Latest news with #LIMRA
CBS News
26-06-2025
- Business
- CBS News
When should you boost your supplemental life insurance? Experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Supplemental life insurance can provide critical financial protection that you may otherwise miss out on. Getty Images The majority of American workers — 53% in 2024 — have life insurance through their workplace, according to LIMRA. However, as the cost of living rises, most workplace life insurance policies fail to keep pace. The median basic workplace coverage is just $20,000 or one times a worker's salary, which likely isn't enough to provide for your family if you pass away, the survey notes. "A basic group life policy from your employer, usually one to two times your salary, just isn't enough in today's world," says Michael Foguth, founder of Foguth Financial Group. "If you have a mortgage, kids, or even significant debt, supplemental life insurance can be a game-changer." And even if you have significantly more coverage, it likely isn't keeping up with the cost of living. Unfortunately, far too many people are just relying on their employer's plan. That's where supplemental coverage comes in. Supplemental life insurance, referring to a policy you buy to supplement your basic workplace policy, creates an additional safety net so your family won't have to rely solely on your basic workplace life insurance. The importance of this type of protection grows as your financial obligations evolve. We spoke with two life insurance experts to find out when you should consider supplemental life insurance and how to figure out how much coverage is appropriate for your situation. When should you boost your supplemental life insurance, according to experts? To better understand when it may (or may not be) appropriate to increase your supplemental life insurance coverage, it first helps to understand the various types of supplemental policies available. Supplemental life insurance policies come in a few different forms. First, many employers offer supplemental life insurance in addition to their basic plan. You can also purchase a private policy directly through an insurance company. Both options have some advantages. A group policy, such as one you'd get through your employer, typically doesn't require a medical exam and may come at a cheaper price tag. However, if you lose your job, your insurance goes with it. And you may find that it's more expensive or more difficult to get a different policy later on. Private plans have the disadvantage of being more expensive and more difficult to qualify for — health histories and medical exams are often required. However, once you lock in your policy, you'll have coverage for your entire term, even if you lose your job. You can also choose between term and whole life insurance. Term life insurance is the most affordable and provides a set death benefit for a specific number of years. Whole life insurance, meanwhile, covers you for your whole life as long as you continue to make payments and usually has a cash-value component in addition to the death benefit. However, these plans are more expensive. "Term insurance is usually the best choice for most people: it's affordable and provides substantial coverage during your high-need years," says Foguth. "Permanent insurance has its place, but only if you've already maxed out other financial priorities." Depending on your situation, supplemental coverage may or may not be the right choice for you. You'll probably want to consider supplemental life insurance if your basic workplace policy has a low death benefit, especially if your family financially depends on you and your income. Certain life milestones could be a sign it's time to reconsider your life insurance coverage and boost your supplemental coverage. "We find that younger families in particular need supplemental life insurance," says Matt Hylland, a financial planner and investment advisor with Arnold and Mote Wealth Management. "For one reason, workplace group life insurance is usually based on a multiple of your salary, and younger workers may not yet be at peak salary, where two or three times their current salary is enough insurance." "Also, younger families, particularly those with young children, have decades of expenses and goals that insurance needs to help cover. As you age, your insurance need typically decreases, but your 30s and 40s are typically the peak years for insurance needs." When you go through any major life events use that as an opportunity to reevaluate your coverage. How to calculate your life insurance needs There are a few different rules of thumb that experts tout for determining your life insurance needs. For example, some recommend multiplying your income by a certain amount, such as 10 times. Others base it on your age and how close you are to retirement. While these methods can be a good starting point, they don't take into account your unique financial situation and needs. Rather than relying on a basic rule of thumb, consider what purposes your life insurance would serve. Would it provide income for your family? Help pay off your household debt? Send your kids to college? Take all of that into account to decide how much coverage makes sense for you. For example, you may need to substitute your income at least until your kids head off to college. If you make $75,000 per year and your youngest graduates from high school in ten years, that's $750,000 in coverage. Then, you may choose to add in your family's total debt obligations, including your mortgage, auto loans, credit cards and anything