your organization and may lead the way to a more collaborative, productive and energetic environment.

The LifeJacket study

7 Insights to bridge the life insurance coverage gap

Over 42% of Main street Americans do not have life insurance. That represents 52 million American adults with household incomes between $50,000 and $250,000 who do not have life insurance. Even for those who do own life insurance, 40% recognize that they need more. This is likely due to the fact that the average Main street American only has enough life insurance to cover 3.6 years of income. In fact, a majority of these consumers do not believe they have enough life insurance to meet their families' long-term needs. This is probably true, considering that the average amount of coverage is $155,000.
At Genworth, we believe that these statistics indicate a crisis that will require new thinking in order to address the problem. It will require us as financial professionals to have a deeper understanding of our clients, to ask new, more insightful questions, and to break down the barriers that keep families from being adequately covered. Genworth is dedicated to this important cause through an effort called LifeJacket. On the following pages, we share seven key insights that we've uncovered in research conducted over the last year through a partnership with Dr. Gregory Fairchild and the university of Virginia. This study does not represent the end of our efforts; in fact, it is merely the beginning of a long-term commitment to helping financial professionals close the life insurance coverage gap, one client at a time.

7 Key Insights Revealed
1. New thinking on 'trigger' events - New research shows that past assumptions about 'trigger events' such as marriage or the birth of a
child may have been incorrect.
2. Just One hour a Year - some surprising findings reveal what consumers want in checkups vs. what they're actually getting, and how that impacts the client–advisor relationship.
3. stuck in the Past - One third of policyholders today purchased their insurance over 10 years ago. their lives have changed, even if their policy hasn't.
4. Old Rules of thumb Are dead - Consumers don't see their insurance needs as 'a multiple of X.' They want a personalized view of their life insurance needs.
5. the Need for Needs Analysis - Consumers are highly receptive to online tools that help them understand their specific needs. These tools can make life insurance more personal.
6. Life Insurance is a Journey, Not a transaction - Life insurance is something that can be obtained in increments as needs evolve. Even small increases in coverage over time can mean the difference between financial independence and financial hardship.
7. Beneficiaries: the Real-Life Insurance experts - Learn how their experience can help others and why the work you do is so important.

New thinking on 'trigger' events
It has long been recognized in the insurance industry that, for many consumers, key life transitions are important periods for reevaluation and reflection. These often-memorable events include:
- a new job

- the birth of a child

- a home purchase

- a change in marital status

- the loss of a loved one

These and other life events create elevated responsibility and an increased level of anxiety. One prevailing hypothesis is that individuals undergoing such transitions seek immediate resolution and relief by investigating and purchasing financial products.
However, our research has revealed that the time from trigger event to actual purchase varies widely, depending on the event. For example, after buying a new home, the average consumer will wait 15 months before purchasing life insurance. For a new job, the duration may be as short as six months.

Download the full LifeJacket report here.

Reaching Hard-to-Reach Prospects with Referral Events

Sometimes, prospects may want to meet first in low-pressure, social events

By Bill Cates, CSP, CPAE
Mr. Cates is president of Referral Coach International. He can be reached at info@referralcoach.com

In this era of harder-to-reach prospects – especially among the affluent and wealthy – Social Prospecting has become the business-building model of choice for many successful advisors/agents. To my mind, Social Prospecting, quite simply, is the use of social environments to identify, meet, and grow relationships with qualified prospects. For over 16 years, I've been teaching financial professionals how to build a thriving referral-based business. Not only is this an effective marketing strategy, it's also a lot of fun!

Why Does Social Prospecting Work?
While many of your new prospects are ready to discuss their financial situation and financial goals with you on the very first appointment, many others are not. Many solid prospects would prefer to meet you in a more social setting first; to get a feel for you - do they like you, do they trust you, etc. Using referral events and other social prospecting tactics, you can reach many more high-level prospects than you may be reaching now; especially the affluent and wealthy.

Examples of Social Prospecting
-Social Prospecting encompasses a wide range of activities. Here are a few you might consider:
- Client Appreciation Events
- Referral Events (Event Marketing)
- Community Service Activities
- Charity Events (Philanthropic Endeavors)
- Club Memberships
- Hobby or Special Interest Groups

In this article, I'll touch on two of these activities – Client Appreciation Events and Referral Events.

Client Appreciation Events
I'd like to draw a distinction between what are called Client Appreciation Events and Referral Events. In a nutshell, a client appreciation event is some sort of social gathering (fancy or informal) with the sole purpose of saying 'thank you' to one or more clients. The purpose of a referral event, while the activity can be the same, is for one or more clients to bring one or more prospects to meet you.
            The trouble I often see with these events is that advisors try to turn a client appreciation event into a referral event. They try to do a 'hybrid.' While hybrids have their place, I believe you will see better results with most of your events if you limit them to one purpose – either appreciate the business (to build loyalty), or host an event where your clients are expected to introduce you to one or more prospects.
            Client appreciation events allow you take your client relationships to new levels of business friendship that probably wouldn't be possible through the normal course of business activities. This dynamic not only enhances client loyalty, it also makes you more referable. People give referrals to people they like and trust. Client appreciation events contribute significantly to this dynamic.

Types of Client Appreciation Events
- Holiday Parties
- Picnics
- Sporting Events
- Wine & Cheese Tastings
- Chocolate Tastings
- Intimate Fancy Dinners
- Golf Outings or Swing Clinics
- Boat Outings
- Ski Trips
- Theater Events
- Cooking Classes

Referral Events that Attract Qualified Prospects
You host a referral event for the express purpose of your clients introducing you to prospects in a social environment. Be very clear with your clients about the purpose of this event. You'll have much more success. As a rule, you want to keep your referral events much smaller than your client appreciation events. Remember, the purpose of a referral event is to create a solid connection between you and your new prospects. If you have too many prospects to meet, you may not connect well with any of them.

Referral Events – Case Studies
Theater Excursion
Don Green is a financial advisor near Detroit, MI. Every year Don arranges for a 2-day theater trip via motor coach; alternating between Chicago and Toronto. Don arranges the bus, theater tickets, hotel, and dinner. His very affluent client and their very affluent guests actually pay their own way. He just makes all the arrangements.
Over the course of 2 days he spends several hours on the bus with these folks, has dinner and breakfast with them, and a wonderful evening at the theater. Don told me that "People get off the bus, shake my hand, thank me for a wonderful time. Then they say 'we have some questions about our finances, do you think you can find some time for us?" Don gets several wealthy clients this way each year - well worth his investment in time and effort.

The Chef's Table
Another referral event idea is The Chef's Table. It's the kind of event that clients like to attend and feel comfortable inviting a guest to. The chef is usually involved in this event. Sometimes he/she prepares a special entrée or dessert just for the group. They can also recommend wine pairings for the meal.
If you want to make this an evening no one will forget, have your guests picked up from their homes in a limo. Talk about the 'wow' factor! For a personal touch - and a nice excuse for getting back with your clients and their guests - take some photographs of the attendees. Hire a professional, if you can afford it.

Let's Take a Boat Ride
I know an advisor who uses his boat all summer long as a way to entertain clients and their guests. "Bring a guest and you get to spend the day on my boat." What a way to have a fun summer, celebrate your current client relationships, and prospect for new business.
There are two things I particularly like about "boat prospecting." First, it's a small group, so you get a lot of time with everyone. Second, you get to know them in a way that has absolutely nothing to do with your business. You go through an adventure together - especially if you do some fishing or other water sports. Adventures like these almost always contribute to people trusting each other more.

Getting Guests to Referral Events
I recently had the pleasure of interviewing Bill Curry. Based in Cleveland, Bill knows just about all there is to know when it comes to putting on successful events (he was an event planner before he joined the financial services profession). Bill told me that, "The advisor is the Sponsor, and the client is the Host." Which is a better phone call to the guest? "George, my financial advisor, wants to take me to dinner and bring you along as a guest." OR "George, I’m hosting a dinner party at Chez Expensive to introduce you to our personal financial advisor who might prove to be a great resource for you. It's going to be a lot of fun. Are up for it?"

The Wow Factor!
Client appreciation events and referral events need not be expensive propositions. The key is handling all the details - to the extent that your guests really notice. Make your invitations standout - not like run-of-the-mill wedding invitations that so many advisors use. Have someone available to greet them as they arrive to the event. Make sure the directions are perfectly clear or, better yet, send a car to pick them up. Call all your guests before the event to check on special food restrictions or preferences. And, most importantly, follow up. Don't host a referral event if you don't set aside time to follow up with your guests. Call your client first, if you like, but call the prospect within 48 hours of the event.

Check out The Referral Minute here

Check out The Referral Advantage Video Training Program here

There's More Than Meets the Eye

With the 'Simplified' Life Insurance Sale

Fewer Americans are insured than ever before

and most insurance agents avoid the lower and mddle-market segments

by Josh O'Gara, CLU
Mr. O'Gara is affiliated with First American Insurance Underwriters, Inc., Needham, Ma. He can be reached at jogara@faiu.com

"No one wants to buy insurance until they can't buy it." All too often, it takes the shock of a health problem for people to recognize the need for life insurance coverage. Unfortunately, this is the worst possible time to buy it since the premiums are so much higher. Worse yet, coverage may be denied. Even so, that's not the end of the line. For clients who still want life insurance but can't qualify for a traditional plan, the remaining option is to apply for a plan with limited or no medical underwriting.

It's this 'last resort' situation that comes to mind when talking about guaranteed and simplified issue plans. That's a narrow view, since this particular marketplace is multidimensional and offers many possibilities. Taking a broader perspective, the variety of available products and what they can accomplish for clients opens up an entirely new market for advisors.

Types of products and their niches

Guaranteed Issue
Guaranteed issue products are really limited underwriting life insurance plans or, popularly, 'final expense' plans. A true guaranteed issue plan asks minimal medical questions, such as whether the client has AIDS/HIV or a terminal diagnosis. As long as clients can answer 'no' to the medical questions and either they or their legal guardian can sign the application, coverage is guaranteed.

These plans are usually limited to a maximum face amount of $25,000 and most cap the issue age at 80.The plans are typically issued on a cost per thousand basis that is determined solely by the age of the client. There's an initial 2-4 year 'graded benefit' period in which the death benefit is determined either by the premiums paid plus an interest rate or by a fixed percentage of the total death benefit. Once past the graded benefit period, the total face amount is paid. In addition, the plans typically have a cash value account available to the client.

Individually, older clients buy these plans to offset funeral and probate expenses, while those with mental conditions or chronic diseases that exclude them from traditional coverage also purchase them. Alternatively, many funeral homes and cemeteries offer these plans in a bundle of services or they can be marketed through associations and affinity groups as an added benefit for members.

Unfortunately, these plans can lead to abuse by agents looking to 'make a quick buck.' In the past, some agents have marketed them to healthy clients who end up paying a comparatively expensive premium just because the agent wanted to make a quick sale. Such abuse has given rise to some of the stigma surrounding the products, and has caused some state insurance commissioners to either eliminate or severely curtail the sale of the products.

Simplified Issue
Simplified Issue plans require slightly more medical information compared to guaranteed issue plans, but the carriers rarely require evidence outside of the application and possibly a telephone interview. Medical conditions, such as dialysis and COPD, which could cause a client to be declined for traditional life insurance coverage are accepted by many simplified issue plans. If a carrier requires a phone interview, it's typically just to confirm the answers to the questions on the application.

