When retirement is distant, it can be tempting to skimp on planning in favor of more current financial issues.
However, retirement is typically one of the most significant financial undertakings. It involves many aspects, such as saving enough to live your desired lifestyle, estate planning, ensuring your loved ones are covered, and more. So, it’s wise to start planning for retirement as soon as possible. With that in mind, this article will dive into a few critical ways to begin your retirement planning early.
Ways to plan for retirement
Here are three key steps to plan for retirement:
- Get a life insurance policy
According to LIMRA, 68% of households with life insurance would feel financially secure if the primary wage earner were to pass away unexpectedly. Only 47% without life insurance say the same. So, getting a life insurance policy is a critical step in planning for peace of mind in retirement. If you pass away during the policy term, your loved ones receive a death benefit to help replace your income and pay off debts. You can also consider getting a life insurance retirement plan (LIRP), which is a permanent life insurance policy that builds up cash value over time to provide financial security after you retire.
Life insurance also serves as a way to pass more of your wealth down to your heirs when you pass away because the death benefit is tax-free. That way, they get the full death benefit payout without owing taxes on it.
- Contribute to a retirement account
Retirement accounts provide tax advantages that make it easier to save more money for retirement. As a result, your retirement assets can potentially grow faster. For example, full-time employees may have access to an employer-sponsored retirement account, such as a 401(k). Contributions are pre-tax, meaning they aren’t factored into your taxable income. These also often offer matching bonuses — free money for retirement from your employer. Try to contribute at least up to the matching bonus limit.
Once you hit that matching bonus, consider an Individual Retirement Account, or IRA. There are two types:
● Traditional IRA: Contributions are pretax, but retirement withdrawals are taxed at your ordinary rate.
● Roth IRA: Contributions aren’t tax-deductible, but qualified retirement withdrawals are tax-free.
- Create an estate plan
Estate plans detail all your end-of-life wishes, such as asset distribution, financial and medical decision-making, and more. Without this, your family may have to go through time-consuming, costly court battles.
There are several key elements of an estate plan. One of the most important is the will, which lays out your wishes for asset distribution to your heirs. Powers of attorney are also vital for ensuring others can make decisions for you if you’re incapacitated. The durable power of attorney assigns someone to handle financial decisions on your behalf if you become incapacitated. For example, a person with a durable power of attorney could pay bills, get loans, and access your financial accounts. Meanwhile, a medical power of attorney assigns someone to make medical decisions on your behalf if you become incapacitated.
Another key piece of your medical documents is the advanced health care directive, which states your wishes for end-of-life medical decisions. And an often-overlooked piece of estate planning is the funeral. You should also get this in writing for your wishes to be met. Creating a funeral planning checklist can help you knock each step out as efficiently as possible. Here are some steps to planning a funeral:
● Compile vital statistics
● Decide who will be involved in the funeral service
● Write down your preferences for the viewing and service
● Determine your desired disposition method and memorialization
● Arrange for payment
Make sure to review this information periodically and keep your loved ones up to date on these matters.
Prepare for retirement as soon as possible
It’s smart to start planning for retirement as early as possible. This will maximize the chance that you reach all your retirement goals and give you more room to adjust if needed. Start by shopping for a life insurance policy to ensure your loved ones have the financial protection they need after you pass away.
Meanwhile, start contributing to retirement accounts as much as you can comfortably afford. Then, put together an estate plan, even if retirement is far away. Once you have it in place, adjusting it later is much easier. These are just a few steps that can help you plan for retirement. But doing them now will give you more peace of mind and help you achieve your retirement goals.
In a recent survey, it was found that nearly 46% of American adults had neither employer-backed nor individual life insurance. This number was higher among adult women, with 22% lacking insurance compared to their male counterparts (11%).
Persisting economic challenges and the surging cost of living have only added more pressure on middle-class Americans, and the idea of taking out life insurance has now become a second-hand thought for many of them.
According to the Life Insurance Marketing and Research Association International (LIMRA), under half, or 46% of middle-income Americans currently have individual life insurance policies.
Despite the gyrating cost of living that has seen the average price of nearly everything skyrocket over the last year, the cost of life insurance has remained significantly low, with a typical 10-year $250,000 life insurance policy, for a healthy 40-year-old individual averaging between $15,00 to $17,00 per month.
Yet, individual factors including age, medical conditions, income, and gender among other things will ultimately determine the monthly premium cost of life insurance. And for some Americans, taking out cheaper and more affordable life insurance doesn’t necessarily give them the coverage they require for them and their families to live comfortably in case of a sudden emergency.
Taking out life insurance will be one of the most critical choices you will face, as it will ultimately determine the level of risk management for both you and your family. With several factors that weigh in when choosing life insurance, it’s best to regard some of the most important considerations that can influence your life insurance policy and the cost thereof.
At first glance, it’s good to consider what your personal insurance needs might be. This might consist of several things, including your family dynamic, financial position, current debt, and any expenses you might have as a family unit.
Typically, if you are someone who makes up a large portion of the monthly family income, you will need to answer whether your life insurance coverage will help meet your family’s financial needs in case of a sudden emergency.
Before taking out a policy, ensure you undergo a thorough assessment or evaluation, as this will help you determine the type of policy you might require. During the evaluation process, you will be required to deliver or provide as much personal information to ensure you are provided with the best policy options available for you and your family.
Evaluate the different types of policies
Typically, insurers will provide consumers with an option of different life insurance policies, with the most common two types being either term-based or permanent life insurance.
It’s best that you first evaluate each before making a final decision, as this will impact how much your monthly premium will be, and what is included in the policy.
Term-based policy
A term life insurance policy will only cover you for a predetermined period of time. This may range, depending on your personal needs, and can be anything from ten, fifteen, twenty, or even thirty years.
Younger consumers often start with term-based life insurance policies, given the fact that their needs and financial position might be different than older and more mature consumers.
Permanent policy
The second option would be to take out a permanent life insurance policy, which will cover you for your entire life. Although this provides better and more thorough risk management, premiums, or monthly payment, will typically be higher.
Although you may end up paying more for permanent life insurance, there tend to be two components included in the policy that helps cover life-threatening events and life savings or investments. Instead of only covering you in case of sudden death and illness, these policies will also help grow your savings over time.
Understand how personal factors can influence your policy
Life insurance may not be priced the same across the board, and usually, insurers will offer a base premium, and only after an assessment, the final premium cost will be determined. Depending on what your personal condition might be, the premium you pay can either be higher or lower, so you should undergo a full and thorough assessment with several providers.
