The Ultimate Win-Win: What An IRA Does for You and Your Donor
A Qualified Charitable Distribution (QCD) is a powerful tool that allows IRA owners to donate directly to qualified charities, bypassing the usual tax implications of IRA distributions.
Despite technological advancements like automated underwriting and attractive user experience (UX) platforms, life insurance products, especially term products, are still perceived as commodities by agents and luxuries by consumers, particularly during inflationary times. To overcome these variables, more effectively reach the mass market and make the sales and purchase of life insurance more compelling, life insurers should add complementary products that enhance the overall value proposition to agents and consumers. One smart choice is bundling life insurance with online estate planning. Let’s explore how life insurers can benefit from this strategy, backed by statistics on the current state of Americans’ life insurance and estate planning coverage.
Consumers in 2024 face a dual “protection” challenge: many lack sufficient life insurance coverage, and a significant percentage don’t have an up-to-date will.
These statistics highlight a critical gap in both life insurance coverage and estate planning. By addressing these gaps simultaneously, life insurers can offer a more comprehensive solution that meets the needs of their target audiences.
Online estate planning suites are an innovative solution that simplifies the process of creating and managing a will and other affiliated documents like an advance health directive and financial power of attorney (POA). They offer several benefits that make them an attractive complement to life insurance products:
To successfully integrate online wills with life insurance products, insurers should consider the following strategies:
Integrating online wills with life insurance products offers several benefits for insurers:
The life insurance industry faces significant challenges in reaching the mass market and addressing the perception of life insurance as a commodity or luxury. By adding complementary products like online wills, insurers can enhance their value proposition and offer a more comprehensive solution that meets the needs of their target audiences.
Digital wills provide accessibility, convenience, and cost-effectiveness, making them an ideal complement to life insurance products. Through strategic partnerships, education and awareness campaigns, bundled offerings, seamless user experiences, and customized solutions, life insurers can effectively integrate online wills into their portfolios. This integration can drive increased sales, enhance brand differentiation, expand market reach, and improve customer satisfaction.
As the landscape of financial and estate planning continues to evolve, embracing innovative solutions like LifeLegacy’s online estate planning suite will be essential for life insurers to remain competitive and relevant. By offering a holistic approach that addresses both life insurance coverage and estate planning, insurers can provide greater value to their customers and secure their long-term success.
To schedule an exploratory meeting to see if LifeLegacy can help you meet your business development and persistency goals, book a time with Craig Simms, LifeLegacy’s Head of Partnerships.
Head of Partnerships
Craig@lifelegacy.io
A Qualified Charitable Distribution (QCD) is a powerful tool that allows IRA owners to donate directly to qualified charities, bypassing the usual tax implications of IRA distributions.
Encouraging donors to give from their IRA is a creative way for a donor to give with impact and save on taxes. The impact is the same whether a donor gives from their bank account or their IRA. A QCD gift is a win-win!
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