Life Insurance
Introduction to National Life Group
By Leon Song
National Life Group® (NLG) is a trade name representing a diversified family of financial services companies offering life insurance, annuity, and investment products.
History
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In its more than 170 years, National Life has insured everyone from celebrities to working people, including passengers on the Titanic and the Hindenburg and victims of the great influenza epidemic of 1918-19.
The National Life Insurance Company was chartered by the Vermont Legislature on Nov. 13, 1848.
After a period of organization, National Life began selling policies in 1850 and it was just a matter of months before it faced its first claim.
National Life has weathered many other challenging times. The company paid more than $1 million in claims during the Spanish influenza epidemic of 1918-19 and continued to pay World War I claims at the same time.
The company evolved into National Life Group, offering a full range of financial services. In 1968, the company formed a broker-dealer affiliate, Equity Services, Inc. Eight years later, National Life acquired Sentinel Advisors, which now serves as the manager of National Life's investment portfolio that back its insurance assets. In 1996, National Life purchased the majority interest in Life Insurance Company of the Southwest (LSW), purchasing the remaining interest three years later.
Together, National Life Group’s member companies sell life insurance, annuities and investments in every state (with the exception of LSW who isn't licensed in NY) around the country.
Product and marketing
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NLG provides life insurance, annuities, retirement plans, living benefits, and other similar products for individuals, families, employers, business owners, etc.
NLG is financially strong:
· In 2019 it provided $3.3 billion in policyholder benefits, up 24% over 2018.
· Life sales of $361 million were up 17% over 2018.
· Total life insurance in force stood at $170 billion, an increase of 22% over 2018.
· Core earnings of $285 million were up 27% over 2018.
Ratings
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In 2019 NLG was ranked a top 10 life insurer as measured by sales.
A.M. BEST A (Excellent)
STANDARD & POOR'S A+ (Strong)
MOODY'S A2 (Good)
A.M. Best financial strength rating: A (Excellent), Third highest of 16.
Standard & Poor’s financial strength rating: A+ (Strong), Fifth highest of 21.
Moody’s financial strength rating: A2 (Good), Sixth highest of 21.
In May 2020, A.M. Best affirmed National Life’s ratings and its positive outlook, It has a very high rating.
Cause and Culture
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The Cause at National Life comes down to six words: Do good, Be good, Make good. Those are their corporate values and touchstone.
Its mission is keeping our promises.
Its vision is to bring peace of mind to everyone we touch.
Its culture is something it takes very seriously because when a company has a purpose driven culture, those who work there know why they do.
NLG even developed twelve Servant Leadership Tenets based on its mission, vision, and values. These tenets act as guideposts to the work it does every day.
Foundation and Social Responsibility
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NLG offers grants to nonprofits, but NLG also empowers its employees to give of their time by making it possible for them to volunteer for and donate even more to the organizations they care about. NLG is proud to support nonprofits where the employees live and work (Vermont and Texas), and also of the work empowering educators and students nationwide through Life Changer of the Year program and the National Coalition of Safe Schools. It makes a difference in many other ways too, including Do Good Fest and corporate cause: to help end childhood hunger in Vermont. $2 million dollar Foundation budget does a lot.
NLG's values extend to the environment. NLG believes its customers, agents, and employees share a commitment to living sustainably and environmental stewardship is something that we embrace. It encourages energy efficiency, renewable energy, recycling, and alternate transportation, leading toward a sustainable society. Plus, it is willing to judge ourselves with Corporate Social Responsibility Report.
It is one of the fastest growing U.S. individual life insurance companies. It is also an industry leading life insurer and #2 in Indexed Universal Life with 16% CAGR in Life sales in the past 5 years.
Life Insurance
The impact of the COVID-19 outbreak on life insurance
By Leon Song
The global pandemic of COVID-19, also known to some as coronavirus, has greatly affected our daily lives and work. Obviously, it will also have a significant impact on American life insurance and related industries.
Insurance Company Risk
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As we all know, the impact of the pandemic caused a sharp decline in our economy and made it very unstable, as well as lower interest rates, which will remain low for a long time. This undoubtedly caused the investment income of major insurance companies to decrease and the profit margins to shrink. Economic turbulence, coupled with the high mortality rate and related uncertain risks caused by this virus, the risks of major financial companies, including banks, are increasing, and insurance companies are similar. We know that insurance companies are much more stable than ordinary financial companies, such as banks, and are much more resistant to risks. Among them, National Life Group (NLG) has a history of 172 years and has been developing steadily.