From day one, these plans are generally level benefit with no graded benefit period. They can be issued in face amounts up to $100,000 for both term and permanent coverage. Should a client want additional protection, multiple carriers can be 'stacked' on top of each other to reach the desired coverage. The premiums for simplified issue plans are typically comparable to a table 4 to a table 12 on a traditional plan, depending on the amount of medical evidence required. Therefore, they're often used for clients with some health issues but who can answer 'no' to a majority of the medical questions.

A wide range of products are available that come under the umbrella of 'simplified issue' plans, so it's important to review several plans and shop the market to find the policy thatâ€™s best for the client. Just because a client doesn't qualify for a particular simplified issue plan doesn't mean they won't qualify for another plan since each carrier asks slightly different questions.

Express Issue
Express Issue plans require the most comprehensive underwriting, which makes them the most difficult to qualify for in the guaranteed issue/simplified issue marketplace. Essentially, Express Issue plans are fully underwritten, aside from the fact that there is no paramedical exam required and APSs are rarely ordered (typically if there is discrepancy in information obtained from the application and the other sources).

There's a full part II on most applications, which asks all of the medical questions on a traditional insurance application. In addition, these plans often require the client to complete a 30-45 minute phone interview conducted by a trained insurance company underwriter. Finally, carriers will run both an MIB and MVR check and, increasingly, they're checking the prescription database.

These plans are available in face amounts up to $350,000, which is expected to increase as more companies enter the market. Carriers benefit from the fact that it's unnecessary to invest time and money ordering doctors' records, while clients and agents benefit from having policies issued in 24-48 hours after an application is submitted.

The typical issue ages are 20 to 70 and both term and permanent policies are available. In most cases, the premiums for Express Issue plans are on par with a Standard or Standard Plus rate with traditional insurance plans. These plans tend to appeal to clients without health concerns, but who either don't want to deal with the average 4-6 week insurance underwriting process or are unwilling or unable to complete the lab work for a traditionally underwritten plan. They are also ideal for an agent who doesn't want to deal with application administration or who is unfamiliar with the underwriting process.

Once the application is taken, the process is completely 'hands-off' for the agent until the policy is approved and issued, usually within a couple of days of submission. These plans are highly transactional and are making their way into banks and P&C agencies, where life insurance has typically been sold as something of an afterthought.

Myths about the marketplace
The perception that the guaranteed and simplified issue marketplace only exists to serve 'unhealthy' clients has given rise to myths about the products and the companies issuing them, thus limiting their use with a wider spectrum of clients.

Myth #1: The products are only designed for the extremely ill
With little or no underwriting, there's definitely a portion of the market that aims at less healthy clients. However, other products are essentially fully underwritten through a 30-45 minute telephone call by a trained underwriter.

Myth #2: The products are extremely expensive
Although the premiums of Guaranteed Issue plans are well in excess of those of traditional plans, there are some Simplified Issue plans with premiums on a par with traditionally underwritten Standard or Standard Plus rates. The cost of these plans is typically correlated with how many medical questions are asked on the application, i.e., the more questions on the application, the lower the cost of the policy.

Myth #3: Plans are only available in very small face amounts
Although most Guaranteed Issue plans have a maximum face amount of $25,000, there are some simplified issue carriers offering plans up to $350,000 of coverage with no exams or APS ordering.

Myth #4: The plans are not available for clients who have been declined
Although prior declinations are a 'knock out' condition for some Simplified Issue carriers, there are others that accept clients who have been declined elsewhere.

Myth #5: Carriers in this marketplace are not financially strong
Many Simplified Issue carriers carry A+ ratings and one of the top five insurance carriers in the US has converted to an Express Issue format for all term applications under $500,000 of coverage.

Myth #6: Only whole life plans are available
There are some guaranteed term plans available that ask only five medical questions. For Express Issue plans, clients can obtain up to $350,000 of term coverage.

Reconsidering the guaranteed issue marketplace
The guaranteed and simplified issue marketplace is a significant and growing portion of the life insurance industry and one that many agents continue to ignore. A recent New York Times article stated that fewer Americans are insured than ever before. It pointed out that most insurance agents avoid the lower- and middle-market segments, focusing their attention on the higher premium cases found in the more affluent marketplace. In effect, it isnâ€™t worthwhile to spend time and effort on small cases.

Simplified and Express Issue plans could be a way to do business in this underserviced market since they minimize both the agent's and the consumer's time commitment. The greatest delay in the regular insurance process involves exam scheduling and ordering of medical records, both of which are eliminated with Simplified Issue plans.

To make it easier for agents, some carriers have combined the three types of plans into one 'cascading' application with the medical questions for each plan. The more questions the client can answer 'no' to, the better the plans they qualify for. As clients qualify for each plan by answering 'no' to the questions in a particular section, they can move on to the next best plan. Therefore, the agent determines the best plan the client can qualify for at the time of the application, so the client pays the lowest premium possible.

Although Guaranteed and Simplified issue plans are not the ideal solution for every client, there is definitely a market for them, since they can address a number of issues that exist with traditional insurance for both the client and agent.

ING Introduces New Indexed Universal Life Insurance Products

with Strong Growth Potential and Death Benefit Guarantee

Offering downside protection for poor market performance

MINNEAPOLIS, Oct. 4, 2011 - ING Life Companies (ING) introduced new no-lapse indexed universal life insurance products, ING Indexed Universal Life - Guaranteed Death Benefit, issued by Security Life of Denver Insurance Company (Denver, CO) and ING Indexed Universal Life - Guaranteed Death Benefit NY, issued by ReliaStar Life Insurance Company of New York (Woodbury, NY). Both offer a guaranteed death benefit with the opportunity to earn an index credit linked, in part, to any increases in the S&P 500 (subject to a maximum index credit rate cap) while also providing protection from downside risk through a minimum interest guarantee.

With indexed universal life insurance, the guaranteed minimum interest rates feature provides downside protection for poor market performance while the indexed strategy offers an upside crediting potential if markets perform well.

"Our new indexed life products can work well for clients who seek both strong growth potential to meet long-term financial needs as well as a death benefit guarantee," said Daniel Mulheran, president of ING Life Distribution. "This product supercharges the potential for stronger long-term surrender values, giving clients financial flexibility to help meet future expenses such as college costs or retirement. The upside potential is paired with a death benefit guarantee, making these products a compelling solution for clients with a longer time horizon."

Features of ING's new indexed universal life insurance products include:
- Up to a lifetime (age 121) death benefit guarantee
- Minimum death benefit of $50,000
- Fixed and Indexed crediting strategies
- Protection from downside risk through a minimum interest guarantee (2% for the Fixed Strategy and 1% for the Indexed Strategy)
- A one-year Point-to-Point S&P 500 Indexed Strategy with a 12% cap
- Surrender charge period of 14 years
- Select loans that may reduce out of pocket costs (not available in NY)
- A full range of riders, including accelerated benefit rider, additional insured rider, overloan lapse protection rider and waiver of specified premium rider.

For more information, contact ING Insurance Sales Support at 866-ING-SELL option 3.

Exposing Myths and Realities

to Help Advisors Bring Consumers Back to the Table

Genworth LifeJacket Study Challenges Conventional Thinking in Life Insurance;

Beneficiaries are the real experts

(RICHMOND, VA) September 22, 2011 - Studies show that life insurance coverage is at its lowest point in more than five decades. According to the 2011 Genworth LifeJacket Study, 7 Key Insights to Help Close the Coverage Gap, released today, almost half of Americans with household incomes between $50,000 and $250,000 do not have life insurance and those with insurance have only enough to cover 3.6 years of income, leaving their families significantly underinsured.

Genworth developed the LifeJacket research project in collaboration with Dr. Gregory B. Fairchild, associate professor at the University of Virginia, Darden School of Business as part of its ongoing efforts to help financial advisors close the insurance coverage gap. According to the findings, Americans have a desire to work with an agent or advisor to understand the role of life insurance in securing their families’ futures. Additionally, 40% of consumers do not believe they have enough life insurance to meet their families' long-term needs. The study illustrates that financial professionals should change the way they approach their client base and break down the barriers that keep families from obtaining adequate coverage.

“While the industry has done an excellent job of offering products that meet the consumer needs, we now have the deep insight needed to bridge the coverage gap and bring consumers to the table - creating a more effective way of doing business,” said Anthony Vossenberg, senior vice president, Life and Annuities at Genworth. "This study provides advisors and agents with insights needed to educate consumers about their insurance needs and motivate them to secure their financial futures."

Agents have a clear opportunity to help consumers better understand their insurance needs and must pay attention to consumer desires. Over 60% of those who currently own life insurance said they wanted to meet with their advisor at least once a year. However, of those who desire that frequency of contact with their advisor, only 38% indicate that they are actually receiving it.

Beyond the Statistics: The Why's Behind the Life Insurance Coverage Gap
"The financial plans of Americans have been challenged in recent years," said Fairchild, who also serves as executive director of the Tayloe Murphy Center at the Darden School of Business. "The LifeJacket research has given us a deeper understanding of how consumers see life insurance within the range of financial services products. We've uncovered key insights that illustrate how advisors should change the way they approach selling life insurance to be more successful."

Lag Time in Pulling the Trigger
Life transitions, such as marriage, purchase of a home or the birth of a child have long been recognized as important periods for reevaluation and reflection. However, the LifeJacket research revealed that the time between trigger event and actual purchase varies widely, depending on the event. There is an opportunity for financial professionals to shorten the timeframe between life transitions and purchases by reestablishing connections and providing consumers greater control in the educational process.

An Annual Check-Up Keeps the Relationship Healthy
Clients want an annual life insurance review that is fast and efficient, and those who receive one report having a stronger relationship with, and more trust in, their advisor.

- 77 percent of respondents indicated that they don’t expect a lengthy annual review - an hour or less will do.
- Those who are receiving at least an annual life insurance review (47%) have the highest level of trust in their advisor.

Policies Are Stuck in the Past
Of those who own life insurance today, one-third purchased their policies more than 10 years ago, indicating the possibility that life insurance needs may have changed dramatically for a large population of consumers since initial purchase. A simple conversation with a client can uncover unforeseen gaps in their coverage.

Go Beyond The Rule of Thumb
Consumers want deeper insight than estimating their coverage need by a multiple of their annual income. Simple online needs analysis tools can be quick and easy, allowing consumers to see a recommended amount of insurance based on their individual situation.

The Need for Needs Analysis
- 77 percent of consumers say they've never used an online calculator, but when shown an online example, 88% of respondents indicated they would find them helpful during a life insurance transaction.
- Age matters: 66 percent of respondents who were 35 years and younger had the greatest interest in using online calculators while 66 percent of those 55 years of age and older had greater interest in product comparisons.

Life insurance is a Journey, Not a One-Time Transaction
Clients can sometimes feel that buying enough life insurance can become an 'all or nothing' proposition, when, in fact, advisors can help their clients understand that having some life insurance is better than having none.

- 77% of respondents felt that life insurance policies should be reviewed throughout their lifetime, or as their needs evolve. Only 23% felt that life insurance is a one-time transaction.

Beneficiaries: The Real Life Insurance Experts
Vossenberg added, "During the study, we had an opportunity to get behind the numbers and learn how insurance coverage has influenced financial conditions for families after the death of a primary wage earner. We gained great insight from these discussions that we can draw into our practice, specifically around the things beneficiaries wished they had known about prior to the death in the family."

