Question: I am a man in my mid-sixties. You recently have been discussing a life-insurance policy that has a long-term-care feature. My agent has given me two different proposals illustrating this type of policy. What is the difference and which is better? ...
Cincinnati: Insurance: Comparing long-term care features in life policies
Friday, May 28, 2010
Show Me the Money
Nielsen Financial uncovers what different kinds of wealthy clients typically buy and need.
All advisors want to work with wealthy clients, but targeting them is a challenge because every other advisor is pitching for the same business. Winners in this space go into a meeting with a high-net-worth prospect knowing roughly what kinds of services that prospect is likely to buy.
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To take some of the guesswork out of it, research firm Nielsen Financial analyzed the investment trends of the wealthy and found that rich people fall into different brackets based on their interests and geography. Nielsen tracks as many as 15 unique customer segments, but there are at least four that advisors should be aware of in prospecting and expanding their business relationship with clients. For example, if you have a client who fits a described demographic, but only has a fraction of his money in annuities that the average suggests, perhaps it's time to dig deeper into the client's needs...
Bank Investment Consultant: Show Me the Money
All advisors want to work with wealthy clients, but targeting them is a challenge because every other advisor is pitching for the same business. Winners in this space go into a meeting with a high-net-worth prospect knowing roughly what kinds of services that prospect is likely to buy.
Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
To take some of the guesswork out of it, research firm Nielsen Financial analyzed the investment trends of the wealthy and found that rich people fall into different brackets based on their interests and geography. Nielsen tracks as many as 15 unique customer segments, but there are at least four that advisors should be aware of in prospecting and expanding their business relationship with clients. For example, if you have a client who fits a described demographic, but only has a fraction of his money in annuities that the average suggests, perhaps it's time to dig deeper into the client's needs...
Bank Investment Consultant: Show Me the Money
A New Dynamic
Variable annuity sales fell in 2009 as incentives to stay put in existing contracts choked off exchange growth.
New variable annuity sales rose 2.6% in the fourth quarter of 2009, although they were down 3.8% from the previous fourth quarter. Year-over-year, new sales plummeted almost 19%, from $151.6 billion in 2008 to $123.1 billion in 2009. That's the lowest annual new sales figure since 2002, when sales reached $112.4 billion after bottoming out at just over $107 billion in 2001...
Financial Planning: A New Dynamic
New variable annuity sales rose 2.6% in the fourth quarter of 2009, although they were down 3.8% from the previous fourth quarter. Year-over-year, new sales plummeted almost 19%, from $151.6 billion in 2008 to $123.1 billion in 2009. That's the lowest annual new sales figure since 2002, when sales reached $112.4 billion after bottoming out at just over $107 billion in 2001...
Financial Planning: A New Dynamic
Annuities After the Deluge
Insurers are simplifying variable annuities to reduce risk and cut costs, but most investors still want living benefits.
Annuities saw the best of times (for clients) and the worst of times (for insurers) when the safety features kicked in during 2008. Insurers convinced they sold their guarantees too cheaply have rushed to repair the damage.
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They are doing this in two ways. Some are stripping back the fancy features that proliferated in the past by offering simpler, cheaper products that carry less risk for insurers. Others continue to offer fancy bells and whistles, but at a slightly higher price...
Bank Investment Consultant: Annuities After the Deluge
Annuities saw the best of times (for clients) and the worst of times (for insurers) when the safety features kicked in during 2008. Insurers convinced they sold their guarantees too cheaply have rushed to repair the damage.
Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
They are doing this in two ways. Some are stripping back the fancy features that proliferated in the past by offering simpler, cheaper products that carry less risk for insurers. Others continue to offer fancy bells and whistles, but at a slightly higher price...
Bank Investment Consultant: Annuities After the Deluge
Thursday, May 27, 2010
Cash refund for life insurance
A new cash refund option will be made available through Symetra Life Insurance for its income annuity products, according to the insurer.
With the cash refund option, once the annuity owner dies, the beneficiary is able to get one lump sum that is equivalent to the unrecovered purchase payment, Symetra said. The annuity will be paid out no matter what the circumstance may be, ensuring a certain monetary amount...
