Insurance Life Blog: February 2006

Tuesday, February 28, 2006

Insurers Still Struggle to Grow in Latin American Markets

More than a decade after passage of the North American Free Trade Agreement - as well as independent movements in many Latin American countries to open their borders to foreign investment - the region's insurance markets remain mostly untapped and underutilized, panelists at an international symposium said.

Insurers Still Struggle to Grow in Latin American Markets
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 9:12 AM

Long Term Care Insurance More Attractive Thanks To New Law

The Deficit Reduction Act, signed into law by President Bush on February 8, "promises to encourage millions of Americans to buy long term care insurance," says Cameron Truesdell, CEO of LTC Financial Partners, the nation's most experienced long term care insurance brokerage. But he cautions, "The legislation is a mine field of complexity that will vary from state to state as local programs roll out. The consumer needs help from experts to know if they can benefit and how."

Long Term Care Insurance More Attractive Thanks To New Law
Source: PR Newswire

Permalink posted by armandn @ 9:10 AM

Sarbanes-Oxley Oversight Board Facing Constitutional Challenge

A group of advocates for free enterprise and limited government that includes former federal independent counsel Kenneth Starr is challenging the constitutionality of the Sarbanes Oxley Act and its provisions that govern the accounting of public companies.

The Free Enterprise Fund of Washington, D.C. filed a constitutional legal challenge to the Public Company Accounting Oversight Board (PCAOB) created by Congress as part of the Sarbanes-Oxley Act, which was enacted in 2002 following a number of corporate scandals,

The SOX Act has been criticized by businesses, including insurers, for imposing new costs on publicly traded U.S. businesses.

Sarbanes-Oxley Oversight Board Facing Constitutional Challenge
Source: Insurance Journal

Permalink posted by armandn @ 9:09 AM

How Much Money Is Enough For Retirement?

"Time waits for no man" - Ancient Proverb. That ancient quote is a great reminder how important it is to start planning for your retirement. Whether we choose to acknowledge it or not, retirement is creeping up on us. Even for those who have just started their career, retirement planning is essential to providing a secure future for themselves and their loved ones. But that doesn't mean we're defenseless against time. In fact, with the proper planning, life after work can be the most rewarding years of your life.

How Much Money Is Enough For Retirement?
Source: Senior Journal

Permalink posted by armandn @ 9:08 AM

GE To Sell Remainder Of Its Stake In Genworth

General Electric Co., the diversified manufacturing, financial services and media company, said Monday it will sell the rest of its stake in Genworth Financial Inc. through a secondary public offering.

GE, which spun off Genworth in 2004, had said it planned to sell its holdings in the insurance holding company by the end of 2006.

GE To Sell Remainder Of Its Stake In Genworth
Source: Hartford Courant

Permalink posted by armandn @ 9:06 AM

Monday, February 27, 2006

Jackson National Life Revises Rate Structure for Term

Jackson National Life Insurance Company(R) (JNL(R)) today announced that the company has revised the rate structure for its JNL Protector(R) Series term life insurance product, based on the 2001 Commissioners Standard Ordinary (CSO) valuation table. In some cases rates have been reduced by as much as 23%(1). In addition to the change in rate structure, Jackson National Life has also lowered the annual policy fee for JNL Protector policies with face amounts of $100,000 or more from $60 to $50. Furthermore, the minimum face amount for JNL Protector policies has been reduced from $100,000 to $25,000...

BusinessWire: Jackson National Life Revises Rate Structure for Term

Permalink posted by markw @ 12:29 PM

MetLife Enhances GMIB Plus/Predictor Plus for Variable Annuities

MetLife announced today that its enhanced Guaranteed Minimum Income Benefit (called GMIB Plus or Predictor Plus) rider will now allow customers to take advantage of market gains annually, rather than every three years. If the account value increases due to market gains, customers may increase the 5% compounding income base, which is used to calculate future minimum income payments, each year up to the current account value. The GMIB Plus/Predictor Plus rider, originally launched in 2005, is designed to offer guaranteed income for life, while prior to electing the guaranteed income for life option, allows dollar-for-dollar withdrawals of the 5% compounding income base up to 5% annually...

BusinessWire: MetLife Enhances GMIB Plus/Predictor Plus for Variable Annuities

Permalink posted by markw @ 12:25 PM

Term life insurance policy premiums still inexpensive, but consumers under-insured

Navigating through insurance options has become more complicated for consumers as the types of financial products have grown tremendously. While term life insurance has received a lot of attention lately because of the continued drop in premiums, insurance professionals agree that the market in general has changed with respect to consumer choices...

BizJournals: Term life insurance policy premiums still inexpensive, but consumers under-insured

Permalink posted by markw @ 12:25 PM

Retirement plan participation lags

Participation in 401(k) plans was 70% last year, down from 72%... "Workers appear to be losing their taste for 401(k) retirement savings," ...

Investment News: Retirement plan participation lags

Permalink posted by markw @ 12:24 PM

Friday, February 24, 2006

Hartford Life Split Into Two Groups

The Hartford said Thursday it has split its Hartford Life operations into two new business groups in a drive for more growth in domestic and international operations.

The Hartford Financial Services Group Inc. said it divided Hartford Life's businesses into U.S. Wealth Management and a second unit called International Wealth Management and Group Benefits. The split does not eliminate any executives or jobs, but it changes the scope of responsibilities and reporting relationships, in some cases.

Hartford Life Split Into Two Groups
Source: Insurance News Net

Permalink posted by armandn @ 8:23 AM

Family Finances Strained

After the booming 1990s, when incomes and stock prices were soaring, this decade has been less of a thrill ride for most American families.

Average incomes, after adjusting for inflation, actually fell from 2001 to 2004, and the growth in net worth was the weakest in a decade, the Federal Reserve reported Thursday.

Many families were struggling in the aftermath of the 2001 recession and the bursting of the stock market bubble in 2000, the Fed's latest "Survey of Consumer Finances" showed. The comprehensive look at household balance sheets comes every three years.