What can affect your premium rate:
- Physical health or pre-existing health conditions.
- The age from when you take out the policy.
- Your current occupation and financial position.
- Any criminal records or legal findings.
- The type of policy term, either permanent or term-based.
If you’re the sole provider for your family, taking out life insurance may be a stressful task, as your personal history may affect whether you are approved or denied. More so, there are instances where personal factors can help you get the best possible policy rate, but if sudden changes take place, such as a change of job, or problems with your health occur your policy rates may change.
Know what you want to protect with your life insurance
An important question to ask, and consider is to think of what you are planning to cover or protect with your life insurance policy.
Often, adults will take out life insurance if they are the main source of income for the family, or if they are considered to be the sole provider. Other reasons may be to protect children or dependents against any financial scrutiny in case of a sudden medical emergency or loss of life.
Consumers might also take out life insurance purely to help them save and invest their money over time. This doesn’t always secure them financially for when they enter retirement, but it does give them the peace of mind their savings will be protected against any economic headwinds they may encounter.
Then of course, often adults see life insurance coverage as a way to protect their assets, such as a home, property, business, or any other large assets. Though there are insurance policies that specifically exist for these cases, taking out a larger insurance policy may help protect these assets against any sudden life changes as well.
Future needs
Once you start shopping around for life insurance, you will need to consider what your future needs may be, or how your life may be changing in the coming years. Often, younger adults may only consider their current lifestyle, but in a few years, things might look completely different in terms of their health, occupation, or family dynamic.
Additionally, if you are taking out life insurance with your spouse and family in mind, you will need to consider how day-to-day expenses are constantly increasing. With this in mind, you will need to think of your future needs from a financial and lifestyle perspective.
As you go through different phases in your life, you may be required to update your policy. Perhaps you get married, start studying again, change jobs or decide to add a family member to your policy, these may all affect how much your premiums may be, and what will be covered.
Taking out life insurance is about planning for the future in terms of your risk management. Though it’s not easy to understand or predict what your life may look like in five or even ten years, it’s important to seek assistance from a professional agent, and provide them with the necessary information related to your lifestyle and any changes that you may undergo in the coming years.
Final words
Life insurance has become an important aspect of everyday life, especially at a time where the threat of disease, violence, and crime are constantly increasing. Taking out life insurance helps to protect you and your family from any future events or any sudden changes that may take place as you grow older.
Though there are a lot of considerations one will need to contemplate before you agree to any policy, it’s advised to seek professional advice from an insurance agent or provider. Additionally, it’s also wise to review your policy every year, or when you undergo any changes such as a change in occupation or family dynamic.
Inevitably, life insurance will not keep the threat of everyday life away, but it does give added protection and peace of mind for individuals that are a core component of their family.
And life insurance is a critical component of this planning to ensure financial protection for your family in the event of your passing.
Term life insurance lasts 10 to 30 years. If you pass away while the policy is in force, it protects your loved ones financially by paying them a death benefit. This death benefit can replace your income and help them pay off debts.
Term life insurance is inexpensive, but you will want to ensure you’re neither underpaying nor overpaying for coverage. So, examining
your life circumstances and goals is essential when determining your coverage needs. This article will dive into a few factors to consider so you can calculate your coverage needs before looking for term life insurance quotes.
How to determine how much term life coverage you need
Here are some considerations for determining the amount of term life insurance coverage you need for your family:
1 - The number of dependents you’ll have
Many people use life insurance to help their partner provide for their kids if the policyholder passes away. So, you should weigh the number of children you have and plan on having when calculating the coverage you need. Additionally, if you have children with special needs, you might consider increasing coverage to ensure they’re taken care of. You may also want to include your partner in that calculation if they aren’t employed.
Sometimes, you may have more dependents than your partner and kids. For example, you may have aging parents who need home care. Getting more coverage can help you pay for a caregiver if you pass away and your spouse cannot care for them.
2 - How long you’ll need coverage
Knowing how long you need coverage is vital to selecting a term life insurance policy. For example, if you plan on having multiple children — especially further apart — you may need a longer-term life insurance policy to ensure your children are covered.
Another consideration is how long you need to cover each child. For example, some parents may want a 30-year policy to protect their child well beyond college age. They might want to ensure their child finishes any post-secondary education or is in a stable career before the policy ends. On the other hand, some families may find that they only need a policy until their child becomes a self-sufficient adult.
3 - Your living expenses
If you keep expenses low and live in an area with a low cost of living, you can probably get less coverage than if you live somewhere with a high cost of living and have more lifestyle expenses.
The bottom line
To get a term life policy with the coverage you need for your growing family, start by looking at how many dependents you have. These will mainly be your children, but could also include your spouse or aging parents. From there, look at your living expenses to estimate the death benefit you need, then consider how long you need the coverage. Once you’ve thought these through, shop for multiple quotes matching these parameters to find the coverage you need at the best possible rate.
The UK is currently suffering through a cost-of-living crisis, where rent, bills, food, and more are at an all-time high. In fact, 89% of adults in Great Britain, around 46 million people, report having increased living costs over the past few months, despite cutting back on essentials.
With money inevitably on our minds, the question remains - is there something we can do to protect our finances? Let’s take a look at five insurances that can help ease the burden and anxieties of the cost-of-living crisis.
1. Income protection insurance
With the cost-of-living crisis, many have found themselves living paycheck to paycheck. So, if this income were to disappear, such as by falling ill, this might lead to serious financial trouble, which is an understandable and valid anxiety during such trying times.
Group income protection insurance will pay out monthly sums to employees who are off work long-term for sickness or illness. Though you will probably be eligible for statutory sick pay to begin with, this is only available for 28 weeks. Thus, income protection insurance will effectively continue payments after those 28 weeks, so you can focus on getting better rather than worrying about money.
2. Life insurance
Life insurance will pay a lump sum to your dependents in the case of your untimely passing. This will ensure that your loved ones are financially protected if you were to sadly die, which is even more important during such financial instability.
3. Vision and dental cover
Eye tests and new glasses can be expensive, even though it is an essential part of our lives. The same can be said for trips to the dentist, especially if you can’t access a dentist surgery that has NHS dentists. In some cases, going to the optician or dentist is an emergency, so it can’t be avoided - but it can equally be a lot to pay out of pocket.
To make sure your optician and dentist trips are not extortionate, or so expensive you avoid going altogether, look into vision and dental cover. If you already have health insurance, you might be able to simply add it as a bolt-on to your existing policy.
