|By PR Newswire||
|February 15, 2013 09:00 AM EST||
RADNOR, Pa., Feb. 15, 2013 /PRNewswire/ -- Financial security with flexibility, an evolving combination/Long Term Care (LTC) product market, risk managed strategies, and tax deferrals are some of the trends that Mark Konen, President of Lincoln Financial Group's Insurance and Retirement Solutions business, sees driving the individual life and annuities industries in 2013.
"With the realities of today's economic climate and our society's evolving demographics, we see continued interest in financial solutions that offer a level of predictability - whether that's in the form of a death benefit, a living benefit, asset protection, or the elimination of the 'use it or lose it' risk of some products," said Konen. "As the industry works to deliver on these consumer demands, we believe 2013 is primed to see the development of many unique solutions, while also seeing some once-popular products and features reemerge in cases of 'what's old is new again.'"
Among the 2013 trends that we may see:
Innovation and Non-Traditional Life Insurance Solutions
Today, three in ten American households are uninsured and half say they are underinsured1. Competing financial obligations, perceptions about life insurance costs, and lack of understanding about needs often prevent consumers from purchasing a policy. The low interest rate climate has further complicated the problem by making many forms of insurance more expensive / unattainable for the average American. To help bridge this gap between the public's need for life insurance and their ability to secure it, expect to see innovative life insurance alternatives emerge that go beyond the traditional offerings consumers have known. These innovations will balance financial planning needs, flexible coverage and cost efficiencies against the dynamics of today's economic climate.
Variable Universal Life Insurance
Once the industry's life insurance product of choice in the 1990s, Variable Universal Life (VUL) is primed for a comeback. By balancing death benefits with market-driven cash value potential, VUL products can help consumers financially protect their loved ones, while also providing a potential source of supplemental income to keep pace with life's changes. This combination of features in a single solution can be very compelling during these uncertain times.
Life Combination Products: Flex Pay Premiums, Younger Clients, ABRs
With an estimated 70 percent of people turning age 65 expected to have a long-term care need2, life combination products continue to rise in popularity as alternatives to traditional standalone LTC solutions that carry a "use it or lose it" risk. As this trend continues, expect to see increasing interest in linked-benefit products with LTC riders offering premiums that can be paid over several years. Linked-benefit products with LTC riders have historically appealed to older clients with substantial savings and the ability to pay a lump sum. However, the option to spread premiums over time offers younger clients in their pre-retirement years and still accumulating assets, the opportunity to plan for and protect against the financial impact of a Long Term Care event.
As the combination space evolves, also expect to see increasing demand for life insurance solutions with Accelerated Benefit Riders (ABR). While linked-benefit products with LTC riders are designed for those clients primarily concerned with long term care, ABRs serve a growing market demand for clients who have a primary need for death benefit protection, but are also concerned about the impact that a permanent chronic or terminal illness may have on their financial well-being.
Annuities: Guaranteed Living Benefits, Risk Management Strategies, Tax Deferrals
Americans today face the strong possibility of outliving their retirement assets. This will continue to drive the popularity of Guaranteed Living Benefit (GLB) riders with annuities, as they provide clients a minimum guaranteed lifetime income stream that doesn't require them to give up control of their assets. With this trend, expect to see providers place added emphasis on risk management strategies built into the products and their benefits. These strategies are designed to reduce equity risk during volatile markets and lead to a more consistent pattern of returns. The goal is to protect clients' account values and encourage them to remain invested, which over time may increase the probability of growth for retirement income. These risk management strategies also enable companies to continue providing compelling GLBs.
With the recent changes to the tax landscape, particularly among the affluent population, also expect to see a renewed emphasis on the tax deferral aspect of annuities. Because annuity assets accumulate tax-deferred, there are no tax consequences until clients take money from their contract, often at lower tax rates occurring during retirement, making this annuity value proposition more attractive to clients in 2013.
Variable products are sold by prospectus, which contains the investment objectives, risks, and charges and expenses of the variable product and its underlying investment options. Investors need to read the prospectus carefully before investing.
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $178 billion as of December 31, 2012. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life, disability and dental insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.
- LIMRA, Facts from LIMRA, Life Insurance Awareness Month, September 2012
- Peter Kemper, Harriet L. Komisar, and Lisa Alecxih; "Long-Term Care Over an Uncertain Future: What Can Current Retirees Expect?" Winter 2005/2006
SOURCE Lincoln Financial Group
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
May. 29, 2015 01:15 PM EDT Reads: 3,042
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 29, 2015 01:00 PM EDT Reads: 7,492
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
May. 29, 2015 01:00 PM EDT Reads: 4,739
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 29, 2015 01:00 PM EDT Reads: 2,443
Thanks to widespread Internet adoption and more than 10 billion connected devices around the world, companies became more excited than ever about the Internet of Things in 2014. Add in the hype around Google Glass and the Nest Thermostat, and nearly every business, including those from traditionally low-tech industries, wanted in. But despite the buzz, some very real business questions emerged – mainly, not if a device can be connected, or even when, but why? Why does connecting to the cloud create greater value for the user? Why do connected features improve the overall experience? And why do...
May. 29, 2015 12:42 PM EDT Reads: 500
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participa...
May. 29, 2015 12:30 PM EDT Reads: 1,284
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
May. 29, 2015 12:15 PM EDT Reads: 1,591
Imagine a world where targeting, attribution, and analytics are just as intrinsic to the physical world as they currently are to display advertising. Advances in technologies and changes in consumer behavior have opened the door to a whole new category of personalized marketing experience based on direct interactions with products. The products themselves now have a voice. What will they say? Who will control it? And what does it take for brands to win in this new world? In his session at @ThingsExpo, Zack Bennett, Vice President of Customer Success at EVRYTHNG, will answer these questions a...
May. 29, 2015 12:13 PM EDT Reads: 549
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
May. 29, 2015 12:00 PM EDT Reads: 2,652
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
May. 29, 2015 11:00 AM EDT Reads: 4,449
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
May. 29, 2015 11:00 AM EDT Reads: 6,145
The multi-trillion economic opportunity around the "Internet of Things" (IoT) is emerging as the hottest topic for investors in 2015. As we connect the physical world with information technology, data from actions, processes and the environment can increase sales, improve efficiencies, automate daily activities and minimize risk. In his session at @ThingsExpo, Ed Maguire, Senior Analyst at CLSA Americas, will describe what is new and different about IoT, explore financial, technological and real-world impact across consumer and business use cases. Why now? Significant corporate and venture...
May. 29, 2015 10:50 AM EDT Reads: 628
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
May. 29, 2015 10:00 AM EDT Reads: 3,665
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
May. 29, 2015 10:00 AM EDT Reads: 5,835
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
May. 29, 2015 09:45 AM EDT Reads: 1,068
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, will analyze how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Pay...
May. 29, 2015 09:36 AM EDT Reads: 643
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
May. 29, 2015 09:00 AM EDT Reads: 5,653
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 29, 2015 09:00 AM EDT Reads: 3,252
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
May. 29, 2015 08:00 AM EDT Reads: 6,311
The world is at a tipping point where the technology, the device and global adoption are converging to such a point that we will see an explosion of a world where smartphone devices not only allow us to talk to each other, but allow for communication between everything – serving as a central hub from which we control our world – MediaTek is at the heart of both driving this and allowing the markets to drive this reality forward themselves. The next wave of consumer gadgets is here – smart, connected, and small. If your ambitions are big, so are ours. In his session at @ThingsExpo, Jack Hu, D...
May. 29, 2015 07:45 AM EDT Reads: 1,260