The Aging of the Baby Boomer Generation has an Enormous Effect on Federal and State Budgets

Presented by Leonard Berthelsen

It was only a matter of time before the effect of the aging of Baby Boomers hit the Federal & State budgets. With less than 10% of this class of folks owning long-term care insurance, it has become necessary for the Federal Medicare and Medicaid system to review their budgets but also review what they are approving for payment.

The big challenge that the federal government faced when trying to find ways to rein in some of these costs was that they were being looked at as being a heartless bureaucratic entity. By putting some of the burden back on the consumer for payment of services, they are scrutinizing those services and in many cases simply saying no to services altogether. That hasn’t set well with this generation of folks. The government was accused of developing “death panels”, as they were called, to try to rein in some of these expenses by considering the likelihood of patients’ recovery and ongoing quality of life. Medicare & Medicaid are jointly spending trillions of dollars every year and there is no light at the end of this tunnel. As a class of people, we are living longer, yet dying slower with health issues that are expensive to treat.

It would be great if our government would pay whatever was needed to provide medical services for anything and everything that could medically go wrong. However, we know that is not practical or sustainable. Yet we still want the best care, by the best trained medical staff and at the lowest cost. Somewhere, something had to give.

The Medicare and Medicaid system are in fact taking a hard look at rehab invoices and home health care bills. If the facility or provider is not following the letter of the rule, then Medicare and Medicaid will choose not to pay for the services. It then becomes the responsibility of the patient to pay out of pocket for this care. This could be several hundred dollars to several thousand. Medicare is allowing hospitals to admit recipients for non-emergency admissions under the term “observation” instead of full admission, thus putting more of a financial burden on the patient.

What can you do to help your clients? Certainly, long-term care insurance will help tremendously with the outpatient side of the medical expenses. Also such plans as Recovery Care, Hospital Confinement & Home Care coverage will fill in the voids that we are seeing being created by both Medicare and Medicaid as they struggle to make their budgets work. Having the patient be more in-tune with what is actually being charged for those services certainly makes the government feel like they are being better stewards of our tax dollars than what we have seen from them in the past.


Presented by Deb Strong

Baby boomers are learning about the importance of securing guaranteed lifetime income, and with the help of their agents they are reaping the benefits of a secure retirement. As more and more boomers approach retirement age and obtain annuities to cover their basic expenses, this demand, coupled with increasing life expectancies can have a dramatic effect on payout rates for future purchasers.

Coming up in January of 2016, insurance carriers will be using 2014 Mortality tables, versus the 2000 Mortality tables. We will be seeing a 2.4 percent increase in life expectancy with a 65 yearold male.  And we will see a 2.8 percent increase in life expectancy with a 65 yearold female.  You may be asking yourself right now how this is going to affect insurance companies and ultimately, the consumer.  Because these updated mortality tables will be adjusted to properly reflect longer life spans, insurance companies may have no choice but to lower their payout rates.

The bottom line is, even though people may be asking themselves why they should buy an annuity in today’s low interest rate environment, I would challenge them by saying that today’s rates are not low, but instead the new rates.  Today’s rates could be the highest you see for  a very long time. They are a longevity credit play. 

We will more than likely, see payout rates drop in 2016; some insurance carriers may lower the rollup rates, others may adjust the factors used when turning on income or when annuitizing.  But, mark my words, we will see changes next year.  How are you equipped to handle this when your clients start asking you questions about their future income?  And certainly, you don’t want them to be caught off guard when they find out next year that they could have had a greater opportunity if their advisor would have told them in 2015.  There is no time like the present to help your clients lock in a good payout rate today!  Consider this concept: if you’ve had clients that are reluctant to get started, then have them start a contract, such as those offered through American Equity, with a deposit of $5,000 (or similar) today.  That locks them into current payout rates and allows them to make future deposits under the same rates!   

We can help find the right carrier and product to match their needs!

Are you working with Matures, Boomers, Gen X or Millennials?

Presented by Jim Linn

Depending on your business, you could work with some, all or one of them specifically.  Today, your clients are not a one size fits all selling process.  What works for one, may not work for the others.  Knowing about the market you are working in and the selling tactics related to that market can help you produce more favorable results.  To give you an example:  Who has a teenage child (part of the youngest Millennial generation)?  Have you ever tried calling them only to get their voice mail or the recording that they don’t have their voice mail setup?  However, you text them and get an instant response.  Knowing their preferred method of contact will greatly increase your odds of securing an appointment.  There are countless studies that have been completed on generational sales and marketing.  I had the opportunity to listen to a presenter that has worked in this area for 18 years and provided valuable insight.  Click on the link below for information and videos relating to Generational Marketing

What Social Security Seminars can do for YOU – Part 1

Presented by Brian Leising

Some things are better together, like peanut butter and jelly, nuts and bolts, I’m sure you’ve seen the commercials. I want to talk about two types of people that go better together: baby boomers nearing retirement age and insurance producers looking for new clients.

Do any of these problems apply to you? You have trouble seeing enough new people every year. You are tired of cold calling and the low response rate on your direct mail pieces. You are not internet-savvy enough to prospect via social media. You are not getting enough referrals. You are looking for new ways to get in front of qualified prospects to sell annuities, life insurance and long term care.

While there is no magic bullet to get in front of more people, this system may be close. Social Security seminars are driving new prospects in the door and here’s why: Every day 10,000 people turn 65 in the United States. Imagine the number of people closing in on that age, staring retirement in the face. There is a huge demand for knowledge regarding retirement income planning. People are wondering “how long will my money last?” Not all are getting the help they need. Big money managers don’t want to take the time to help the average Joe. The trouble is, America is mostly made up of average Joes.

Average Joe also has a deadline. He knows he has to make a decision on Social Security. Whether it’s the Federal government’s age-based deadline or his own desire to retire by a certain age, he has a deadline. People act when they have a deadline. Who’s going to help them? You are.

Check back next week to learn how.

10,000 Boomers to retire each day!

Presented by Richard Mangiameli

Over the next 19 years that’s 64,850,000 boomers trying to figure out how to take the most advantage of their financial investments. Here are some key points: Boomers are internet savvy and are searching for help. You need to have a presence on the internet using all the different types of Social Media. Have your own website; Understand the top three selling annuities and companies – get appointed with each. Talk about pay checks for their living expenses and play checks for their enjoyment during retirement.