4. Critical illness cover
If you were to fall critically ill, and thus need to adapt your home, have attentive care, and still need to have the funds to live on, critical illness cover can help. It will pay out a lump sum that will give financial support towards the cost of living and other costs dictated by the illness at hand.
5. Mental health cover
Many studies have found that the cost-of-living crisis has been, and will continue to be, harmful to the mental health of our population. This is because financial insecurity has real-world implications, which can lead to anxieties over being able to provide for oneself and one’s family.
Thus, even if you have all the financial insurances listed above, it is important to make sure you have mental health cover too. Though mental health services are free on the NHS, they typically have extremely long waiting lists, and it goes without saying that forking out for expensive private therapists won’t exactly ease financial burdens or worries.
And there you have it - five types of insurance that can take a weight off your mind during this time by protecting your finances.
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1291 Group was founded by Marc-André Sola in 2000 and it has grown organically, now operating from 14 locations worldwide and 80 staff globally. Being an independent adviser means the Group has access to 51 insurance carriers in 15 jurisdictions. It is licensed in 36 countries to provide advice and support on life insurance solutions.
Within the 1291 family, clients are connected to a group of top international professionals with backgrounds in law, tax, insurance and trusts.
Caroline is based in the Geneva office of 1291 Group. She has over 25 years of experience in the trust and estate planning sector and brings this expertise to help families achieve their goals.
What are the needs of the families you serve and how does Private Placement Life Insurance achieve that?
Over the years we have realised that the needs of families are generally:
Privacy and Confidentiality
Asset Protection
Tax Optimisation
Estate and legacy planning
Cash and liquidity access
We call this “PATEC”
Private Placement Life Insurance is a unit-linked single premium payment insurance policy, The premium can be paid in cash or with a portfolio of bankable assets, but it is also possible to pay with non-traditional asset classes such as art, precious metals or crypto.
It’s called Private Placement because each contract is issued under its own private placement memorandum – the policyholder’s assets are segregated from other policyholder’s assets under the same insurance carrier.
Whilst the legal ownership of the assets passes to the insurance carrier, the policyholder retains at all time full rights to request a partial or full surrender of the policy, change the beneficiaries and to appoint their own investment manager.
Why is custodising crypto assets generally difficult? And why is structuring these assets into a PPLI an effective solution for this?
Cryptocurrencies are not financial assets but an asset class on its own. They also lack physical substance. Therefore, they meet the definition of an intangible asset and would be recorded at acquisition cost (i.e. price paid or consideration given).
Cryptocurrencies are designed to work as a decentralised medium of exchange, independent of a financial institution or any other central authority so the custody is not with a traditional arrangement of a banking institution but held by a token or key with the key holder having secure access via private passwords or biometric authentication systems.
The difficulty for a cryptocurrency (and other digital assets) is that after the keyholder's lifetime, if the assets have not been the subject of an inventory with regular updates, then it is very difficult for the executor to identify the deceased’s entire exposure to these digital assets.
Digital assets can be entrusted to professional trustees, inter vivos so that the problem linked to the devolution of the keyholder’s credential is solved. However, many trustees have difficulty customising such assets due to the associated risks, directly or indirectly that they represent.
By using a PPLI policy to structure the digital assets and appoint the trustee as policyholder, these risks can be mitigated. In addition, the trust can also be the beneficiary of the policy to ensure estate planning over many generations.
Are there risks involved in holding crypto in PPLI? If so what are they and how can these risks be mitigated?
Holding cryptocurrencies in a PPLI entails no risks that holding them directly would not also entail. However, investing in cryptocurrencies directly can be vulnerable to fraud; by holding them through a PPLI structure, the insurance company will handle the custody of the underlying assets.
Switzerland is also a leader for cryptocurrencies and there are already pure play crypto banks duly authorised by our regulator FINMA and even more traditional banks are expanding their offering for crypto assets. Custodising digital assets of a policy with a duly regulated Swiss bank as custodian will further mitigate the typical risks such assets entail as it is the bank’s obligation to ensure a state-of-the-art due diligence and safe custody of them.
What are the tax benefits of holding crypto within a PPLI?
Once the assets are placed within the PPLI, such assets enjoy growth free from income and capital gains tax (as long as there is no partial or full surrender), thus the policy benefits from the gross roll-up effect.
This is especially relevant for cryptocurrencies which are subject to high returns (and lows!). Unstructured cryptocurrencies could be subject to tax on an arising basis in countries like Australia, France, India, Singapore and USA.
Does PPLI offer liquidity for clients?
By funding a PPLI, a client with crypto assets will have access to a private account which would function as an “off-ramp” conversion to fiat (legal tender whose value is linked to a government-issued currency like the US dollar).
The client can then request a partial surrender for liquidity needs (which might trigger taxation depending on the tax residence of the client).
Do you see more people choosing to hold crypto within PPLI in the coming years, if so, why?
Yes indeed, more and more people are looking to hold their assets in a safe and secure way. As the legal ownership of the policy is with the duly regulated insurance company, for high-profile clients looking to secure their assets from claims, if a policy is set up correctly (taking care to observe the absence of fraudulent conveyancing) then the assets within the policy are out of reach of a client’s creditors.
With clients already leading global lifestyles and with relocations becoming easier again, one of the major advantages of a PPLI is the portability, which allows clients to keep their policy (making sure to comply with local requirements for policies), thus avoiding the need to surrender the policy and triggering a taxable event.
As cryptocurrencies will come under stronger legal, regulatory and tax scrutiny, cryptocurrency investors will be confronted with potentially higher legal and tax challenges in order to keep the portfolio in a compliant way, while benefiting from asset protection and tax deferral. Holding these assets in PPLI structures will help to mitigate those risks.
Digital access to life insurance has made policies easier to purchase, as well as easier to understand. But there are even more ways our digital era has made life insurance quotes easier to obtain and understand for today’s consumer. Marketing, engagement, and customer care have all been made simpler with access to digital channels.
Digital Marketing And Outreach For Life Insurance
Digital Awareness: Because of unprecedented access to the internet, a greater number of people can now understand life insurance policies and how these policies fit into their financial goals. This widespread access means more people will understand why and when they’ll need life insurance coverage. It also means obtaining realistic life insurance quotes is faster and easier.
Online Engagement: Nowadays, potential policy buyers can quickly contact a life insurance agent who can find a life insurance policy that meets their needs. Online engagement through these sorts of digital channels gives life insurance providers every opportunity to convert potential customers into lifetime clients. It also allows them to follow leads and answer questions from potential customers without wasting time or resources.