else. Finally, if your goal is to pay for your children's college educations, consider enough coverage to do that. It's also important to consider what insurance term you need. According to Hylland, it's important to match your life insurance policy with your family's needs. For example, you might choose a policy that's set to end once your kids have moved out of the home or you've paid off your mortgage. "We also generally say to be conservative and purchase insurance with a slightly longer term than you need," says Hylland. "For example, if your kids will be graduated from college in 15 years, perhaps go with a 20-year term policy. You can always surrender or cancel a term policy if you do not need it, but it will be costly to get insurance later in life if you find that you need additional years of coverage." It's worth noting that, in some cases, a supplemental policy through your employer still may not be enough. It's important to run the numbers for yourself to make sure you have enough coverage, even if that means purchasing private insurance in addition to your workplace plan. The bottom line Almost anyone can benefit from some sort of life insurance, and it's usually non-negotiable for anyone with a family to support. Unfortunately, a basic workplace life insurance plan doesn't usually provide enough coverage. Make sure to review your life insurance coverage regularly, especially as open enrollment rolls around. It's important to weigh all of your options when you're shopping for policies, including deciding between a term or permanent policy and a workplace or private policy.
Yahoo
23-06-2025
- General
- Yahoo
Dad's $61k 'salary' shows just how undervalued parenting still is
How much is fatherhood worth? According to 2025 Father's Day Index, the average American dad performs nearly $61,000 worth of unpaid labor each year. That estimate is based on an analysis of 17 household tasks using U.S. Bureau of Labor Statistics wage data. This symbolic 'salary' includes common caregiving contributions: lawn care, homework help, cooking, tech support, and more. Each task is matched to a corresponding paid job title—like landscaper, cook, or IT manager—and calculated based on estimated hours worked per week. The index is designed to highlight the economic value of caregiving, often performed invisibly and without pay. In 2025, the value of that unpaid work rose by 5.2%—growing even faster than the average U.S. wage growth of 3.9% as reported in the June 2025 BLS jobs report. While $61,000 may sound significant, comparable Mother's Day Index valued moms' unpaid labor at more than $145,000 this year. Same methodology. Same data source. More than double the value. That stark gap tells a broader story: domestic labor in the U.S. remains deeply gendered. Even in households where dads contribute significantly, studies consistently show that moms still carry the bulk of the mental load, emotional labor, and day-to-day caregiving. And while dads often get praise for showing up, moms are expected to do it all—without recognition, let alone compensation. Related: How much is a mother's work worth? $140,315, study shows Though no one's cutting a paycheck for parenting, the Father's Day Index makes a critical point: if a caregiving parent were to suddenly be absent, replacing the full scope of their labor would be both emotionally and financially overwhelming. That's why life insurance matters. According to the Insurance Barometer Study, 63% of dads report having life insurance, but 40% say it's not enough. Cost is often cited as a barrier. Yet LIMRA data shows that most Americans overestimate the price of term life insurance—believing it costs 3x more than it actually does. For example, a $500,000 policy for a healthy 35-year-old might run less than $45/month, based on LIMRA's 2024 averages. That's a small price to pay for a safety net that reflects the true value of parenting labor. While many dads are underinsured, even fewer moms—especially stay-at-home mothers—have life insurance. That gap has real consequences. If something were to happen, the emotional toll would be immeasurable—and so would the financial one. Replacing the full range of caregiving, household management, and emotional support a mother provides would come at a steep cost. We need dads to keep stepping up. But we also need systems that catch up to the realities of modern caregiving. That means recognizing parenting as essential work and supporting it with real is work. It's time our systems caught up. The Father's Day Index helps shine a light on a bigger truth: most caregiving is still unpaid, unsupported, and under-recognized. Real recognition for caregiving would look like: Paid parental leave Affordable childcare Flexible work environments Financial and social recognition for all caregivers, regardless of gender Until then, we'll keep naming the value of this work—because visibility is the first step toward change. Parenting is essential labor, and it's time our systems treated it that way. Related: Managing caregiving and work isn't a woman's issue—it's a human issue Sources: Employment Situation Summary. U.S. Bureau of Labor Statistics. Employment Situation Summary. Mother's Day Index 2025. Mother's Day Index 2025: Mom's annual salary climbs 4%, now more than $145,000. Father's Day Index 2025. Father's Day Index 2025: Dad's salary jumps more than 5% to nearly $61,000. Consumers Overestimate Cost of Life Insurance. LIMRA. Consumers Overestimate Cost of Life Insurance By Nearly Three Times. U.S. Life Insurance Need Gap Grows in 2024. LIMRA. U.S. Life Insurance Need Gap Grows in 2024.
