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Selling Annuities? Aim at Baby Boomers

Posted by www.psmbrokerage.com Admin on Tue, Apr 30, 2019 @ 08:22 AM

Selling Annuities - Aim at Baby Boomers


By Chris Conklin – ThinkAdvisor – April 30, 2019

76,000,000. That hefty number – 76 million – is the number of Baby Boomers living today in the United States. As an agent, it’s important to consider how annuities can be an important part of a Boomer’s retirement. There are solid reasons to focus on selling to this particular group. Boomers are at the perfect age to benefit from the consistent income stream annuities provide. And, put simply, no other financial products have been developed at the moment that offer the unique value for investment that annuities do. What should you keep in mind as you talk to your clients about which financial vehicles to choose? In regard to annuities, there are numerous benefits: safety, flexible time frame, tax deferral and shorter surrender charge periods.

(Related: 4 Reasons Selling Annuities Is a Stable Strategy)

You have likely already considered the benefits that annuities can offer to boomers, so it may seem like a novel idea at first. But there are solid reasons to focus on selling to this particular group. Boomers are at the perfect age to benefit from the consistent income stream that annuities can provide, among other benefits I’ll mention below. And, put simply, no other financial products have been developed at the moment that offer the unique value for investment that annuities do. As a result, annuities shouldn’t be overlooked as part of your selling strategy.

It’s important to remember that clients are looking to you to provide an asset accumulation approach that is reliable and will succeed no matter what happens in the stock market. Thus, your approach should include safe options that offer clients what they want most: stability. Because of this, annuities are a strong option that will earn clients’ trust and grow your business at the same time.

Why Baby Boomers?

While annuities offer benefits to clients no matter what their age, boomers are at the stage in their life where they are demanding greater principal protection. This growing demand largely stems from the fact that they are coming closer to the end of their working years, thus they are becoming more financially conservative and can’t afford to lose what savings they’ve accumulated. With their preferences shifting, there is a growing convergence between what they want and what annuities offer.

Thus, more of their asset allocation should be to safer products such as annuities. As they approach and enter retirement, the question becomes what to do with the growing portion that they want to keep safe. Boomers are major investors in mutual funds, but the unpredictable nature of the markets are likely causing increasingly cautious baby boomers to think twice about their existing asset allocation, one that can lead to losses during periods of market volatility.

A major benefit of fixed and indexed annuities is that they are not directly tied to the stock market and are protected from downward swings. This makes annuities an increasingly attractive option for your boomer clients, since they are not susceptible to loss when the market is in turmoil. With interest rates higher now than they were a few years ago, annuities give clients a solid interest rate, along with the safety and protection they seek. Money market funds generally can’t keep up with the interest rate of an annuity, and while bond mutual funds sometimes offer adequate interest rates, they don’t provide the security or protection annuities do in case of market turmoil. Bond mutual fund balances fluctuate daily, whereas annuity values do not.

Approaching the Annuities Conversation

What should you keep in mind as you talk to your clients about which financial vehicles to choose? In regard to annuities, there are numerous benefits.

  • Safety: Annuities can provide superior safety over other financial products. That’s because in a fixed or indexed annuity, both a client’s original premium and any credited interest are contractually guaranteed not to lose value unless surrender charges apply. This reassurance can help provide clients the peace of mind that they are truly protected from risk.
  • Flexible Time Frame: The shortest annuity period is three years; the longest is 10. This benefits clients because they don’t have to keep shopping for investment options and moving their money around from one certificate of deposit to another every six months. They know what to expect for a fixed time frame and can prepare based on that.
  • Tax Deferral: Annuities offer control over when they’ll receive taxable income. In an annuity, as long as clients leave money in the annuity, they won’t have to pay taxes on the interest that is credited to their annuity.
  • Shorter Surrender Charge Periods: Newer annuities not only have shorter surrender charge periods (such as three, five or seven years, instead of 10), but also now often have similar interest, cap and participation rates as the longer products. The flexibility of surrender charge periods has given rise to issue age flexibility — many clients in their 80s and even 90s can now buy an annuity.

