Advisor Today - November/December 2016 - 24

PRODUCT SPOTLIGHT

By Ayo Mseka

MassMutual Introduces New CI Coverages

M

assachusetts Mutual Life
Insurance Co. (MassMutual)
is introducing new insurance
coverages to help working Americans
protect their finances and savings
against critical illnesses and
accidents. The critical illness and
accident group insurance policies are
available through employers, either
directly or through MassMutual's
BeneClick!SM integrated benefits
exchange. The coverage is voluntary,
which means that employees pay
the full cost of the coverage offered
through their workplace, or it can be
made available on an employer-paid
basis. The policies cover employees
and, where available, spouses and
children as well.
MassMutual's introduction of
these policies comes at a time when
critical illness (CI) insurance is
becoming more popular in the U.S.
Advisor Today recently interviewed
James Ocampo, assistant vice
president, BeneClick!, to learn more
about this product and what is
fueling its growth.
Advisor Today: What is the size
of the CI insurance market in the
United States?
James Ocampo: In 2015, CI
insurance sales totaled $490.59
million. The product has
demonstrated double-digit growth for
each of the past five years. The year
2015 was the largest year for sales
and saw the largest, year-over-year
increase (a 25 percent increase from
that of 2014).
Market penetration in the U.S.
is relatively low. Only 26 percent
of employers in the U.S. offer CI
insurance. Since 74 percent of all
employers in the U.S. do not offer
CI insurance to their employees, the
available market for this product is
largely untapped.
AT: After a slow start, CI insurance
appears to be growing rapidly. What
is driving this growth?

24 ADVISOR TODAY | November/December 2016

Ocampo: CI insurance is growing
in popularity as more employers
recognize that their employees need
to improve their financial wellness.
MassMutual's 2015 Employee
Benefits Security Study found that
40 percent of working Americans
say personal financial issues
distract them at work. CI insurance
provides cash when many people
need it the most - when they are
fighting a covered critical illness
such as cancer, a heart attack or
another serious illness.
Growth is also driven by two
primary factors that are driving a
huge portion of the medical and
group-benefits market:
1. Healthcare reform and the
policy around medical loss ratios
have cut medical producers'
compensation by 50-70 percent,
causing producers to work two to

three times as hard as they used to
for the same revenue.
2. The continued rise in medical
insurance premiums has forced
most employers to move to highdeductible plans, which exposes
employees to more financial
uncertainty.
The result is greater interest from
medical insurance producers to offer
voluntary solutions to offset their
revenue loss and provide employers
with creative alternatives to offset
their employees' exposure to
high-deductible plans. CI insurance
has been the best answer to both of
these challenges. In response, sales
of HSA-compliant CI insurance
plans have increased each year
since 2011 and are on pace to break
another record in 2016.
(Note: MM's critical illness
product is fully HSA Compliant.)



Advisor Today - November/December 2016

Table of Contents for the Digital Edition of Advisor Today - November/December 2016

FROM THE EDITOR
VIEWPOINT
NEW PRODUCTS
I Love My Job, But I Don’t Want to Do it Forever!
Building a Practice You Love
The New American Dream
A New View of Retirement
College Education Funding: Helping Clients Evaluate What’s Best
Portfolio Allocations for New Market Conditions
Leveraging the Power of Study Groups
An Interview with MassMutual’s James Ocampo on Critical Illness Insurance
Start with “Why”
Best Practices for Selling Group LTCI
From Yes to Success
Meet NAIFA’s New President
NAIFA’s 2016 Performance + Purpose Conference
NAIFA GOVERNMENT RELATIONS
4 Ways to Build an Effective Email Marketing System
ADVERTISER INDEX
BACK PAGE
Advisor Today - November/December 2016 - cover1
Advisor Today - November/December 2016 - cover2
Advisor Today - November/December 2016 - 1
Advisor Today - November/December 2016 - 2
Advisor Today - November/December 2016 - 3
Advisor Today - November/December 2016 - 4
Advisor Today - November/December 2016 - 5
Advisor Today - November/December 2016 - 6
Advisor Today - November/December 2016 - 7
Advisor Today - November/December 2016 - FROM THE EDITOR
Advisor Today - November/December 2016 - 9
Advisor Today - November/December 2016 - VIEWPOINT
Advisor Today - November/December 2016 - NEW PRODUCTS
Advisor Today - November/December 2016 - 12
Advisor Today - November/December 2016 - I Love My Job, But I Don’t Want to Do it Forever!
Advisor Today - November/December 2016 - Building a Practice You Love
Advisor Today - November/December 2016 - The New American Dream
Advisor Today - November/December 2016 - A New View of Retirement
Advisor Today - November/December 2016 - College Education Funding: Helping Clients Evaluate What’s Best
Advisor Today - November/December 2016 - 18
Advisor Today - November/December 2016 - Portfolio Allocations for New Market Conditions
Advisor Today - November/December 2016 - 20
Advisor Today - November/December 2016 - Leveraging the Power of Study Groups
Advisor Today - November/December 2016 - 22
Advisor Today - November/December 2016 - 23
Advisor Today - November/December 2016 - An Interview with MassMutual’s James Ocampo on Critical Illness Insurance
Advisor Today - November/December 2016 - 25
Advisor Today - November/December 2016 - Start with “Why”
Advisor Today - November/December 2016 - 27
Advisor Today - November/December 2016 - Best Practices for Selling Group LTCI
Advisor Today - November/December 2016 - 29
Advisor Today - November/December 2016 - From Yes to Success
Advisor Today - November/December 2016 - 31
Advisor Today - November/December 2016 - Meet NAIFA’s New President
Advisor Today - November/December 2016 - 33
Advisor Today - November/December 2016 - 34
Advisor Today - November/December 2016 - 35
Advisor Today - November/December 2016 - 36
Advisor Today - November/December 2016 - 37
Advisor Today - November/December 2016 - NAIFA’s 2016 Performance + Purpose Conference
Advisor Today - November/December 2016 - 39
Advisor Today - November/December 2016 - 40
Advisor Today - November/December 2016 - 41
Advisor Today - November/December 2016 - 42
Advisor Today - November/December 2016 - 43
Advisor Today - November/December 2016 - 44
Advisor Today - November/December 2016 - NAIFA GOVERNMENT RELATIONS
Advisor Today - November/December 2016 - 4 Ways to Build an Effective Email Marketing System
Advisor Today - November/December 2016 - ADVERTISER INDEX
Advisor Today - November/December 2016 - BACK PAGE
Advisor Today - November/December 2016 - cover3
Advisor Today - November/December 2016 - cover4
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