Justin Smith: Life Insurance Planning Trends for the Affluent – promo

Justin Smith: Life Insurance Planning Trends for the Affluent – promo


life insurance planning trends for the
affluent and if there’s one thing that I think we can all agree on about the last
12 months from an insurance planning and financial planning perspective it’s that
change while occasionally difficult certainly creates opportunity so today
we will spend an hour or so talking through those opportunities and some
thoughts on how to capture them over the balance of the year with Justin Smith
Justin it sounds an awful lot like you’re busy good morning and what’s new
well I think it’s it’s uh it’s more of the same thanks for having me here with
you Jeff more the same lots of opportunity a whole new set of
challenges that we got rolled out at the beginning of 2019 and lots of problems
out there that are looking for a solution that only our industry can
provide given it’s an a unique tax profile it appears that the
normalization of rates is something that we’re going to have to continue to look
forward to rather than see here in the immediate future any kind of thoughts or
comments on the today’s rate environment and how you see that impacting our world
yeah I think it’s obviously still a very significant driver of a lot of factors
in our space instead of waiting for raise to normalize we may just be
settling into this kind of new normal this lower for longer period rates
ticked up towards the end of last year that was both met with a little bit of
shock to the system but from an insurance carrier standpoint sort of a
very welcome change relieving some of the pressure that they’ve had on on
product development and the ability to to innovate so you know Warren Buffett
said recently you know kind of a preamble with shareholders that this may
be an environment that is that is here to stay for a very long period of time
and it’s something that we just need to adjust our expectations to and I think
that that is it is likely to play out stability is a
good thing but if this means that rates stay very low for a long period of time
then we’re gonna still continue to see carriers with a product set that offered
off loads risk to the consumer in a much more profound way and also limits their
ability to to roll out some innovations that I know that they’re they’re eager
to do in a higher rate environment yeah that’s not the only challenge from an
innovation standpoint they have this this little transition that is happening
here in 2019 that is dominating most of the resources around product dev and
filings and things like that at the carrier and that is this January 1st
deadline for being in compliance with both principles-based reserves as well
as the 2017 CSO tables there I think it is probably a pretty good deal of
understanding around that maybe we want to touch on exactly what’s going on
there but more importantly kind of the unintended consequence or unforeseen
consequence that is going to drive some of our work on specific case
opportunities here over the balance of the year yeah I think in our space it’s
real easy to get caught with our heads down right just focusing on selling what
we have in our toolkit meeting with clients identifying you know the
challenges that they they have and and introducing some product solutions
wrapped around or wrapped within some some planning concepts but the
monumental shift that’s occurring this year as it relates to product cannot be
overlooked and I think we need to stop kind of lift our heads up and pay very
close attention as in the field to these changes that are afoot so every carrier
has been kind of a mad scramble to update products refresh pricing that is
all compliant with these new principle based reserves that will go into effect
January 1 now really changing the way the carrier’s
reserve into a more much more dynamic environment so that change is happening
coupled with the implementation of the 2017 CSO to
tables and what this means for the field is that what’s on the shelf today is a
mixed bag of PBR compliant 2017 CSO table product and all the other product
that has been on the shelf it a really important note if you’ve paid attention
that nothing else on today’s call one key takeaway is understanding that old
product any product that’s not PBR compliant and not 2017 CSO is going to
go away at the end of the year and if you don’t have it wrapped up placed in
enforce by 12:30 one of the of 2019 you’re going to be forced from a
regulatory standpoint to start all over in a new product that is not going to
have the same pricing it’s not going to have the same inputs and and that’s
going to be catastrophic you

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