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Cenco eNews |
January 5, 2021 |
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Are Life Insurance Buyers "Collateral Damage" of Ultralow Interest Rates and COVID-19? |
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We all watched as several insurers raised their NLG/GUL premiums earlier in 2020 and then while AG49-A leveled the illustration field, it made many life products less robust for the consumer. Now with insurer's product spreads reducing and COVID-19, life insurers are forced to review both mortality and spread calculations. Could this mean that:
While some of this has been discussed amongst life insurers and there is not industry wide evidence yet:
What is even worse, as we have seen some of these changes can come with little or no advance notice to agents. What should agents do? While we cannot predict whether interest rates will change soon or the COVID-19 vaccine will curtail mortality risks, in any case this would be the time to tell your pending or undecided clients to take action and either lock in new permanent coverage or if term is best for budget reasons, obtain term from an insurer with quality permanent products to convert to, NOW! For help go to Cenco's Website for term or GUL quotes or call us at 916/920-5251 or 800/452-3626, Coming in January 2021!
And don't forget to check out our End of Year Video! Stay safe and healthy in 2021! |
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