- Almost all beneficiaries in the study (94%) indicated they needed additional life insurance coverage in order to maintain their standard of living.
- 43 percent of respondents have used life insurance income to pay outstanding debts/loans, even though only 33% intended to do so. 48% indicated insurance benefits are used to pay for basic living expenses, while only 32% expected to use it for such a purpose.

About 2011 Genworth LifeJacket Study, 7 Key Insights to Help Close the Coverage Gap
Over the course of 2010 and 2011, Genworth and Dr. Gregory Fairchild of the University of Virginia's Darden School of Business conducted a wide variety of quantitative and qualitative research studies. These studies were employed using various third party research firms (Shugoll Research, Directive Analytics, Martin Research, SIRS, Ruf Strategic Solutions, Prince Market Research, CARAVAN, a service ofORC International and MarketTools/Zoom Panel) and several different respondent bases by telephone, online and mail, in order to help answer the key research question of, 'Why are so many Americans uninsured or underinsured today?'
In seeking these answers, Genworth's customer insights team either interviewed participants or worked with outside research firms to develop, launch and interpret results for 240 participants (ages 18+) in the qualitative research and 25,445 participants (ages 18+) in the quantitative research.

About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company that is dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement - including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management - and mortgage insurance that helps consumers achieve homeownership while assisting lenders in managing their risk and capital.
Genworth has approximately 6,500 employees and operates through three segments: Retirement and Protection, U.S. Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, Inc., which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit genworth.com. From time to time, Genworth Financial, Inc. releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the 'Investors' section of genworth.com

Many Working Women May Be Short-Changing Themselves
and Their Families When It Comes to Their Life Insurance Coverage

Both Men and Women Need Help Matching Policy Features with Personal Expectations

New York, NY - September 8, 2011 - While four in five employees today believe their life insurance coverage is adequate, 45% of working women and 28% of working men with life insurance have not evaluated their needs since obtaining their first policy, potentially leaving themselves and their families financially vulnerable in the event of a premature death. This according to MetLife's 2011 Insurance Literacy Study, released today.

Working women with life insurance are also nearly twice as likely as men (21% vs. 12%) to acknowledge they don't know how much coverage they have and are also more likely to underestimate how much coverage might be needed. While a good starting place for life insurance coverage is typically outstanding debt plus five years of salary, 54% of women and 47% of men believe coverage equal to outstanding debt and only three years of salary or less will be adequate. The study also found that only one in four men or women considered outstanding debt when calculating their life insurance needs yet 52% want their death benefit to cover these obligations.

Gender Expectations
Men and women have different desires for what they want their insurance policies to cover. Nearly three-quarters (73%) of married men say their number-one expectation for their life insurance coverage is to pay for future living expenses for their spouse, compared to 47% of married women. For married women, the number-one expectation is to cover their final expenses (69% versus 55% of married men). However, both married men and women express nearly identical levels of interest in protecting the financial futures of their children.

"Honestly assessing your expectations for your life insurance policy is an important step to ensuring you have the right amount of coverage. There's a significant difference between having enough coverage simply to pay for final expenses and also having enough coverage to meet the ongoing needs of a family with children," said Todd Katz, executive vice president, U.S. Business, MetLife. "Take the time now to learn the details of your life insurance policy so that your desires for your family's financial security can be matched with the most appropriate features and coverage levels. And also take the time now to make sure beneficiary information is up-to-date."

"It is so important to be an educated consumer when it comes to developing a strong financial plan. Women should not only consider life insurance coverage on themselves to protect loved ones, but also encourage spouses or partners to have coverage as well. Otherwise, the sudden loss of vital income may have a long-term negative impact for the survivor well into retirement," said Cindy Hounsell, President of the Women's Institute for a Secure Retirement.

Policy Features to Match Needs
The study found that more than one-fourth of those interviewed are unfamiliar with the basic features of their own life insurance policies. For example, nearly one quarter (24%) of employees who say they have term life insurance believe that this coverage offers financial protection for an unlimited amount of time. In fact, term insurance often offers financial protection for a defined time period such as 10, 15, or 20 years, or if provided through an employer-maintained group policy, for the duration of employment. At the end of these time periods, the term coverage typically may be continued, but usually with much higher premiums. In addition, 28% of those employees who own permanent life insurance are unaware that this coverage can build cash value as they pay their premiums. Permanent life insurance policies can be used to accumulate, protect and transfer wealth. Term policies are an easy and cost-effective way to get life insurance protection in the relatively short run.

Employees may also not be leveraging life insurance as effectively as they could to meet their needs. Approximately one-third of employees with coverage do not realize that life insurance, in addition to a death benefit, can be a strategic method to supplement retirement benefits and aid in estate planning.

Katz added, "As a first step, people should familiarize themselves with their employer's life insurance benefit. There may be 'living benefits' available such as will preparation or powers of attorney in addition to beneficiary assistance with estate resolution. However, don't assume that what you have at work is enough. Take time to fully understand your needs and supplement your workplace coverage as needed. Getting the right amount of insurance coverage is less expensive and less complicated than many think. Making use of coverage calculators and trusted advisors can help."

For more information about addressing life insurance needs, visit www. metlife.com/lifeinsurancecalculator or speak with a financial advisor.

Methodology
MetLife commissioned IBOPE Zogby International to conduct the MetLife Life Insurance Literacy Study. The survey sample consisted of 500 telephone interviews of employed adults who have life insurance. The interviewing was conducted from 6/22/11 to 7/1/11.

About MetLife
MetLife is a subsidiary of MetLife, Inc. (NYSE: MET), a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 60 countries. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. For more information, visit www.metlife.com.

Most Life Insurance Policy Holders Are Confident

Beneficiaries Would Know How to File a Claim

Nationwide: Have you spoken with your beneficiaries? It's a good idea to do so regularly

COLUMBUS, Ohio--(BUSINESS WIRE)--A new survey by Nationwide Financial Services, Inc. released for Life Insurance Awareness Month shows the majority of life insurance policy owners (70 percent) are confident their beneficiaries would know how to file a claim, and most have taken proactive steps to help them prepare.

"Life insurance can provide families with stability and financial security during a very difficult time in their lives," said Peter Golato, senior vice president of Individual Protection for Nationwide Financial. "It's encouraging that so many policy holders have taken steps to ensure that their loved ones will be able to quickly and easily access their benefits in the unfortunate event that they need to file a claim."

According to the Harris Interactive online survey of 805 life insurance policy owners across the United States, 84 percent of policy owners say they've talked with their beneficiaries about the policy. Most talked about the face value of the policy (53 percent), who the beneficiaries are (47 percent), and who the life insurance agent is (20 percent). The survey also found that 91 percent of policy owners say their beneficiaries are aware of being designated on the policy.

Changes in life should mean changes to policy
"Though most policy holders have done a good job of preparing their beneficiaries, there are some who need to take additional action to ensure their policies are kept updated so that, when the time comes, benefits due are paid in a timely manner," said Golato. The survey found that 1 in 5 policy owners have not provided their insurer with up to date contact information for their beneficiaries. More than half (55 percent) of policy owners did not change their beneficiary after divorce. And most policy owners (57 percent) who have talked with their beneficiaries about the policy have not told beneficiaries where the policy is located.

"According to the survey, 75 percent of policy owners have not changed the beneficiaries designated on their policy and among those who did make changes, 77 percent did so five or more years ago," said Golato. "Policy holders should use Life Insurance Awareness Month as an opportunity to review their policy with their agent or advisor to ensure that their coverage and beneficiaries are up to date."

Golato offers these tips for life insurance and annuity policy owners to ensure that their beneficiaries are able to easily access their benefits:

1. Talk with the person that you plan to name as a beneficiary before you purchase a policy.

2. Show beneficiaries where policy information is located.

3. If you purchased your policy through an agent or advisor, make sure that your beneficiary knows who the agent is and has their contact information.

4. Ensure that your insurance company has up to date contact information for your beneficiaries.

5. Review your policy annually with your family and agent/advisor to see if you need to change beneficiaries or update contact information.

Additional survey data
The top five reasons that policy holders purchased life insurance were: no particular reason (30 percent), started a new job (29 percent), got married (16 percent), had a baby (12 percent) and bought a house (10 percent). The major catalysts for a change of beneficiary were getting married (30 percent), having a baby (21 percent), getting divorced (19 percent), and the death of a beneficiary (18 percent).

LIAM online resource
Consumers interested in learning more about how to take advantage of Life Insurance Awareness Month should visit nationwide.com/reason to watch videos that illustrate how life insurance can change people’s lives, evaluate their own life insurance needs and contact an agent.

About Nationwide
Nationwide, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by A.M. Best. The company provides a full range of personalized insurance and financial services, including auto insurance, motorcycle, boat, homeowners, life insurance, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions and long-term savings plans. For more information, visit www.nationwide.com.

Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, Nationwide Financial, the Nationwide framemark, Nationwide YourLife and On Your Side are service marks of Nationwide Mutual Insurance Company.

Sales Potential for Under-insured Life Insurance Market Doubles in Six Years

With a prospect pool of 17 million, advisors should take notice

WINDSOR, Conn., Sept. 6, 2011 - A new LIMRA study has quantified the sales potential in the life insurance market of under-insured households in the U.S. "The under-insured life insurance market offers financial professionals tremendous opportunity, with 35 million under-insured middle market households in total - half of them (17 million) thinking they might be ready to buy life insurance in the next year," said Cheryl Retzloff, senior research director, LIMRA Markets Research . "The greatest challenge is not getting them to understand they need life insurance, but rather getting them to give it a high enough priority to investigate coverage now. These consumers need to help to decide what type to buy, how much coverage they need and how life insurance can play an important role in their overall financial security."

The new report, "Trillion Dollar Baby Growing Up," is a follow-up to a 2004 study, in which LIMRA estimated that life insurance sales would increase $9.5 trillion if the 48 million under-insured households bought the amount of life insurance coverage then said they needed. With life insurance ownership at an all time low, the opportunity has doubled since 2004. In 2010, half of U.S. households (58 million) said they needed more life insurance coverage, a sales potential of as much as $17.5 trillion.

For this report, LIMRA calculated the size of the under-insured market based on two different measures: the number of U.S. households that readily admit they are under-insured, and the number of households that think they might buy life insurance in the next 12 months. For these two groups, we measured the gap between the amount of life insurance these people think most consumers should own and what they actually own.

The study found that there are more Generation X households thinking of buying life insurance in the next year than Generations Y and Baby Boomers. Since three quarters of Gen X households are married and half have a child under 18 living in the household, this makes them prime candidates for life insurance. While the likelihood to buy life insurance does not vary by income level, there are more than double the number of U.S. households making $35,000 to $99,900 (17 million) that are likely to buy life insurance than those more affluent.

So what keeps under-insured people from buying life insurance?