For clients who are becoming uncomfortable risking their money in the stock market, annuities provide a stable solution.

Annuities lock in growth without constant monitoring. Annuities offer a simple and safe option that doesn’t require constant upkeep. They guard against the psychological shock of market dips and having to watch a nest egg evaporate with every market move. The end result: annuities are simply one of the best ways for baby boomers to strengthen a portfolio that needs protection and stability.

Source: https://www.thinkadvisor.com/2019/04/29/want-annuity-customers-try-baby-boomers/

Image: www.Canva.com

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Tags: Annuities, Baby Boomers

Hispanic Market of Growing Interest to Insurance Agents

Posted by www.psmbrokerage.com Admin on Tue, Jul 18, 2017 @ 02:27 PM

Hispanic Market of Growing Interest to Insurance AgentsHispanic Market of Growing Interest to Insurance Agents

Not only are Hispanics the fastest-growing young demographic in the U.S., but they have the longest life expectancy at birth, facts that might interest insurance agents looking to build their books of business.

Underwriters of life insurance policies might also want to take note as the nation becomes more ethnically and racially diverse and as Hispanics continued to be underrepresented in life insurance coverage.

The data are the latest findings published by the National Center for Health Statistics in “Health, United States 2016.”

“By 2015, just over one-half of the child and adolescent population was non-Hispanic white and one-quarter was Hispanic,” study authors wrote in the 488-page report.

The NCHS is the principal data collection agency of the Centers for Disease Control within the U.S. Department of Health and Human Services.

There were about 321 million people in the U.S. in 2015, compared with 216 million in 1975.

Fastest-Growing Segment

In 2015, nearly a quarter (24.6 percent) of the population ages 0 to 17 years old was Hispanic, an increase from 17.1 percent in 2000, as that age segment grew fastest.

Hispanics ages 18 to 64 years old made up 17.3 percent of the population, an increase from 12.2 percent in 2000, the report found.

Hispanics 65 years and older made up 7.9 percent of the population in 2015, an increase from 5 percent in 2000, the health data found.

By comparison, in 2015 whites made up 51.5 percent of the population age 0 to 17 years old compared with 61.3 percent in 2000.

In 2015 whites 18 to 64 years old made up 61.5 percent of the population, compared with 70 percent in 2000. Whites 65 years and older made up 77.8 percent compared with 83.8 percent in 2000, the data show.

Life Expectancy Highest Among Hispanics

That the nation’s population is moving toward racial and ethnic diversity isn’t exactly new, but the latest mortality data about Hispanics might be.

During 1975-2015, average life expectancy at birth in the U.S. rose from 68.8 years to 76.3 years for men and from 76.6 years to 81.2 years for women.

In 2015, Hispanic men had a life expectancy at birth, on average, of 79.3 years and Hispanic women had an expectancy of 84.3 years.

Non-Hispanic black men, with a life expectancy at birth of 71.8 years and non-Hispanic black women, with a life expectancy of 78.1 years, had the shortest, according to the data.

Life expectancy at birth was 7.5 years longer for Hispanic men than for non-Hispanic black men and 6.2 years longer for Hispanic women than for non-Hispanic black women.

The leading cause of death in 2015 was heart disease, which claimed 23.4 percent of all deaths, the data show.

Heart disease was followed by cancer (22 percent), CLRD, or chronic lower respiratory disease, (5.7 percent), unintentional injuries (5.4 percent), stroke (5.2 percent), Alzheimer’s (4.1 percent), diabetes (2.9 percent), influenza and pneumonia (2.1 percent), nephritis and nephrosis, or kidney disease (1.8 percent), and suicide (1.6 percent).

From 2011 to 2014, diabetes, a condition in which the body is deprived of insulin, affected 12 percent of adults age 20 and older.

From 1988 to 1994, diabetes affected 8.8 percent of adults 20 and older, the data show.

Between 2011 to 2014, the prevalence of diabetes among blacks and Hispanics of Mexican origin was almost twice as high than for non-Hispanic whites, the data found.