The Digital Sales Process For Life Insurance
Digital vs. Human Channels: With both digital and human channels available for customers, insurance agents can establish a hybrid model that allows their customers to follow through on the sales process in their preferred manner. Agents can also collect data, manage schedules, and handle appointments digitally. This model allows insurance agents to operate more efficiently and focus more time on establishing rapport with their customers.
Innovative Pricing Models: Life insurance marketing has mainly focused on households with a high amount of assets or wealth. However, younger generations have responded strongly to newer pricing models, such as “dynamic pricing” or “pay as you go” systems. Some life insurance companies have adopted these types of pricing methods, and digital data collection makes these models significantly easier to implement.
Digital Access to Life Insurance Agents
Digital Customer Interaction: Digital access provides new markets and demographics for life insurance sales. Younger customers who may not feel comfortable with typical human sales channels are more likely to opt for digital sales channels where they can engage in the process at their own pace. Additionally, customers who do prefer human sales channels can consult agents more efficiently through the use of digital scheduling and appointments.
Ease-of-Use: With digital access to life insurance more common than ever, insurance agents are much easier to reach. This type of open communication instils trust in customers, especially when policies can become complicated or hard to understand. Additionally, digital channels can operate 24/7 and provide customers with quality care when agents can’t. The combination of digital and human channels creates an environment focused on customer care, driving sales and engagement even further.
While many deductions are commonly known, like mortgage interest and charitable contributions, you may be wondering if life insurance is tax deductible too. But before you go writing off life insurance premiums this tax season, here’s what you need to know.
What is a tax deduction?
Tax deductions are amounts that you can subtract from your taxable income to help you pay less in taxes. Some standard tax deductions are contributions to health savings accounts (HSAs) and what you pay in property taxes. That means when tax season rolls around, you’ll add up your taxable income, then subtract any deductions that you qualify for before determining how much you’re going to pay or receive in a refund. Since there are different eligibility rules for each deduction, it may be wise to consult with a tax professional if you’re unsure which specific ones apply to you.
Is life insurance tax deductible?
For the average person taking out a personal life insurance policy, the premiums you pay are typically not tax deductible. That’s because they’re considered a personal expense. And since life insurance isn’t required by the government, there’s no mandate that you must be insured, which means no government tax breaks. But that doesn’t mean there aren’t unique situations where you can deduct life insurance premiums from your taxes, like:
When you own a business
If you own a business and pay life insurance premiums for your employees, those premium payments may be deducted as a business expense. For most businesses offering a group term life policy to employees, the premiums are typically deductible up to the first $50,000 in coverage per employee.
When the beneficiary is a charity
If you take out a life insurance policy and name a charitable organisation as the beneficiary, you may be able to write off some of the premiums as a tax deduction. But in addition to naming the charity as the beneficiary, you’ll also need to transfer policy ownership. And that means there’s no changing your mind after the fact. So, if you’re debating making a charity the beneficiary of your life insurance policy, you may want to discuss tax deductions with a financial professional first.
How to determine if your life insurance is tax deductible
Working with a qualified tax planner or professional is a good idea if you’re unsure if your life insurance premiums are tax deductible. And it’s important to work with an expert if you’re a business owner that’s not 100% sure how to go about deducting the premiums. Plus, it’s worth noting that while your premiums may not be tax deductible, the death benefit paid out to your beneficiaries is often tax-free. You’ll also receive the benefit of tax-deferred growth if your life insurance policy has a cash value component. So, you can think of it as paying your dues on the front end so your loved ones can receive a higher benefit and lower tax burden down the line.
The bottom line
For many people, life insurance is not a tax-deductible expense. But the benefits of maintaining a policy far outweigh the downside of not receiving a tax break. If you think you may be eligible to deduct life insurance premiums, seek the advice of an expert financial or tax professional to confirm.
For example, if you have a more sophisticated financial situation, universal life insurance can help you achieve multiple goals like providing a death benefit from your family, while also helping you accumulate funds that you could use to supplement your retirement income. Here are some other ways to consider planning for early retirement in 2021.
1. Make the most of your savings
It’s no secret that saving is an essential component of retirement, but putting everything into a savings account isn’t going to cut it for most people. When you’re getting ready for your eventual retirement, be sure to consider what sorts of retirement savings programmes are available to you through your employer or other means. Examples may include an individual retirement account (IRA) or a 401K, which are designed to help you grow a nest egg in a tax-advantaged way. Be sure to consult a professional financial advisor about the best investment products and strategies that are available to you.
2. Put in the hard work now
While you’re young and have the energy, make the most of it by working hard. In addition to your primary income, there are a plethora of other things you can do to earn extra income on the side and reach your financial goals faster. For example, if you do gig work on the side as a freelancer or independent contractor, that can be a great way to earn extra income, but keep in mind you’ll owe taxes on the additional income and you may have to pay quarterly estimated taxes. Be sure to keep track of any expenses you incur while freelancing or operating your side business so that you can accurately report your profits and losses, and offset your tax obligation with any eligible itemised deductions.
3. Protect your progress with life insurance
Planning for retirement isn’t just about not working anymore--it’s also about building your legacy for the people you care about the most. While you’re in the process of building your retirement nest egg, you want to make sure the people who depend on you financially don’t face financial hardship if something happens to you. Some types of life insurance offer more than a death benefit to create that safety net for your beneficiary(ies). Some life insurance policies offer cash value, which accumulates over time. This can make some types of permanent life insurance a very useful tool for financial planning for retirement and beyond. Be sure to consult a financial advisor to go over your best options.
The bottom line
Early retirement is best made possible with proper planning. The more you can earn and save now, the sooner you’ll be able to retire early and/or reach other financial goals. Just be sure you have the right assurances in place so that all your hard work is never in vain.
This is critical since there's a big difference between shopping for groceries and shopping for a policy that will give you the best possible benefits. It is important to note that life insurance is a long-term investment which could either leave you with scraps or help you overcome the challenges that you will be facing as you retire.
As you look towards securing your future, you will have to go through the nitty gritty of comparing the best product to get.
Check out this nifty guide that will help you make the best possible choice.
Get quotes
There are a lot of life insurance companies out there that seem to offer the same types of products. But it's worth noting that there are slight differences in terms of the coverage they offer. The only way for you to notice these differences is to ask for quotes. From these, you can have a better view of the best features of each one. For instance, comparing a comprehensive life insurance quote from Allstate with its nearest competitor can help you focus on those features you want the most.