LIMRA's study revealed three important factors:
Competing financial priorities - The top two reasons consumers delay buying life insurance are: because they have other financial priorities, or because they think they can't afford it. Consumers need help to figure out how to fit the life insurance premium into their budgets — especially during this tough economy.
Lack of knowledge - Among those likely to buy in the next year, at least half are stalling because they don't know how much to buy, what type to buy, or worry about making the wrong decision. When consumers don’t understand their choices and especially how much coverage is enough for their unique circumstances, then they won’t buy. In fact, 44 percent that say they need life insurance say they haven’t bought because they don’t know how much to buy.
Procrastination and reluctance to initiate buying - Fifty-four percent of those likely to buy life insurance in the next year say they just "haven't gotten around to it." Many of them are likely to continue to procrastinate and not proactively seek out the insurance they need. Over one third of these consumers say they have not bought life insurance because no one has contacted them. The industry will need to find a way to seek them out and engage them.

And what motivates them to buy?
The top three reasons that U.S. households purchase life insurance are: to pay burial and other final expenses, to replace the income of primary wage earners, or to pay off the mortgage. Other recent LIMRA research found that 45 percent of consumers were most influenced to shop for life insurance because of a life event - especially marriage, divorce, having a child, or experiencing the death of a relative or close friend.
"Interestingly, the study found that 24 percent of consumers seriously shopped for life insurance because a financial advisor initiated contact or suggested the need for life insurance," noted Retzloff. "However, a quarter of under-insured households said they were not approached to buy life insurance. Companies and producers need to find a better way to reach American households. Clearly, there is a large market interested in buying life insurance."

Individual Life Insurance Sales Improve in First Half of 2011

A trend away from lifetime death benefit guarantee UL

WINDSOR, Conn., Aug. 24, 2011- Total individual life insurance new annualized premium increased four percent in the first half of 2011, according to LIMRAs U.S. Individual Life Insurance Sales report.

"Overall, individual life insurance sales slowed from first quarter, but still remained positive, with premium and policy count up one percent compared with second quarter 2010," noted Ashley Durham, senior analyst, LIMRA product research. "Part of the slowdown in growth is a reflection of a few companies moving away from lifetime death benefit guarantee universal life (UL) products."

Annualized premium sales for death benefit guarantee UL products were three percent lower than they were during second quarter 2010, and level in the first half of the 2011. However, it is important to note that lifetime guarantees remain a strong selling point; these products held 45 percent of UL market share through the second quarter.
Indexed UL growth has also slowed over the past few months, but premium still improved, up 29 percent in the second quarter 2011 compared to prior year, producing a 43 percent hike during the first six months of 2011.

New UL annualized premium rose only one percent in the second quarter, which is significantly lower than the 14 percent jump UL experienced in the first quarter. UL policy count grew 11 percent in the second quarter, resulting in a 14 percent increase for the first half of the year. However, growth was influenced by term/UL, without which, UL policy sales would have only been up four percent for the first half of the year.
Whole life (WL) new annualized premium enjoyed a five percent boost in the second quarter, resulting in a 10 percent increase for the first six months of 2011. Policy count also grew, up four percent for the quarter and six percent year to date.

Just over 70 percent of writers were able to increase their sales in the second quarter; just over half experienced double-digit increases. In fact, WL by far outpaced all other products in terms of absolute dollar growth in the second quarter.
Variable universal life (VUL) new annualized premium grew three percent in the second quarter. Midyear, VUL premium was nine percent higher than the first six months of 2010, driven by the 16 percent growth in the first quarter. VUL policy count fell 11 percent for the quarter and year to date.

Term life was the only product line to experience a decline in the second quarter. New annualized premium dropped five percent for the quarter and eight percent for the year so far. Policy count also declined, down four percent for the quarter and eight percent during the first half of 2011. Even if the new term/UL products were included with term (instead of UL) premium and policy sales would be down three percent and four percent.

View the latest data table on U.S. life insurance sales trends. For more statistics, visit the newly updated data bank.

Many Financial Advisors Miss Opportunity

to Incorporate Life Insurance into Planning

Survey shows opportunity to better educate clients about advantages of life insurance as a financial planning tool

HARTFORD, Conn., Aug. 16, 2011 - Financial advisors often miss the opportunity to speak to their clients about the important role life insurance products can play in financial planning, according to a recent survey by Saybrus Partners, Inc. Results of the survey showed that only about half of adults who currently have a financial advisor and a financial plan have ever discussed adding life insurance to their plans. The survey was conducted online within the United States by Harris Interactive on behalf of Saybrus Partners between July 22-26, 2011 among 2,410 adults aged 18 and older, of which 786 said they currently have a financial advisor.

"We believe life insurance is foundational for a well-designed financial plan, not only for the protection it provides but also its tax efficiency, and potential for cash accumulation and wealth transfer," said Kevin Kimbrough, national sales manager for Saybrus Partners. "The survey affirmed statistically what we have heard anecdotally for years - financial advisors often do not discuss life insurance during the financial planning process. They are missing an opportunity to fill a critical gap in some existing financial plans while at the same time differentiating themselves and expanding their practices. Additionally, there are benefits to including assets such as life insurance that are not tied to the financial markets and therefore not subject to the same volatility we are currently seeing."

Starting the Discussion About Life Insurance
About half (49%) of U.S. adults who have a financial advisor and a financial plan have spoken with their advisor about adding life insurance to their financial plan. Among those who have discussed life insurance with their advisors, 15% said the conversation took place more than 10 years ago, while 40% have discussed it within the past year. While this may indicate that discussions about life insurance are becoming more common, they do not necessarily include a review of existing policies for critical issues such as performance, affordability and potential policy lapse. According to the study, nearly half (47%) of U.S. adults who have a financial advisor and have life insurance said their advisors have never reviewed their existing life insurance policy with them.

One-third (34%) of U.S. adults who have a financial advisor and a financial plan said that over the last two years, their advisor has recommended that they add some form of insurance to their financial plan. However, less than one quarter (24%) were advised to include life insurance specifically. Only 10% said their advisor had recommended long-term care insurance.
"Life insurance can be complex, and many advisors are reluctant to introduce it into the financial planning conversation. However, some of these financial professionals are finding that they can use outside specialists to help them advise their clients on the most effective and efficient life insurance uses for each unique portfolio," Kimbrough said.

Understanding What Life Insurance Can Do
The most fundamental role of life insurance is to protect families/heirs with a death benefit, and 81% of U.S. adults who have a financial advisor and have life insurance said the a primary reason they carried such policies was to protect their family and/or heirs. Only 17% cited wealth transfer as a primary reason they had life insurance and 15% cited the potential for cash accumulation, which is a key feature of many permanent life insurance policies.
"These statistics demonstrate that typical life insurance policyholders may not be aware of the many other uses for life insurance beyond family and heir protection," Kimbrough said. "They may be relying on IRAs or annuities for wealth transfer, which are designed for asset accumulation and retirement income but not for wealth transfer, especially from a tax perspective. Life insurance offers potential for tax-efficient cash accumulation, which can be accessed for a variety of reasons including supplemental retirement income or health care costs, as well as a tax-efficient vehicle to provide for heirs."

Going Beyond the Traditional
According to the survey, more than four out of five U.S. adults who have a financial advisor and life insurance (83%) said they would be interested in life insurance policies that carried additional features not present in their current policy, with varying degrees of interest in specific features. For example, 30% said they would find a feature that would allow them to receive the life insurance payout as income if they were diagnosed with a terminal illness beneficial. Another 28% of indicated coverage for long-term care needs would be beneficial, and 18% thought a waiver of premium payments if they became disabled would be a beneficial addition to their policy.
"Clearly, consumers are interested in getting more from their life insurance policies. Given the well-known concerns about healthcare costs that dominated the national news last year, this relatively modest interest in health-related benefits is likely due to lack of knowledge of how they would work. This is another opportunity for financial advisors to help their clients maximize the benefits they can get from their life insurance," Kimbrough said.

Exceeding Expectations

The survey asked U.S. adults with a financial advisor to indicate areas where they expect their advisor to be knowledgeable. The highest expectation (70%) was for mutual fund knowledge, followed closely by stocks and equities (68%). Just 38% said they expected their advisor to be knowledgeable about life insurance.
"These clients' relatively low expectation about their advisors' expertise in life insurance probably reflects the lack of discussions they have had on the topic. This presents an opportunity for advisors to go beyond their clients' expectations and address a critical element of the financial planning process," Kimbrough said.

IRS Circular 230 disclosure
Any information contained in this communication (including any attachments) is not intended to be used, and cannot be used, to avoid penalties imposed under the U. S. Internal Revenue Code. This communication was written to support the promotion or marketing of the transactions or matters addressed here. Individuals should seek independent tax advice based on their own circumstances.

About the survey
This survey was conducted online within the United States between July 22nd and 26th, 2011 among 2,410 adults (aged 18 and over) by Harris Interactive on behalf of Saybrus Partners via its Quick Query omnibus product. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents' propensity to be online.
All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words 'margin of error' as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.
Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the adult population. Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated.

About Saybrus Partners
Saybrus Partners, Inc. is a Life Insurance Partnership firm that helps institutions and financial professionals nationwide deliver added value to their clients with dedicated support, product expertise and personalized insurance solutions for basic protection, as well as policy recommendations for estate, business and income planning. It is a subsidiary of The Phoenix Companies, Inc. (NYSE: PNX) For more information, visit www.saybruspartners.com and www.phoenixwm.com.

Saybrus does not provide tax or legal advice. In California dba Saybrus Partners Insurance Agency, CA license.

About Harris Interactive
Harris Interactive is one of the world's leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for the Harris Poll and for pioneering innovative research methodologies, Harris offers expertise in a wide range of industries including healthcare, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us - and our clients - stay ahead of what's next. For more information, please visit www.harrisinteractive.com.

Build It And They Will Come

LIMRA Examines Life Insurance Customer Use of Online Services

WINDSOR, Conn. July, 25, 2011 – In a recent study of life insurance policyowners, LIMRA found that one in two have visited their life insurer's website and 70 percent of those who visited, did so to use the online services.

"Not surprisingly, the majority of Generation X and Y policyowners and almost half of Boomer policyowners who have visited their life company's website sought online services from their insurers- citing convenience and ease of use as reasons they visited the sites," said Mary Art, LIMRA research director, technology in marketing and distribution research. "With Internet usage growing almost 150 percent in the last decade, it is vital that companies understand who their online audience is and what their expectations are and develop a website that offers the important services that these customers say they want."

The report, Connecting for Service Online: Customer Service for Life Insurance, revealed that customers are interested in obtaining a wide variety of online services, with billing information, email and mailing address updates, forms access and policy information high on their list. LIMRA researchers suggest that insurers also offer information on managing finances and planning relevant to their financial concerns, such as saving for college, building an emergency fund, saving for retirement and saving for a home.

Other features mentioned by policyowners include:
- A Search Box: At least 1 in 2 life insurance policyowners (whether or not they have used the company website) consider a site search box on the company website to be very important.
- Price and Product Comparisons: More than 50 percent of policyowners are interested in the availability of price and product comparisons of products from their life insurance company on the site.
- Ability to Initiate Personal Changes Online: LIMRA's survey found that consumers want to be able to make beneficiary changes, loan requests and fund withdrawals online.

LIMRA also found that of those who visit the website, 7 in 10 register. Registrations are higher for Generations X and Y than for older generations, with about three-quarters Gen X and Gen Y policyowners taking the time to register on the website, while only two-thirds of percent of Baby Boomers and those in the Silent generation register on the site. LIMRA research suggests that reaching out to these registered customers, as well as those who do not currently use the website, can help build brand loyalty and identify ways to increase web traffic.