Yahoo
03-06-2025
- Business
- Yahoo
The pros and cons of annuity investments in retirement
2024 saw annuity sales increase 13% year-over-year, valued at over $434 billion, according to the latest data out from the Life Insurance Marketing and Research Association (LIMRA). GenWealth Financial Advisors Co-owner and Managing Principal John Shrewsbury comes on Wealth to speak more about the risks and benefits of investing in an annuity contract in retirement. To watch more expert insights and analysis on the latest market action, check out more Wealth here. In 2024, annuity sales rose 13% from the year prior, reaching $434 billion according to research and consulting organization, Limra. The firm says favorable economic conditions and growing investor awareness around annuities helped propel that growth. But our next guest says that annuities are not for everyone. Here with more, we've got John Shrewsbury, who is the Genworth Financial advisors co-owner and managing principal. John, good to have you here with us. So, let's start with exactly what annuities are for those who are not exposed. So, an annuity is a contract with an insurance company, and what you're contracting to do with that insurance company is to provide you a regular, predictable stream of income during retirement. I say annuities are not for everyone because if you're not heading toward retirement or in retirement, you probably don't need that. But an annuity is the only investment vehicle that can transfer the risk of a regular, predictable stream of income that you can't outlive to a well capitalized insurance company and it allows you to create a stream of income very similar to a pension or a Social Security check that we think about as foundational income for someone as they try to meet their basic living expenses with guaranteed income sources. Okay. And so that starts to get at who annuities could be good for. What are some of the pros there? And who could it be good for ultimately? So, we normally see the use of annuities with people who are very close to retirement or already in retirement. What they're trying to do is they're trying to build that foundation of income. You know, if you just think about a personal balance sheet of your monthly liabilities, your electric bill, your mortgage, uh your food bill, all of those things are regular, predictable expenses that you're going to have. We believe that that ought to be met by regular, predictable income. Most people have one source of regular, predictable income in their life and that's Social Security. They may have a pension, but there's about 12% of the population that actually has a pension. Other than that, the sources of income are not guaranteed unless you utilize an annuity, and that's where an annuity fits best. Annuities are not for everybody. I know that there's a lot of people that sell annuities because they have an insurance license to do so and they are made out to be uh something of the Swiss Army knife of all kinds of investments. But really and truly, an annuity is a retirement vehicle that produces income. And so you started to hit on this a little bit, but what are the cons of annuities? Yeah, the an annuity contract doesn't really have what I call a personality. It doesn't uh it doesn't act a certain way. Mostly, it's a tool, and if that tool is used the right way, it can be great. But if that tool is used the wrong way, then it can be a problem. For instance, there is a penalty for early withdrawal of income from an annuity prior to age 59 and a half, much like an IRA account. So, you would want to avoid an annuity if you need income from an investment prior to age 59 and a half. Annuities do grow on a tax deferred basis, but there is a commitment in making an investment into an annuity. You don't put money into an annuity to later think about, "Oh, I'm going to take that and do something else." What you're really doing is you're buying yourself a stream of steady income for retirement. If it's used for almost anything else, then it's probably going to be problematical. With the exception of sort of a new age of annuity products called registered index linked annuities. Those annuities can buffer downside risk in the market for long-term investors who really want to be sure that they arrive at a certain spot in their life with a certain amount of money. Those RILA contracts can be designed to actually do that during the accumulation phase of your wealth program. Okay. And so if you are speaking with an agent that can sell you an annuity, what are the top questions that you should be asking? I think first of all, you have to ask yourself, "Do I have a gap in income? Do I have a need for another stream of regular, predictable, dependable income?" If the answer to that is yes, then the answer could be an annuity. You need to talk through all of the fees and administrative charges that may be attached to a particular annuity. Understand how it works. Understand what's going to be left if you die prematurely. Understand that that income will last you the rest of your life, but does it take care of your spouse? There's a lot of complexity to that, and that's why we say that much like prescriptions are the uh the territory of a doctor, uh then