“It don’t come easy
You know it don’t come easy
Got to pay your dues if you wanna sing the blues
And you know it don’t come easy.”
—Ringo Starr
This time of year, I find myself singing this tune as, like many in our industry, I work through the challenges of goal setting, performance management, and project planning. I also use it as a time to reflect on what I’ve accomplished and how I can leverage what I’ve learned in the future.
That means I’m evaluating a recent corporate acquisition. In 2024, Mutual Trust Life Solutions, a Pan-American Life Insurance Group division, completed the integration of Encova Life, and all former Encova Life products were discontinued. As head of sales, it’s my job to figure out what opportunities that creates for clients, distributors, and products.
New product offering to fill portfolio gaps—and generational niches
Considering the discontinued Encova product line encouraged us to look at our existing product offerings and the general market and identify gaps we could fill. This led us to expand our portfolio and create a non-participating whole life product, which we think will resonate currently with key segments looking for simplicity and guarantees.
One of the most common types of whole life, non-par whole life is designed to appeal to clients seeking affordable permanent coverage with guaranteed premiums, cash value, and death benefits. As a non-participating policy, it’s easy to explain to clients. When the policy is in force, there’s no need to follow dividend-paying performance since the policy is fully guaranteed.
Consider these client scenarios:
- Stepping-Stone Solution: For clients who need permanent coverage but can afford or are only interested in term insurance. This could resonate with Millennials (born 1981-1996) who may have family protection needs but face high living costs, student debt, and childcare.
- Entry-Level Solution: For clients on a limited budget who appreciate the benefits of a permanent policy and can start with a small permanent base and a term rider to keep coverage costs down. Gen Z (born 1997-2012) clients could be a good fit here, as they are just starting out and likely on a limited income and show an interest in financial stability and planning.
- Cost-Effective Planning: For clients who understand and appreciate the benefits of traditional whole life and are unable or uninterested in exploring the more complex and costly features of guaranteed universal life products. Consider this for middle-income Millennials, Gen X (born 1965-1980), and Boomers (born 1946-1964) to provide solutions to protect growing families during their prime working years and offer benefits for their grandchildren.
- Hispanic Market: Many customers in the diverse U.S. Hispanic market are a fit for this solution. This market has and will continue to experience explosive population growth yet lags in overall insurance ownership. Using an easy-to-understand, non-par whole life can be a gateway to owning the full spectrum of life insurance solutions.
Regularly looking at generational niches can open our eyes to underserved segments and support financial advisors in developing flexible and customized solutions to meet new and changing needs, quickly responding to economic conditions and trends. For example, our non-par product starts with a minimum face amount of just $25,000. This entry-level scenario can solve for a final expense need, which often makes for an easier sale, versus the leave-a-legacy approach of larger face amount policies that turn off some clients. On the flip side, with issue ages up to 80 and an assortment of riders and benefits, the product can also be used to support end-of-life family or charitable gifting solutions.[LC]