There are a lot of life insurance companies out there that seem to offer the same types of products. But it's worth noting that there are slight differences in terms of the coverage they offer.
Zero in on the cost
The first thing to consider as you shop around for a life insurance policy is the cost. No two companies have the same rates, so it makes sense to choose one that's affordable. Then again, the policies you are looking to purchase might entail hidden charges and fees. You will find yourself paying more for these hidden charges before your policy matures. The best thing you can do is to ask the agent if there are additional fees you need to be aware of.
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Ask about payment options
Traditionally, insurance holders pay their premiums in person through an authorized agent. This system is slowly giving way to automated and flexible payment options that benefit busy people. When comparing life insurance policies, it's important to know if you can take advantage of various options for topping up your premium, making recurring payments, and setting up electronic transfers using credit cards or platforms like PayPal.
Underscore your coverage needs
Lastly, you will need to know if the policy you are purchasing can help secure the best benefits, whether you're opting for whole life or term life coverage. To make the best possible decision, you might want to consider factors like your age, income, and current lifestyle. Apart from this, you will need to see if you are able to build cash value in the long term on top of death benefits. Making such estimations can help you settle on a policy that ensures long-term coverage and allows you to access the cash value throughout the policy's lifespan.
For many people, choosing a life insurance policy is as intimidating as it is necessary. But with the right approaches, it's possible to find a life insurance policy that can support you in the long run.
As part of this month’s Professional Excellence feature, Finance Monthly speaks with Michael Kasula - the owner and Founder of Brokerage Agency Producer Resources. Based in the Chicagoland area, the company is a tightknit community that aims to find like-minded partners, grow businesses, and build lasting relationships. Producer Resources’ mission is to become a valuable partner for the advisers they serve, saving them time and money with the design and implementation of life insurance planning. Here Michael tells us about setting up Producer Resources, their identity and mission and his new company Clarus Hall.
How did you decide to start your own company?
Very early on in my career, I knew I wanted to start my own organisation and be a trusted resource for agents in the life insurance space. In 2013, I was already having success being that resource, but I was working for someone else. That company was going through an acquisition and I knew that changes were coming. That same year, I had a client meeting at a coffee shop in the north suburbs of Chicago. During my presentation to him, he interrupted me and asked, “Why don’t you start your own company?” I had already been forming Producer Resources in my head, but a question like that - from one of my best clients - got me even more excited. I knew there was never going to be a better time, so this is how I decided to found Producer Resources in 2013.
What was the process of setting up Producer Resources like? How did you attract your first customers?
When I was first looking at who I wanted to attract and retain with Producer Resources, it was pretty simple - life insurance advisers who wanted to grow their business without having to grow their overhead. We are an extension of an adviser’s business - that is the message I started with and a big reason why Producer Resources has been so successful. Whether you need case design, advanced sales, or underwriting assistance, we are an experienced and professional team aiming to help our partner firms. I am a value person and I look for opportunities everywhere. If someone has an idea or a referral, I look at how I can use that for the benefit of my clients and my business. That’s what Producer Resources is all about.
In what ways have the company’s services evolved over time?
Producer Resources is a full-service extension of an adviser. From case design to policy issue, we have what an independent life insurance adviser is looking for. This couldn’t happen without our amazing and passionate team. Through a few changes on the sales side of the company, I think we have found our identity - an elite unit working together rather than independently as satellites. This has kept everyone invested in and accountable for the same goals and allows me to manage our company’s growth and be tactical about it.
Equally important, in an industry plagued by a lack of technology, we’re constantly giving our advisers the most up-to-date software out there. We’ve added different tools to help an adviser be their best with their clients: in-force policy management tools, interactive product presentations, co-branded marketing material and presentations, etc.
What are the challenges that US insurance companies have been facing over the past year?
I’m not an actuary, but knowing the way they invest their large general accounts, I would have to say interest rates have been the most challenging hurdle insurance companies have faced in recent years. When they receive premium payments, these monies are locked up for long durations. With interest rates this low, it is difficult to keep pricing competitive. Some companies have put premium or death benefit restrictions on products and some have just stopped sales of certain products altogether.
In the political arena, we’re seeing hotly debated regulations from the Department of Labour. Insurance companies have a lot of housekeeping to do to make sure they are compliant with any guidelines that have or will be enacted. There is also that grey area of fixed annuities and life insurance and what will and won’t be part of the eventual DOL decision. As far as public perception, some carriers have faced increased scrutiny in the last year due to increased COIs, reduced dividend/crediting rates, or just a general lack of customer service. In a constantly evolving market, I think carriers need to learn how to streamline their process; from application submission to ordering there in force illustrations, things need to be made more efficiently. In some ways, insurance companies need to get with the times and I think the DOL is attempting to address that, at least on the transparency side, with regulations. We’ll see how that goes. Regardless of that, improving transparency and technology for the benefit of their customers will serve the industry well, and their customers will be better because of it.
What differentiates Producer Resources from its competitors in Illinois?
I think the biggest differentiator is that Producer Resources is in high-growth mode, and we are passionate about what we do. We have a young and motivated team, with a mission to change the industry. I realise that can sound a bit presumptuous, but we have a vision, we work hard, and we’re getting closer to our goal every day. I want advisers to know that when they partner with us, their life insurance business gets done as efficiently and successfully as possible.
At our core, we are a team of highly skilled life insurance professionals that offer expertise in sales, advanced design, case management, and underwriting. We also have several strategic partnerships in the life insurance industry and closely related industries that we frequently use for the benefit of our advisers. To give you an idea of our capabilities—one of our best producing advisers runs his company as the only member, keeping his overhead low and focusing on networking and building his client base. He utilizes us for everything else. Together, we recently put in force a large estate planning case that we’ve been working on for the better part of a year. He told us that partnering with us was the best decision he’s made in his entire career.
What does 2018 hold for you and your company?
One of the key exciting things happening to us is the new company we are rolling out - Clarus Hall. “Clarus” is Latin for clear, bright, and shining. We combined the word with “Hall” because we want our members to think of our group not as a static place, but somewhere they can move forward with bright, like-minded people. With Clarus Hall, we are creating an organisation where life insurance professionals can get the support, comradery and growth opportunity they are looking for in a long-term partner. This group is going to eventually consist of 100-150 life insurance advisers that want to be part of something that allows them to grow while maintaining their independence. They will have additional resources with our firm and will have bonus and profit sharing opportunities to make their compensation very competitive and allow them to grow with our group.
