THE ROSENTHAL AGENCY, INC.
MIAMI, FLORIDA

– Although most Americans have a strong understanding of the primary need for life insurance within their financial strategy – particularly the death benefit that provides monies to family/loved ones upon death of the insured – many are unaware of the additional living and tax benefits that may be available through permanent life insurance. According to the 2018 Life Insurance Needs Survey* from Allianz Life Insurance Company of North America ( ), nearly nine in 10 people (88%) understand the death benefit component of permanent life insurance, yet more than half (51%) are unsure or don’t believe cash value from permanent life insurance can be used to help fund college education, supplement retirement income or assist with other financial needs. Furthermore, a full two-thirds (66%) are unsure or don’t believe benefits paid from life insurance are not taxable. These misconceptions exist despite the fact that consumers place high value on financial products that can provide these very benefits. When asked what they find most valuable in financial products, 85% of respondents said one that “provides a source of tax-free income in retirement,” followed by 78% who value one that “provides tax-free money for family/loved ones” and 68% who want a product that “provides the ability to use the funds to pay for college.” While life insurance is not a college funding vehicle and does not provide a source of guaranteed income in retirement, it does provide the opportunity to accumulate cash value. Any cash value in a life insurance policy can be accessed through policy loans and withdrawals income-tax-free that can help supplement retirement income or complement a college funding strategy. The survey, which questioned Americans between the ages of 35-60 with an annual household income of $100,000 or more, also found that three-quarters of people who work with a financial professional are discussing sources of tax-free retirement income with their professional. Additionally, a full 70% discuss ways to fund their child’s college education and more than half (52%) talk about financial products that offer low/no interest loans against its cash value. Permanent life insurance is an option that could help meet all of these needs; however, fewer than half of those with a financial professional have permanent life insurance and one-quarter don’t currently have it, but would like to learn more about it. “Nearly 95% of respondents in our survey said the ability to save enough to retire comfortably was a top priority when planning for their financial future. Americans need a diverse mix of financial products to help them achieve that goal,” added Wellmann. “It’s imperative that all financial professionals have access to a variety of innovative options that can help their clients add both protection and opportunity to their long-term financial strategy.” Voya Not Sure About Keeping Its Life Business Voya says it will have to shed its annuitiies before evaluating its individual life business. Voya Financial will decide the fate of its individual life business once it sheds its annuities, company executives said Wednesday. Wall Street analysts had sought guidance and clues from the New York-based asset management and retirement company about the future of its life insurance business. Voya Financial disclosed in December that it would sell its closed block of variable annuities (CBVA) and its portfolio of fixed and fixed indexed annuities as the company concentrates on the asset management and benefits business, which is more profitable. As part of that announcement, the company said it would conduct a review of its individual life business. Overhead in the life insurance business “will be a consideration as we think about what we’re going to do. But it’s a little early for us to get into those kinds of details,” said Voya CFO Mike Smith in a call with analysts on Wednesday. “I think as we get to clarity around where we are going to go, and that should happen in the next few months, then we’ll give you a better sense of how that could flow through when we are there,” Smith said. New Buffered VA Product on Ice Voya’s annuity business is combined with the individual life business so once the two businesses are disentangled and the annuity business sale is completed, Voya will have an opportunity to take a new look at the life business, executives said. “We’re looking at a number of strategic paths and really the strategic fit of the individual life business as part of Voya,” said Carolyn Johnson, CEO of Annuities and Individual Life. Voya, which late last year announced plans to launch a buffered variable annuity in 2018 and brand it as Voya Ascend Annuity, now has “no immediate plans” to launch the product as the company prepares to sell its annuity business. The company will continue to process new business on its current annuity products until the transaction closes, the company also said in an email. Voya anticipates closing the sale of its annuity business in the second or third quarter of 2018, subject to regulatory approval, the company said. Money raised from the sale of the company’s annuity business will go toward repurchasing shares, Voya executives said. "As we begin 2018, we have a number of initiatives and priorities in place to make Voya a simpler, more valuable company that is well positioned for continued growth,” said chairman and CEO Rodney O. Martin Jr., in a news release. The company reported a fourth-quarter 2017 net loss of $3.1 billion compared to a net loss of $417 million in the year-ago period. Carrier & Product News Make young clients term sale more profitable! If you have a client under 35, can they get longer than 30 years on a true term policy? YES!!! Prudential’s Workforce 65 product goes to age 65, and can be issued to a client as young as 25 years old! So, YES, there is a 40 Year Term Available! For the fast facts on Pru WorkLife 65 CLICK...