Tag Archives: Life Insurnace

Life Insurance Industry Changes To Watch For In 2013

Change AheadThe New Year is upon us and as everyone is set to begin making changes in their personal and professional lives for 2013, the life insurance industry is also getting ready for some possible changes .

Life Health Pro has released the five things to expect for life insurance in 2013:


  1. The tax-favored status of life insurance products:  While industry watchers don’t believe that life insurance products will lose their tax-favored status as a result of the fiscal cliff and other reforms, everything is on that table and the COLI and BOLI product tax status can change.
  2. Evolving to respond to the changing consumer: The way consumers shop for life insurance may begin to evolve in 2013. Social media, digital marketing, and mobile distribution strategies could become the new way to purchase life insurance.
  3. Remaining Relevant:  Rebranding may become a priority in the New Year as many young people are not aware that life insurance can be used as an investment vehicle. According to an Ernst & Young report, the average household expenditure on life insurance has declined by 50 percent over the last decade.
  4. Entering developing markets:  International markets are being eyed as the next big opportunity, but with that there are a whole new set of cultural and political barriers you need to overcome.
  5. Awareness of international and domestic regulatory issues: Some of the largest carriers, such as AIG, Prudential and MetLife may soon be designated as systemically significant (SIFI) and they will have to get used to federal regulation and higher capital standards. Of course, SIFI designation has been on the horizon for these firms for the better part of a year, so they should be prepared for it already. The question is what happens if SIFI designation drops on a company not expecting it, LifeHealthPro.com reported.

Why Parents Need Life Insurance

Parents Need Life InsuranceFor many people the day they become a parent is one the happiest days in their life. The day you were handed that innocent newborn baby, your life changed instantly. You are no longer just responsible for yourself, you now have a child you depends on you for at least the next 18 years of their lives.

Although you are well aware that you are now responsible for this baby as they grow into an adult, many parents don’t think to protect them from life’s sudden curve balls.

According to MetLife’s 10th Annual Employee Benefits Trends Study, a wedding, not a birth, is most likely to lead consumers to take out new life insurance policies.

Some of the possible reasons more parents don’t take out life insurance when they welcome a new baby in the world include the cost, the logistical hassle of needing a brief health screening, and the fact that they need to consider and plan for their own death.

Due to the rising cost of raising a child, it is advised that you take out life insurance for life’s “what if” moments. Between clothes, food, necessities and college tuition, the cost of raising a child quickly adds up, especially if you have multiple children in your household. In fact, the Agriculture Department recently raised its estimate to $234,900 per child before age 18.

The MetLife survey also found:

  • Just 2 in 5 working parents “feel very confident” that they’re making the right financial choices for their family.
  • Most employers—3 in 4—offer some kind of life insurance to employees. Supplemental insurance can add to it. Ulrich points out that employer-provided coverage doesn’t travel with you if you move or lose a job, so workers should be sure to have outside coverage as well.
  • One in 3 parents of young children say they don’t get financial help from anyone.
  • Life insurance needs often increase over time, especially as families grow, so parents might need to add to their coverage over time.

It’s important that you step back, look at your financial situation and take out any life insurance policies you need to help protect your family. As the old saying goes, “It’s better to be safe than sorry!”

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