US Insurance Online: Cash refund for life insurance
With the cash refund option, once the annuity owner dies, the beneficiary is able to get one lump sum that is equivalent to the unrecovered purchase payment, Symetra said. The annuity will be paid out no matter what the circumstance may be, ensuring a certain monetary amount...
US Insurance Online: Cash refund for life insurance
Couple charged with life insurance fraud
A Florida couple have been charged with an insurance swindle involving the burial of a man they knew under a false name.
Laura Freed, 43, and Michael Petro, 40, were arrested Sunday, the Orlando Sentinel reported. They have been released on $125,000 bail.
Investigators say Freed and Petro took out an insurance policy on the life of Racko Petro in 1998. In 2005, Billy Urich, 59, was admitted to Heart of Florida Regional Medical Center as the 34-year-old Racko and died there of kidney failure...
UPI: Couple charged with life insurance fraud
Laura Freed, 43, and Michael Petro, 40, were arrested Sunday, the Orlando Sentinel reported. They have been released on $125,000 bail.
Investigators say Freed and Petro took out an insurance policy on the life of Racko Petro in 1998. In 2005, Billy Urich, 59, was admitted to Heart of Florida Regional Medical Center as the 34-year-old Racko and died there of kidney failure...
UPI: Couple charged with life insurance fraud
Fed Is Confident of AIG Payback, but Skeptics Remain
Federal overseers of American International Group Inc. and its chief executive sought to convince a skeptical congressional panel that the U.S. would recoup the record sum extended in the AIG bailout.
Federal Reserve officials said they are increasingly confident the government-controlled insurer will repay what it owes the central bank, but their Treasury Department counterparts appeared less certain...
WSJ: Fed Is Confident of AIG Payback, but Skeptics Remain
Federal Reserve officials said they are increasingly confident the government-controlled insurer will repay what it owes the central bank, but their Treasury Department counterparts appeared less certain...
WSJ: Fed Is Confident of AIG Payback, but Skeptics Remain
Life insurance outlook once again stable
The insurance industry has moved its outlook from negative to stable, according to Moody's Industry Report.
As the economy begins to stabilize, so does the life insurance business, Moody's Investors Service said. Trends signaling the upswing of the market include higher stock prices, improved employment numbers, and more consumer spending. Life insurers are expected to soon see an improvement in net profits along with operating and investment incomes...
InsuranceCorner: Life insurance outlook once again stable
As the economy begins to stabilize, so does the life insurance business, Moody's Investors Service said. Trends signaling the upswing of the market include higher stock prices, improved employment numbers, and more consumer spending. Life insurers are expected to soon see an improvement in net profits along with operating and investment incomes...
InsuranceCorner: Life insurance outlook once again stable
Wednesday, May 26, 2010
Jackson National Life picks Cool Springs for new facility, 750 jobs
Middle Tennessee beats out more than 40 sites
A Michigan-based insurance company will open a new regional headquarters in Cool Springs and plans to create up to 750 jobs during the next three years.
Jackson National Life Insurance Company officials announced Tuesday that they have signed a long-term lease to occupy One Greenway Centre, a 150,000-square-foot office building near Nissan North American Headquarters in Franklin. The company plans to bring 400 people there by January and continue expanding its workforce through 2013...
Tennessean: Jackson National Life picks Cool Springs for new facility, 750 jobs
Related: Jackson National denies rumors of HQ move.
A Michigan-based insurance company will open a new regional headquarters in Cool Springs and plans to create up to 750 jobs during the next three years.
Jackson National Life Insurance Company officials announced Tuesday that they have signed a long-term lease to occupy One Greenway Centre, a 150,000-square-foot office building near Nissan North American Headquarters in Franklin. The company plans to bring 400 people there by January and continue expanding its workforce through 2013...
Tennessean: Jackson National Life picks Cool Springs for new facility, 750 jobs
Related: Jackson National denies rumors of HQ move.
Canadian Banks Gain Record Edge Over Insurers as Markets Tumble
Investors in Canadian financial stocks are favoring banks over insurers more than at any other time in 22 years, rewarding lenders for avoiding the worst of the credit crisis and punishing insurers for their U.S. losses...
