Monday, January 11, 2016

Where Life Insurance Trends Are Heading in 2016

Recent studies have stated that life insurance sales are showing their strongest across-the-board growth since the year 2000. Policies are beginning to trend higher in premiums as well as sheer volume. Term, whole life, and guaranteed universal life policies have all been strong, with indexed universal life showing particularly strong. Variable life is the only area that seems to be lagging behind with clients becoming too nervous to make a gamble of that nature (and who can blame them with our government’s current state).





The good news is, you can bet on the same trends in the year to come. Now is the best time to be promoting your life insurance products and financial planning experience to your clients. Leveraged security and an increasing number of plan options offered by life insurance carriers are expected to continue to drive strong sales of life in 2016.

Equity market conditions have affected annuity sales this year, particularly with a 3rd quarter correction driving many people to the safety and guarantee of fixed products. We are starting to see carriers announce rate increases on fixed crediting, and an on-going discussion of a cycle of rate increases from the Federal Reserve, but with the level of government debt and precarious footing of the economy it seems very unlikely that there will be any significant upward trend of interest rates in 2016. Negative interest rates may even become a real possibility in the future as government systems worldwide struggle with budget challenges. The U.S. Department of Labor is finalizing a new fiduciary rule which will be very relevant for anyone with a 401 (k) or Individual Retirement Account (IRA), and locking in some of the current fixed annuity rates offered may end up being extremely wise for your clients.

So in summary, when looking at 2016, keep a watch on the regulatory environment, but don’t become too fixated on it. Here are a few key components to help ensure successful life insurance marketing throughout the year:
  1. Continue to offer the leverage and tax advantage of life insurance as a planning tool to maximize value in the low rate environment.
  2. Continue to emphasize the guaranteed returns of fixed annuity products.
  3. Advise your clients to manage their exposure to market risk.
  4. Don’t be afraid to use tools like social media, websites, emails, and other technology to promote your practice, but don’t get too far away from the basics either.
  5. Keep marketing yourself as a resource and expert for your clients and continue to network and ask for referrals.

It can be difficult with all the products and trends on the market today, but we’re here to help! For sales ideas, designs, marketing, and support to maximize the services you’re offering, contact us today at (469) 635-6000 or visit us online at www.thebrokerageinc.com.

Darcy McGilvray
Insurance Marketing Specialist

1 comment:

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