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IOL News
28-06-2025
- Business
- IOL News
The hidden risks of life insurance policies
Discover the surprising truths about life insurance policies, including why they may become less valuable over time and how to ensure your family's financial security. Image: Pixabay Economist Azar Jammine did a little bit of investigative work recently, reviewing a life insurance policy. What he found was rather astonishing: it would pay more for the policy owner to die now because, in about a decade, the premiums paid would amount to more than the value of the policyholder's life in terms of the policy – the sum insured. Jammine, director and chief economist at Econometrix, tells Personal Finance that, in the case of this policy taken out in 2002, this is because the cost of the monthly debit order increases each month, yet the amount someone has insured their life for doesn't. Denise Gabriels, Lead Ombud at the Life Insurance Division in the National Financial Ombud Scheme, said that her office had received some complaints that mirror this issue. Between the late 1980s to early 2000s, insurance in the form of Universal Life policies, which were sold, which Gabriels said were based on a guaranteed period during which time premiums didn't go up, and then they would, either yearly or through an immediate steep increase. Gabriels added that, as the risk of dying increases, so does the cost of life cover. In cases where policies are 'age-rated, the premiums will go up while the cover amount could well stay the same, Wayne Mostert, MD of ASI Wealth, explained. In certain policies, especially permanent ones like whole-life or investment-linked life cover, it's possible to reach a point where you've paid more in premiums than the value you'd get out, he told Personal Finance. Izak van der Westhuizen, chief financial officer at BrightRock, pointed out that the younger you are, the healthier you tend to be, so your premiums will be lower because of a lower risk of claiming. Mostert added, 'Locking in a good rate in your 20s or 30s can save you a lot of money over time. Also, life has a funny way of throwing big responsibilities at us when we least expect it.' Only those who die young, it seems, are worth anything (and also good, based on one of Billy Joel's better-known songs). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Taking all of this into consideration, it may seem like life policies become worthless as you age, hinting at it being a better idea to invest in unit trusts. Yet, they are still an important part of a financial toolkit. Mostert said this concept, of taking the amount you would've spent on premiums and investing it in a unit trust or savings account, may seem good on the surface. 'But there's a catch: investment alone doesn't replace your income if you pass away unexpectedly. You might have some growth over the years, but if you died next week, your family would have only what you've saved – not the R1 million or more that a life policy might have paid,' Mostert said. Van der Westhuizen added that, while there is a chance something might not happen to you, 'you're paying the premium in case it does, much like with a short-term insurance policy. Your car might never get stolen or damaged, but you pay the premium in case it does.' Greg Smith, who is both co-founder and co-CEO of Dis-Chem Life, says: 'Without adequate cover, the financial ripple effects can be devastating. Families often struggle to afford essentials like daily living expenses, school fees or even maintaining their home. In contrast, having appropriate cover in place can provide a buffer of financial stability in times of crisis.' Mostert also noted that some other uses for life insurance are in business settings to protect partnerships or key staff members, such as enabling them to buy out the rest of the business. 'Some people even use it as security, or collateral, when applying for a bond. So yes, it goes beyond just death cover,' he says. However, death, like taxes, is inevitable. Pointing to US-based medical research centre National Institutes of Health data, which shows that 20% of deaths among South Africans aged 35 to 64 are caused by chronic diseases linked to lifestyle conditions, Smith said that the risk of death wasn't theoretical. Mostert added that many life policies in South Africa offer optional dread disease cover. 'This pays out if you're diagnosed with a serious illness like cancer, a heart attack, or a stroke. The money is usually paid as a lump sum and can be used for anything: from medical bills to helping you take time off work or even going on a bucket list trip if that's what you need,' he explained. There's also disability cover, which replaces your income if you can no longer work due to illness or injury, for example, said Mostert. Van der Westhuizen says a comprehensive life insurance policy should include income protection (temporary and permanent disability cover), critical illness cover, and death cover. 'Different types of cover protect different things, so a well-structured policy should include all of them,' it said. Worth noting is that, by law, insurers must hold a certain amount of capital to honour their claim obligations to all their clients, Van der Westhuizen says. 'To comply with these capital requirements, insurers must use certain investment vehicles. Our regulators strictly govern and enforce these requirements and the rules around how these funds are invested to ensure their protection.' Above all else, read the fine print and speak to a financial advisor is a message that always comes through clearly from Personal Finance's experts. PERSONAL FINANCE