Business Week: Canadian Banks Gain Record Edge Over Insurers as Markets Tumble
Business Week: Canadian Banks Gain Record Edge Over Insurers as Markets Tumble
Universal Life Sales Return to 2005 Levels, LIMRA Says
Sales of universal life insurance policies increased by 17% in the first quarter compared to a year earlier, returning universal life production to first quarter 2005 levels, according to insurance research firm LIMRA...
LifeSettlementsWire: Universal Life Sales Return to 2005 Levels, LIMRA Says
LifeSettlementsWire: Universal Life Sales Return to 2005 Levels, LIMRA Says
Denver-area investment advisor Jackson gets 15 years for Ponzi scheme
Denver-area investment adviser Mark J. Jackson was sentenced today to 15 years in prison for running a $32 million Ponzi scheme.
Jackson, 55, earlier this year had pled guilty to a felony charge of racketeering in a scheme that swindled investors with promises of guaranteed returns on stock trading...
Denver Post: Denver-area investment advisor Jackson gets 15 years for Ponzi scheme
Jackson, 55, earlier this year had pled guilty to a felony charge of racketeering in a scheme that swindled investors with promises of guaranteed returns on stock trading...
Denver Post: Denver-area investment advisor Jackson gets 15 years for Ponzi scheme
FINRA bars Georgia man for stealing from client’s variable annuity
A registered financial representative from Martinez, Ga., was barred by the Financial Industry Regulatory Authority (FINRA) after he improperly took money from a client’s variable annuity.
Alvin Charles Ramsey served as a registered representative for an elderly customer, who executed a power of attorney, giving Ramsey broad authority over his financial affairs, FINRA records show...
IFA Web News: FINRA bars Georgia man for stealing from client’s variable annuity
Alvin Charles Ramsey served as a registered representative for an elderly customer, who executed a power of attorney, giving Ramsey broad authority over his financial affairs, FINRA records show...
IFA Web News: FINRA bars Georgia man for stealing from client’s variable annuity
State regulators scrutinize Annuity scams
The National Association of Insurance Commissioners (NAIC) held a public hearing last week on the emergence of Stranger Originated/Owned Annuities. The hearing, hosted by the NAIC Life Insurance and Annuities Committee, focused on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries.
Robert Mizzoni, an 83-year old from Cranston, Rhode Island, told regulators how he and his wife were victims of an annuities scam. Federal prosecutors are currently investigating a Rhode Island attorney who placed ads in church newspapers offering immediate cash to individuals with terminal illness. The attorney’s goal was to take advantage of the death benefit built into many variable annuities...
NorwalkPlus: State regulators scrutinize Annuity scams
Robert Mizzoni, an 83-year old from Cranston, Rhode Island, told regulators how he and his wife were victims of an annuities scam. Federal prosecutors are currently investigating a Rhode Island attorney who placed ads in church newspapers offering immediate cash to individuals with terminal illness. The attorney’s goal was to take advantage of the death benefit built into many variable annuities...
NorwalkPlus: State regulators scrutinize Annuity scams
Tuesday, May 25, 2010
Jackson National denies rumors of HQ move from Lansing
Jackson National Life Insurance Co. said Monday it has no plans to move its headquarters out of Lansing.
Several published reports said the insurance giant, which has a tax-sharing agreement with the city of Lansing but headquarters at Interstate 96 and Okemos Road in Alaieidon Township, planned to announce today it is relocating to Franklin, Tenn., near Nashville...
Lansing State Journal: Jackson National denies rumors of HQ move from Lansing
Several published reports said the insurance giant, which has a tax-sharing agreement with the city of Lansing but headquarters at Interstate 96 and Okemos Road in Alaieidon Township, planned to announce today it is relocating to Franklin, Tenn., near Nashville...
Lansing State Journal: Jackson National denies rumors of HQ move from Lansing
Annuity Outlook Positive Despite Decline in Sales
Despite a significant decline in sales in the past years, advisors and industry executives remain upbeat about annuities because the products are expected to protect principal and provide retirement income.
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According to a survey conducted in the first quarter by the Insured Retirement Institute released Monday the overall outlook for the annuity industry is positive. While some challenges remain, respondents indicated the growth industry’s opportunities are strong, with growth for variable annuities ranking 4.1 on a five-point scale, and fixed ranking 3.2 on the same scale...