In short, the COVID-19 pandemic and its related impacts are mainly reflected in the economic benefits of insurance companies and their competitiveness. On the other hand, this situation will also make more people pay attention to health and life insurance, especially products with living benefits (similar to major illness insurance). According to some industry data, the number of US life insurance applications has increased by 50% in the recent period.
Insurance Cost
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The impact of the pandemic on the economy is most directly reflected in the increase in insurance costs, such as the increase in reinsurance fees and reserves of insurance companies. Likewise, the insurance industry will take these actions to improve risk resistance and maintain a good financial situation. The increase in insurance costs has been reflected in some insurance companies modifying some of the application and underwriting conditions.
Insurance and Underwriting
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To reduce risks, some insurance companies do not accept applications from certain countries and regions, some increase Covid-19 related underwriting provisions, some adjust life insurance products, some reduce the maximum interest rate (Cap), and some have increased the premiums of individual life insurance products by 10%.
However, in order to facilitate customers, many insurance companies have successively introduced new insurance application methods such as "no need to meet and sign, electronic signature". The specific methods of each insurance company are different. Below, we will take National Life Group as an example.
National Life Group
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In particular, the National Life Group (NLG) life insurance is recommended here. It has Living Benefits and meets the requirements of the end-stage. These benefits are triggered if you experience a qualifying terminal, chronic, or critical illness. This includes any qualifying event triggered by COVID-19.
This also includes long-term care and adult daycare. In summary, optional Accelerated Benefit Riders (ABRs), offered at no-additional cost, can provide access to your death benefit during your lifetime.
Additionally, the company simplifies the insurance process. Insured people with an insured amount of less than $3 million can "remote video insurance without medical examination", and foreign students such as F1 visas can also purchase it. However, the applicant must be in the United States before the application and underwriting are approved. NLG specially developed the corresponding APP and provided it to the Agent for use, which greatly facilitated customers.
Personal assets
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It can be understood as follows: American life insurance is a safe haven for dollar assets under crisis. The significant economic changes and chain reactions triggered by the pandemic have caused snap buying of US dollars and US debt. From a global perspective, no matter how the economy deteriorates, the US dollar and US debt are the best and safest assets in the world.
In the US dollar financial product market, guaranteed and fixed income products, in addition to some claims, bank deposits, and hedging securities, are life insurance with financial management functions. Among them, the risk of hedging securities is very high, the interest rate of bank deposits is extremely low, or even zero, but life insurance is tax-free. This shows that US life insurance, as the core guarantee for asset allocation, is one of the best choices for personal asset allocation during the economic downturn.
Living Satisfied
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If you can have life insurance with living benefits in an epidemic/pandemic situation, which includes major injuries and illnesses, and chronic diseases, it is both a guarantee (protection) and ideal personal asset allocation or financial management tool, so you will certainly be living satisfied. NLG is a veteran life insurance company in the United States and is one of the few companies that can provide such products. On this topic, please read my next blog: Introduction to the National Life Insurance Group.
If you would like to learn more information, please visit our website: www.lsefinance.com. Please feel free to contact us if you have any questions.
**All examples used here for illustrative purpose only
References：
Life Insurance
Understanding the timing of getting life insurance
By Leon Song
We know life insurance is about protection and ensuring the safety of you and your family, these are always first. Financial management is second. You might ask, when is the best time to get life insurance? Let's see the effectiveness in different stages of life and what the timing of getting life insurance is.
Infancy and Childhood
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When a new baby is born or when a child is 10 years old or under, should people buy life insurance for him or her? The answer is yes. If you want more protection, or you want to save and manage money, and increase your cash after satisfying the basic quality of life, life insurance with financial management functions, such as IUL will be a very good choice. Because IUL can guarantee the bottom, is very stable, and suitable for long-term investment holding.
Buying insurance for your child is very simple and fast, and the cost is low. Generally speaking, the younger the child, the lower the premium. The specific situation of each person and family will be different, so our policy is different from person to person, different people have different designs. For example, if the monthly premium is around 200 or 300 USD (equivalent to an HOA property management fee for a good community), you can get a higher face amount of more than $500,000, often 1 million USD, and you can also cover all the benefits.
