Why Living Benefits?
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.
- 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.
- 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.
- 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.
The Living Benefit Solution
At AlSol, we’ve chosen to partner with companies that recognize these concerns and have developed innovative solutions to mitigate them.
Today, clients face three potential financial pitfalls: the possibility they may die too soon, live too long, or get sick along the way. AlSol’s product solutions can meet all these needs.
- Our life insurance products provide holistic income protection.
- Our living benefit riders can provide money to supplement a retirement income.
- And our accelerated benefit riders can provide cash in the event of a serious critical or chronic illness.