Nailba’s top Life & Annuity survey trends ’23!
Continued record sales of both protection-focused products and accumulation products driven by the stock market as well as 7702 rules which allow for higher non-MEC premium limits.
Increased popularity of Chronic Care and Long Term Care riders. Although advisors are meeting with clients in person again, virtual meeting swill continue to be more commonplace, and more meetings equals more sales.
More carriers opting to use alternative sources of electronic underwriting data, accept e-apps and e-signatures, which will mean more buyers able to purchase larger policies without the need for exams or an APS. This translates to faster decision time for many clients.
COVID still looms as a major factor. In addition to its impact on underwriting (it remained the 3rd most common cause of death in 2022 after heart disease and cancer), 30% of consumers said they were more likely to buy Life Insurance because of concerns about the virus.
Confidence in insurance companies and advisors is as high as it has been in over a decade.
Sales of life insurance were up 5% last year and premium amounts increased by over 20%.
According to the latest LIMRA study, 59% of non-insurance owners (73 million people) say the need it and 22% of current policy owners (29 million people) say they need more coverage.
Finally, guaranteed fixed annuity rates will continue to remain higher than they have been in many years, advancing continued increased sales of the product.
All these trends create great opportunities for advisors and agents to help our clients and promote the important protection offered through the products we sell. Recommending clients review existing policies including beneficiary designations, performance of Whole Life, IUL & Universal Life policies as well as expiration dates on term policies are good ways to open important conversations to ensure they have adequate protection and asset growth to meet their financial needs.