Source: http://advisornews.com/innarticle/hispanic-market-growing-interest-advisors

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Tags: Building Client Relationships, Baby Boomers, Boomer Retirement, Insurance Marketing, Lead Generation, prospecting

Should the Medicare eligibility age be raised to 67?

Posted by Guadalupe Cantu on Fri, Nov 22, 2013 @ 11:19 AM

Medicare Supplements Medicare, the U.S. health care insurance that provides benefits to seniors over 65, and to certain individuals who qualify for the program at an earlier age, has been on the cross hairs of the Congressional Budget Office (CBO), who have been questioning whether it is time to phase in and raise the eligibility age to 67.

With millions of baby boomers retiring and enrolling into Medicare program, and the recent Medicare spending explosion, is threatening the stability of the U.S. economy.

Projection of Medicare spending in the coming decades is expected to continue to exceed domestic per capita growth. Further adding to the growth is increase of life expectancy, translating to; the cost of Medicare has increased along with the life span of the people covered since the program began in 1965.

Currently, there is a two prong camps for and against rising the eligibility age of Medicare. One side says that raising the age would save around 3 million a year or about $19 billion, between 2016 and 2023. This would reduce our current deficit to about 1% (our current deficit is $680 billion). Others argue that it is not fair for people to wait two extra years to qualify for Medicare. And that increasing the age would shift the cost to those ages 65 to 66. Seniors would incur an increased out-of-pocket expense of $3.7 billion, and employers tab would increase to 4.5 billion and states would face increased Medicare cost, estimates the Kaiser Family Foundation.


Please give us your feedback!
Question: What’s your stance on rising the eligibility age to 67? By rising the age and saving 1% on the deficit, will this help our economy or will it dig the U.S. economy deeper into a hole?

Source: LifeHealthPro
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Tags: Medicare, Medicaid, Baby Boomers, Medicare Cost, Congressional Budget Office, Seniors, Retired

Proposed Bill would Pay Seniors to Say Healthy

Posted by Lauren Hidalgo on Fri, Jul 12, 2013 @ 09:06 AM

Medicare Supplements A new bipartisan legislation was introduced last month by Senators Ron Wyden (D-Oregon) and Rob Portman (R-Ohio) that would allow Medicare to pay seniors to improve and maintain their health. The pinned Medicare Better Health Rewards program would measure the seniors' wellness using six criteria: blood pressure, cholesterol, tobacco use, body mass index, diabetes indicators, and up-to-date vaccinations and screenings.

With this plan, seniors would work with their doctors during their yearly Medicare "wellness" visits to evaluate their performance and to improve their health based on the set standards. Successful beneficiaries will be eligible for up to $200 by the program’s second year and $400 by its third year.

Rob Kind, (D-Wisconsin), a co-sponsor of twin House legislation stated "This is exactly the kind of bold, concrete and common-sense legislation that we need to rein in health care spending and help our seniors live healthy lives."

The initiative would be funded by Medicare savings generated by healthier seniors. However, it's only one of the options being considered to lower the program’s healthcare costs.


Please give us your feedback!
What are your thoughts? Do you think this bill would help improve wellness and reduce healthcare costs?

 

Source: The Hill

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Tags: senior market news, Medicare News, health insurance news, health insurance industry, Combined Insurance Medicare Supplement, Cigna Medicare Supplement, Baby Boomers

Med Supp Policy Growth Continues

Posted by Lauren Hidalgo on Fri, May 04, 2012 @ 09:45 AM

Medicare SupplementsMedicare Supplement figures from MFA’s Medicare Supplement Market Data, Health Coverage Portal show a continued growth in the number of new policies being issued. New policies issued in the last three years increased by 7.5% in 2011 when compared to the previous year’s data; resulting in 9.9 million seniors being covered by Medicare Supplements as of December 31, 2011.

Med Supp carriers increased from 124 in 2010 to 129 in 2011, with one carrier no longer reporting new policies and another six reporting new policies. The plans earned a combined $21.359 billion in premiums and had $17.028 billion in claims. This was an increase of 4.1% and 5.4% between 2010 and 2011 respectively. The aggregate loss ratio, or incurred claims as a percent of earned premiums, returned to 80% in 2011 after decreasing slightly to 79% in 2010.