Family Finances Strained
Source: Hartford Courant

Permalink posted by armandn @ 8:21 AM

North American Life Insurance Activity Up 2% In January

North American applications for individually underwritten life insurance increased +2.0% in January, year-over-year, according to the MIB Life Index(TM). This marks the Index's first year-over-year increase in twelve consecutive months. It was also the first time in four years where January's application activity was greater than the prior December's application volume.

In the U.S., January's application activity was up +2.7% year-over-year,
all ages combined. Increases were observed across all age groups: 0-44,
+2.2%; 45-59, +4.7%; and 60+, +0.6% as compared to January 2005. January 2006 activity in ages 60+ showed a +7.8% increase relative to December 2005. January '06-to-December '05 changes for ages 0-44 and 45-59 were up +1.1% and +4.6%, respectively.

North American Life Insurance Activity Up 2% In January
Source: PR Newswire

Permalink posted by armandn @ 8:19 AM

Now Is The Time To Prepare For The Future; Attorneys Say Long-Term Care Should Be Incorporated Into Estate Planning

When contemplating how they will spend their golden years, few people envision an extended stay in a nursing home.

The sad reality, according to the Indiana Family and Social Services Administration, is that one-third of all Hoosiers who reach age 65 will enter a nursing home at some point in their lives.

Yet few people consider the cost of such care until they are faced with it. By then, it's too late.

The need to create a financial plan to cover the costs of long-term care is greater than ever and will only grow as baby boomers increasingly turn gray, said Claire E Lewis, an Indianapolis elder law attorney.

Now Is The Time To Prepare For The Future; Attorneys Say Long-Term Care Should Be Incorporated Into Estate Planning
Source: Insurance News Net

Permalink posted by armandn @ 8:17 AM

NAIC Panel Eyes Broader Suitability Model

State regulators are moving ahead with efforts to strengthen the marketing rules that protect young annuity purchasers.

The Life Insurance and Annuities Committee, an arm of the National Association of Insurance Commissioners, Kansas City, Mo., has voted unanimously to expose an amended version of the Senior Protection in Annuity Transactions model regulation for public comment. The amended version replaces references to "seniors" with the word "consumers."

NAIC Panel Eyes Broader Suitability Model
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 8:15 AM

Permalink posted by markw @ 5:59 AM

Thursday, February 23, 2006

More Americans Worry About Retirement

Most Americans fear they will not save enough money for retirement, and nearly half are not counting on the Social Security system to provide the money they need to retire comfortably, a new survey shows.

Ninety percent of Americans say they worry how well prepared they are for retirement, up from the 89 percent who felt that way a year earlier, according to a survey released Wednesday by Wachovia Corp., the No. 4 U.S. bank.

More Americans Worry About Retirement
Source: MSNBC

Permalink posted by armandn @ 7:18 AM

Agencies Unite for College Plan Oversight

The National Association of Securities Dealers is joining forces with the Municipal Securities Rulemaking Board to help students and their parents.

The NASD, Washington, a self-regulatory group for securities broker-dealers, and the MSRB, the agency that regulates the municipal bond market, have issued a formal joint statement emphasizing that they will work together to harmonize regulation of mutual funds and 529 college savings plans.

Agencies Unite for College Plan Oversight
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:16 AM

Eight Life Insurance Companies Renew Membership in IMSA, Ethics Standards-Setting Organization

Eight distinguished life insurance companies have qualified to renew their membership in the Insurance Marketplace Standards Association (IMSA), the national organization dedicated to promoting high ethical standards in the marketing, sales and service of individually sold life insurance, annuities and long-term care insurance.

Eight Life Insurance Companies Renew Membership in IMSA, Ethics Standards-Setting Organization
Source: Marketwire

Permalink posted by armandn @ 7:15 AM

Prudential Retirement Unveils Approach for Reinventing the Defined Contribution Plan

By simplifying plan design, using the best elements of the traditional defined benefit model, educating participants on generating retirement income, and delivering retirement-income solutions, plan sponsors can help dramatically improve retirement outcomes for their employees, according to a Prudential Retirement white paper report released today. Prudential Retirement is a business of Prudential Financial, Inc.

Prudential Retirement Unveils Approach for Reinventing the Defined Contribution Plan
Source: Yahoo! Finance

Permalink posted by armandn @ 7:14 AM

Wednesday, February 22, 2006

The Principal Financial Group Enhanced Variable Universal Life (VUL) Product Designed for Business Owners' Unique Needs

The Principal Financial Group(R) can help today's business owners overcome several challenges, including death benefit protection, attracting and retaining key employees, planning for the long-term future of the business and supplementing personal income in later years. Created to allow easy access to cash values, Principal Variable Universal Life Income Plus(SM) (VUL Income Plus) is the Principal VUL Income life insurance product with Surrender Charge Adjustment Rider(1) and offers a 90 - 95 percent cash value-to-premium ratio in the first year.

The Principal Financial Group Enhanced Variable Universal Life (VUL) Product Designed for Business Owners' Unique Needs
Source: Business Wire

Permalink posted by armandn @ 10:40 AM

Sunshine State Officials Promote Basic LTC

Florida insurance regulators say they want to create a standard package of long term care insurance benefits.

The state Office of Insurance Regulation has included passage of a bill that would include a standard LTC benefit policy on its list of 2006 legislative priorities.

Sunshine State Officials Promote Basic LTC
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 10:38 AM

MassMutual Achieves Outstanding Financial Performance for 2005

MassMutual Financial Group announced today outstanding financial results for 2005, including a double-digit increase in assets under management and strong performance in businesses throughout the organization.

As of December 31, 2005, Massachusetts Mutual Life Insurance Company
(MassMutual) and its subsidiaries reported assets under management of a record $396 billion. This represents an increase of 22 percent from $326 billion as of December 31, 2004.

MassMutual Achieves Outstanding Financial Performance for 2005
Source: PR Newswire

Permalink posted by armandn @ 10:37 AM

Make IRA's Automatic

Roughly half of working Americans - 71 million people - have no employer-sponsored pension plan. The nation's personal savings rate is below zero, meaning Americans, on average, spend all they earn and then some. Social Security has promised future retirees more than it has money to pay.

Those worrisome signs, a retirement income disaster in the making, are good reasons why Congress should urgently consider a proposal for automatic individual retirement accounts developed by The Retirement Security Project.

