On August 3rd, Matthew Pressler, Director of Advanced Markets for M Financial Group provided an update regarding current planning trends and legislation within the life insurance industry, delving into the key role M Financial Group plays. During this discussion, Matthew shared highlights from the 2016 LIMRA Advanced Markets Conference held at the Peninsula Hotel earlier that week.
2015 In-Force COI Increases: Background, Perspective, and Considerations
In the face of historically low interest rates, adverse mortality, increased reinsurance rates, and decreased profitability, some carriers have raised cost of insurance (COI) rates for in-force policies.
December Fed Fund Rate Increase and Impact on Universal Life Crediting Rates
On December 16, 2015, the Federal Reserve (Fed), as widely expected, approved a quarter-point (0.25 percent) increase in its target funds rate. The new target is now 0.25 percent to 0.5 percent (up from 0 percent to 0.25 percent). This is the first Fed fund rate increase in more than seven years.
Life Insurance Reviews: Is It Time to Check Under the Hood?
Most people spend more time and are far more invested in purchasing a new car than their life insurance. Once they buy their policy, they sit back and forget about it. However, like a car, an insurance policy requires ongoing maintenance.
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Private Placement Life Insurance: A Tax-Efficient Way to Invest in Hedge Funds
As the stock market’s bull run extends into its seventh year, investment advisors are increasingly looking to hedge funds and other low-correlation alternative asset classes to generate alpha and diversification for their clients. According to data from BarclayHedge, total assets managed by hedge funds increased 46% from 2010 to 2014. Hedge Fund Research reported that investors allocated $18.2 billion of net new capital to hedge funds in the first quarter of 2015, increasing the hedge fund industry’s total assets to $2.9 trillion.
The IRR Case for Life Insurance
Most advisors are familiar with the benefits of life insurance as a vehicle for transferring wealth, but few realize how attractive it is from an internal rate of return (IRR) perspective. Often advisors’ perceptions of the costs and IRR potential of life insurance are based on outdated information about policy design and performance. That is why we encourage advisors to revisit the potential benefits of life insurance as a tool for high-net-worth clients to not only transfer wealth, but also to build and protect wealth.
Premium Alternatives: Exploring Options to Pay for Life Insurance
Life insurance can be an important piece of a well-crafted wealth transfer strategy for high-net-worth clients. By removing assets from the client’s taxable estate, permanent life insurance can significantly increase the amount of after-tax wealth parents and/or grandparents can pass on to younger generations.
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Succession Planning: A Blueprint for Long-Term Success
No one understands the importance of planning better than business owners. Delivering projects on-time and on-budget for clients requires a tremendous amount of planning and communication.
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Negotiated Underwriting: When Carriers Compete, Clients Win
Underwriting a life insurance policy may seem like a straightforward, scientific process. Underwriters look at age, gender and medical history to calculate underwriting classifications and premiums based on projected longevity or mortality.
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Long-Term Care Insurance: Know Your Options
It’s no secret that planning for long-term care (LTC) is an important consideration for Americans as they approach retirement. Almost 70% of people turning age 65 will need some form of LTC at some point in their lives, according to the U.S. Department of Health and Human Services.
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