What more can you tell us about Clarus Hall? What are your goals with this organisation?
We want to create a place for the advanced life insurance adviser to partner with a firm of significance to give them the support they need to grow their business. When we attract enough life insurance professionals to partner with Clarus Hall, we can create something much larger than any of these firms can do by themselves. Giving us depth, we will be heard by others. I want to make this firm’s initiative also marketing to the public on the importance of life insurance, attracting key advisers such as CPAs, attorneys, investment managers, property and casualty agents - anyone in the business that is looking for a group of vetted life insurance professionals to help their client with any type of estate or business planning need.
Tenzing Advisors is a boutique firm that specializes in the design, analysis, implementation and administration of life insurance plans for affluent families and businesses. Ken Knox founded Tenzing Advisors a decade ago, after working in life insurance brokerage for 16 years. Headquartered in Needham Massachusetts, the company works with both US-based and international clients.
Ken got his start in the life insurance industry in New York City in 1992, as an agent with Connecticut Mutual, which was acquired by Mass Mutual in 1996. He spent the next ten years at two leading independent life insurance brokerage firms in New York and Boston, and has worked with some of the most innovative people in the life insurance industry. Ken and his firm serve as resources to some of the top legal, tax and financial advisors in the US in all life insurance-related matters. Here Ken tells us more about establishing the company, its relationship with M Financial Group and the impact of technological advances on insurance.
What’s the history behind Tenzing Advisors? What are the factors that led you to setting up the company?
I had worked with some of the top people in the industry in each of my prior three stops in New York and Boston. After the Boston firm was acquired by a public company, I decided to start my own firm. Both of my prior firms had been M Member Firms, giving me the opportunity to learn from other top industry professionals in my office and around the country. I was also fortunate to have experience in all aspects of my business; in fact, I had developed comprehensive processes and procedures for staff members to follow. I was determined to combine industry best practices with thorough, objective advice and excellent service. Starting my own firm allowed me have a longer-term focus and the flexibility to base more decisions on building and supporting advisor and client relationships.
Tenzing Advisors takes its inspiration from Tenzing Norgay, the Sherpa who guided Sir Edmund Hillary and his team on the first ascent of Mount Everest. We are also experienced guides who help people reach long-term goals with planning, teamwork and great execution.
Please tell us a little about Tenzing Advisors’ business focus.
Our business is primarily focused on evaluating and providing solutions for affluent and super-affluent individuals and families in estate planning situations. Our clients are often individuals who do not have traditional needs for life insurance, as their wealth allows them to self-insure against a potential loss of income for their families. They are typically represented by sophisticated tax, financial and wealth advisors, and many have family offices who are charged with the responsibility of managing their affairs. We provide objective analysis, showing how life insurance can be an effective tool in transferring wealth to the next generation.
Life insurance provides liquidity that can be used to pay taxes, avoiding the disadvantageous liquidation of other assets and additional tax burdens. Life insurance strategies can be quite straightforward and simple, but for families of significant means, they often require an integrated approach, utilizing and complimenting many other strategies, such as GRATs, QPRTs, charitable giving plans, discounted sales of interests in LLCs and partnerships, inter-family loans and third-party funding, to name just a handful. To be effective, we rely on our skills in communicating complex financial and tax concepts to highly analytical advisors and the end clients, who may not have the same level of financial sophistication, despite their wealth and success.
Many of our clients are business owners or senior executives of valuable businesses, so our work often involves business uses of life insurance. This includes succession planning, risk management, and executive compensation and retention. Insuring buy-sell agreements and key-person coverage are common uses of life and disability insurance.
Many of our engagements begin with a review of existing life insurance plans, and when this is the client’s sole objective, we are pleased to provide a report concluding that no changes are recommended. The client advisors who routinely engage us know that we’re not simply trying to sell life insurance to everyone we encounter. We frequently are able to recommend changes or enhancements to plans, so our credibility is enhanced each time we tell clients that they needn’t change course or buy something new.
Please explain your relationship with M Financial Group and why that is an important aspect of your business.
M Financial Group is a consortium of more than 150 independent life insurance and wealth management firms in the US and abroad that was founded nearly four decades ago. M Financial, which is based in Portland, Oregon, now has over 200 employees that provide support to Member Firms in the areas of client advocacy, industry and marketing intelligence, product innovation and design, underwriting support, and practice management and development.
While the resources and information sharing are vital to my firm’s growth and ability to stay at the leading edge of our industry, M’s proprietary products are perhaps the most visible and compelling point of differentiation. M Financial’s Partner Carriers, including Pacific Life, John Hancock, Prudential, TIAA, Symetra and Nationwide, offer insurance policies that are available only to M Member Firms and our clients. These products, developed jointly with M’s reinsurance company, are priced using our clients’ actuarial experience, resulting in lower costs and better features than most products that are available outside of M Financial. Because we are an independent firm, we also regularly sell non-proprietary policies from M carriers and non-M carriers in order to best meet our clients’ needs in every situation, but our membership brings us unmatched product choices and resources.
What would you say are the specific challenges of assisting clients with life insurance in estate planning and wealth management situations? What are the different challenges you face with your domestic clients vs. your international clients when it comes to estate planning?
Despite the proliferation of wealth managers and financial advisors, there is a profound lack of understanding of life insurance among consumers and financial advisors. A significant portion of US families do not own life insurance, or they are inadequately covered. Some of this can be blamed on the insurance industry itself, which has relied largely on an outmoded distribution system, as well as opaque and confusing products.
Among affluent and super-affluent consumers, this lack of understanding persists. It is often too easy for advisors to dismiss life insurance by telling their clients that they “don’t need it,” which is of course, true. However, those same clients probably don’t need ETF’s, hedge funds, laddered bond portfolios, GRATs, family LLCs, or a variety of other strategies, but their clients often use many of these financial and legal tools in helping them obtain objectives. I disabuse people of the notion that they can’t benefit by using life insurance simply because they don’t have an income replacement need. If a patriarch dies without life insurance or other effective estate planning strategies, resulting in a loss of 50% of the family’s assets, it’s easy to see how even a simple life insurance plan might have provided an effective solution.
Educating clients and advisors on the financial and tax benefits of utilizing life insurance in estate planning is not a challenge with a willing audience, but other challenges may affect any individual, including health issues. Not everyone is insurable, but many people are surprised to learn that we can obtain competitively priced policies for many people who have experienced serious health problems in the past. A high percentage of our clients are in their 60s, 70s and even 80s, so most of our clients have some health issues to be underwritten. Survivorship life insurance, which is issued on two lives, pays a death benefit at the death of the surviving insured (typically a spouse). In many cases, survivorship policies issued with one uninsurable spouse have significantly lower premiums than single life coverage on the healthy spouse.
