Why Living Benefits?

Traditional Needs

People in their 30s, 40s, and 50s – pre-retirement – are focused on three primary financial needs: protecting their mortgage, making sure their children can go to college, and ensuring income for a surviving spouse if a wage earner dies prematurely.  As people get closer to retirement, these needs lessen. Traditionally, many life insurance agents have sold simple term insurance to address these needs.

Yet people rarely consider what may happen when that term insurance policy expires.

Today, people are living longer than ever before, and the life expectancy in America rises each year and is projected to continue to do so.

Are you recommending solutions to your clients that will cover them for their entire lifetime?

Other Financial Concerns

Historically, the insurance industry has overlooked three main financial needs that may occur in retirement.

1. As clients retire and are no longer actively earning an income, financial risks that exist in their portfolios such as unfavorable interest rates, stock market volatility and increasing tax risks become more pronounced.
2. Social security becomes a concern. Based on the current demographic trends, the social security program is in jeopardy. Social Security is funded by current workers to support retirees, but the next decade will see the largest drop in worker-to-beneficiary ratios in history.
3. The likelihood that retirees will spend a large amount of their disposable income on health care is a high probability. A 65-year-old couple retiring today can expect to spend $220,000 in retirement.

As people age, these three risk exposures tend to get larger.