A Look Back

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We are a few weeks away from 2017 and at this point I would like to take a look back at some important developments in 2016 for Long Term Care and Term Insurance.
 
Long Term Care
 
Record low interest rates, increased longevity, and insurance company mispricing were the contributing factors to a turbulent year in 2016 for Long Term Care insurance.  In 2000, Americans purchased about 750,000 new stand-alone traditional Long Term Care policies compared to only 105,000 new policies in 2015.  As premiums continue to increase exponentially combined with the aging baby boomers, more of the same is expected once the calendar year closes for 2016.
 
As your clients age, despite the increasing premiums, it is important they understand their options when it comes to purchasing Long Term Care and evaluating their options on existing policies.
 
Term Insurance
 
Unlike Long Term Care, rates on Term Insurance have come down yet again in 2016.  With premiums becoming more competitive, the Underwriting rules for each company seem to differ more and more each year. 
 
Generally speaking the younger and healthier you are, the less you will pay.  However, gender, career, location, and lifestyle can also affect your rate too.   Remember, term insurance is a commodity so finding the right underwriter for your client’s specific health and lifestyle profile can save your clients hundreds, if not thousands in premiums.
 
Thank you for your Trust!
 
The end of year is also a time to reflect on how Pinnacle has done in supporting the independent Fee-Only marketplace.
 
Year to date, we have been able to assist 19 different planners with their clients’ insurance needs, many of the planners being long-term customers.  Out of the 19 planners we served, 4 are new to the Pinnacle Benefits Group in 2016.
 
Not only were planners busy for their clients, but they were also planning for themselves – interestingly enough 7 of the policies written this year were on fee only planners and their spouses.
 
We wrote insurance in a total of 17 different states in 2016.  As mentioned earlier, and evidenced by this last fact is that insurance has truly become a commodity.  We can assist anyone in the country with their insurance, for example this year alone we wrote cases in California, Tennessee and Oregon, among others.
 
Our process is unique and we are continuing to get better every day.  I thank you for the privilege of being of assistance to you and to your clients with their insurance needs. I wish you a wonderful holiday season and may 2017 be filled of peace, prosperity and most importantly good health for you and your family.