Earvin "Magic" Johnson — an NBA Hall of Fame basketball legend — is helping an aging tech firm enter the long-term care benefits market.
EquiTrust Life Insurance Company, a life insurer controlled by Johnson's Magic Johnson Enterprises, teamed up with Assured Allies this week to introduce the Bridge annuity contract.
The product is a non-variable indexed annuity with a built-in long-term care rider, and a built-in wellness program. Clients who participate in the NeverStop health coaching program can earn extra long-term care benefits.
What It Means
Insurers, tech companies and investment firms know your clients need more help with long-term care planning, and they have products in the pipeline.
The Players
EquiTrust is a Chicago-based life insurer that was once a subsidiary of FBL Financial Group.
In 2011, FBL sold the company to investment firm Guggenheim Partners. Magic Johnson Enterprises bought a controlling stake in 2015.
EquiTrust has $26 billion in assets. It reported $150 million in net income for the first quarter on $503 million in revenue, according to a statement filed with state regulators.
Assured Allies is a Boston-based company that started up in 2018. It analyzes older people's health conditions and offers recommendations for maximizing their independence.
Assured Allies has raised $43 million in funding from an investor group that includes Wilton Re, according to Gallagher Re.
The Product
The Bridge annuity is available to people ages 55 through 80, with a $50,000 minimum premium and a first-year coverage maximum of $1 million, and benefits payable monthly for 60 months.