Yahoo
12-06-2025
- Business
- Yahoo
Universal Life Insurance Industry Report 2025: Embedded Insurance Models in Wealth Management Platforms Drive Adoption
This report offers a comprehensive analysis of market trends, drivers, and forecasts, highlighting the impact of recent global tariff developments. Universal Life Insurance is becoming popular as a flexible wealth protection strategy, appealing for its adaptable premiums and investment-linked savings potential. The report delves into the digital transformation in policy delivery and regulatory trends shaping product structures. Key insights include the growth of Indexed Universal Life Insurance, projected to reach US$58.6 Billion by 2030. Universal Life Insurance Market Dublin, June 12, 2025 (GLOBE NEWSWIRE) -- The "Universal Life Insurance - Global Strategic Business Report" has been added to global market for Universal Life Insurance was valued at US$63.7 Billion in 2024 and is projected to reach US$95.3 Billion by 2030, growing at a CAGR of 7% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Universal Life Insurance market. Why Is Universal Life Insurance Gaining Traction as a Flexible Wealth Protection Strategy?Universal life insurance (ULI) has steadily gained ground among consumers seeking both long-term financial protection and investment-linked savings potential. Unlike term or whole life insurance, ULI offers flexible premiums, adjustable death benefits, and a cash value component that earns interest over time. This hybrid functionality allows policyholders to tailor their coverage as life stages or income situations evolve - making it an attractive choice for individuals, families, and business owners. As global financial literacy increases and consumers take a more active role in financial planning, demand for products that combine insurance with tax-deferred savings is rising. In developed economies, ULI is being used for estate planning, retirement income supplementation, and inheritance management. In emerging markets, rising disposable income and a growing middle class are expanding the customer base for life insurance products with long-term wealth-building features. The increasing volatility in job markets and healthcare costs is also driving consumers to seek customizable insurance instruments that provide more than just fixed-term Are Digitalization and Fintech Partnerships Transforming Policy Delivery and Engagement?Digital transformation is reshaping the way universal life insurance is marketed, purchased, and managed. Online policy illustrations, AI-driven financial needs assessments, and robo-advisory tools are improving customer education and reducing friction in the buying process. Insurers are integrating ULI products into mobile-first platforms where consumers can compare, customize, and purchase policies in real time. Moreover, digital payment gateways and automated underwriting are making premium collection and risk assessment faster and more accurate, particularly in younger and tech-savvy demographic segments. Insurtech partnerships are also driving innovation in data analytics, helping providers create dynamic policies that respond to real-time financial behavior, health tracking data, or market performance. Policyholders can now view their cash value growth, adjust premiums, or initiate loans against policies directly through self-service portals. These digital enablers are expanding access, improving transparency, and making ULI policies more interactive, which enhances engagement and retention rates across a broader spectrum of Regulatory, Investment, and Economic Trends Are Shaping Product Structure and Distribution?Universal life insurance is increasingly being influenced by regulatory oversight around transparency, disclosure, and consumer protection - particularly with regard to fees, interest crediting, and policy illustrations. In North America and parts of Asia, new standards such as the NAIC's AG 49-A guideline are setting tighter limits on hypothetical performance projections, compelling insurers to present more realistic scenarios. Investment-linked ULI policies are also affected by financial market fluctuations, as cash value returns are often tied to interest rates or indexed performance. As central banks adjust interest rates in response to inflation, insurers are recalibrating policy pricing and minimum guaranteed returns. Economic uncertainty and rising demand for low-volatility