Study Says Millennials Most “At Risk” Generation When It Comes to Life Insurance

The Millennial generation is now the least prepared for unexpected life events due to a lack of adequate life insurance coverage, according to the latest edition of New York Life’s Life Insurance Gap survey. The survey asks Americans to compare how much life insurance they need, based on living expenses and plans for their loved ones, with the amount of life insurance protection they have in place.

The results that find that the Millennials are most exposed contrasts with the 2013 edition of the study, which found Gen X under the most pressure.

Millennials with life insurance have a self-reported life insurance gap of $352,000 in 2018, with enough life insurance protection in place ($100,000) to cover only 22% of their self-reported coverage needs ($452,000). The Millennial generation’s gap is sharply higher – 60% greater, in fact – than the gap for the general population, which is $210,000, enough to cover 49% of the average estimated need.

In addition, the survey findings illustrate that only 10% of Millennials have enough life insurance to cover 100% of their needs, which can include mortgages, funding retirements, or financing a child’s college education. Millennials feel more financially secure, however, than the overall population, with 81% saying they feel financially secure versus 76% of all respondents.

“While ten percent of Millennials already enjoy the peace of mind that comes from taking a protection-first financial planning approach, too many members of this generation are starting a family or buying a home without access to replacement income if the worst were to happen,” said Brian Madgett, vice president, New York Life. “Life for young families is unquestionably busy and complicated, but there is security and peace of mind in looking beyond today, and knowing their loved ones are protected against future financial shocks.”

New York Life’s Life Insurance Gap survey examines the financial planning attitudes and behaviors of 1,738 Americans ages 25-70 who are married, have financial dependents, or both, including 1,176 adults who have life insurance. The survey focuses on how much life insurance coverage Americans currently have in place and what they want their life insurance policies to cover in the event of the death of the breadwinner, resulting in a self-reported gap. Both the 2013 and 2018 gap surveys were commissioned by New York Life.

Additional key findings from the Life Insurance Gap survey include the following:

• Despite feeling financially secure, 48% of Millennials are stressed about their current level of savings; 47% are stressed about planning for their future financial needs; and 40% are stressed about their current level of income and saving for their children’s education.

• 44% of Millennials are not financially prepared to deal with the death of a breadwinner and 42%are not financially prepared for the possibility of losing their job.

 “Millennials are missing an opportunity to take a ‘protection first’ approach to financial goals such as saving for retirement or owning a home,” added Mr. Madgett. “Without life insurance, even the best laid plans can be ruined by the death of a breadwinner. The good news is that more than two thirds of Millennials, who have the time and opportunity to better prepare themselves, say that having enough life insurance to protect their family is an important goal for them.”

Research Reveals Employees Worry More about Money for Retirement than Monthly Expenses

Regardless of income level, 70% of employees indicated that saving money for retirement is their top financial concern, according to research from The Standard.

Other notable concerns include having enough money to pay for the following:

·       Monthly expenses (57%).

·       Medical expenses (52%).

·       Support if a disability is incurred (52%).

·       Mortgage/rent (49%).

“We found that saving for retirement outweighs other important priorities such as ensuring employees have enough money for a roof over their heads or medical expenses,” said Chris Dugan, director of retirement plan communications for The Standard. “Given its importance to employees, it’s crucial for advisors and employers to do what they can to help support their retirement readiness efforts.”

While saving money for retirement is a top financial concern, only 33% of employees are confident about their level of retirement readiness. As the new year quickly approaches, employers can make small but effective changes to their retirement plans to boost employees’ preparedness. Mr. Dugan has identified two key retirement considerations for advisors and employers planning their retirement plan approach for 2019.

First, employers can boost preparedness with automatic features.  To help address retirement fears, plan features like automatic enrollment and automatic deferral rate increases can help improve retirement outcomes. The support for these features is high among employees, with 68% supporting automatic options according to research from The Standard. Generational groups also support these options, including:

·       70% of millennials.

·       66% of Gen Xers.

·       64% of baby boomers.

“Employers should also consider a managed account service such as the Qualified Default Investment Alternative, which offers annual automatic deferral rate increases that are customized to the needs of an individual,” Mr. Dugan said. “For most, this is just a 1 or 2 percent increase. But even a small additional increase each year can help make a specific retirement goal a reality.”

Second, employees want retirement planning advice.  It’s easy to get overwhelmed when planning for retirement, which is why employees want guidance. The same research finds that about one half of employees say they aren’t comfortable selecting their own retirement plan options. Similarly, 55% of employees are interested in having a professional help them choose investments and manage their savings.