Occasionally, we face challenges involving limitations or restrictions for foreign nationals who wish to purchase US life insurance products. Fortunately, M Financial has built a very effective resource in this area, assisting us in providing US domestic policies, international corporate benefits, Bermuda-based products and offshore private placement life insurance products when appropriate. It is easier than ever to work with tax experts in various jurisdictions, reaching and assisting clients who might have been outside our range just a handful of years ago.
With more foreign nationals owning real estate and other US assets, the demand for life insurance for these individuals has grown significantly. The ownership of US assets often creates an estate tax liability that life insurance can meet, and the attractiveness of financial assets is enhanced by the fact that these may be protected in the event of political turmoil in their homelands. The US life insurance market has lower cost products and much more capacity than most of the other insurance markets in the world. We work with international tax experts in various jurisdictions to design plans that meet foreign individuals’ needs while avoiding unfavourable tax implications.
Can you comment on the current tax environment in the US? What is your position on the recent tax legislation and the uncertainty relative to the estate tax?
The current tax environment in the US provides us with challenges and opportunities. The Trump administration and the Republican Congress have proposed repeal of the Federal estate tax, as well as reductions in marginal income tax and capital gains tax rates. For the life insurance industry, which sells products offering tax deferral and tax-free benefits, this could obviously lead to reduced sales. Just the talk of estate tax repeal initially caused many families and advisors to halt estate planning while proposals were being developed.
We have already seen many of those clients resume their planning, as tax reform proposals have been met with opposition and the reality of budgetary concerns, government deficits and ballooning debt have crept back into public consciousness. Experienced advisors have lived through past estate tax repeal, and many have counselled their clients about the fickle nature of repeal, especially in light of our fiscal reality. Estate planning is by nature long-term, and plans must be able to weather political changes. Most advisors with whom I speak don’t believe that the estate tax will be repealed, and even if it is, they believe the tax will be reinstituted or replaced in the long run, perhaps with higher rates. This Administration and this Congress have thus far been unable to accomplish much of their agenda, reducing the confidence of those who would like to see some of these taxes reduced or eliminated.
The current tax system has created an opportunity for affluent individuals to enhance their after-tax investment returns using life insurance, and this opportunity even exists for super-affluent clients who invest in hedge funds. Private Placement Life Insurance (PPLI) and Private Placement Variable Annuities (PPVA) allow accredited investors and qualified purchasers to invest in non-registered investment funds (i.e. hedge funds) within a flexible, ultra-low-cost insurance vehicle. While these products, particularly PPLI, can be used in estate planning situations, they are often based on investment decisions, focusing on current taxation. The simple math behind their appeal is that the insurance policy fees are much less than the taxes that are saved or deferred.
What are some of the most common mistakes, in relation to life insurance, that can be detrimental to beneficiaries?
Many of the most common mistakes that we see are related to products purchased many years ago, sometimes without proper disclosure and usually without adequate administration and review. Of course situations exist in which clients’ families wish they had more coverage, and sometimes the policy ownership creates adverse tax implications, but affluent families often have sophisticated advisors to help them avoid these pitfalls.
Older policies often have performed worse than originally projected, due to the declining interest rate environment, poor (or absent) asset allocation decisions and market performance, or changes made by the insurance company. Policies that haven’t been regularly reviewed can be in danger of policy lapse, often with little notice. For an older client, if a policy is in danger of lapse, due to reduced dividends or credited interest, the cost required to maintain coverage may already be too great to bear. If an insurance policy lapses with a loan outstanding, the loaned amount is often taxable as ordinary income. We were able to recently replace policies carrying ballooning loans with new, efficient policies, allowing the clients to repay the loans using policy values and eliminating the risk of potential income tax liabilities of several million dollars per policy.
There are a variety of issues and problems that we find in policy reviews for new clients. Many families are surprised to learn that older policies no longer maintain the expected guarantees if premium payments were not made as planned. Older policies typically matured at age 100, since few people lived that long. As a result, many older universal life policies have little or no benefit once a client reaches that age, but we can often fix this problem if it is identified before a person gets too close to 100.
We occasionally encounter sad situations in which a client agreed to a premium plan designed to increase over time, perhaps with questionable original assumptions. When a client could have easily afforded somewhat higher premiums at younger ages, some unsuspecting families have learned that the higher premiums required to maintain coverage in that insured’s 80s or 90s are simply too much to bear, making the complete (and significant) investment in life insurance a total loss.
Policies that were funded with third party loans or with a “Split-Dollar” structure often face difficulty if there was no adequate exit strategy. These plans, if left unmanaged, can sometimes result in losses and significant tax liabilities. In some cases, the brokers who sold these complex and risky plans haven’t provided service to their clients for years.
What are the particular challenges that insurers in the US have been facing over the past year in relation to changes in what customers expect in terms of products and services?
The continued low interest rate environment has created a challenging environment for the US life insurance industry for many years. Some companies are burdened by minimum guaranteed rates in old insurance products that exceed the current market rates, while all companies have seen their profit margins negatively impacted by lower rates. This, along with increased reserve requirements, has forced many insurance companies to stop offering guaranteed universal life policies, which were the most popular products for estate planning in the past. All of the companies who continue to offer that product have dramatically increased premiums for new policies to reflect their own increased costs. The duration of the fixed income securities in insurance companies’ portfolios will cause carriers to continue to experience downward rate pressure for the foreseeable future, even if rates rise modestly. As one might expect, this challenge has spurred product innovation, such as the development of Indexed Universal Life, which links policy performance to market indices such as the S&P 500 or the Hang Seng.
US insurers also face challenges with distribution, in part due to the decline of the agency model, which provided the bulk of training to new agents over the years. Less young people have been entering the industry. At the same time, consumers desire the ability to research products on their own or with a roboadvisor, with less sales pressure than a stereotypical insurance agent might provide. The complexity of insurance products and the burdensome application process have hindered many consumers’ ability to effectively navigate this without an advocate.
Fortunately, many technological advances are making it possible to obtain life insurance quickly and easily, sometimes in as little as 30 minutes. More advances are forthcoming, and this will change how typical Americans buy insurance. Affluent clients continue to need personalized advice and implementation experience, but IT advances will continue to make the process more convenient.
Can you tell us about your involvement in the community and its impact?