savings options are pushing providers to develop fixed interest or guaranteed universal life variants, targeting more risk-averse segments. On the distribution front, insurers are diversifying beyond traditional agents and brokers to digital aggregators, bancassurance partnerships, and workplace benefit platforms - widening the product's accessibility and appeal across socio-economic groups and life ScopeThe report analyzes the Universal Life Insurance market, presented in terms of market value. The analysis covers the key segments and geographic regions outlined Type (Indexed Universal Life Insurance, Variable Universal Life Insurance, Guaranteed Universal Life Insurance) Distribution Channel (Direct Sales, Brokers / Agents, Other Distribution Channels) Key Insights: Market Growth: Understand the significant growth trajectory of the Indexed Universal Life Insurance segment, which is expected to reach US$58.6 Billion by 2030 with a CAGR of a 8.2%. The Variable Universal Life Insurance segment is also set to grow at 4.8% CAGR over the analysis period. Regional Analysis: Gain insights into the U.S. market, valued at $17.3 Billion in 2024, and China, forecasted to grow at an impressive 11.1% CAGR to reach $20.1 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific. Report Features: Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030. In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa. Company Profiles: Coverage of players such as AIA Group, Allianz SE, Aviva plc, AXA, China Life Insurance Company and more. Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments. Tariff Impact Analysis: Key Insights for 2025Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and Attributes: Report Attribute Details No. of Pages 276 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $63.7 Billion Forecasted Market Value (USD) by 2030 $95.3 Billion Compound Annual Growth Rate 7.0% Regions Covered Global Key Topics Covered: MARKET OVERVIEW World Market Trajectories Universal Life Insurance - Global Key Competitors Percentage Market Share in 2025 (E) Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E) FOCUS ON SELECT PLAYERS Some of the 39 companies featured in this Universal Life Insurance market report include: AIA Group Allianz SE Aviva plc AXA China Life Insurance Company Corebridge Financial Guardian Life John Hancock Lincoln Financial Group Manulife Financial MetLife National Life Group New York Life Insurance North American Company Pacific Life Penn Mutual Life Insurance Protective Life Prudential Financial Sun Life Financial Transamerica Corporation MARKET TRENDS & DRIVERS Rising Demand for Flexible Insurance Solutions Drives Growth of Universal Life Policies Aging Population and Wealth Transfer Needs Expand Addressable Market Opportunity Integration of Digital Platforms and Robo-Advisors Strengthens Business Case for Policy Customization Regulatory Reforms in Financial Advisory Services Drive Market Transparency and Growth Interest Rate Volatility and Inflation Risk Throw the Spotlight on Investment-Linked Policies Tax-Efficient Wealth Planning Needs Spur Demand for Indexed Universal Life Products Increasing Financial Literacy Among Millennials Generates Long-Term Policy Demand Embedded Insurance Models in Wealth Management Platforms Drive Adoption ESG Investing Trends Create Demand for Sustainable Policy Fund Options AI-Based Underwriting and Customer Insights Propel Innovation in Product Design Cross-Border Estate Planning Complexity Expands Opportunities for Premium Universal Life Products Life Expectancy Improvements Sustain Long-Term Value Proposition of Lifetime Coverage For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Universal Life Insurance Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Yahoo
20-05-2025
- Business
- Yahoo
Coventry Surpasses $100 Million in Enhanced Cash Value
FORT WASHINGTON, Pa., May 20, 2025 /PRNewswire/ -- Coventry today announced that it has exceeded more than $100 million in Enhanced Cash ValueSM (ECVSM) since the program launched, signaling extraordinary demand from advisors and policyowners seeking a faster and more beneficial alternative to the cash surrender value offered by life insurance carriers. "The momentum we've seen so far is remarkable," said Reid Buerger, CEO of Coventry. "Enhanced Cash Value is delivering exactly what the market needed: speed, simplicity, and certainty. We've seen top advisors, as well as leading BGAs and IMOs mobilize around this opportunity, helping their clients access significantly more than cash surrender value while opening new revenue streams and strengthening client relationships." Enhanced Cash ValueSM offers a fast, frictionless path to unlocking greater value than policyowners would otherwise receive from the cash surrender value in their Universal Life policies, without the need for medical records or underwriting. Coventry can provide ECVSM valuations in 24-48 hours, and most policyowners can access their ECVSM in five days or less. "Although it's helpful for agents and policyowners to understand cash surrender