Plan F was chosen by 47% of consumers with Medicare Supplement coverage in 2011, increasing from 43% in 2010. Plan N gained 265,854 enrollees since it was introduced in June 2010.

UnitedHealth Group, including AARP, dominated the market share with 31% of the business. Mutual of Omaha ranked second with 11%. The Top seven companies have not changed in the last three years. Also, the study showed most companies are diversifying their Medicare offerings to include Med Supp, Med Advantage, and Plan D in order to have more opportunities as the senior market grows.

The senior market is constantly growing, especially now that the Boomer generation is entering the market. The Med Supp landscape continues to grow and change and exciting new products continue to enter this dynamic market.


Lookin for Medicare Supplement coverage?  Get a Medigap quote.

Please give us your feedback!
Did you see an increase in your business between 2010 and 2011? Which product do you find you sell the most of?

Source: Mark Farrah Associates

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Tags: Medicare Supplement, insurance news, Medicare Sales, Gerber Life Medicare Supplement, Baby Boomers

Products for Seniors in all Stages

Posted by Lauren Hidalgo on Fri, Oct 07, 2011 @ 08:15 AM

Medicare SupplementsAs a senior market agent, it’s important for you to understand the best products for your clients as they age and experience retirement, income changes, and death of loved-ones. Younger seniors, older seniors, high and low income seniors all have different needs and it is your responsibility to understand them and choose the products from your portfolio to fit their needs best. These strong relationships will result in more referrals and assure the longevity of your business.

Here are five main senior-types to consider:

  1. Young Seniors – These seniors are just reaching their Medicare eligibility and being bombarded with options to consider for their health and economic futures. The process is often confusing, so it is important to take time with these clients, find out their plans for the future, and choose the products right for them. For those ready to travel and do the things they couldn’t do when they were responsible for raising a family, a Medicare Supplement might be the best option. For those who are happy to stay at home and within a network, Medicare Advantage might be the right fit. It’s also important to review their retirement income and begin discussing annuity options, which will provide guaranteed income for as long as they live.

  2. Older Seniors – For those aged 90 and up qualifying for insurance plans will be significantly more difficult. For these seniors it is important to review their portfolio and make sure all of their beneficiaries are correct and their investments are risk free. Review their supplemental insurance plan to see if there may be a better fit, especially in states like New York and Connecticut where there is no medical underwriting on Med Supps.

  3. Low-Income Seniors – Start by reviewing their financial situation and confirm they are signed up for the best Medicare (and Medicaid, if necessary) plan. Also, many states have programs to help pay for their medications, so look to see if they qualify for that assistance. For a low income senior it is more about asset accumulation than asset protection.

  4. High-Net-Worth Senior – If your client has assets over $1 million often times you will find you need to partner with other financial professionals like tax attorneys and CPA’s in order to insure all of the client’s financial bases are covered. For these clients you are working to protect their assets and insuring their returns are consistent.

  5. Widowed Senior – For those who have recently lost a spouse it is important to make sure they have secured the benefits they are entitled to in their spouse’s death, and then work with them to develop a spending and asset protection plan. It is especially important to discuss long term care or short term care insurance with them, as they may not have any family nearby and should be protected in case they should need assisted care.

With all seniors it is important to be flexible and present the products that will work best for their individual needs. By customizing each client’s portfolio to fit their specific needs you are gaining clients who will be confident in your ability to adapt as their needs change.


Please give us your feedback!
Do you work with a variety of senior's in a variety of health and economic situations? What helps you customize each plan for them specifically? Or, do you prefer to prospect with one specific type?