Make IRA's Automatic
Source: Newsday.com

Permalink posted by armandn @ 10:35 AM

Northwestern Mutual Again Named 'America's Most Admired' by FORTUNE

For the 23rd year, Northwestern Mutual has been named as "America's Most Admired" life/health insurance company in FORTUNE magazine's 2006 annual survey of industry professionals and analysts.

Northwestern Mutual is the only company to lead its industry every year it has been included in the FORTUNE survey. All "America's Most Admired" industry rankings are featured in the magazine's March 7th edition, available on newsstands February 27.

Northwestern Mutual Again Named 'America's Most Admired' by FORTUNE
Source: PR Newswire

Permalink posted by armandn @ 10:34 AM

Tuesday, February 21, 2006

ING To Combine Canadian Subs

Allianz Insurance Company of Canada and The Nordic Insurance Company of Canada, both insurance subsidiaries of ING Canada Inc., announced their intention to amalgamate under the name of The Nordic Insurance Company of Canada.

ING To Combine Canadian Subs
Source: Insurance Journal

Permalink posted by armandn @ 5:34 AM

Planning for Great Expectations

Most new mothers know that giving birth will lead to changes in household finances and insurance needs.

But, in most cases, "they absolutely spend more time thinking about their strollers or their cribs" than thinking about insurance and other financial matters, says Dianne Nolin, a financial planner at Legacy Advisors L.L.C., Tysons Corner, Va.

Planning for Great Expectations
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 5:33 AM

The HSA Mirage

Just about everyone agrees that the current health care system in the United States costs too much and doesn't do a good enough job serving those who need care.

Americans are ready for substantive health care reform, but reform only makes sense if it is effective.

During his State of the Union speech, President Bush proposed expanding the use of tax-subsidized health savings accounts (HSAs) as a controversial solution for one of the most intractable challenges in health care - controlling rising costs.

The president's proposal would give individuals that purchase HSAs on their own the same tax advantages as those with employer-provided insurance and would eliminate all taxes on out-of-pocket spending through HSAs.

Such proposals put individuals who buy HSAs on their own on a level playing field with those who get coverage from their employer. That's fairer than the current system, but it won't have a major effect on health care spending.

The HSA Mirage
Source: UPI.com

Permalink posted by armandn @ 5:31 AM

States Aim To Limit Genetic Tests For Potential Insurance Clients

States are moving to ban or limit insurance companies from requiring potential policyholders to undergo genetic tests.

While most states have laws that discourage health insurers from using genetic tests, few have similar rules for long-term care or life-insurance companies.

"The denial of insurance on the basis of any genetic testing would be terribly inappropriate," said New York Assemblyman Joseph Morelle, a Democrat.

Mr. Morelle in March introduced a bill, which still is pending, that for one year would ban insurance companies from denying or canceling life or disability coverage on the basis of genetic information.

States Aim To Limit Genetic Tests For Potential Insurance Clients
Source: Insurance News Net

Permalink posted by armandn @ 5:29 AM

Friday, February 17, 2006

Hartford Updates VUL Hybrid

An insurer is rolling out a new version of a life insurance policy that combines guaranteed death benefits with a flexible investment feature.

Hartford Financial Services Group Inc., Simsbury, Conn., is introducing the Hartford Quantum II Variable Universal Life insurance policy, a new version of the Hartford Quantum Life policy that was introduced 2 years ago.

Hartford Updates VUL Hybrid
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:16 AM

"Traditional" Pension Assets Lost Dominance A Decade Ago, IRA And 401(k) Have Long Been Dominant

Where are bulk of private-sector retirement assets held in the United States? By a substantial margin - and for many years - individual retirement accounts (IRAs) have held more funds than any other financial vehicle, followed by defined contribution plans (primarily 401(k) plans).

So-called "traditional" defined benefit pension plans were displaced a decade ago by defined contribution plans in terms of assets held. The most recent data from the nonpartisan Employee Benefit Research Institute (EBRI) show that about 61% of private-sector retirement assets currently are held in defined contribution (DC) plans, compared with 39% in "traditional" defined benefit (DB) pensions. In fact, as data from EBRI show, assets held in DC plans first surpassed DB pension assets in 1997 - almost 10 years ago.

"Traditional" Pension Assets Lost Dominance A Decade Ago, IRA And 401(k) Have Long Been Dominant
Source: Insurance News Net

Permalink posted by armandn @ 7:14 AM

Secondary Life Insurance Market Takes Cues From Wall Street

The secondary market for life insurance has more in common with Wall Street than most would guess. Therefore, it is no surprise that many ideas from Wall Street are being implemented in this growing market sector.

With the adoption of electronic trading systems in the 90's, Wall Street saw many changes in the stock market including greater transparency and improved liquidity. Miami based Life-Exchange, Inc. (Pink Sheets:LFXG), an independent business-to-business online exchange built specifically for the secondary life insurance market, will benefit this market in the same way.

Secondary Life Insurance Market Takes Cues From Wall Street
Source: Business Wire

Permalink posted by armandn @ 7:13 AM

Principal CEO Says Baby Boomers Are Fueling Record Performance

Principal Financial Group Inc. top executive Barry Griswell said baby boomers preparing for retirement have boosted the company's profits as demand for 401(k) plans, insurance products and banking services have increased.

Griswell detailed the strategies that have led to the company's success at an investor conference in New York on Wednesday. The presentation was delivered live via webcast.

Principal CEO Says Baby Boomers Are Fueling Record Performance
Source: Insurance News Net

Permalink posted by armandn @ 7:12 AM

Thursday, February 16, 2006

A Plan That Can Help Clients Make Up For Lost Time; 412(i) Plans Can Have Many Advantages But Are Not For the Faint Of Heart

A self-employed engineering consultant, age 52, walks into your office one Monday morning and tells you he has done virtually no retirement planning since he got his start in the field 30 years ago.

A Plan That Can Help Clients Make Up For Lost Time; 412(i) Plans Can Have Many Advantages But Are Not For the Faint Of Heart
Source: Insurance News Net

Permalink posted by armandn @ 8:43 AM

Millenials Tilt Towards IRAs

The number of U.S. workers under age 30 who participated in some kind of tax-favored retirement plan fell 7.3% between 1997 and 2000, to 13.2 million.

