We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • R.I.P. Combo Annuities

    August 9, 2012 by Sheryl J. Moore

    Several years ago, I attended one of the most exciting CE courses of my life. It emphasized a new type of product that was going to be hot. Because of legislation that was passed shortly before the class, this new type of annuity promised to be the messiah of the insurance industry: the combo annuity.

    The combo annuity simply combined an annuity with long-term care (LTC) insurance coverage. Prior to Congress’ passing of the Pension Protection Act of 2006 (the PPA), the LTC component’s funding source (the gains on the contract) were considered a taxable distribution. This made a great concept considerably less attractive. However, the favorable tax treatment provided by the PPA promised to multiply sales of these much-needed products.

    If you need guaranteed lifetime income and a vehicle that addresses the risk that you may end up confined to a nursing home or a care facility, the combo annuity is strategically positioned to address these concerns, all the while providing a tax-deferral feature. Plus, combo annuities don’t have the ugly “use it or lose it feature” associated with standalone LTC. With so many companies exiting the LTC market, it seemed that sales of these products would explode overnight. But over the course of six years, sales of combo annuities have dropped off the map.

    Very few insurers have shown interest in offering the products. In fact, when consulting with my insurance company clients, I actually advise them not to waste their time and efforts with combo annuities. Sure, it’s an administrative nightmare and the underwriting challenge causes some to pause. However, it’s the distribution methods used to sell annuities that are resulting in a lukewarm response to these products.

    Leave their comfort zone?

    The lion’s share of fixed and indexed annuity salespeople sell nothing more than annuities. No long-term care coverage, no disability insurance, and no life sales; the underwriting process required for these products is just too intimidating to transactional agents. In addition, it is hard to convince salespeople that are paid commissions within 24 hours of submitting an application to wait (possibly weeks) until the combo annuity is underwritten and approved. These two lousy hurdles are enough to stop most insurance agents that sell annuities from leaving their “annuity comfort zone.”

    Sadly, this has led to an untimely demise for combo annuities. Now, add that LTC benefit to a life insurance policy and sales will go sky high. These agents are used to the underwriting process and the delays associated with it. However, if you are one of the few annuity agents that would utilize this tool, I’d stop holding my breath for more product choices. Until we build a better mousetrap for distributing annuity products, this product will not be resurrected.

    About the Author
    Sheryl Moore is President and CEO of Moore Market Intelligence, an indexed product resources in Des Moines, Iowa. She has over a decade of experience working with indexed products and provides competitive intelligence, market research, product development, consulting services and insight to select financial services companies. She may be reached at sjm@indexedrockstar.com.

    Originally Posted at LifeHealthPro on August 9, 2012 by Sheryl J. Moore.

    Categories: Sheryl's Articles
    currency