After a pandemic-altering 2020, AIP Marketing Alliance thought the life insurance and annuity industry rebounded in 2021 as more consumers showed interest in these products as well as long-term care insurance and final expense insurance. Concern about being prepared for the unexpected and finding safer retirement planning vehicles drove people to start thinking outside of traditional CDs and a fluctuating stock market.

Traditional sales of life insurance and annuities also were impacted by government regulations this year.

• For life insurance carriers, Section 7702 of the U.S. Internal Revenue Service (IRS) Tax Code defines what the federal government considers to be a legitimate life insurance contract and is used to determine how the proceeds are taxed. 7702 states what types of cash value life insurance policies are eligible to receive tax-advantaged treatment. If a life insurance policy does not meet the criteria listed in Section 7702, then both the growth of the cash value inside the policy and the death benefit will be counted as taxable income to the beneficiary. AIPMA hosted a webinar about 7702 in June 2021 to discuss this impact.
• For agents selling annuities, more states adopted the NAIC Suitability in Annuity Transactions Model Reg. #275 to include a Best Interest standard that applies to any sale or recommendation of an annuity. Producers now have a care, conflict of interest, disclosure, and documentation obligation that will apply to all annuity carriers with which they do business. States adopting the updated model will have new state-required NAIC training for the sale or recommendation of any annuity as well as different forms required related to the new business process for the sale or recommendation of a fixed index annuity (FIA).

With all the above in mind, where do you go from here as we quickly approach 2022? As part of AIPMA’s 2022 Strategy Blog Series, we want to talk about some ways to generate more sales, recruit agents, and open up new opportunities by leveraging AIPMA’s carrier relationships and these carriers’ competitive products.

AIP Marketing Alliance can help independent wholesalers and agents get contracted with more than 60 insurance carriers with product lines including annuities, life insurance, long-term care insurance (and hybrid products), Medicare supplements, final expense insurance, and disability insurance.

What could adding a carrier or a couple of new products do for you and your agents?

• Recruitment: If a prospective agent already feels comfortable with a few carriers that you aren’t contracted with, AIPMA can get your agency contracted quickly and easily through our online contracting platform.
• Protect Your Downline from Competition: Your agents want access to top-rated carriers and competitive products. AIPMA provides access to both to maintain your agents and their book of business.
• Protect Your Valued Clients: While your clients may use you for life insurance or annuities, who is selling them final expense or Medicare supplements? Adding a new product line could open up new sales or cement the relationship with your customers. If you aren’t offering certain products, other agents probably are calling them to make that sale!

Want to make 2022 a successful year? Contact AIP Marketing Alliance’s team by scheduling a conversation with Chris Howe, Vice President of Business Development, or email marketing@aipma.com. You also can call him at (248) 312-2602.