Bank Investment Consultant: Annuity Outlook Positive Despite Decline in Sales
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According to a survey conducted in the first quarter by the Insured Retirement Institute released Monday the overall outlook for the annuity industry is positive. While some challenges remain, respondents indicated the growth industry’s opportunities are strong, with growth for variable annuities ranking 4.1 on a five-point scale, and fixed ranking 3.2 on the same scale...
Bank Investment Consultant: Annuity Outlook Positive Despite Decline in Sales
Monday, May 24, 2010
Some Novel Ideas for Improving Retirement Income
Employees have increasingly been forced over the last few decades to take responsibility for ensuring they have enough savings to last through retirement. But many of them are making inadequate saving decisions and finding themselves facing financial difficulty in retirement.
As a result, the Department of Labor and the Department of the Treasury are reviewing retirement plan rules to determine if the retirement security of participants could be enhanced with arrangements aimed at providing a lifetime stream of income after retirement. Earlier this year, the agencies put out a request for comments on the topic from the retirement plan industry and the general public...
Yahoo! Finance: Some Novel Ideas for Improving Retirement Income
As a result, the Department of Labor and the Department of the Treasury are reviewing retirement plan rules to determine if the retirement security of participants could be enhanced with arrangements aimed at providing a lifetime stream of income after retirement. Earlier this year, the agencies put out a request for comments on the topic from the retirement plan industry and the general public...
Yahoo! Finance: Some Novel Ideas for Improving Retirement Income
American Council of Life Insurers "Very Concerned" About Aspects Of Finance Legislation
In the post below, I wrote about the property-casualty industry being largely unaffected by two finance-reform bills in the House and Senate.
The American Council of Life Insurers, on the other hand, released this statement Friday from president Frank Keating:
"This is a long and complicated bill and its effects on the life insurance industry will not be clear until a final bill is adopted and the rulemaking process is complete...
Courant: American Council of Life Insurers "Very Concerned" About Aspects Of Finance Legislation
The American Council of Life Insurers, on the other hand, released this statement Friday from president Frank Keating:
"This is a long and complicated bill and its effects on the life insurance industry will not be clear until a final bill is adopted and the rulemaking process is complete...
Courant: American Council of Life Insurers "Very Concerned" About Aspects Of Finance Legislation
From an IVA, New Blood for Insurers
Life insurers, advisors and consumers should embrace his immediate variable annuity (IVA) with a refund option and a death benefit, says Achaean Financial CEO Lorry Stensrud.
At a presentation a few years ago, Peng Chen, president of Ibbotson Associates, projected a slide that plotted the positions of several retirement income products on a risk/return diagram.
In the northwest corner of the chart, as lonely as Pluto on a black map of the solar system, stood the immediate variable annuity (IVA). All other factors held equal, the IVA's reward-to-risk ratio was highest. Yet no one ever buys it...
Retirement Income Journal: From an IVA, New Blood for Insurers
At a presentation a few years ago, Peng Chen, president of Ibbotson Associates, projected a slide that plotted the positions of several retirement income products on a risk/return diagram.
In the northwest corner of the chart, as lonely as Pluto on a black map of the solar system, stood the immediate variable annuity (IVA). All other factors held equal, the IVA's reward-to-risk ratio was highest. Yet no one ever buys it...
Retirement Income Journal: From an IVA, New Blood for Insurers
Inflation's Toll on Annuity Payouts
The guaranteed payouts on immediate annuities offer insurance against the kinds of rocky times investors have been weathering of late. But retirees need to be sure the value of their investment doesn't get slowly whittled away by inflation...
WSJ: Inflation's Toll on Annuity Payouts
WSJ: Inflation's Toll on Annuity Payouts
Thursday, May 20, 2010
Accused Vancouver serial killer took out life insurance on victim: lawyer
Accused serial killer Charles Kembo took out an $850,000 life insurance policy on his business partner just 10 weeks before he was murdered, B.C. Supreme Court heard Wednesday.
Crown counsel Hank Reiner told the Vancouver trial that Kembo forged Arden Samuel’s name on the lucrative policy — and declared that upon Samuel’s death the $850,000 policy payout should go directly to Kembo’s son Grant.
Kembo, he said, kept insurance inspectors from suspecting anything by listing Grant as Samuel’s “cousin” on the policy, which was signed, sealed and delivered without a personal visit to the insurance agency...
