Contact UsHome
Meet Our TeamOur ProcessTestimonialsAdvisor Resource Center
Life InsuranceLong Term CareDisabilityFixed Annuities

Scary Times Manual, Insurance Insights & Market Update

Scary Times

There is no doubt the pandemic and market reactions have created scary times.  There have been scary times before, remember 2008?  At that time, Dan Sullivan from The Strategic Coach shared a manual to help us focus instead of worry.  Please read this and share it with others as you see fit.  

Scary Times Success Manual

What do you do when your client is too risk adverse?
With all-time low interest rates, we know parking money in cash will likely not pace inflation and many will need a better return to live well.  A recent FSP Journal article addresses how to deal with risk adverse clients . . .   

The Risk of Being Risk Adverse — and What to Do about it.

Solutions for Scary Times

The ideas below may make sense for certain clients in these trying times.

Do they need to increase their life insurance? 
The big drop in their asset values, likely adjusts how things would work if they were to die suddenly.  For some clients, they may want to consider adding some term insurance until their assets rebound.  Launch our Term price grid for a quick number when discussing insurance costs with your clients.

What are they doing with their cash?
I realize it likely makes sense to buy into the market when prices have dropped to this point, but some clients may be too skittish.  This might be a good place for an indexed annuity in lieu of a bank account.  An indexed annuity can lock in their deposit and gives them more upside for interest than a bank account. 

What are those close to retirement going to do?
As much as you may hate to annuitize money in this low interest environment, it might make sense for some.  They may need to get more income then their interest alone can provide.  If they have enough income to pay their bills; they may be more patient for a market rebound.    

What if they want future savings to be safer?
Perhaps they allocate some of their savings and create a safety net.  In this category they could consider an indexed annuity, guaranteed life insurance or a hybrid long-term care plan. 

How is the insurance industry adjusting to the situation? 

Many insurers are having their employees work remotely and we have seen a slow-down.  Several indexed annuity carriers are lowering their rates and caps.  We expect most will follow suit in the weeks to come. 

One major carrier in the hybrid-LTC market is repricing their product and there is a short window to acquire old pricing.  Last year most life products were repriced but with the new decrease of long-term interest rates, we are likely to see more reprices or perhaps limitations on how much you can purchase. 

Lastly, a few insurers have implemented new underwriting requirements for clients above age 65 that have foreign travel plans.  They are likely to be postponed until they return for a minimum of 30 days. 

Are you at a loss for time to help your clients with their insurance needs? 

Integrated Insurance Consulting understands many of our advisors are also money managers and perhaps have most of their time and attention focused on client relationships.  If you have a client who needs help with life, long-term care, disability or annuities; we are here to help.  We can help them audit existing coverage or search for new coverage as needed. 

FSP Member
© 2013 Integrated Insurance Consulting, LLC . ALL RIGHTS RESERVED.
The information contained on this website is provided "as is" and does not constitute legal, accounting or tax advice. We are not acting as your attorney, accountant or tax professional. We encourage you to contact the appropriate professional for legal and tax information pertaining to your specific needs and circumstances.
New Resource Partner