Half of life policyowners who obtained services online found the service experience 'very satisfactory' in the case of 18 of the 19 services. The single exception was using a calculator or worksheet, and even for this service 44 percent were very satisfied. Furthermore, for some services (fund transfer, e-delivery setup, policy loan requests, auto payment set-up, and policy information access) 3 in 4 policyowners had a positive online experience.

'Customers- particularly Gen X and Y customers- want online services and they expect your company to offer a range of services online," noted Art. "It is important for companies to offer a well-designed, easy-to-use site that appeals to consumers in their 20s, 30s, and 40s since they are your current and future customers."

Single Mothers Struggle to Secure A Sufficient Life Insurance Safety Net

Study: More likely to own it than women in general, but not enough

A recent LIMRA study found that nearly two-thirds of working single mothers owned life insurance, higher than the ownership level for all women (57 percent) in the total population.

"We were surprised by the level of life insurance ownership among single mothers," said Nilufer Ahmed, senior research director, LIMRA Markets Research. "However, of those who are insured, only a third felt that their families would be able to cover expenses well into the future should they die. With about 10 million U.S. single mothers with children under the age of 18 living with them; there is a significant opportunity for companies to help these families obtain adequate levels of life insurance."

The idea that single mothers are likely young and never married is a myth. U.S. Census Bureau data indicate that more than 8 in 10 single mothers are at least 25 years old, and more than half have been previously married, with nearly all these marriages ending in divorce. In addition, while many do earn low incomes, a fourth earn incomes of at least $50,000 annually placing them solidly in the middle class.

According to the study, almost two-thirds of single mothers own some type of life insurance- 37 percent own individual life insurance, and 46 percent are covered by group life insurance. Among those single mothers who earned incomes of $50,000 or more, close to 9 in 10 own type of life insurance, with almost half owning individual life insurance.
Most of single mothers (7 in 10) believe that the fees involved in working with financial professionals are too high to be affordable. However, meeting face-to-face is by far the most preferred way to purchase life insurance for single mothers. In fact, of the single mothers with life insurance, 8 in 10 purchased their policies through face-to-face meetings with insurance agents or brokers, or with other financial professionals. No other purchase method comes close.

"Companies and financial professionals should provide some guidelines about the fees involved in meeting prospects face to face," commented Ahmed. "It is highly probable that single mothers are overestimating these costs, and therefore are not even approaching financial advisors."
LIMRA found that more than half of insured single mothers realize that they are underinsured and should have more coverage. However, only a fourth say they are likely to purchase additional life insurance in the next 12 months.
The most common reason why insured single mothers have not increased their life insurance coverage is that they have other financial priorities that reduce their discretionary income. These priorities include saving for their children’s college educations and paying down debt, which are similar to reasons given by the general population. It is important that companies specifically indicate in their marketing and branding materials that they provide life insurance policies that are affordable for all levels of incomes. This will appeal to single mothers who have tight budgets, regardless of the incomes they earn.

LIMRA research suggests that financial professionals take some specific actions to engage single mothers:

- Offer to review the policy coverages of their clients and prospects. These policy reviews may result in single mothers buying additional coverage, or purchasing new policies with affordable premiums.
- Proactively offer financial planning to their clients. This can help customers prioritize their financial goals and manage their income (and debt) to achieve their most important goals. Single mothers may particularly appreciate this since even simple plans can bring some peace of mind.
- Make it easy for mothers to meet with them. For example, single mothers should feel welcome to bring their children to the office. In other words, financial professionals need to be sensitive to single mothers' needs.

Term Life for MoneyTrax, Infinite Banking, and Bank-on-Yourself Advisors

Security Mutual's tern offers enhanced conversion features

Security Mutual Life has introduced a new term life insurance product that offers novel conversion features. The new product will appeal
especially to life insurance advisors who first recommend permanent coverage, but who recognize that some insurance needs can best be met
with term life. This enhanced conversion feature is in addition to the basic conversion right that comes with Security Mutual's level term
products, and is available at an additional charge.

The new conversion feature allows the policyowner to convert up to 50 percent of his or her term coverage during each of three time
periods. The first period ends on the second policy anniversary. The second period ends on the fourth anniversary, and the third period
ends on the sixth anniversary. A policyowner who elects to convert the maximum amount of coverage using the enhanced conversion
option and the basic conversion option, would end up with a permanent life insurance face amount of 250 percent of the term face amount.
The four conversions can be accomplished expeditiously and without evidence of insurability.

George Kozol, Security Mutual Life senior vice president for advanced markets, commented that the new product should become the term
product of choice for life insurance advisors who subscribe to Don Blanton's MoneyTrax program, Nelson Nash's Infinite Banking Concept
and Pamela Yellen's Bank-on-Yourself idea. In this regard, Kozol pointed out that Security Mutual permits conversion to its whole life
products, which work so well with the Infinite Banking and Bank-on-Yourself concepts.

The product is available in the following states: AK, CO, GA, HI, IA, ID, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, NC, NE,
NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, WV and WY.

Life Industry Professional Joseph W. Jordan's Book,

'Living a Life of Significance' a Success

Heralded as 'beautiful, critically important

Since its debut seven weeks ago, nearly 6,000 copies of Joseph W. Jordan's book, Living a Life of Significance, have been distributed to financial professionals across the country. The text was originally unveiled at The American College's Knowledge Summit in Las Vegas on June 10, 2011.

Nick Murray, publisher of the monthly newsletter Interactive called the book, 'beautiful and critically important,' in his July 2011 newsletter. "Living a Life of Significance is essential reading for your practice and your soul," Murray said.

Based on more than 30 years of personal experience, Jordan shares his own journey as an American financial services leader with readers. Living a Life of Significance focuses on the author's life experiences and his passion for helping others achieve financial security.

Jordan began his career with Home Life in 1974, and was named 'Rookie of the Year.' The following year, he became a member of the Million Dollar Round Table (MDRT). Between the years, 1981-1988 Jordan ran insurance sales at Paine Webber. He joined MetLife in 1988 to manage annuity, and later life, sales and product development.

Jordan is a renowned financial industry leader and speaker whose presentations focus on behavioral finance, client-centric tools, ethical selling and client advocacy. Currently, Jordan is responsible for MetLife's Behavioral Finance Strategies unit.

This is the first book written for The American College Press by an industry professional outside of the institution's own faculty members. The American College's President and Chief Executive Officer Larry Barton stated: "The feedback and demand for the book has been positive and exciting. We are proud to publish and promote a book of such significance to the industry."

To order a copy of the book for $14.99, plus shipping, contact The American College Alumni Association at 610-526-1477 or Alumni@TheAmericanCollege.edu. All proceeds from the book sales with go to The American College.

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 60 countries. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. For more information, visit www.metlife.com

The American College is the nation's largest non-profit educational institution devoted to financial services. Holding the highest level of academic accreditation, The College has served as a valued business partner to banks, brokerage firms, insurance companies and others for over 84 years. The American College's faculty represents some of the financial services industry's foremost thought leaders. For more information, visit TheAmericanCollege.edu

Of Note To Your Clients

The US Debt Deal:

How Homebuyers Can Benefit

Ann Arbor, MI, August 2, 2011- "Homebuyers have a short window of opportunity to benefit from the aftermath of the debt deal," said Gibran Nicholas, Chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. "The European debt crisis, the slow economic recovery in the US, and the uncertainty left by the US debt deal are leaving investors with little choice but to keep their funds invested in US Treasuries and mortgage bonds," Nicholas said. "This is driving down mortgage rates to the lowest level they've been in months. The last time mortgage rates hovered around this level, deficit fears quickly spoiled the party and caused mortgage rates to spike up by over 0.5% in a matter of weeks."

Even though the debt deal eliminates the chance that the US will default on its obligations, credit ratings agencies may still downgrade the credit rating of the United States. This could cause some renewed deficit fears in the bond market and drive up mortgage rates at some point in the next few months. "That's what happened the last time around," Nicholas said. "A rapid change of direction and spike in mortgage rates has happened no less than three times in the last two years alone. That's why homebuyers should take action now, while the opportunity is here."

What could cause the next spike in rates? "The main thing to watch out for in the coming months is the pace of the economic recovery and whether our government can come up with a credible long-term solution to the budget deficit," Nicholas said. "Mortgage rates are vulnerable as long as we have uncertainty; and the debt deal all but guarantees uncertainty (and volatile mortgage rates) over the next several months."

The lesson in all this for homebuyers: seize this short window of opportunity and don't take it for granted. "It was just five short months ago that mortgage rates were a half percent higher than they are right now," Nicholas said. "Buyers should jump at the chance to lock in a low mortgage rate now while they can."

Homebuyers can also breathe a sigh of relief that the mortgage interest deduction was not cut or eliminated as part of the final debt deal. "The mortgage interest deduction makes owning a home even more of a great deal when compared with renting," Nicholas said. "For example, consider a homebuyer in a 25% tax bracket who ends up with a 4.5% $200,000 mortgage. The mortgage deduction means an extra $187 per month in purchasing power when compared with renting. It means an extra $469 per month with a $500,000 mortgage."

The current economic uncertainty could also work in the favor of homebuyers who take action now. The National Association of Realtors reported an unexpected four-fold increase in home purchase cancellations last month. This comes on the heels of a 3.3% increase in the inventory levels of homes listed for sale, and consumer confidence levels that are the lowest since the financial crisis a few years ago. "All this means that home sellers need to be more creative when structuring deals and attracting buyers," Nicholas said. "A certified mortgage planning specialist can help home sellers structure a transaction with seller-paid points as a way of showing buyers how this particular home is more attractive and affordable than the competing listings in the market."

Homebuyers and sellers should find and contact a CMPS professional in their area to discuss their options and what the debt deal and market conditions mean for their situation.

Fixed Index Universal Life Insurance

Delivering flexible options for a new era in retirement planning

by Jason Wellmann
Mr. Wellmann is senior vice president of Life Insurance Sales for Allianz Life, responsible for leading Allianz life insurance strategy through all distribution channels. He has his Series 7, 6, 24 and 63 licenses and is involved with many industry organizations, including GAMA, AALU, and NAIFA. He can be reached at jason.wellmann@allianzlife.com

Selling life insurance can seem like a pretty tall order these days. A well-circulated statistic from last year showed that life insurance ownership was at a 50-year low, with only 44 percent of U.S. households owning individual life insurance (LIMRA Facts About Life 2010).
So how can you convince your clients that life insurance ownership is worth exploring? A good place to start may be a review of the different types of life insurance products that are available, including Fixed Index Universal Life Insurance (FIUL). It turns out that not all segments of life insurance products have been declining in sales over the past decade. In fact, sales of FIUL have been continuously increasing since 2002 (LIMRA 4Q 2010 Individual Life Insurance Sales Report) - and with good reason, since FIUL can be a valuable part of an individual's overall financial strategy.