Researchers at the Congressional Budget Office have published data on retirement plan participation rates in a paper aimed at members of Congress who are concerned about the effects of tax laws and retirement plan contribution rules on participation rates.

Millenials Tilt Towards IRAs
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 8:41 AM

Life-Exchange Enters Secondary Life Insurance Market

After much industry anticipation, Life-Exchange, Inc. (OTC:LFXG) has commenced implementation of its electronic business to business exchange for the life settlement industry. The President and Chief Executive Officer, Nicole E. Whitehead, stated: "Life-Exchange has been specifically built to meet the needs of life settlement Brokers and Providers. By bringing neutrality, transparency and efficiency to the life settlement transaction, Life-Exchange will mark a significant turn in the way the secondary market for life insurance conducts business."

Life-Exchange Enters Secondary Life Insurance Market
Source: Business Wire

Permalink posted by armandn @ 8:40 AM

Report On Compliance

Ever since the Boston Tea Party, Americans have had a love-hate relationship with big government. Most want broad government involvement to protect their ability to earn a living, own property, choose a religion and other constitutionally-granted rights. But they're also an independent lot who resist being over-managed, especially by Washington .

You could say the same about financial services and insurance companies, which are among the most heavily regulated entities in the country.

At the recent LIMRA/LOMA Compliance & Market Conduct Exchange, evolving regulatory mandates were topic No. 1, with everyone from insurance compliance officers to representatives from AARP discussing new legislation and offering practical, hands-on solutions.

Report On Compliance
Source: LOMA

Permalink posted by armandn @ 8:39 AM

Genworth Financial Introduces Fixed Indexed Annuity

Genworth Financial, Inc. today announced the introduction of the SecureLiving(SM) Classic Indexed Annuity, issued by Genworth Life Insurance Company.

"The Classic Indexed Annuity is a powerful complement to our fixed annuity line up," says Pam Schutz, President of Genworth's Retirement Income and Investments group. "This product is another choice for Boomers seeking a secure way to save for retirement that includes protection of principal and tax-deferred growth."

Genworth Financial Introduces Fixed Indexed Annuity
Source: Yahoo! Finance

Permalink posted by armandn @ 8:34 AM

Wednesday, February 15, 2006

Our culture discourages people from being wise with their money

We don't want to be perceived as "obsessing" about money, so we fiercely resist what's arguably the most useful financial exercise we can ever do -- account for all our income and expenses as they occur. (We demand that corporations and the government do this, but can't be bothered with our own money).

We poke fun at stereotypical, supposedly socially-awkward "math geeks" but lack the skills to calculate investment returns or estimate how much we need to save to have what we'll need in the future. (And may not even realize how basic those skills are).

And we get so caught up with the "daily living" -- including, for many, accumulating stuff and keeping up with the perceived expectations of others -- that we neglect to build a basic financial foundation that would make our lives both easier and simpler.

Our culture discourages people from being wise with their money
Source: Sun-Sentinel.com

Permalink posted by armandn @ 8:01 AM

Boomers To Help Life Insurers Over Speed Bumps

Broad demographic forces should make most of the next 50 years great years for life insurers.

Steven Schwartz, a senior vice president in the Chicago office of Raymond James & Associates, gave that assessment during an insurance conference organized by the New York Society of Securities Analysts.

Boomers To Help Life Insurers Over Speed Bumps
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:36 AM

MetLife Launches New Online Tool

If you gave your family $1 million today would that be enough to cover their expenses for the rest of their lives? A new online calculator from MetLife, at www.metlife.com/gsib, will help consumers answer that question.

The Guaranteed Survivor Income Benefit (GSIB) calculator pinpoints exactly how much life insurance an individual needs to guarantee their survivors an income they can't outlive. The tool is simple. Individuals are asked three questions to enable the calculator to compute a lump sum value that can generate the desired guaranteed monthly income for their beneficiaries.

etLife Launches New Online Tool
Source: Yahoo! Finance

Permalink posted by armandn @ 7:35 AM

John Hancock Launches New Universal Life Insurance Policy

John Hancock has introduced a new universal life policy, called Accumulation UL, for high net worth individuals and business owners who are looking for strong cash value-oriented life insurance. The policy account value is credited a current interest rate based on a high-quality investment portfolio. The policy also offers tax- deferred growth of policy values and tax-favored treatment of policy withdrawals(1), a 5-year no lapse guarantee and zero net cost loans(1).

John Hancock Launches New Universal Life Insurance Policy
Source: PR Newswire

Permalink posted by armandn @ 7:33 AM

Tuesday, February 14, 2006

More Indie Brokers Bulk Up On Recruiters

Inspired by the tremendous growth of Linsco/Private Ledger Corp. and its ability to recruit brokers and advisers, a number of independent-contractor broker-dealers are following the industry pacesetter's recruiting model by building staff in order to snag brokers.

Linsco's affiliated sales force has soared, reaching 6,454 registered brokers and advisers at the end of last year, up from 4,700 in 2003 - an increase of 37%.

More Indie Brokers Bulk Up On Recruiters
Source: Investment News (subscription required)

Permalink posted by armandn @ 7:57 AM

Protective Life Exercises Its Buying Power, Foreshadowing More For Small Acquirers

Protective Life Corp.'s planned acquisition of J.P. Morgan Chase & Co.'s life insurance and related non-insurance businesses for $1.2 billion in cash shows smaller companies can find ways to do bigger deals, according to equity analysts at Fox, Pitt Kelton.

Protective Life Exercises Its Buying Power, Foreshadowing More For Small Acquirers
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 7:55 AM

The Hartford Announces Record 401(k) Sales in 2005; Creates New Retirement Plans Unit To Accelerate Growth

The Hartford Financial Services Group, Inc. today announced 401(k) plan sales & deposits of $3.2 billion in 2005, a 31% increase over 2004 and a record for the firm. The firm also announced that it has recently combined its 401(k), 457 and 403(b) businesses into a single team, creating the Hartford Retirement Plans Group. Jim Davey, Vice President for group retirement plans at The Hartford, leads the new Retirement Plans Group and reports to John Walters, head of The Hartford's Investment Products Division.