“Employees can benefit from using a managed service through their retirement plan, which is often very affordable, to help with investment decisions,” Mr. Dugan said. “Some managed services have a team of dedicated and licensed advisor representatives available that can serve as a resource for those who prefer to talk through their options. These services may lead to higher participation, engagement and overall levels of retirement readiness.”

Principal Launches New Financial Wellness Program

Nearly one half of Americans say their financial situation stresses them out, and they don’t know where to get help or where to start. In response to this research and feedback from participants, Principal Financial Group® is expanding its financial wellness resources with iGrad’s Enrich™ financial wellness platform.

 The new Principal® Milestones helps participants access comprehensive financial education resources all in one place. The platform addresses student loans, will and legal document preparation powered by ARAG®, Health Savings Accounts, budgeting, and more. There’s something for everyone, no matter their life stage or financial priorities, and everything is designed to help people live their best lives and work toward a better financial future.

 Seven in 10 Americans postpone making financial decisions, with less than one third saying they feel comfortable with the amount of knowledge they have about managing finances, according to findings released in April from a research project by Principal and behavioral economist Dan Goldstein. In fact, the behavioral research revealed that confidence is a bigger driver of financial decision-making than income, and people who spend even a little bit of time learning about financial planning are 75% more likely to be confident in their financial future.

 Enrich goes beyond investment and benefits planning to provide the foundational information and insights needed to help consumers improve financial literacy and sustain it over time. An in-depth online assessment helps evaluate an individual's strengths and challenges and then delivers information more personalized to help employees minimize financial stress and reach their goals, such as spending less than they earn, saving for emergencies, and planning for the future.

 “The decision to further expand our financial wellness offering with Enrich was easy when the research so clearly ties confidence to postponing financial decisions,” said Joleen Workman, vice president of customer care at Principal. “We selected the Enrich financial wellness platform in large part because of its expansive set of content and tools, and the customization available, which makes each person’s experience more personalized and relevant.”

 Enrich supports employees at all life stages, from providing strategies to help pay off student loans, planning for a child's college education, budgeting and health savings accounts. The platform will integrate seamlessly with Principal’s existing resources.

 “The continued commitment by Principal to financial wellness education is a great benefit to its participants, advisors, and plan sponsors,” said iGrad president and CEO Rob LaBreche. “As their research reveals, improving financial knowledge increases confidence and leads to more proactive and informed financial decisions.”

 Ms. Workman added, “We want to help our client’s participants with their broader financial health, but understand there’s a sensitivity around sharing data. That’s why we have decided not to share participant-level or plan data with Enrich. We will allow the participant to choose what, if any, information to share as they access the resources.”

 Principal has been a leader in making available holistic financial services and support for many years, including Principal Retire Secure (1-on-1 workplace education meetings from a retirement professional), a broad range of webinars with live chat, resources for advisors and plan sponsors, and the Retirement Wellness Planner, which allows users to link any external account information and adjust for their household situation, Ms. Workman said. Principal® Milestones is the latest evolution of this commitment — and it comes at no additional cost to participants or plans.

 “When we asked what participants wanted to know more about, they told us. And that’s why we started with will and legal document preparation services through ARAG,” continued Ms. Workman. “It’s quite a shock when you hear that nearly 75% of Americans don’t have a will, but how could they with competing financial priorities?”

 “We’re committed, we listen, and we believe these resources will help not only retirement plan participants, but also support the advisors and plan sponsors who are looking for tools and resources to help support these kinds of conversations,” she said.

Symetra Expands Group Accident Coverage for Employers

Symetra Life Insurance Company, a national provider of employee benefits, annuities, and life insurance, has expanded its group accident coverage to offer employers two plan options designed to help relieve some of the financial pressure that employees and their families may face after an accidental injury.

 “Even when employers have a major medical plan, it can be tough for employees to meet their deductible, copay or coinsurance requirements. Because every employer group is different, a one-size-fits-all solution doesn’t always work,” said Todd Dzen, director of product management for Group Life & Disability. “Symetra’s two accident policies—per occurrence and our new scheduled benefit—are designed to help employers better meet their employees’ specific needs.”

 Groups that typically choose scheduled benefit accident view catastrophic injury protection as a high priority and are likely to pair their accident product with additional supplemental health coverages, while groups that tend to opt for per occurrence accident coverage are looking for added financial protection for accidents that tend to be more common and have a high-deductible major medical plan in place.

 Symetra scheduled benefit accident coverage pays a fixed-benefit amount after an accidental injury, based on the kind of injury or medical treatment incurred. Three plan options are available—Base, Classic and Premier. Each plan offers the same schedule of coverage, but at increasing benefit levels.