First and foremost, FIUL provides the death benefit protection that people need to guard against the unexpected. According to LIMRA's Facts About Life 2010 report, nearly 70 percent of American households with children under 18 would be in financial jeopardy if the primary breadwinner died.
As the primary purpose for life insurance, the death benefit can provide some financial reassurance to beneficiaries. Death benefit proceeds can be used for various purposes, such as: estate taxes, final expenses, paying off outstanding debt, funding a college education or providing replacement income.
In addition to the death benefit, however, FIUL has several advantages that allow the policy-holder more flexibility in how they address other financial concerns. FIUL also provides the ability to take loans against any available cash value that can be used for various purposes, such as to supplement retirement income. Potential cash value accumulates in the policy tax-deferred via indexed interest. While there is no guarantee that a policy will have available cash value to take loans from, guarantees in the policy do ensure that any cash value accumulation will not lose value due to negative index performance; the built-in annual floor available in some policies ensures their cash value will not be adversely affected by market volatility. It is also important to note that taking loans against a policy will decrease cash value and death benefit and could cause the policy to lapse.
Accumulation for retirement has becoming increasingly critical in the past few years as the entire retirement landscape is changing dramatically. No longer can people rely on the traditional three pillars of retirement in America, Social Security, defended benefit plans (pensions) and personal savings, to get them through their golden years. A combination of unpredictable markets, the erosion of pensions, uncertainty about Social Security and longer life expectancies have created a new paradigm that is challenging long-held beliefs in retirement planning.

Individual Responsibility on the Rise
People need more options for supplementing their retirement income simply because so much more of the responsibility for a retirement nest egg now rests on the individual.
The solvency of Social Security has been in question for many years, but whether or not you believe it will be a significant part of your retirement portfolio, the currently reality is alarming. Most notable is that the ratio of workers paying into the system to support each beneficiary has declined dramatically since 1950, and will continue to decline into the future (The 2009 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, May 12, 2009). As a result, government support of retirement may be less than many expected through increases in eligibility age, a reduction in benefits, or a combination of both.
In terms of employer contributions to retirement, the trend toward placing more responsibility with individuals has also been underway for some time. In 1980, 38 percent of employees were covered at least in part by a traditional pension plan. Over the next three decades, the defined benefit-based guaranteed pension plan eroded significantly, with only 13 percent covered in 2006, effectively shifting the risk of building sufficient savings (through a workplace plan) to meet a major portion of retirement income needs from the employer to employees (Notes, February 2009, Vol. 30, No2, www.ebri.org). According to 'The Financial Crisis and Private Defined Benefit Plans,' (November, 2008) from the Center for Retirement Research at Boston College, 54-56 percent of Americans are currently not covered by either a defined benefit or defined contribution plan.

With these two pillars in clear jeopardy, individuals now have to accept greater responsibility for their own retirement security, but as the crisis of 2008-2009 showed, that is easier said than done. From the market peak to its low point during 2008-2009, the value of equity holdings in defined contribution, defined benefit, and household non-pension assets declined by 57 percent. In dollar terms, these portfolios lost more than $12 trillion (Alicia H. Munnell and Dan Muldoon, 'Equity Declines from October 9,2007, to March 9, 2009, Trillions of Dollars,' Flow of Funds Accounts of the United States, Center for Retirement Research at Boston College, March 2009). Investment vehicles and diversification strategies intended to help people achieve retirement security failed to protect them. Many who spent decades accumulating wealth saw much of it disappear overnight.
The losses were most significant for those closest to retirement, a logical outcome given that these people tend to have accumulated the most money. Consumers aged 55 to 64 generally experienced losses of 25 to 30 percent in their 401(k) plans (from the end of 2007 to January 2009 - based on account balances as of 12/31/2007, EBRI estimates based on tabulation from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project 2008 and 2009 Account Balances).

Market volatility isn't the only thing that people have to worry about when it comes to their retirement savings. Rising costs associated with inflation and particularly health care are eating into savings. Compared to the 29 percent increase in the Consumer Price Index from 1999 through 2008, health care expenses rose 119 percent (Trends in Health Care Costs and Spending, Kaiser Family Foundation, March 2009). This is a tough pill to swallow since health care expenses tend to become more significant as people grow older.
New Products Provide New Solutions
As previously noted, today's retirees have more responsibility for their own retirement security than ever before. FIUL can help by offering options for supplemental college funding, the ability to take loans against potential cash value and even providing business planning solutions. FIUL can do all of this in addition to its primary purpose of providing financial assistance to a family when there is an unexpected loss of a loved one.
Some FIUL policies are even going beyond that with unique benefits that can help people address one of the biggest challenges facing them today, namely inflation. According to a study released by the Society of Actuaries in 2009, respondents listed inflation as the number one retirement risk. Allianz Life Insurance Company of America's recent refresh of their 2010 Reclaiming the Future study also noted significant concerns about inflation costs. Sixty-seven percent of respondents said they were concerned about inflation costs, up from 65 percent in 2010.
Certain FIUL policies can actually help your client protect their purchasing power by providing the opportunity (through an optional rider, at an additional cost) to receive annual credits on any loan amounts taken based on positive changes in the Consumer Price Index for Urban Areas (CPI-U). This can be a powerful value proposition since inflation can significantly erode the amount of money people have to spend in retirement. With today's retirements lasting 20-30 years or longer, it's crucial that retirees have the flexibility to respond to the economic conditions of the time.
While overall life insurance sales have been trending down, things may be looking up soon. Innovative new FIUL products can be a solution for many different concerns at once, demonstrating that the industry is listening to consumers and building solutions to meet their specific needs. FIUL can be an effective part of the strategy.

Life insurance purchasing habits changing as 1 in 4 prefer to buy direct

New LIFE and LIMRA Study Examines Changes in Insurance Planning Attitudes and Behaviors

Windsor, Conn., and Arlington, Va. -July 27, 2011- It has long been said that life insurance is a product that is sold, not bought. Yet a new study finds that Americans' preferences for purchasing life insurance are shifting towards direct buying methods. While two thirds of consumers (64 percent) still prefer to buy life insurance from an insurance or financial professional, that number is down from 1996, when 8 in 10 (80 percent) preferred to buy the product face-to-face. Today, more than one in four adults (26 percent) prefer to purchase life insurance direct via the Internet, mail or over the phone.

“"Obviously, the Internet has fundamentally changed consumers' buying practices over the past 15 years," said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation. "Recognizing the growing consumer interest to use the Internet to conduct research and buy life insurance, life insurance companies and agents have developed and implemented innovative strategies to engage and serve consumers through their websites and social media platforms that are more convenient for the customer."

Not surprisingly, younger consumers showed the most interest in purchasing life insurance through the Internet. Among those ages 25-44, a prime group for purchasing life insurance, 31 percent said they would prefer to buy direct, with three in four citing the Internet as their preferred means of direct buying.
These findings were released today by the nonprofit LIFE Foundation and LIMRA as part of the organizations’ The 2011 Insurance Barometer Study, a new, annual survey designed to increase understanding about consumer attitudes and behaviors regarding a host of insurance and financial planning matters.

The study also found that consumers generally view life insurance as a necessity, with 86 percent agreeing that most people need life insurance. However, the figure drops to 70 percent when people are asked if they personally need life insurance. Only 63 percent of individuals surveyed say they own some sort of life insurance, which is similar to other recent research conducted by LIMRA in 2010.

"Life insurance has never been as easy or inexpensive to buy, yet millions of Americans continue to put off making a purchase that they, by their own admission, say is an important one," noted Feldman.
While the percent of people who want to buy over the Internet is still relatively small compared to the percent who want to buy from an insurance agent (17 vs. 64 percent), the Internet now plays a role in eight out of ten life insurance purchases. When asked how they would use the Internet if they were to make a life insurance purchase, 59 percent say they would use it to conduct research, but ultimately buy from an insurance agent. Twenty-one percent say they would research and complete the purchase online. Among 25-44 year-olds, nine in 10 say they would use the Internet in some fashion during the buying process.

Additional findings from the research:
Consumers Want to Understand What They're Buying. When asked about factors that are important to them when buying life insurance, understanding what they are buying ranks highest among Americans (36 percent), followed by obtaining the proper amount of coverage (22 percent). Getting the best price ranked fourth out of six factors, with only 14 percent saying it was most important to them. Being certain about what they are buying is particularly important to women (39 percent say it is the most important factor compared to 32 percent of men), while men place greater importance than women on getting the best price (17 vs. 11 percent).
Concerns Over Price Hinder People from Buying More. Even though the cost of basic term life insurance has fallen by about 50 percent over the past 10 years, consumers' misperception of the cost of life insurance continues. The study found that the cost of life insurance is the top reason people give for not having enough life insurance. Of insured people who say their coverage is inadequate, 85 percent say cost has prevented them from buying more, followed by 76 percent who cite other financial priorities and 55 percent who say they don't know how much or what type to buy.

Most Desire to Leave a Legacy. By a sizable margin, the top reason people say they own life insurance is to cover burial and other final expenses (89 percent) followed by replacing the income of a wage earner (65 percent). Adults of all income levels, not just the wealthy, see life insurance as a way to transfer wealth or leave an inheritance (62 percent).
Other Financial Concerns. When asked about common financial concerns, 46 percent of adults say they are extremely or very concerned about having money for a comfortable retirement, followed next by paying for medical expenses (42 percent). Even though many Americans don't have any life insurance or are inadequately insured, only 27 percent say they are extremely or very concerned about dying prematurely and leaving family members in a difficult financial situation.
"The psychology of a life insurance purchase is very complex, and the results of this new study bear that out," Robert Kerzner, CLU, ChFC, president and CEO of LIMRA, LOMA, and LL Global. "Research like this is important because it provides a better understanding of evolving consumer trends and preferences, like the use of technology and the Internet. We hope that this annual tracking survey will provide insight to companies and producers, enabling them to effectively reach more consumers and increase the number of people owning life insurance."

Should Lawyers Sell Life Insurance?

Attorneys, particularly those working in estate planning,

encounter a number of areas where life insurance is a natural extension of their legal work

by Kelli Conroy
Ms. Conroy is a brokerage manager at First American Insurance Underwriters in Needham, MA. She can be reached at kconroy@faiu.com

To state the case, it makes sense for estate planning attorneys to consider becoming life insurance agents. There is no prohibition against doing so in most states.
Estate planners must have a basic knowledge of how insurance products, such as life insurance, annuities and long-term care insurance, may be used to help their clients. And they need to be able to identify those situations where insurance solutions should be considered and when existing insurance policies should be reviewed to determine whether or not they are performing as expected. Clients can benefit by replacing existing, under performing policies with those costing less and that better meet their current needs.
Clients often have greater confidence in their lawyer than they have in an insurance agent and are more open to following a lawyer's advice concerning insurance products. The question is whether such trust would be undermined if the attorney were to receive a commission for selling life insurance policies. We feel that if handled appropriately, the answer is no. Further, with a surplus of attorneys as of late, having a life insurance license can produce additional revenue for attorneys and, at the same time, enable them to enhance the services they offer clients.

Better service to clients
Elder Law Attorney Harry Margolis of Margolis & Bloom in Boston, Massachusetts, who has a life insurance license, points out that by not understanding life insurance some estate planning attorneys don't look beyond the plan. "They can have blinders on when doing estate planning and not see that a life insurance policy needs attention," says Margolis.
E.F. Moody, Jr., the life and disability insurance advisor (efmoody.com) estimates that 92% of Trust-Owned Insurance policies could be restructured to provide 20% additional value, and that anywhere from 74% to 87% of these contracts could be restructured to provide either a 40% death benefit increase or a 40% reduction in premium. Then he adds that 70% to 95% of trust-owned policies do
not have a life insurance agent servicing them. Frankly, these are not surprising figures. Since life insurance agents depend on the one-time commission, their goal is to find the next prospect, not to go back and look at policies they've sold in the past.
ItÃ¢â‚¬â„¢s also not surprising that trustees have been sued for failing to fulfill their fiduciary responsibility in maintaining the financial viability of insurance policies. No one understands the obligations of trustees better than a lawyer.