The Hartford Announces Record 401(k) Sales in 2005; Creates New Retirement Plans Unit To Accelerate Growth
Source: PR Newswire

Permalink posted by armandn @ 7:53 AM

The Costs Of Health Care In America Today; Health Care System Needs Reform

America's health care system - now essentially being held together by the altruism of those providing the care - is in crisis and in drastic need of reform.

While we enjoy the world's highest level of care and the greatest number of medical breakthroughs, it's clear that our health care financing, management and delivery structure has not kept pace.

Today, it is more often that an employer or government will choose what sort of health care benefits a family may access, which procedures are covered by the health plan and which doctor a patient may see. Those decisions and choices should rightfully be made by patients.

The nation's inflexible health care financing, management and delivery structure is the legacy of another era - a system developed when most people remained in one job their entire professional career. Today, our economy is much more dynamic, our work force much more mobile, and we need a health care system that better fits these new dynamics.

The Costs Of Health Care In America Today; Health Care System Needs Reform
Source: Insurance News Net

Permalink posted by armandn @ 7:51 AM

Jackson National Life Expands Fixed Annuity Offerings

Jackson National Life Insurance Company® (JNL®) today announced several enhancements to its popular fixed index annuity (FIA) product portfolio. JNL has launched two new FIA contracts - Elite Choice and Elite Choice Rewards - and has also added several features to its Elite Annual Reset® product. Highlights of the new offerings include 6-, 8-, 10- and 12-year Index Option terms with Elite Choice, a 5-percent up-front bonus with Elite Choice Rewards, and an updated 10-percent free withdrawal option available with Elite Annual Reset.

Jackson National Life Expands Fixed Annuity Offerings
Source: Yahoo! Finance

Permalink posted by armandn @ 7:50 AM

Monday, February 13, 2006

GenWorth Unveils Mortgage Life Product

An insurer has introduced a return-of-premium term life insurance product that could appeal to middle-income homeowners.

Genworth Financial Inc., Lynchburg, Va., says its new MasterKey policies are indeterminate premium term life insurance products designed so that premiums are level for an initial period then will increase each year.

GenWorth Unveils Mortgage Life Product
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:51 AM

The Golden Years: Feet Up Or Nose To The Grindstone?

Welcome to retirement 21st century-style -- and it's not your grandparents' retirement. "Given what life expectancy is today, if you make it to 60 or 65 and that's when you expect to retire, you still have 30 years to live. What if someone told you at 30 you had to sit around and do nothing for the next 30 years?" asks Dorothy Cantor, a Westfield, NJ-based psychologist and former president of the American Psychological Association (APA). Chances are, it wouldn't sit well with the get-up-and-go, self-starting sort that gravitates toward meeting planning.

The Golden Years: Feet Up Or Nose To The Grindstone?
Source: Insurance News Net

Permalink posted by armandn @ 7:49 AM

New Poll: Americans Realistic About Retirement

An astonishing one of five workers actually knows what his or her retirement income will be upon retirement, highlights the AXA Equitable Retirement Scope Survey findings. At the same time, knowing that Social Security is an important income element for retirees, 90% view it as "in trouble" or "in crisis." AXA polled more than 6,900 people in 11 countries regarding work, money and retirement.

New Poll: Americans Realistic About Retirement
Source: Financial-Planning.com

Permalink posted by armandn @ 7:47 AM

MetLife: Hunting for Acquisitions

After reporting a solid fourth quarter, thanks in part to MetLife's $11.8 billion acquisition of Citigroup's Travelers Life and Annuity business last year, the nation's largest life insurer could be ready to tackle another buy.

Speaking at the company's fourth quarter earnings call with analysts Friday, MetLife president and chief operating officer C. Robert Henrickson -- who is slated to take over the role of chief executive next month when the current CEO Bob Benmosche retires -- said while there are "substantial opportunities" to grow on a generic basis, consolidation within the life insurance industry is likely to increase and MetLife is open to buying.

MetLife: Hunting for Acquisitions
Source: CNN Money

Permalink posted by armandn @ 7:42 AM

Friday, February 10, 2006

Life, Health Insurers' Gains Tempered By Long-Term Challenges

A.M. Best Co. projects that at year-end 2005, the domestic life/health insurance industry will report record results, with adjusted statutory capital and surplus (including asset valuation reserves) of nearly $300 billion and after-tax net operating gains of more than $33 billion.

Life, Health Insurers' Gains Tempered By Long-Term Challenges
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 8:25 AM

MetLife 4Q Earnings Jump to $677 Million

MetLife Inc., the nation's largest life insurer, on Thursday reported higher premiums driven by its acquisition of Travelers Life & Annuity caused fourth-quarter profit to rise 33 percent.

Profit rose to $677 million, or 88 cents per share, from $511 million, or 68 cents per share, in the year-ago period. Operating earnings rose to $799 million, or $1.04 per share, from $660 million, or 88 cents per share.

MetLife 4Q Earnings Jump to $677 Million
Source: Yahoo! Finance

Permalink posted by armandn @ 8:23 AM

How Did Index Annuities Perform In 2005?

An examination of first-year credited interest for annual reset structured index annuities purchased in 2004 found a wide range of 2005 returns depending upon the structure and the date purchased.

As an example, an index annuity purchased in the summer of 2004 credited from 0% to 11% interest a year later-depending on the contract anniversary and index annuity selected.

How Did Index Annuities Perform In 2005?
Source: Insurance News Net

Permalink posted by armandn @ 8:21 AM

Prudential CEO: Nearing settlement with regulators

After almost 3 years of negotiations with the Securities and Exchange Commission as well other state and federal regulators, Prudential may be close to settling the investigation into unethical trading of mutual funds at its financial advisory unit.

During its fourth quarter report, released late Wednesday, Prudential raised its litigation reserves for the quarter -- a move that shaved off $267 million, or 40 cents a share, from the company's fourth quarter earnings.

Net income for the second-largest U.S. life insurer climbed to $377 million, or 78 cents a share, up from $317 million, or 64 cents a share, a year earlier.