 Symetra per occurrence accident coverage can help employees by paying for 100% of eligible services and supplies related to an accidental injury, up to the benefit limits.

 Both policies offer customizable coverage options, and benefits are paid regardless of any other health insurance employees may have.

 Symetra scheduled benefit and per occurrence accident coverage are part of the Select Benefits suite of fixed-payment and supplemental insurance products.

Securian Financial Expands Retirement Plan Investment Solutions With Unitized Model Portfolios

To help the financial advisors with whom it works stand out from competitors in today’s commoditized retirement plan marketplace, Securian Financial is adding unitized model portfolios to its suite of Section 401(k) investment solutions.

Unitized model portfolios provide advisors with the flexibility to customize investment solutions based on a broad range of investment objectives, while also simplifying investment decisions for participants. Securian Financial’s program, offered in conjunction with Mid Atlantic Trust Company, integrates custom investment models with Securian’s recordkeeping services, resulting in an all-inclusive platform featuring valued services for advisors’ clients. There is no asset minimum, making this typically large-client service available to plans of all sizes.

“Unitized model portfolios are for professionals interested in taking target-date funds to the next level by building customized risk-based solutions for participant usage,” said Kent Peterson, a retirement solutions vice president with Securian Financial. “They provide a value proposition and competitive differentiator to retirement plan specialist advisors who focus on investments as part of their practice. Wealth management firms that, in addition to working with individual investors, offer retirement plan consulting to small businesses find unitized model portfolios particularly appealing and highly efficient.”

Securian Financial has been helping people save for retirement since 1930. Its platform features long-tenured retirement specialists, fiduciary-friendly fee levelization practices, and extensive administrative outsourcing, most of which is offered at no additional cost. Securian Financial provides services to employer-sponsored retirement plans through group annuity products issued by Minnesota Life Insurance Company.

Study Reveals More than 40% of Americans Have No Life Insurance

Foresters Financial™ believes life insurance is an essential component of people’s financial fitness. Life insurance protects families and also can be a useful savings and investment vehicle. But a new study shows that while 84% of Americans say that most people need life insurance, only 68% say they personally need it and only 59% own some form of it.

This is why September’s Life Insurance Awareness Month (LIAM) is such an important event. This national educational campaign, which is coordinated by the nonprofit organization Life Happens, is designed to get consumers to take stock of their life insurance needs and protect their loved ones with proper insurance planning.

This year, the campaign’s theme is “A Journey to Financial Fitness,” and Danica Patrick, professional athlete and entrepreneur, is the spokesperson for Life Insurance Awareness Month.

“I’m on a personal journey, as I transition from the world of racing to a time when I can turn my hobbies and passions into what I do full time!” said Ms. Patrick. “I’ve been a big advocate of life insurance since I began in racing, and it continues to be important as I grow my businesses, so I’m thrilled to carry the message to as many Americans as possible.”

“Foresters is proud to support the annual LIAM campaign so that everyone can learn more about how life insurance can help protect them and their family,” said Knut Olson, president, North American Life Insurance and Annuity at Foresters Financial. “This campaign also fits perfectly with Foresters goal of raising financial literacy for our clients and members.”

“The reason why many people don’t like to think about life insurance is because they see it as only a death benefit and most people prefer not to think about their own mortality.” said Bill Stevens, senior vice president of retail sales for Foresters Financial Services, Inc. “The good news is that life insurance can be so much more than just death benefit! It can also include many living benefits. Life insurance awareness month highlights this and gives people a great opportunity to contact one of our advisors to discuss and implement the right protection to fit what they want out of life.”

Lincoln Financial Group Named to Forbes Best Employers for Women List

Lincoln Financial Group has announced that it has been named one of the 2018 Forbes Best Employers for Women. The company ranks #52 among 300 employers on the list, and the achievement follows its recent inclusion on this year’s Forbes Best Employers in America list.

“At Lincoln Financial, we strive for women to feel empowered to lead, inspired to learn, and driven to meet new challenges,” said Lisa M. Buckingham, chief people, place and brand officer for Lincoln Financial Group. “We are deeply committed to a positive workplace culture, one that provides solutions to help women take charge of their careers, as well as find balance for the things that matter most in their lives. We are so incredibly honored to receive this recognition, and I would like to thank all of our company’s amazing women for their many contributions that have led to Lincoln’s success!”