an annuity really needs to be administered by a registered investment advisor that understands the full picture of the client's financial situation and can prescribe the type of annuity that works best for them. When do you know, and we only have 30 seconds left here, but on the commission structure, when do you know that someone's just trying to take advantage of you? Well, I think if they're trying to fit a square peg in a round hole, if there's some story that they're giving you that doesn't quite fit with your situation, then that may be a red flag that you're trying to be sold something as opposed to use a tool that actually helps you in your overall financial plan. John, good to have you here with us today. Thanks so much for taking the time. Thanks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Int'l Business Times
29-05-2025
- Business
- Int'l Business Times
Jake Tamarkin on Restoring Life Insurance Ownership among Middle-Class Households
The crisis in the life insurance industry has been developing over the decades. The ownership of life insurance in the US is steadily declining, particularly among the middle class. A study published by LIMRA, an industry trade group, in 2024 highlighted a significant decrease in life insurance ownership from 72% in 1976 to 51% in 2024. The reasons behind this trend are many and complex. Jake Tamarkin, CEO of Everyday Life Insurance, explains, "One key reason fueling this trend is that it is simply more profitable for traditional agents to focus on wealthy clients. Consequently, the industry has moved away from serving those who need life insurance the most." Source: Everyday Life Insurance As a result, a record high 102 million American adults acknowledge they are under-protected, leaving their families financially vulnerable in the event of a tragedy. Tamarkin believes that the industry has not only lacked in serving the middle-class market but has systematically abandoned it. "This decline didn't happen overnight," explains Tamarkin. "Life insurance ownership among middle-income families has been decreasing for about 50 years. The decline began when companies shifted away from door-to-door sales, which had been an effective way to connect with families. Unfortunately, this method was never replaced with another substantial outreach model." Middle-class families often juggle between mortgages, childcare, and the care of aging parents, making them more financially vulnerable. Many of these families are in their 30s and 40s, belonging to what is known as the "sandwich generation." If something tragically happens to the breadwinner, the financial consequences can be severe for the entire family. Life insurance acts as a safety net in such situations, yet these middle-class families are the least likely to have insurance coverage. "Ownership of life insurance is essential," says Tamarkin. "When you are balancing the care of kids and parents simultaneously, the financial impact of losing income can be devastating across generations." Jake Tamarkin Everyday Life Insurance is creating an entirely new model to serve the middle market with an increased emphasis on accessibility, transparency, and convenience. "Our platform utilizes AI to help customers find the best value insurance policies customized to their individual needs," Tamarkin explains. "Everything is accessible 24/7 on their phones without the need for appointments or aggressive sales tactics, just straightforward guidance." Accessibility is vital for families who are balancing work and managing unpredictable schedules. Tamarkin points out that many customers are doing multiple jobs, making in-person financial consultations unrealistic. The self-service model of Everyday Life Insurance allows users to receive coverage recommendations without having to meet with an agent. However, human support is still available for those who prefer it. "We are not eliminating people from the process; we are simply giving people a choice," he states. "If they want to talk to someone, our team is readily available." Everyday Life Insurance eliminates the misconceptions that life insurance is expensive and unaffordable for the middle-class market. In reality, many people are guided towards costly products by commission-driven insurance agents. Everyday Life Insurance operates as an independent platform that allows the company to offer the most affordable and high-value policies. Tamarkin states, "There's no law that says an agent has to sell you the cheapest policy, and often, they won't. That's where we come in. We provide access to a selection of what we believe are the best insurers so you can choose the plan that best fits your needs." The company's transparent and values-based approach has earned trust across the US, boasting a high rating of reviews. Tamarkin believes that their success demonstrates how life insurance can be delivered ethically, efficiently, and affordably. "Our mission is to make life insurance accessible again for everyone who needs it," Tamarkin concludes. "We are not here to build portfolios for the top 1%. Our goal is to help families navigate their worst moments. That is the kind of life insurance that matters, and we are restoring it for the people who need it the most."