Prudential CEO: Nearing settlement with regulators
Source: CNN Money

Permalink posted by armandn @ 8:19 AM

Losing Retirement by Degrees

For aging baby boomers, funding college was much easier. Tuition costs kept pace with normal inflationary pressures. Moreover, at the height of the Cold War, with the Soviets winning the space race, Uncle Sam retaliated with the National Defense Education Act (NDEA), which provided massive aid to education at all levels, public and private. Scholarships, fellowships, and low-cost loans abounded. A reasonably bright student willing to hit the books could cover the total cost of their degrees with scholarships, fellowships, work-study programs, and summer jobs.

Losing Retirement by Degrees
Source: Motley Fool

Permalink posted by armandn @ 8:09 AM

Thursday, February 09, 2006

Regulators To Seek Comment On Plan To Ease Burden Of Life Insurance Reserves

A task force of the National Association of Insurance Commissioners has voted to expose for comment a proposal that provides short-term relief from redundant reserves for writers of term life insurance and universal life with secondary guarantees.

Regulators To Seek Comment On Plan To Ease Burden Of Life Insurance Reserves
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 7:01 AM

President Bush Signs The Deficit Reduction Act of 2005; Expansion Of Long Term Care Partnership Program Encourages Planning

The National Long Term Care (LTC) Network applauds Congress passing the Deficit Reduction Act of 2005 which was signed into law by President Bush yesterday.

The Act will allow all 50 states and the District of Columbia to offer a
Long Term Care Insurance Partnership Program currently available in only five states. "Many Americans are concerned about protecting their savings from the potential high cost of long term care needs later in life," stated Terry Truesdell, President of the National LTC Network. "Providing incentives for individuals purchasing private LTC insurance through state Partnership Plans offers a great opportunity for protecting assets from those costs."

President Bush Signs The Deficit Reduction Act of 2005; Expansion Of Long Term Care Partnership Program Encourages Planning
Source: PR Newswire

Permalink posted by armandn @ 6:59 AM

Fort Dearborn Life Insurance Company Introduces Beneficiary Resources Services

Fort Dearborn Life Insurance Company has introduced Beneficiary Resource Services, an innovative program for new employer group life customers that combines grief, legal and financial counseling for insured individuals and their beneficiaries at no additional cost. The program became effective Feb. 1, 2006.

Fort Dearborn Life Insurance Company Introduces Beneficiary Resources Services
Source: PR Newswire

Permalink posted by armandn @ 6:57 AM

Claritas Forms Life Insurance Consortium With Worldwide Financial Services Association

Claritas Inc., the premier provider of intelligent marketing information and target marketing services, announced today the formation of the Small Area Market Share Consortium, a unique market intelligence source for the life insurance industry. Formed in conjunction with financial services association LIMRA International, the Consortium provides actual life insurance sales information for local areas, which, until now, has never been available.

Claritas Forms Life Insurance Consortium With Worldwide Financial Services Association
Source: MarketWire

Permalink posted by armandn @ 6:56 AM

AIG Settles Case

Federal and state regulatory authorities are expected to announce a $1.6 billion settlement today with American International Group Inc., which has been accused of involvement in an insurance bid-rigging case and the use of deceptive accounting practices, according to people familiar with the settlement terms.

The settlement will be split by the Securities and Exchange Commission, which will receive about $800 million to compensate injured investors, and New York regulators who brought a civil case against AIG last summer.

AIG Settles Case
Source: Hartford Courant

Permalink posted by armandn @ 6:54 AM

Wednesday, February 08, 2006

Allianz Life Adds LTC Products

An insurer has come out with 2 new long term care insurance policies.

Allianz Life Insurance Company of North America, Minneapolis, is introducing the Generation Protector II LTC insurance policy and the Generation Protector Select policy.

Allianz Life Adds LTC Products
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 6:07 AM

Financial Plan Helps You Get Where You Want To Go

Here is a fun way to look at a financial plan -- as a "permission slip" to follow your dreams.

To the millions of Americans who don't have one, a financial plan is often perceived as an intimidating document filled with jargon and rows of mind-numbing numbers.

But at its most basic level, a financial plan is simply a snapshot of your financial situation and a game plan of how to get where you want to go.

Financial Plan Helps You Get Where You Want To Go
Source: Sun-Sentinel.com

Permalink posted by armandn @ 6:05 AM

Using Long-Term Care Insurance To Preserve A Client's Wealth

Consumer interest in long-term care insurance protection continues to grow. Brokers report more inquiries than at any time since this product became available. Even so, most are not satisfied with their sales.

What's wrong? Are brokers not presenting LTCI properly? Is the cost too high? Is there something wrong with the policies?

Long-Term Care Insurance To Preserve A Client's Wealth
Source: Insurance News Net

Permalink posted by armandn @ 6:03 AM

U.S. Treasury To Bring Back The 30-Year Bond

The U.S. Treasury announced a return to selling 30-year Treasury bonds, beginning on Thursday when it will bring $14 billion of the long bonds to auction. Demand for the notes appears to be strong, with pension plans leading the search for long-term debt. The Treasury retired the long bond in 2001, favoring shorter-term debt in an effort to save borrowing costs amid consecutive federal budget surpluses. With that black ink very much a thing of the past, the government is bringing back the 30-year bond to help fund a 2006 federal budget deficit currently forecasted to total some $400 billion.

U.S. Treasury To Bring Back The 30-Year Bond
Source: Financial-Planning.com

Permalink posted by armandn @ 6:01 AM

Protective Life In $1.2B Acquisition

Alabama-based Protective Life Corp. is paying $1.165 billion to buy the life insurance businesses of JPMorgan Chase & Co.

After dividend payments and reinsurance transactions, the cost to PLC of the Illinois-based assets will be about $460 million, PLC said Wednesday. The deal should close in the third quarter.

Protective Life In $1.2B Acquisition
Source: UPI.com

Permalink posted by armandn @ 5:58 AM

Tuesday, February 07, 2006

Tax rules can crack nest eggs

There's one simple rule to remember regarding your retirement nest egg: Mishandling that money will crack your egg into a taxable mess.

That's the simple rule. After that, things get more complicated.

"All of the different types of retirement plans and all of the different things that can happen is one of the most complex and confusing areas of tax law," said Cynthia Jeanguenat, an enrolled agent and tax preparer in Virginia Beach, Va. "It's mind boggling."

