Why Corebridge Embraces Term Life

Mostly what this interest rate environment means is pricing improvements, and that's especially important since so many consumers tend to overestimate the price of coverage.

Life insurance providers have been able to take advantage of the current moment in many of the same ways as our colleagues in annuities, resulting in many customers paying lower premiums as we write new business, as well as strong cap and participation rates with cash values that could increase more quickly.

So, if your clients come into your office ready to talk annuities, you can also use the moment to review their entire financial plan.

Pre-retirees who want to lock in income and protection with annuities may be surprised to learn that some life insurance can help with retirement income from policy values, while providing insurance protection at the same time.

How do you see the industry adapting to the needs and preferences of millennials and members of Generation Z?

Younger generations are looking for quick answers and quick results, and rightly so.

For their entire lives, Gen Z and millennials have been able to source product information on demand. To match this, our industry must bring digital and online tools that meet these demographics how and where they want to be met. More than that, we need to make the whole process faster and easier.

There are two important points of focus: first at application, and second at underwriting and approval.

As much as possible, the application process should be streamlined and flexible. Some clients will want to handle everything on their own, but others will want to have their insurance agent take them through the application.

Either way, the process needs to be able to happen quickly, and the same is true for how long it takes for applicants to learn whether their policy will be issued.

Corebridge has been working to automate certain underwriting reviews to make decisions on applications without human intervention, and, for the 12 months ended March 31, we reached a decision on over 60% of all underwriting applications on an automated basis.

Even with these advances, there's a critical role for the financial professional.

Individuals generally purchase their first life policy at an important life moment — after a wedding, when a child is born or when a new home is bought.

Life insurance should be thought of as a cornerstone in a solid financial plan, and financial professionals can make this coverage the starting point for a larger conversation.

We've just gone through the worst pandemic in a century. Have any moments of what you heard or saw about the payment of death benefits stayed in your memory?

Even after decades in the life insurance business, I am always careful to pause and think about what it means for a family to lose someone.

I hear stories of families who suffer a terrible loss but, at least from a financial perspective, they are able to continue living the life they planned. They can stay in the family home, they can afford to pay for their children's college, they can handle important monthly expenses.

Life is never certain, and risks are still out there. We need to make sure that it doesn't require a global emergency to get people thinking about life insurance.

Financial professionals and insurance agents should explain the important role that protection plays in a larger financial plan.

And lives change, so revisit existing coverage to make sure the protections in place still make sense for your client and their family.

Tim Heslin. Credit: Corebridge Financial