With school-age children, a lot of my community involvement has involved coaching youth sports, so I’d like to believe that I’ve had a positive impact on kids. I’ve also been involved with The Boston Foundation and the University of Rhode Island, in support of disadvantaged families and public education. I’m active in the Association for Advanced Life Underwriting, which is a great organization, dedicated to preserving the ability of our industry to help families provide and protect their financial security.
Our September Expert Insight section benefits from an interview with Raymond Walker - Founder, Chairman and CEO of Caribbean Assurance Brokers Ltd. in Jamaica.
Over the last 34 years, Raymond has led a distinguished management, sales and marketing career. He was introduced to the industry as a Salesman at the then Life of Jamaica (LOJ) and quickly moved up the ranks to Vice President of Marketing. After a successful tenure at LOJ, Raymond then moved on to Blue Cross of Jamaica, where, as the Executive Vice President of Marketing & Services, he further realized that advocacy and the ultimate representation of any client would be best achieved via Insurance Broking and not so much within the confines of an insurance company. This idea truly resonated and reinforced Raymond’s desire to establish an Insurance Brokerage.
In 2005, he gathered a team of dedicated professionals, who shared his vision and together they formed Caribbean Assurance Brokers Ltd. (CAB), a multi-line insurance brokerage, offering the full spectrum of General, Employee Benefits, Individual Life, International Health, International Life, Travel and Credit Union Members insurance products and services to cover all possible needs while providing the best terms with greatest value for money.
As Chairman of CAB’s Marketing and Business Development Committee of the Board, Raymond frequently reviews strategies and initiatives designed to differentiate CAB from its competitors. Some of these initiatives have not only allowed CAB to create valuable market niches but have also expanded the company’s reach and scope well beyond the shores of Jamaica.
Please tell us a little about the typical insurance matters that Caribbean Assurance Brokers Limited deal with?
At Caribbean Assurance Brokers Limited, our role is to act on behalf of our clients by identifying and providing advice in their area of interest. We place a high value on our client’s needs, and so, as a multi-line insurance brokerage, we enroll in all areas, whether it be Employee Benefits, General Insurance, Individual Insurance or International Insurance.
How do you manage the diversity of your services so that there is synergy between each offering?
We place a high value on a strong team approach, which ensures that our clients benefit from the collective expertise of our diverse specialists. In addition to several types of meetings, there exists a range of cross-selling opportunities throughout the company. There are weekly internal CAB-inet meetings that we use to discuss the week’s plans from each area, Management meetings at the beginning of each month, used to discuss the performances of the previous month and our monthly Staff meetings, where we use the opportunity to keep all staff members informed and involved in all product lines. These meetings were designed to ensure that everyone is aware at all times, and along with our cross-selling advantages, they assist in keeping the synergy between each offering within the company.
What would you say are the specific challenges of assisting clients with insurance?
In the insurance industry, one of the greatest challenges recognized is that not many clients understand the intricacies of risk. The average person may only consider the cost, not realizing that the cheaper option may not necessarily be within their best interest. At Caribbean Assurance Brokers, we take the time out to educate our clients, which is key, because we are aware that some persons do not even recognize the importance of insurance, which at times, makes it difficult for us to get clients to allocate sufficient time for a wholesome discussion on their risk profile. Moreover, it is perceived that even with sophisticated clients, there is still a fundamental mistrust of insurance. People tend to want to see the ‘fine print’.
What strategies do you implement to minimize financial burdens in regards to insurance packages?
At CAB, we operate within a much lower cost regimen than our competitors because we generate at least 65% of our own energy needs via Solar Panels. With electricity being a major cost driver in Jamaica, we are able to operate at lower margins I.e. lower commission rates. This is critical, as margins in terms of commission rates impact the premium, so we can offer competitive products at lower rates.
What are the particular challenges that insurers in the Caribbean have been facing over the past year in relation to changes in what customers expect in terms of products and services?
The brokerage arena is characterized by fierce competition, and once there is a competitive arena, people will shop around. Clients expect to receive the greatest value for the smallest outlay. Fierce competition leads companies to lower their rates to maintain their clients, while other companies lower theirs to pull clients. Also, extremely fierce competition is likely to come from some of the very same insurance companies for which we solicit business.
It is also observed that the increase level of awareness of a more sophisticated market in the Caribbean is driving expectations of our clients to the extent that they are demanding first-world products and services at third-world premiums.
Can you tell Finance Monthly about your involvement in the community and its impact?
In June 2006, our Social Club Outreach Committee decided that part of its mandate would be to give back to the community in a very real way because we felt that as a new company, we needed to not only do well but also to do good. Therefore, any contribution that we made towards national development would not only give great personal satisfaction to the staff, but also generate a very positive response in the community in which we operate. We make most of our contributions to the development of young minds at the Reddie’s Place of Safety, which has been a haven to orphans, as well as abandoned and abused youngsters. This program continues to date, which involves the provision of groceries to the Home each month along with several interactions with the children during the holiday periods. The children have now become an integral part of the lives of our Team and are involved in all of CAB’s social activities.
In addition to the Reddies Place of Safety, we have awarded scholarships to two members of the community. One has graduated from high school, now attending University and the other has graduated from high school and is now an honour student. Caribbean Assurance Brokers remains committed to these children, as we believe the future success of Jamaica lies with the development of the hearts and minds of the nation’s youth.
What makes your company unique?
Caribbean Assurance Brokers Ltd has exclusive rights to certain products, namely our International Comprehensive Health Insurance Programme (ICHIP) and our short-term Medical Travel Insurance Product, Assured Travel. Our ICHIP Programme allows clients to access first-world medical health services. The plan carries a zero deductible option locally and globally, except for the USA. It provides up to $2 million worth of coverage each year and requires no medical examinations and no age limit amongst other premium benefits.
Our Assured Travel Product provides Travel Insurance to clients with the convenience of direct payment online, and access to an extensive International Provider Network of Medical services with 24-hour emergency access anywhere in the world.
Another value proposition that CAB has introduced to its clients is our loyalty program, which will assist in our customer retention, expansion and acquisition.
In recognition of our amazing and loyal clients, we have recently launched our Caribbean Assurance Brokers Loyalty Programme (CABLP), where our customers are given their personal loyalty card which provides them access to receive discounts, savings and cashback at over 200 merchants and providers locations island wide; which includes leading supermarkets, wellness centers, retail stores, hotels, pharmacies, hospital, restaurants, gym and much more. This is our way of giving back to our valued customers and another winning competitive edge.