To determine the list, Forbes partnered with market research firm Statista, which surveyed 40,000 Americans, 25,000 of them women, working for businesses with at least 1,000 employees. Respondents were asked about working conditions, diversity, and how likely they would be to recommend their employer to others. Female respondents were asked to rate the employers on parental leave, discrimination, and pay equity. The final ranking reflects employers that both received the most recommendations and boast the most gender diverse boards and executive ranks.

“We have a vibrant workforce comprised of many unique perspectives to advance our position in the marketplace and provide support to our local communities,” said Allison Green, senior vice president, diversity, inclusion and employee engagement. “Women continue to provide the crucial insight, decision-making and results that solidify our position as an industry leader. Our women stand strong in enabling us to actualize Lincoln’s vision moving forward.”

Lincoln Financial Launches Lincoln WellnessPATH to Help Employees Prepare for Their Financial Futures

Lincoln Financial Group has announced that it has launched Lincoln WellnessPATH – a financial wellness tool that helps plan sponsors improve employee financial wellness. The tool empowers employees and helps them reach their retirement savings goals

“Financial wellness is about giving employees the tools and confidence they need to make smarter decisions in every aspect of their lives,” said Sharon Scanlon, head of customer experience, retirement plan services, Lincoln Financial Group. “From every day budgeting to goal setting and prioritization, we recognize that people want to understand and improve their current financial state.”

Competing priorities and debt are challenges employees face when trying to plan for the future. Twenty percent of savers admit to putting off retirement saving because of competing priorities such as a mortgage, credit card debt, and both student and automobile loans.

Lincoln Financial’s 2017 Retirement Power® Participant Study showed that 51% of employees are interested in learning how to budget more effectively, and that more than 25% of retirement plan participants have researched eight or more financial issues, including the following: prioritizing financial goals; being on track with savings; and expenses in retirement. Likewise, 78% of employees wish they better understood the elements of saving for retirement in their workplace retirement plans, and six in ten cite their employer as a top source of information about financial topics.

“Every employee has a different picture of what his or her retirement will look like, so we created multiple paths to help plan sponsors provide the flexibility employees need on their journey toward financial wellness – including actionable web content, on-site personal support and an interactive financial wellness tool,” said Scanlon.

For those who want immediate help with everyday budgeting, goal setting, and prioritization, Lincoln WellnessPATH helps them improve their financial state right now. After completing a simple quiz, employees are given a wellness score and actionable steps they can follow to improve that score. The tool is easy to use and accessible from the employee’s online account. Lincoln WellnessPATH gives employees a clear picture of their finances so they can focus on larger goals, like saving for retirement. In addition, goals like paying off student loans, reducing debt, and saving for college can be linked so users can keep track of their progress.

Mining Indaba Named Top Large Scale Event or Congress

The 2018 Conference Awards were announced in London last week, and Euromoney Trading's Investing in African Mining Indaba was named the Best Large Scale Event or Congress.

This international event, held each year in Cape Town, South Africa, is more commonly known as Mining Indaba.  According to event organizers, their mission "is solely dedicated to the successful capitalisation and development of mining interests in Africa. Located in Cape Town, South Africa for over 20 years, this event unites investors, mining companies, governments and other stakeholders from around the world to learn and network, all toward the single goal of advancing mining on the continent. Also known as Mining Indaba, we are dedicated to supporting education, career development, sustainable development, and other important causes in Africa."

Cigna Fights Hunger Campaign Recognized with Hunger Hero by Feeding Children Everywhere

Global health service company Cigna received a Hunger Hero Award from Feeding Children Everywhere (FCE) for the Cigna Fights Hunger campaign to provide meals to those in need – Cigna's largest employee volunteer initiative. Since 2013, Cigna has provided FCE with 2.6 million meals packed by 15,000 Cigna employees.

“For the past five years, Cigna has partnered with FCE in its hunger projects, which are hands-on, high-impact, high-energy events where Cigna employee volunteers pack meals. FCE brings the food, the assembly lines and music while Cigna volunteers pour their hearts into meal-packing to help feed hungry children worldwide,” said Mary Engvall, director, civic affairs and corporate responsibility at Cigna.

The Hunger Hero Awards started as a way to honor those making a difference and to bring awareness to the issue of global hunger. “Together, FCE and Cigna are working towards breaking the cycle of hunger and hopelessness for millions of people around the world,” said Dave Green, CEO of Feeding Children Everywhere.

FCE is a nonprofit committed to creating a hunger-free world. For more information, visit www.feedingchildreneverywhere.com.

For more information about corporate responsibility at Cigna, visit https://www.cigna.com/about-us/corporate-responsibility/.