Attorneys and agents working together
Attorney Susan Litwer, of Marmaroneck, NY, and I have worked together for over a year. Her practice encompasses estate planning, the preparation of wills and trusts, the administration of estates and trusts, and the preparation of estate, gift and fiduciary tax returns. Even though Susan has a life insurance producer's license, she does not want to become an expert in insurance. "I want to be very sure that the insurance is the right fit for my clients' estate plans," says Litwer.
Needless to say, Susan believes in life insurance, both from the viewpoint of protection and the proceeds remaining outside of an estate. "Since I work with clients over a period of years, I want to be sure they have life insurance," she says, "especially for young families." She makes sure they have trusts and that the life insurance is payable to them and not to minors. "I coordinate the testamentary benefits with trusts to benefit minors," Litwer adds.
We have weekly telephone conferences to review cases, discuss issues and consider strategies. The thread running through all our discussions is determining what is best for the client. With ever-changing economic conditions, Susan is very concerned that policies perform as expected, so one of my tasks is to perform periodic policy reviews.
In other words, Susan is responsible for making sure that the legal instruments are appropriate and correct and my role is to see that the life insurance solution will produce the anticipated results. Our roles are limited to the areas where we each have expertise.
For example, before she makes a life insurance presentation to a client, we go through a process of reviewing the initial client interview data, determining the right amount of insurance, and selecting the most appropriate product and insurance carrier. We discuss the best approach for presenting the solution to the client, including taking the application and following the case through underwriting until the policy is placed in force.

Insurance needs
Attorneys, particularly those working in estate planning, encounter a number of areas where life insurance is a natural extension of their legal work:
- Use of Medicaid qualified annuities in Medicaid and Veteran's benefit planning
- Updating life insurance programs to include what are called "linked benefit" products that combine life insurance with long-term care coverage
- Application of survivorship life insurance in estate planning
- In special needs planning, both term life and permanent life insurance can be useful tools
- Review of existing life insurance policies to evaluate their performance and suitability with current needs

There are also life insurance opportunities for attorneys with elder law practices, since they are often faced with 'crisis planning' situations and can easily add the insurance side of this planning to their practice. At such times, clients appreciate working with the same person, rather than bringing in a third party to handle the insurance. As Harry Margolis says, "It's just much simpler."

Doing it right
Just because an attorney receives a commission does not, in and of itself, undermine client confidence, if it is done correctly. First, full disclosure to legal clients is an important aspect of adding life insurance services to one's practice. Susan discloses to clients that she is a licensed life insurance agent, will receive a commission, and that she does not bill them for the time she's working on the life insurance program. If she's preparing a trust document, however, that is billable time.
In addition, the attorney should be open to working with an insurance agent of a client's choosing, pledging to complete the legal work with the same attention to detail and consideration of the client's needs no matter who a client selects to work with on the insurance plan.
Whether the attorney works with our firm or through another insurance brokerage general agency, the critical issue is selecting a carrier-neutral insurance advisor in whom you have complete confidence : someone to whom you would send your mother.

Case example
Here's a case Susan and I recently worked on that illustrates the value to a client of bringing together legal and life insurance expertise:
Client: Mrs. Smith (alias), age 64 and recently retired.
Situation: She ported her group universal life insurance policy to an individual plan. The death benefit is $780,000 and the quarterly premium is $918; annually, $3672.
Client's objective: To leave something for her children.
Problem: The premium is not level and is scheduled to increase dramatically every five years and then annually from age 80 on. As this occurs, it's very likely that Mrs. Smith will either reduce the death benefit substantially or cancel the policy all together. This is a concern to her since longevity is a family trait and affordability could cause her to not achieve her objective.
Solution: Purchase a 30-year term-UL policy with a $3,019 annual level premium and a death benefit of $500,000.
Result: The client chose to reduce the death benefit to $500,000 to make sure the policy remains affordable for her during her lifetime. She is comfortable with the length of the policy, as it will provide coverage until she is 94 years old. Since this policy is built on a universal life chassis, Mrs. Smith has the option of increasing the premium to a lifetime level premium if, at some point in the future, she feels she may outlive the policy.
As Susan was preparing legal documents for her client, the matter of her life insurance policy came up. Since Mrs. Smith was comfortable working with Susan, she appreciated her help with this aspect of her legacy planning. Susan wanted to guide her to ensure that she purchased an affordable, lasting insurance plan while she was still an insurable interest to the carriers.

Conclusion
The issue of attorneys selling life insurance is far less contentious than it was even in the recent past. The goal of both attorneys and full-time life insurance professionals is to serve their clients' best interests. This can best be accomplished if attorneys have an understanding of insurance products, which is more likely to occur by becoming a licensed agent and by partnering with a client-focused brokerage general agency.

New Select Income Rider Offers Guaranteed Monthly Income

Flexible, customizable level term

HOUSTON - American General Life Companies has announced availability of a monthly income benefit rider to be used in conjunction with its flagship term product: AG Select-a-Term. The Select Income Rider is issued by American General and The United States Life Insurance Company in the City of New York. It can be issued with AG Select-a-Term level premium term life insurance to provide a guaranteed monthly income for a specified period of time in addition to the lump sum death benefit from the base policy.

The Select Income Rider:
- Pays a monthly benefit for a period of 60, 120, 180, 240, 300, 360, 420, or 480 months upon the death of the insured
- Provides a monthly benefit amount of $500 or more
- Is available only in conjunction with AG Select-a-Term and must be issued at the same time.

"The availability of the Select Income Rider further enhances our AG Select-a-Term product, which already provides customers with the most flexible and customizable level term insurance: guaranteed level premiums for 17 term durations," said Tim Heslin, Vice President, Life Product Manager.

"Earlier this year, we strategically priced Select-a-Term more competitively, making this product an incredible value, and we anticipate that the new rider will make it an even more attractive solution for individuals and families. Families live on incomes, not lump sums, and this rider removes any concerns about having to effectively manage a large lump sum over a long period of time."

For more information about the features and benefits of the Select Income Rider or AG Select-a-Term, call 1-800-677-3311 (Monday - Friday, 7 a.m. - 6 p.m. CT). American General is a leader in secure online innovation and eStation features sales tools as well as robust eSignature and eSubmission technologies to help expedite the application and underwriting processes.

The Gift of Dreams

For young graduates, or any child for that matter, a gift of a permanent life insurance policy
provides not only a guaranteed safety net, but also allow them to do more in life,
throughout all of their life stages

by Kelly Burnetta
Ms.Burnetta is assistant vice president of product marketing at The Penn Mutual Life Insurance Company. You can contact her at burnetta.kelly@pennmutual.com

People of every age dream. The young, though, carry the best of any night's dream into the following day with the certainty that anything is, indeed, possible.
The young graduates from high schools and colleges and graduate schools are certain that they will find work in their field of study and that such work will support them financially. The young get married and have children and are certain that the family path they've dreamed of is the one that will play out over time.
If your clients are the parents or grandparents of such young people and ready to give them a special occasion gift - they can offer more than support and guidance. They can give them something they might not fully appreciate today, but may help them secure their dreams. A gift of a permanent life insurance policy provides not only a guaranteed safety net, but also allows them to do more in life, throughout all their life stages, to achieve all their possibilities and dreams. No one is sure of the future of this generation of young people, but many suggest that it will be the first generation whose lives will not be the financial equal of their parents.
It is a generation graduating with an education debt load unlike any that has gone before. It is a generation entering a difficult job market and one where traditional government safety nets are disappearing. Temporarily, at least, they will face rising costs for health care, energy and education. To be sure, periods of such rapid and dramatic change produce great opportunity along with challenges. The most likely to succeed are the ones who are the best prepared.
Unlike a bank loan or other financial sources for cash, life insurance cash value accumulation can be accessed regardless of credit rating or loan history. Values of a permanent life insurance policy can be used over time for debt reduction, capital to start a new business, a down payment on a home or as the solution to an emergency, all the while providing a great measure of family protection.

Let's look at a few examples:
1) Assume your clients are grandparents of a young man, Mark, about to graduate from high school as he turns 18. You help them set up a permanent life insurance policy that Mark owns with a Guaranteed Increase Option, allowing Mark to increase his coverage without underwriting at certain option dates. Based on underwriting limits and how the policy will be funded, the initial death benefit is $327,000. You contribute $20,040 for future premiums, below the annual gift tax exclusion of $26,000 for a married couple. Of this amount, $2,500 goes into the policy in the first year and the remainder is deposited into the Premium Deposit Fund to maintain favorable tax treatment for future policy distributions. This fund earns 3% interest (taxable to Mark as the policyholder) and automatically pays premiums, which includes deposit fund interest earnings for up to 10 years.
Mark takes over paying the policy premium when deposit funds are depleted. At this point he is 27 years old and a corporate mid-level manager. When he is 28 years old he increases funding to the policy to $3,000 a year. His policy value is now $22,983 with a death benefit of over $350,000. By 31, he's married with children and increases the policy funding to $6,000 a year in preparation for potentially using it for supplemental college funding.
At 45, he has more than $250,000 in cash value and more than $570,000 in death benefit. At 62, he stops paying premiums and because he has never had to use the cash in his policy, he has more than $1.0 million in cash value with a death benefit of more than $1.3 million.
With a start from your clients' initial gift, Mark had cash in reserve throughout his life and ongoing security for his family. *

2) Let's try an example with the best and worst of every parent's education goals for a child. Your clients' daughter, Natalie, has been accepted at Harvard. They've paid just part of her tuition and she's about to graduate with a degree in medieval studies and a minor in poetry. She's fortunate enough to secure the position she wanted- a job at the museum of antiquities. She has little in savings and a large amount of student debt.
She's young, in great health, so she's eligible for a permanent life policy in the best rate class available. In this example your clientsâ€™ contribute just under the gift tax exclusion by paying $25,669 into the policy, with $4,000 going to the policy in the first year and the remainder going into the Premium Deposit Fund. Natalie's initial death benefit is $371,722 and the Premium Deposit Fund earns her 3% interest (taxable to her) and automatically pays premiums for seven years.
After seven years, Natalie has moved on to a better position at an even more prestigious museum and takes over policy payments. She now has $33,997 in cash value and a death benefit of almost $400,000. She keeps making $4,000 annual policy payments until she's 35. Now married with a daughter of her own, she adds another $1,000 on policy payments and keeps her annual payment at $5,000 until she's 62.
At 45, she had $241,876 in cash value and a death benefit of more than $613,000. At 62, she has more than $1 million in cash value with a death benefit of more than $1.3 million. She's not only provided security for her daughter but she has allowed herself the pursuit of everything she wanted in her personal and professional dreams.**

3) Assume that your client is childless but she has a favorite niece, Jessica. She's something of a slow starter but she's about to complete graduate school with a goal of becoming a social worker. She's 28 and newly married. Your client pays $25,669 into the policy. She pays her $4,000 annual premium on the permanent life policy and the balance goes into Jessica's Premium Deposit Fund, earning 3% interest. She has an initial level death benefit of $508,205.
By 34, her Premium Deposit Fund is exhausted. At age 36, she's only working part time, with two young children, so she can only make $2,000 in annual policy payments. It takes her almost six years but at 40 she's back working full time and making $4,000 annual policy payments. At 45, she has over $80,000 in cash value and her death benefit is still level at $508,205. At 62, she stops making policy payments. Her cash value is now $436,659 and her death benefit increased slightly to $558,924. ***
Her contribution to society through her work and the security she's brought to her family were both made possible by your clients' initial gift.
A generous starting gift of a permanent life insurance policy enabled all three of these career and family dreams to come true while providing a level of protection unmatched by investments or other gifts. In a future clouded by uncertainty, the best first step is life insurance.

