Life insurance isn’t usually one of the topics people deem exciting enough to be newsworthy. Maybe because the thought of our potential demise doesn’t seem so appealing, or maybe because it reminds us of that long list of things we haven’t yet taken care of. Either way, 2014 has actually been an interesting and exciting year for the life insurance industry so let’s go over some of the biggest stories of the year, so far.
Billionaire Buys Life Insurance?
That’s right you read that right, an “anonymous” billionaire from Silicon Valley has taken out a life insurance policy for $201,000,000. Now you may be wondering why would a billionaire need life insurance? Well mostly for tax purposes. As the agent stated “A wealthy estate is hit with a hefty tax.” This broke the record for biggest life insurance policy ever, with around 100 million being a close second. Because one company couldn’t take all the risk this was broken down between 19 different companies to insure this client. I bet the agent is enjoying his commissions.
New No Medical Exam Products Hit the Market
Life insurance is known as an industry that’s stubborn to change, but this year has seen a rollout in faster, more convenient, even online based products that do not require a medical exam which speeds up the process. Companies like Fidelity and American National have been doing no exam life for quite some time. Now however, companies like Sagicor are coming out with new products that offer speedier underwriting, like their new instant approval product that can get you approved immediately or within few days. Quite a big leap from the standard 8 week underwriting process common to life insurance. Principal Life has also blasted a new product into the no medical exam life insurance scene. This is a positive sign of life insurance companies finding a way to bring innovation to the industry and play catch up to the new fast results driven generation.
Life Insurance Companies Made Some More Money
We all know life insurance companies are powerful, and they have to be to insure all the risk thats out there. The good news is they still are. New York Life earnings have recently hit 1.76 billion dollars. That’s an 11% increase in earnings from 2012 to 2013 which marked a 4th consecutive year of record earnings. Genworth is another company doing well as their stocks doubled and as a result the CEO was paid 12 million dollars his first year on the job.
The point of this all? Is to show that the life insurance industry is growing, and growing fast. As companies continue to make more products that are better for the consumer the industry will continue to grow and people will become more aware of life insurance as necessary protection. The key is for agents and companies alike to spread awareness. We must educate consumers on the importance of acquiring coverage and lift the stigma of life insurance being more confusing than rocket science. Let’s look forward to more positive news coming this summer.
Sean Dudayev is owner of and life insurance expert at Insurechance.