Source: Agent's Sales Journal

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The Upswing of Medicare Supplements

Posted by Lauren Hidalgo on Fri, Jul 22, 2011 @ 09:16 AM

Medicare SupplementsIn the past few years, the senior insurance market has seen tremendous growth. Curious if this would continue to be the case, Bryan R. Neary and his associates launched a study to find out if Med Advantage would trump Med Supp in the next ten years. They found the process more complex than they originally thought, but in the end they saw the Med Supp enrollment increasing in the 10 year time frame. Due to the proposed new health care laws, Neary and his team made conservative assumptions based on what is already known. They took the current Medicare enrollment, a reliable Medicare enrollment projection, the historical changes in the Medicare market, and a realistic Medicare Supplement projection into consideration when compiling their data. The assumptions they used were that the demographics of current Medicare beneficiaries are accurate, there will not be a dramatic shift in the future, lapse and replacement rates will not experience a dramatic change, and annual rate increases will not have a dramatic change.

Neary explained that signs of growth in the Med Supp market include:

  1. Baby Boomers – with this generation comes an influx of 15.4 million over the next 10 years, providing multiple opportunities for Med Supp sales.

  2. Medicare Advantage Reductions –the health care law includes Medicare provisions that will gradually reduce subsidies paid to Medicare Advantage starting in 2012.

  3. Decrease in Retiree Health Benefits – due to the economic times less companies will be able to offer retiree health benefits, by 25% over the past 20 years.

  4. New Medicare Supplement Plans – new plans should be introduced in 2014, eliminating first-dollar coverage. Like with the introduction of Plans M and N in 2010, this will likely create a buzz in the market and generate more sales. He also suggests more lower-cost plans become available, which would open the market to those who previously couldn’t afford it.

Their conclusion is that the Medicare Supplement offers a long-term sustainability. With the opportunities available like Baby Boomers, Medicare Advantage reductions, decrease in retiree health benefits, and the insertions of new Med Supp plans into the market there will be an increase in selling opportunities and, therefore, enrollment.

To review the list of Medicare Supplement companies that we offer, please see our Medicare Supplement carriers.

Please give us your feedback!
Do you agree with Neary's findings? Have you already begun to see an upswing with the influx of Baby Boomers?

Source: InsuranceNewsNet

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Tags: senior market news, Medicare News, health care reform, Sentinel Life Medicare Supplement, industry news, Baby Boomers

Baby Boomers: Marketing to the New Senior

Posted by Lauren Hidalgo on Fri, Apr 29, 2011 @ 10:03 AM

Medicare SupplementsWith the first of the Boomer generation turning 65 this year, and qualifying for Medicare, now is the time to start focusing on marketing to them. The Baby Boomers are a wealthy, educated, and sophisticated generation motivated to purchase by service and information. They expect honesty, trust and openness in their business relationships and look for an open communication about their needs rather than a blanket sales pitch. Research has shown that they are not slowing down their spending, set in their ways, or blindly brand loyal like their parent’s generation.

The Boomers do not respond favorably to fear tactics. The use of strong positive images, appealing to their emotions without being condescending, and empowering them with information to keep them in control of their life will be a much more effective marketing strategy. The Boomers are used to managing their money and making financial decisions. Often times they are in a position to make choices not only for their own health and longevity but also the needs of their aging parents.

It’s also important to understand their youthful side. Boomers are of age to buy Medicare Supplements and Long Term Care insurance, but still respond to marketing targeted at their young and vibrant lifestyle. They appreciate new services and innovations, and embrace technology with more than 80% searching online for health information. Driven by information, you may have to spend more time prospecting with them and engaging them while establishing an open dialogue with a high level of service, quality, and trust. National research firms show that nearly 90% of Boomers participate in viral marketing - telling friends and family about the products they use. Thus, multiple referrals can come from each new client.

The Baby Boomer generation is part of an exploding senior insurance market, with those aged 50 and older accounting for approximately half of the population in the United States by 2015. Contact PSM at 1-800-998-7715 to make sure you have the most effective marketing strategies and products to offer the new generation of seniors coming into your market now.


In your experience, how is the Baby Boomer Senior different from their parent's generation? Have you already seen a difference in the Boomers entering the supplemental insurance market?

Source: Agent's Sales Journal


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Tags: Sales Tips, Success Tips, Referrals, Medicare Sales, Forethought Medicare Supplement, Customer Service, Baby Boomers

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