*Male Age 18, Standard Rate Class. Accumulation Builder II IUL with initial increasing death benefit of $327,534. Values Based on 7.5% Illustrated Rate. Premiums paid are $2,500 in years 1-9, $3,000 for years 10-12, $6,000 for years 13 to 44.
**Female Age 21, Preferred Rate Class. Accumulation Builder II IUL with initial increasing death benefit of $371,772. Values based on 7.5% Illustrated Rate. Premiums paid are $4,000 in years 1-13, $5,000 for years 14-62.
***Female Age 28, Preferred Plus Rate Class. Accumulation Builder II IUL with initial level death benefit of $508,205. Values based on 7.5% Illustrated Rate. Premiums paid are $4,000 in years 1-7, $2,000 for years 8-11 and $4,000 in years 12-34.
The preceding examples are for hypothetical illustrative purposes only and the values are not guaranteed. The concepts described may not be appropriate for everyone. Your client's individual results will vary. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values.

Universal Life Evolves to Stay Ahead of Changing Times

Hybrids answer the growing demand for affordable premiums, cash-value flexibility and low-cost guarantees

By Michael Ferik, FSA
Mr. Michael Ferik is Senior Vice President, Individual Life, for The Guardian Life Insurance Company of America, New York, N.Y. He can be reached at michael_ferik@glic.com. More information about Guardian's complete permanent life portfolio can be found at www.guardianlife.com.

The flexibility that has been the hallmark of Universal Life insurance since its introduction into the marketplace back in the late 1970s is front and center with the latest generation of UL offerings.Just as Universal Life with Secondary Guarantees revolutionized the industry by effectively creating 'term for life' coverage options, often at rates typically lower than other forms of permanent insurance, a new wave of Hybrid UL policies is responding to the needs of consumers at a time of ongoing economic uncertainty.These Hybrid products, offered by just a handful of carriers, are becoming an important part of the product toolkit for brokers and agents with clients who are looking for a mix of affordable premiums, cash-value flexibility and low-cost guarantees.

The hallmarks of these products are competitive premiums, cash accumulation not usually seen with traditional lifetime secondary guarantee products, and competitive guarantees to approximate life expectancy (typically age 85 to 90). The consumer value proposition is that the cost for Hybrid UL products is often below or at that of a traditional lifetime secondary guarantee product.

Rich Features Address 21st Century Concerns
By offering significant cash accumulation, Hybrid UL products reintroduce flexibility as a major attribute of the typical UL sale. The secondary guarantee can be offered either as an embedded feature or as an optional rider; the key is that, in either case, the addition of the death benefit guarantee to approximate life expectancy has a marginal impact on premiums.Some Hybrid offerings may also include optional riders that enhance cash values early in the coverage period, providing an accounting benefit to businesses that purchase the coverage and want to minimize the impact on their company balance sheet. Hybrid products also offer a variety of other common riders and waivers that enhance their flexibility to protect your clients, such as a disability waiver of premium.

It is the combination of cash flexibility and guarantees that ultimately allows the Hybrid UL design to provide a solution that transcends the rigidity of traditional lifetime secondary guarantee products. The cash value accumulation that is possible within Hybrid plans adds a level of comfort to financial strategies, both in terms of access to liquidity during unexpected times of need and in terms of advantages to business accounting.

Potential Living Benefit Scenarios Abound
Businesses have an interest in ensuring smooth transitions in the event of the unexpected passing of key employees. Implementing a Key Person insurance plan with a Hybrid UL policy can provide funds that can be used in such an emergency, lessening disruption for the business while recruiting the best replacement candidate, and providing cash flexibility should the business need liquidity for other reasons. If a company has five key employees it wishes to cover through such a plan, assuming each employee earns $250,000 per year and the cost to replace him or her is $50,000 in recruiting expenses, it would designate a funding goal of $1,300,000 in the Hybrid UL policy.

Even if all key employees live long enough to retire, the cash value of the policy can also be used to provide supplemental retirement benefits to key employees and their surviving spouses through a deferred compensation arrangement. In the meantime, by funding its Key Person plan with Hybrid UL policies, the business gains added flexibility for loans and can even use the plan as collateral to help the business grow. Cash value accumulated early in the life of a Hybrid UL policy has estate planning benefits as well: The cash enables the trustee to have financial options if he or she chooses to fund the trust differently in the future, therefore potentially fulfilling his or her fiduciary duty to the client and heirs even more effectively.

Why Add Hybrid UL To Your Solution Offerings?
Since its introduction to the market more than 30 years ago, Universal Life has been popular with brokers and agents because it is easy to explain and its charges are unbundled. As the industry has evolved over that time, new Hybrid UL offerings have enabled producers to better meet client needs through a combination of cash flexibility and guarantees. Hybrid UL products combine current assumption with traditional contracts that accumulate significant cash values over time. They also can provide a secondary guarantee for a significant period of time, often to life expectancy (up to age 85 or 90, for example). Hybrid UL fits a unique spot in the marketplace. While few carriers today are offering this design, the situation is likely to change as the product becomes more known. High net worth clients in need of a permanent insurance program are good candidates, as are middle market consumers looking for long-term guarantees that may be more cost-effective for their situations than other permanent insurance options.

Living Benefit Life Insurance

Finally, Life Insurance with financial utility during the insured's lifetime!

By Robert LaBonte, CFP
Robert LaBonte is President of LaBonte Insurance Marketing Services, an IMO in Hampton, NH. Robert has been in the financial services industry for over 40 years. His agency specializes in living benefit products. He can be reached at 800-452-2668 or at rlabonte@labonteinsurance.net.

Let's begin by calling traditional life insurance what it really was at its inception; death insurance. For decades individuals and families purchased life insurance to protect loved ones and to provide financial security in the event of the death of the insured. Permanent insurance also provided access to the cash value during the insured's lifetime and could provide guaranteed income at retirement.Eventually, terminal illness riders were attached to policies to enable insureds to accelerate a discounted portion of the death benefit for terminal illness. Insurance carriers rightly concluded that financial strain was often the kin of terminal illness. Terminal illness riders afford clients the opportunity to put their own financial affairs in order prior to their death.More recently, carriers added chronic illness riders which allow clients to accelerate a portion of the death benefit on a monthly basis for insured's that lose two or more activities of daily living (ADL) or for cognitive impairment. This was another important step in product evolution but it misses the main event: the financial crippler of families, critical illness!

Life Insurance for life, because life happens!
Imagine selling life insurance policies with broad financial utility during a client's lifetime. Let's explore the value of life insurance contracts that include advance benefit riders for terminal, critical AND chronic illness events by examining some key statistics.In Get Sick, Get Out: The Medical Causes of Home Foreclosures., Christopher Robertson, of Harvard Law School, writes that 49% of all home foreclosures were caused in part by a medical problem. Only 3% of foreclosures were due to death.In Critical Illness Insurance 101 by Mark Goldstein we learn that 48% of businesses that fail are a result of a critical illness. In 2009, the American Journal of medicine reported that 62% of bankruptcies are due to a critical illness. Of those bankruptcies, 75% of them had health insurance!

Need more fuel on why living benefit life insurance should be in the portfolio of every client and dare I say investor? In 2007 the American Hearth Association reported that someone suffers a heart attack every 26 seconds and that 45% of heart attack victims are under age 45. In 2010 the American Heart association reported that someone suffers a stroke every 40 seconds. The Center for Disease Control reported in 2009 that 75% of people over aged 40 will experience a critical illness at some point in their future.LIMRA, in a 2007 report, Cancer Facts & the War on Cancer indicated that every 30 seconds a new cancer is diagnosed in the U.S. and that 1 in 2 men and 1 in 3 women will be diagnosed with cancer in their lifetime. Finally, USA Today reported on 10/31/2008 and 3/18/2010 that one in eight people with advance cancer turned down recommended care because of cost.

Fortunately, medical advances have made it possible for many people to survive a critical illness event. Unfortunately, medical and disability insurance are often not enough to ensure financial survival. People are often faced with mounting medical bills, loss of income and even loss of spousal income for the caretaker spouse. People must invade savings; liquidate investments and finally pensions, IRAs and 401Ks. The good news is that people often regain their health. The bad news is many are broke, bankrupt and may have lost their home and/or business to bankruptcy or foreclosure.

Enter Living Benefit life insurance!
There are no new fundamentals. Whether the markets are up or down we protect people with guaranteed, predictable solutions to the problems of dying too soon, living too long or becoming ill and needing extended health care. The previous two statements should be the credo of all financial advisors and insurance professionals. How could we better serve our clients than by recommending an asset that can provide financial protection against the advent of dying too soon, living too long or becoming ill and needing extended medical care?

There are painfully few life insurance companies offering products that offer the full array of living benefit riders. The few carriers that offer these benefits have truly changed death insurance into life insurance. One such claim paid in March of 2009 was on a 66 year old business owner who had a severe heart attack. He was not considered terminally ill and therefore would not qualify under the terms of a standard terminal illness rider. Thinking that he was going to lose his business which comprised most of his estate, he contacted the agent who sold him his living benefit life insurance policy.He had a death benefit of $862,000 and he could accelerate any portion of the death benefit up to 100% of the policy on a discounted basis. After evaluating all of his options he elected to advance 100% of the policy to pay medical expenses, replace lost income and financially support his business until he was well. He received a check for $584,000.In another case a 39 year old woman was diagnosed with breast cancer. She accelerated a portion of her policy's death benefit and received a check for $21,728, which she used to pay medical bills which her health insurance did not cover. These are real life answers to real life financial issues. We do not live in an abstract or theoretical world. We live in a world in which our clients face very real threats to their health and financial well being. I believe that we have a moral and professional responsibility to provide solutions that not only take into account the death of the insured but other financially devastating events such as a chronic or critical illness.

For far too long the industry has promoted cheap term life insurance, the cheaper the better. Financial professionals began selling life insurance as if it were a commodity. We adopted a spreadsheet mentality as proof of our professional acumen in terms of the products we place in front of our clients.It's time to go back to promoting value in the products we recommend to our clients. Let's begin having frank discussions with our clients about life insurance products that can have a meaningful impact during the lifetime of a client as well as at his or her death. The Center for Disease Control (CDC) reported the top three causes of death in the United States in 2009 were heart disease 631,636, cancer 599,888 and stroke 137,119. That's 1,368,643 deaths from the big three, more than the next 20 causes of death combined. It doesn't take a math major to estimate that the total number of critical illnesses attributed to heart attacks, strokes and cancer is a staggering number.

Armed with this knowledge it is incumbent on financial professionals to recommend that living benefits products be included in the insurance or investment portfolio of every client. It's simply the right thing to do.