value, it's even more important–and beneficial–that they understand Enhanced Cash Value," added Buerger. "ECV may be one of the most important advancements in financial services in over a decade." To learn more about Enhanced Cash ValueSM, visit About CoventryFor over 35 years, Coventry has been redefining insurance. By uniquely bridging insurance and capital markets, Coventry created the secondary market for life insurance and pioneered the resulting life settlement industry. Coventry has completed over $45 billion in longevity-linked transactions, opening a wealth of opportunity for consumers, financial professionals, and institutional investors alike. To learn more about Coventry, please visit View original content: SOURCE Coventry Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
09-04-2025
- Business
- Associated Press
Amplify Life Insurance teams up with EMC Life to unveil Prosper IUL, a permanent life insurance product and platform designed for digital-first consumers and agents
SAN FRANCISCO, April 9, 2025 /PRNewswire/ -- Amplify Life Insurance, a leading digital platform revolutionizing wealth-building through permanent life insurance, and EMC Life, a provider of life insurance, have announced the launch of Prosper IUL ('Prosper'), an Indexed Universal Life (IUL) product designed to meet the needs of today's digital-first consumers. Prosper reimagines how permanent life insurance is purchased where consumers can apply, qualify, and activate their IUL policy in as little as ten minutes. Through Prosper's end-to-end digital onboarding system, qualifying applicants receive an instant acceptance decision. The entire process takes place within a single, fully automated, consumer- and agent-friendly platform. By simplifying and modernizing the purchasing experience, Prosper ensures that everyday consumers can access a wealth building life insurance vehicle that's often used by the high-net-worth segments and large institutions. Amplify's mission is to help modern, digital-first customers address gaps in their financial planning, protect their families, and build multi-generational wealth. Delivered through a streamlined and engaging experience, Amplify's platform brings permanent life products to the younger mass-affluent market. By adding Prosper to its platform, Amplify is able to accelerate this mission by offering consumers options tailored to their preference—whether individuals choose to build their own plan or work with a licensed agent. This platform expansion also enables Amplify to provide ongoing value at key moments throughout a policyholder's lifetime. Prosper is the first IUL of Amplify's proprietary suite of products specifically designed to address diverse customer needs and use cases. 'We're thrilled to launch Prosper, in partnership with EMC Life. It expands our platform and product offerings, and enables us to better serve customers seeking long-term financial protection while setting the foundation for delivering ongoing value to them and their families,' said Lu Ma, Chief Operating and Strategy Officer for Amplify. 'Through our partnership with Amplify, a digital life insurance agency, we're offering a groundbreaking product and superior experience for customers,' said Paul Rivard, EVP – Chief Growth Strategy and Innovation Officer for EMC Life. 'This collaboration supports our mission to improve lives. Together, we've raised industry standards and created a solution that truly impacts people. We're excited to see the Prosper product fulfill consumer needs and our partnership grow.' This launch represents more than just a new product, it's a strategic alignment between Amplify and EMC Life to drive innovation. This partnership underscores a commitment to delivering next-generation financial products that empower individuals to build wealth and secure their financial future through digital and hassle-free experiences. The collaboration between these two companies reflects a shared goal: to simplify purchase journeys, modernize customer experiences, and deliver insurance solutions that create real value for today's consumers. About Amplify Life Insurance Amplify is the first digital permanent life insurance platform offering customers direct access to products where you access tax-efficient investment returns and obtain lifelong protection. It's founded by serial entrepreneurs with industry and technology expertise looking to modernize the $1.1T permanent life insurance industry. Amplify provides an educational journey, product recommendation and quoting, and real-time pre-underwriting to help customers learn about plans and customize a policy for their needs. Launched in 2020, Amplify aims to help customers achieve health and financial wellness. Based in the San Francisco Bay Area, Amplify is open to all 50 states and has served thousands of customers. About EMC Life Based in Des Moines, Iowa, EMC Life is an affiliate of EMC Insurance. EMC Life offers quality life insurance products for the individual and workplace markets through independent agents and distribution partners.
