GBS Quarterly Sales Concepts | May 2023 Issue
Published on
May 04, 2023
 |
Liquidity and Risks for Life Insurers
The collapse of Silicon Valley Bank has shaken confidence in the financial system and prompted consumer concern that life insurers could find themselves in a similar situation. Similar to banks, life insurers invest in long-duration financial instruments which lose value in a rising interest rate environment. To protect your business, it is critical that your clients understand the significant restrictions which insurers have in place to prevent a run on liquidity.
Click below for ALIRT Insurance Research’s recent analysis of Liquidity and Risks for Life Insurers.
|
Products Can Benefit Your Clients
|
According to a recent Gallup Poll, 73% of Annuity owners plan to use their annuity as an emergency fund for catastrophic illness or nursing home care. Annuity/LTC Hybrid products are gaining market popularity both as an efficient way to repurpose existing annuities, and as a desirable alternative to traditional LTC products due to their propensity for less stringent underwriting.
Contact your Brokerage Manager to learn more about the unique benefits of Annuity/LTC Hybrid products.
|
AG49-A Revisions Effective May 1, 2023
|
How to accurately illustrate Indexed Universal Life products continues to challenge the Life Insurance Industry. Revisions to AG49-A will go into place on May 1, 2023. The newest change will address concerns pertaining to using alternative accounts which illustrate better than the Benchmark Index Account, and will effectively end the ability to illustrate enhanced bonuses in volatility controlled strategies.
Reach out to your Brokerage Manager for a look at how AG49-A 2.0 has impacted the Indexed UL competitive landscape.
|
Updated Guidance on SECURE Act
|
The SECURE Act caused confusion for individuals who inherited IRAs, most of which believed that they could draw down their IRA balance over the course of ten years. Updated guidance from the IRS advised that certain beneficiaries of inherited IRAs are required to take RMDs every year throughout the 10 year window.
Click below to schedule a meeting with your Brokerage Manager to discuss how your clients may be impacted by this new interpretation of the SECURE Act.
|
Term Policy Review Helps Clients
|
Understand Their Conversion Options
|
As insurers are feeling the cost of adverse selection, conversion privileges are becoming increasingly less attractive. Most carriers limit conversion periods, restrict conversion options after the first five policy years, or require “conversion only” products. Many are looking at even more extreme measures such as confining conversion options to policyholders who are Preferred or better risks, capping the amount of death benefit which can be converted, or eliminating conversion options altogether. It is vital that clients understand their term conversion options as well as the possibility of changes to these privileges in the future.
Click below to schedule a meeting with your Brokerage Manager to strategize implementing a term policy review platform.
|
|
|
|
|
|
We at GBS Insurance thank you again for your business.
For more information or insurance quote requests, please contact your brokerage manager.
|
GBS Insurance and Financial Services, Inc, CA License #0D87913
|
21820 Burbank Blvd., Suite 301
|
|
|
|
|
|
GBS Insurance and Financial Services, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
© 2023 Arthur J. Gallagher & Co.
|
|
|
|
|
|