The general rule is that the younger the children, the cheaper the premium, and the longer the accumulated cash value rolls over, the more obvious the leverage effect is. Therefore, the wealth accumulated by the insurance policy is relatively large, which makes it easier to help children realize their wishes and dreams at all stages of life. For instance, your child's insurance policy can help pay for various education expenses, especially college tuition, wedding expenses, their first housing, and medical fees if they were effected with an eligible disease. Besides, there are retirement funds, or to lay the foundation for the future of your own business/company.
In short, purchase during this period can achieve the financial support that you want to achieve at all stages of life. Many families have bought insurance for infants and young children, which is a good habit: we encourage you to make a long-term life plan early.
Adolescence
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To buy life insurance for teenagers older than 10 years old and younger than 20 years old, generally speaking, the cost is a little more expensive than that in childhood, but it is lower than the cost of adults. At this time, it is more difficult to use the policy to achieve financial support for various educational expenses, including university expenses, especially if the child is around 15 years old, because by then, the time to start depositing money into the policy to the university is too short, and the wealth accumulation is not yet revealed. However, the various financial support mentioned above can be achieved in later life stages. In short, life insurance can be the foundation of the financial future.
Early Adulthood
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For adults under the age of 45, a family is often most precious. If you want to take care of your family, life insurance is a powerful financial tool you could use to protect your family's future. In addition, you could use the insurance policy to get a better retirement plan. Likewise, you should consider buying an annuity at this time.
The purpose of buying life insurance during this period is mainly to protect your loved ones who depend on you, especially for those whose main source of income goes to their family. Laying a solid economic foundation for future life and maintaining what is vital to you and your family will help you achieve your goals at all stages of life.
In my opinion, over 40 years of age, the cost of the policy will show a relatively significant increase, so here I strongly recommend that if the economic conditions are suitable, then the sooner you purchase life insurance, the more cost-effective it will be.
Middle Adulthood
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The middle-aged period generally refers to 45 years old and under 60 years old. From my point of view, no more than 50 years old, it is convenient to buy life insurance, but the cost is a little high. There is a problem, it will be a burden for the average middle-class family. If you are over 50, the cost is too high, unless the financial freedom is another matter. An example: if a middle-aged person close to 50 years old buys life insurance, it usually costs more than 1,000 USD a month and more than 10,000 USD a year.
In particular, the National Life Group (NLG) life insurance is recommended here. It has Living Benefits [*] and meets the requirements of the end-stage. These benefits are triggered if you experience a qualifying terminal, chronic or critical illness. This includes any qualifying event triggered by Coronavirus (COVID-19).
This also includes long-term care and adult daycare. In short, optional Accelerated Benefit Riders (ABRs) offered at no-additional cost, can provide access to your death benefit during your lifetime. These riders are available on most of our life insurance offerings.
Old Age
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Old age is the harvest period of life, at this time, you should put down your career and enjoy life, so it is particularly important to carry out financial planning early to ensure a higher retirement plan.
National Life Insurance Group (NLG) can provide family protection, medical treatment, and old-age care. Once you meet the eligibility to your death benefit, there are no restrictions on how you use ABR proceeds and may be used for any expense, including medical expenses, additional care, home renovations, business expenses, etc. The uses of ABR benefits are not limited with the exception that ABR proceeds for chronic illness in the state of Massachusetts can only be used to pay for expenses incurred for qualified long-term care services.
Living Satisfied
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In short, the timing of obtaining life insurance is demand. In fact, everyone needs one, and at the same time, considering their current economic situation, they also need a plan for ideal financial support. One more protection, one more financial management, for yourself and your family. We will tailor-make for each potential customer and design a policy that best meets the customer's needs so that everyone can live Satisfied. Especially during the period of the new coronavirus pandemic, let us pay more attention to health, disease and life insurance. On this topic, please read my next blog: The impact of the COVID-19 outbreak on life insurance.
If you would like to learn more information, please visit our website: www.lsefinance.com. Please feel free to contact us if you have any questions.
Note:
* NLG: There are additional benefits associated with our life insurance and annuity solutions provided by optional riders. We call them Living Benefits, and we have been providing them since 1937. Based on the product, living benefits can provide benefits should a qualifying terminal, chronic or critical illness or critical injury occur, or if your desire is to have an income that you cannot outlive.
**All examples used here for illustrative purpose only
References：
National Life Group: ARE YOU LEANING INTO YOUR FINANCES?
Premier Financial Alliance (PFA)
CAREER OPPORTUNITY
