Advisor Today - September/October 2015 - (Page 30)

product spotlight LIFE INSURANCE By Rod Rishel Ongoing Challenges, New Solutions Life insurance with living benefits may ease some retirement-income issues your clients are facing. years, the costs of consumer goods and services have gone up eight-fold with one exception-health care. Health-care costs have increased 274-fold." 3 How are consumers, even those without a chronic illness, supposed to cope with skyrocketing health-care costs, especially if they live 20 or more years in retirement? A UL contract offering living benefits may alleviate financial distress associated with chronic illness or longevity. A s the National Institute on Retirement Security has reported, the U.S. retirement savings crisis continues to worsen. The average working household has virtually no retirement savings. When every household is included- not just households with retirement accounts-the median retirement account balance is $2,500 for all working-age households and $14,500 for near-retirement households. Sadly, 62 percent of working households age 55-64 have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.1 I worry a lot about consumers who may outlive their retirement income or become diagnosed with a chronic illness rendering them permanently unable to perform some of the six Activities of Daily Living, such as bathing, dressing and feeding themselves. 30 ADVISOR TODAY | September/October 2015 What if they face expenses such as nursing home care, house modifications to accommodate their condition, or the services of a private caregiver? How might a retiree recover financially if his or her income and planning don't allow for contingencies such as chronic illness or longevity? These are no minor issues in our country. As a recent Huffington Post blog pointed out, chronic disease cost America $2.3 trillion in 2014- quadruple the amount of the national debt for the year. According to the blog, during one year, a person with amyotrophic lateral sclerosis (ALS), the progressive motor neuron disease known as Lou Gehrig's Disease, can expect approximately $31,121 in medical costs, $17,889 in non-medical costs, and $14,682 in lost income. 2 Furthermore, according to an article published on on May 27, 2015, "Over the last 50 UL with living benefits As an advisor, you've committed your career to helping clients assess their financial fitness, resolve challenges and embrace opportunities. Today's market is lush with products and tools to help you with those enormous responsibilities. And these days, within the scope of a comprehensive, balanced planning strategy for retirement income needs, a universal life (UL) insurance contract offering living benefits may alleviate financial distress associated with chronic illness or longevity. If you're thinking, "I'm not so sure there's anything new about living benefit riders on life insurance," then think again. When you consider not only Americans' evolving needs and spiraling health-care costs, but also, innovation in the life insurance industry, it should come as no surprise that sophisticated, new solutions are available for you to review with your clients. For example, accelerated benefit riders designed to address a single need abound, but a current "asset protector" solution allows for access to cash value in a properly structured and funded UL insurance product under any of several eventualities- death, chronic illness, severe cognitive impairment, or longevity- when the rider terms are met. This type of product, with value-centric pricing, important guarantees and versatile customization features,

Table of Contents for the Digital Edition of Advisor Today - September/October 2015

Why You Need a Mentor
The Key Attributes of Top Performers
Success Tips from a Golden Gloves Boxer
How I Use Social Media to Build my Practice
Getting Started on LinkedIn
Discussing Your Client’s LTC Needs in Retirement
How to Boost Your LTCI Production
¿Habla Español?
Providing a Retirement Safety Net
Ongoing Challenges, New Solutions
Four Under Forty
NAIFA’s 125th Anniversary
Demystifying CPA Alliances
Building Your Natural Audience
Holding Workshops?
Ideas to Help You Sell More
Special-Needs Planning
Planning for Divorced or Widowed Women

Advisor Today - September/October 2015