Business Upturn
16-05-2025
- Business
- Business Upturn
Hoopis Performance Network (HPN) and LIMRA Earn Recognition from Selling Power for Excellence in Sales Training for 5th Consecutive Year
Chicago, Illinois , May 16, 2025 (GLOBE NEWSWIRE) — Hoopis Performance Network (HPN) and LIMRA proudly announce their fifth consecutive recognition from Selling Power as one of The Top Sales Training Companies for their collaboration, Trustworthy Selling. This honor highlights their commitment to delivering innovative training programs that drive sales success in the financial services industry. Selling Power – Top Sales Training Companies 2025 Selling Power is a leading digital magazine for sales leaders, providing strategies and insights to maximize sales performance. The 2025 award program rates companies across all industries on the depth and breadth of their sales training programs offered, innovative offerings, client satisfaction and overall contributions to the sales training market. 'We're honored to receive this recognition from Selling Power for the 5th year in a row – especially since we're the only sales effectiveness program among the honorees designed specifically for the financial services industry,' says Joey Davenport, President of HPN. 'Equipping financial professionals to provide financial security worldwide has always been the mission of the Trustworthy Selling Team.' According to LIMRA research, 71% of consumers report being more confused after meeting with a financial professional than before the meeting. Another 47% report being afraid of making a mistake in their financial decision-making. This causes inertia and procrastination which leads to most consumers putting off the decision to address their financial security. To address this, HPN and LIMRA identified seven behavioral economics techniques that when applied to the sales process, increase the likelihood of a potential client moving forward with recommendations by 29%. 'Trustworthy Selling has a proven record of success. Upon completing the program, financial professionals, on average, report a 46% increase in first-year commissions, a 25% increase in new clients, and premium growth of 32%,' said Kim Terranella, Vice President, Industry Solutions, LIMRA and LOMA. 'As we continue to support our members' distribution development goals through this program, we are pleased that Selling Power has recognized its unique value again this year.' Trustworthy Selling has over 40,000 graduates of the program worldwide. The program has been translated into numerous languages and is currently being utilized in North America, Latin America, Southeast Asia, China, and Japan. In Asia, for example, the program is utilized to help financial professionals evolve from transactional selling to a focus on relationship-based selling. Per Jeff Campbell, COO of Selling Power – 'Simply put, for the financial services industry, there is no equal to the continually innovative effectiveness of Trustworthy Selling. We conduct annual customer feedback research, and the responses speak volumes as to the improvement in performance and process companies experience after engaging with Trustworthy Selling.' Trustworthy Selling – A collaboration between Hoopis Performance Network and LIMRA About Hoopis Performance Network Hoopis Performance Network is a trusted leader in professional development, delivering training and consulting solutions to organizations worldwide. With a focus on empowering leaders, enhancing team performance, and driving sustainable growth, HPN provides cutting-edge tools and strategies for success. For more information, visit Press inquiries Hoopis Performance Network Grace Egan [email protected] (847) 977-2632 790 Frontage Rd #300 Northfield, Illinois 60093