Tax rules can crack nest eggs
Source: CBS MarketWatch (free subscription required)

Permalink posted by armandn @ 11:45 AM

Financial scams expected to boom as boomers age

As the first of 79 million baby boomers turn 60 this year, free-this and free-that financial seminars are thriving. Community centers and hotels have become a backdrop for what regulators see as aggressive sales pitches geared to seniors.

While people 60 and older make up 15% of the U.S. population, they account for about 30% of fraud victims, estimates Consumer Action, a consumer-advocacy group.

Financial scams expected to boom as boomers age
Source: USA Today

Permalink posted by armandn @ 11:43 AM

Retirement Fund Fees Expected to Continue Their Decline

Fund scandals and the recent probes in the financial industry have caused retirement plan fees to decrease since 2003, and in 2006 they will continue on their descending path, according to Employee Benefit News. The pressure of competition has forced many funds to lower their management fees, and this, as well as regulatory scrutiny and consolidation of the financial industry, has contributed to the trend of declining fees charged by retirement plans.

Retirement Fund Fees Expected to Continue Their Decline
Source: Financial-Planning.com

Permalink posted by armandn @ 11:41 AM

School Teachers Face Health Care Squeeze; Boomer Teachers Can't Afford To Retire

No one would begrudge Rita Fletcher a comfy retirement.

Though only 52, she has taught chemistry for 31 years in Salisbury, Md. She could have retired without regret last year after 30 years in the classroom.

But when Fletcher saw what it would cost her and her self-employed husband for health insurance -- nearly half of her $1,780 monthly pension -- she signed on for another year. "People say, 'Oh, you could retire,' and I say, 'Only if I didn't need food, shelter or health care'"

School Teachers Face Health Care Squeeze; Boomer Teachers Can't Afford To Retire
Source: USA Today

Permalink posted by armandn @ 11:40 AM

Monday, February 06, 2006

Making Income Annuities Irresistible

With an increasing number of new retirees, fewer traditional pensions and people living longer, the income annuity market has been poised for growth for many years. However, sales have yet to take off.

One key reason is that the products are not widely recommended by independent advisors.

Making Income Annuities Irresistible
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 1:21 PM

Long Term Care Insurance-Rising Opportunities, But Still In Search Of Sustained Profitability

The Long Term Care Insurance industry is maturing but still searching for sustained profitability as it works to market a complicated product offering, according to a new study by Conning Research and Consulting, Inc.

"Long Term Care Insurance has begun to break out of its limited
distribution network, and is increasingly being understood to be part of a
financial planning and lifestyle planning program, which may well be the path to sustained profitability," said Stephan Christiansen, director of research at Conning Research & Consulting. "Yet the Long Term Care Insurance industry is sorting through a number of issues, including product and actuarial complexity, high producer compensation, and evolving consumer perceptions."

Long Term Care Insurance-Rising Opportunities, But Still In Search Of Sustained Profitability
Source: PR Newswire

Permalink posted by armandn @ 1:20 PM

How Life Insurance Is Valued For Estate Tax Return

To understand how life insurance is valued for estate tax returns, begin with the face value of the policy. The face amount of the insurance is usually the figure used in preparing an estimate of potential estate taxes.

However for precise planning and, upon death, when the estate tax return is filed, the final figure is determined by taking the face amount and adding any paid-up additional insurance, accumulated dividends (with interest) and post death dividends, and then deducting any policy loans. The final amount is then included on the federal estate tax return. This amount will generally be provided by the insurance company on what is universally called "Form 712." The beneficiary of the policy or the lawyer should always request the insurance company issue Form 712.

How Life Insurance Is Valued For Estate Tax Return
Source: Insurance News Net

Permalink posted by armandn @ 1:18 PM

We're Not As Spendthrift As We're Often Portrayed

Americans are saving more than you think.

They aren't exactly thrifty, mind you, let alone as penurious as Suze Orman and the other personal-finance Puritans want them to be.

Years of measly raises have kept many workers from being full participants in the nation's economic growth and hurt their ability to build nest eggs. Many who do have good incomes and raises blow money on new luxury goods and debt service on old luxury goods.

We're Not As Spendthrift As We're Often Portrayed
Source: Hartford Courant

Permalink posted by armandn @ 1:15 PM

National Financial Partners and Sun Life Financial Join Forces to Expand Offerings to High Net Worth Clients

National Financial Partners (NFP) and Sun Life Financial today announced that Sun Life Financial has joined NFP's complement of core carriers, in addition to their existing relationship with NFP's brokerage firms. As a core carrier, Sun Life Financial further builds on NFP's significant and diverse range of high quality life insurance products, offering market-focused solutions to today's varied customer needs.

National Financial Partners and Sun Life Financial Join Forces to Expand Offerings to High Net Worth Clients
Source: Yahoo! Finance

Permalink posted by armandn @ 1:13 PM

Friday, February 03, 2006

Deficit Bill Helps LTC Insurers And Risk Pools

The Deficit Reducation Act that the U.S. House approved Wednesday includes several provisions of interest to insurers.

House members voted 216 to 214 to approve the budget reconciliation bill, S. 653, despite concerns about provisions that will lead to cuts in aid for college students and Medicaid benefits for children.

Deficit Bill Helps LTC Insurers And Risk Pools
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:32 AM

Hitch In Tax Code Hurting Many Seniors

A few weeks ago, I wrote about efforts in Congress to adjust the alternative minimum tax for inflation to keep that levy, originally intended for millionaires, from hitting middle-income taxpayers. There's another large group of taxpayers getting slammed by inflation: seniors.

The tax on Social Security income has not been adjusted for inflation since it was enacted 23 years ago. But unlike the alternative minimum tax, which has caused an uproar because it has started to affect those earning less than $100,000, this hitch in the tax code is getting almost no attention.

Hitch In Tax Code Hurting Many Seniors
Source: Hartford Courant

Permalink posted by armandn @ 7:30 AM

Immediate Annuity Is Paycheck For Life

Immediate annuities. Also called income annuities. Also called the paycheck you can't outlive.

Also called the wave of the future.