Montreal Gazette: Accused Vancouver serial killer took out life insurance on victim: lawyer
Crown counsel Hank Reiner told the Vancouver trial that Kembo forged Arden Samuel’s name on the lucrative policy — and declared that upon Samuel’s death the $850,000 policy payout should go directly to Kembo’s son Grant.
Kembo, he said, kept insurance inspectors from suspecting anything by listing Grant as Samuel’s “cousin” on the policy, which was signed, sealed and delivered without a personal visit to the insurance agency...
Montreal Gazette: Accused Vancouver serial killer took out life insurance on victim: lawyer
Wednesday, May 19, 2010
Fixed Annuity Sales Drop 51.9% in Year, IRI/Morningstar/Beacon Report Shows
2010 data can’t match last year’s flight to safety, says Beacon chief in first-ever report
Fixed annuity sales plummeted 51.9% in the first quarter of 2010 compared to a year ago, the Insured Retirement Institute (IRI) said in its first-ever quarterly annuity sales report, released Tuesday, May 18, with data provided by Morningstar Inc. and Beacon Research.
The 51.9% decline in year-to-year quarterly sales of fixed annuities reflected an $18 billion drop from $34.8 billion in the first quarter of 2009. Fixed annuity sales for the first quarter were about $16.7 billion, down from $19.6 billion as of December 31, 2009, representing a 14.7% quarterly decline...
Investment Advisor: Fixed Annuity Sales Drop 51.9% in Year, IRI/Morningstar/Beacon Report Shows
Fixed annuity sales plummeted 51.9% in the first quarter of 2010 compared to a year ago, the Insured Retirement Institute (IRI) said in its first-ever quarterly annuity sales report, released Tuesday, May 18, with data provided by Morningstar Inc. and Beacon Research.
The 51.9% decline in year-to-year quarterly sales of fixed annuities reflected an $18 billion drop from $34.8 billion in the first quarter of 2009. Fixed annuity sales for the first quarter were about $16.7 billion, down from $19.6 billion as of December 31, 2009, representing a 14.7% quarterly decline...
Investment Advisor: Fixed Annuity Sales Drop 51.9% in Year, IRI/Morningstar/Beacon Report Shows
Tri-City financial adviser under fire
A Tri-City financial adviser has been accused of violating the state's Securities Act by falsifying birth dates on annuity applications for elderly clients.
The state Department of Financial Institutions Securities Division has filed a statement of charges against Thomas Doncaster, claiming he violated the law and should have to pay a $65,000 fine plus investigation costs of more than $5,000...
News-Tribune: Tri-City financial adviser under fire
The state Department of Financial Institutions Securities Division has filed a statement of charges against Thomas Doncaster, claiming he violated the law and should have to pay a $65,000 fine plus investigation costs of more than $5,000...
News-Tribune: Tri-City financial adviser under fire
Feds get an earful on 401(k) proposal
Vitriol over plan to let retirees buy annuities with savings
What happens when the government considers tinkering with retirement accounts and asks for citizen input?
It gets plenty.
Government officials began seeking comments in February on a proposal to add an annuity option to retirement plans. Such an option would potentially turn a portion of a retiree's savings over to an insurance company in exchange for a monthly check...
MSNBC: Feds get an earful on 401(k) proposal
What happens when the government considers tinkering with retirement accounts and asks for citizen input?
It gets plenty.
Government officials began seeking comments in February on a proposal to add an annuity option to retirement plans. Such an option would potentially turn a portion of a retiree's savings over to an insurance company in exchange for a monthly check...
MSNBC: Feds get an earful on 401(k) proposal
Annuity Sales Show a Decline
Annuity sales in the first quarter declined 27% from the year-ago period, but sales of variable annuities rose modestly, a sign that investors appear to be stepping back into the market...
Sales of annuities in the first quarter were $47.4 billion, down from $50.9 billion in the fourth quarter; they were down 27% from $64.4 billion in the first quarter of 2009, the group said...
WSJ: Annuity Sales Show a Decline
Sales of annuities in the first quarter were $47.4 billion, down from $50.9 billion in the fourth quarter; they were down 27% from $64.4 billion in the first quarter of 2009, the group said...
WSJ: Annuity Sales Show a Decline
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