So says Christopher Blunt, president of the MainStay Funds in Parsippany, speaking last week to the Financial Breakfast Bunch of Morris County.

MainStay Funds are part of New York Life Insurance Co., one of the nation's largest insurance companies.

His talk was both informative and entertaining.

With 77 million baby boomers reaching retirement age, retirement has become "a lot more complicated, and we may be having a retirement crisis on our hands," Blunt said

Immediate Annuity Is Paycheck For Life
Source: DailyRecord.com

Permalink posted by armandn @ 7:28 AM

Full-Service Brokers Win Back The Wealthy

More wealthy investors are seeking financial advice from full-service brokers, who, after losing half their market share in recent years, are now staging a spirited comeback.

Nearly one-third of affluent investors with $500,000 or more in investable assets?were using full-service brokers as their primary advisors in 2005, a significant jump from 24 percent in 2004, according to recently released research from Spectrem Group, a Chicago-based strategic consulting firm specializing in wealth management and retirement. In 2002, full-service brokerage represented a robust 45 percent of the affluent marketplace, which steadily declined to 36 percent in 2003 and 24 percent in 2004.

Full-Service Brokers Win Back The Wealthy
Source: Insurance News Net

Permalink posted by armandn @ 7:26 AM

Thursday, February 02, 2006

Bush Is Right About The Boomers

The American Council of Life Insurers is praising efforts by President Bush to prepare the federal government for the looming retirement of U.S. workers born between 1946 and 1964.

The president asked lawmakers Tuesday during his State of the Union address to establish a commission that will study the effects of the baby boom generation on Social Security, Medicare and Medicaid.

Bush Is Right About The Boomers
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:43 PM

Preparing and Paying for the Cost of Care as We Age

A new Wall Street Journal Online/Harris Interactive(R) Personal Finance Poll finds that only a quarter (26%) of U.S. adults think they have or will have saved enough money to finance their own potential long-term care needs as they age. Fully 41 percent do not think they will have enough money to cover their expenses as they age and 33 percent are not sure.

Adding to the financial strain, many adults may have to finance some of the costs associated with their parents' potential long-term care needs, with more than a quarter (28%) of adults whose parents are still living saying that they and/or their siblings will be sharing these cost with their parents and 14 percent saying that these costs will fall primarily on them and/or their siblings.

Preparing and Paying for the Cost of Care as We Age
Source: Insurance News Net

Permalink posted by armandn @ 12:41 PM

Maple Life Financial Announces FLEX

Maple Life Financial is pleased to announce the release of FLEX (Flexible Life Exchange(TM)). FLEX is a unique financial planning tool that allows qualified seniors to convert their unwanted or underperforming life insurance policies into immediate cash while maintaining a reduced amount of coverage with no premium responsibility. FLEX provides qualified seniors with additional options.

While traditional life settlements provide tremendous value, they may create a gap between the settlement amount and a needed death benefit. FLEX provides for both - settlement cash as well as needed life insurance benefits.

Maple Life Financial Announces FLEX
Source: PR Newswire

Permalink posted by armandn @ 12:39 PM

Wednesday, February 01, 2006

Beyond the 401(k): How to Bolster Your Prospects For a Secure Retirement

If you want to retire in style, don't quit on your individual retirement account.

By regularly contributing to an IRA, you could easily amass $100,000 or more by age 65. Add that to your company pension or 401(k) balance, and you may be able to upgrade your retirement from economy to first class.

Yet just 17% of households bothered to fund a traditional or Roth IRA for 2004, according to a study that will be released today by the Investment Company Institute in Washington. Want a more comfortable retirement? You've got until the April 17 tax-filing deadline to make your $4,000 IRA contribution for 2005.

Beyond the 401(k): How to Bolster Your Prospects For a Secure Retirement
Source: Wall Street Journal (subscription required)

Permalink posted by armandn @ 12:50 PM

Big Changes For Pensions Ahead

If, like the majority of U.S. workers, your only pension plan is a 401(k), you might not have paid much notice to the pension reform bills the House and Senate passed late last year.

After all, debate about these bills has focused on how Congress can prevent more companies from dumping their underfunded defined benefit pension plans into the Pension Benefit Guaranty Corp.'s lap. The PBGC’s $23 billion deficit is likely to grow if bankrupt carriers Delta Air Lines and Northwest Airlines follow the lead of US Airways and UAL and abandon their plans to the government insurer. (When United emerges from bankruptcy this week and begins trading on Thursday on Nasdaq as UAUA, the PBGC will own a big chunk.)

Big Changes For Pensions Ahead
Source: Forbes.com

Permalink posted by armandn @ 12:47 PM

Bush Touts Health Savings Accounts

For some, health savings accounts offer the potential of saving money on health care. But there's a catch: To qualify, a person also must purchase a separate health insurance policy with a high deductible.

More than 3 million people have purchased such policies, with enrollment tripling over the past 10 months.

President Bush says he would like to see the number increase, and in his state of the union speech Tuesday night he proposed that Congress approve additional tax incentives for those who purchase the policies. He said lawmakers also must allow workers to take the coverage with them as they change jobs.

Bush Touts Health Savings Accounts
Source: Insurance News Net

Permalink posted by armandn @ 12:45 PM

Millionaires, Luv That 401(k)

Most people move into a bigger house when they have kids.

Not the Lees. To both give their two children a good education and continue saving for retirement, 13 years ago the Lee's downsized from a new 3,200 square foot, 5-bedroom colonial to a 30-year-old, 2,200 square foot four bedroom home.

Millionaires, Luv That 401(k)
Source: CNN Money

Permalink posted by armandn @ 12:44 PM

John Hancock Introduces Tools To Make Long Term Care Insurance Planning Easier For Consumers

John Hancock has created a new consumer website* to help make long term care insurance planning easier. The company has also developed a new line of marketing materials to help advisors talk to consumers about their long term care needs. Both undertakings were driven by research that John Hancock conducted last year.

John Hancock Introduces Tools To Make Long Term Care Insurance Planning Easier For Consumers
Source: Yahoo! Finance

Permalink posted by armandn @ 12:42 PM

life insurance, annuities, property & casualty insurance, mutual funds, and related financial services.