There’s no doubt that Gen Xers and millennials have differing retirement strategies. In fact, their lifestyles, expectations and goals are a far cry from each other. But there is one thing they have in common: they respond to the appeal of straightforward messaging with a simple product at affordable prices.
Legal & General America’s guaranteed level term series, OPTerm, meets that universal demand, while still having the flexibility to accommodate the unique needs of clients at most stages of life. With durations of 35 and 40 years, clients can get affordable coverage that lasts into retirement.
“OPTerm 40 makes Legal & General America the only carrier to offer term coverage for up to 40 years,” says Mark Holweger, president and CEO, Legal & General America Insurance Division. “We looked at the needs of consumers, and there was a gap between those needs and typical term options of 10 to 30 years of financial protection.”
A new retirement reality
Americans are facing a new retirement reality.
They are living and working longer than ever before. They are also waiting longer to marry and are having children into their 40s. Young adults are carrying high student loan debt and are not buying homes until their 30s or even 40s. As a result, many people can be expected to carry debt well beyond age 65.
“With typical term life durations, many families face a gap in their older years where they don’t have financial protection,” Holweger explains.
For customers in their 30s, OPTerm 35 and 40 can provide financial protection well into their working years, allowing them extra time to build their nest eggs.
Holweger explains, “With the simplicity of term versus permanent products, OPTerm 35 and 40 are attractive options that fit with this demographic’s purchasing preferences while offering financial protection for families later in life.”
An option that’s easier on the wallet
OPTerm 35 and 40 can address other client concerns, such as affordability. With issue ages to 45, OPTerm 40 can be a cost-effective solution for middle-aged customers who are becoming aware of the importance of financial protection.
“A decision to buy 30-, 35- or 40-year term life insurance protection is a great way to help your family cover expenses like the mortgage, credit card debt, funeral costs or dependents’ bills,” says Holweger.
“We have seen many 45-year-olds who realize they can afford an OPTerm 35 or 40 policy,” he adds. “So it provides a unique opportunity for them to plan for their later years at the time in their lives when they’re financially sound and before their health tends to decline.”
Revolutionizing the term insurance marketplace
OPTerm 35 and 40 can also be a cost-effective solution for businesses wanting self-coverage or key-person coverage. It can provide an affordable premium that allows for effective and efficient business continuation planning with a carrier that has strong financials and a reputation as a leader in term insurance pricing.
Conversion and policy extension are also options with OPTerm 35 and 40. Based on historical sales, the average Legal & General America customer is around 45 with 20 years of term coverage. If they believe that they will have a permanent life insurance need, customers can convert to a permanent product at the end of the level period or at age 70, whichever comes first. Or, they can continue paying at the post-level term rates.
“We’re a term carrier that is focused on doing what we do extraordinarily well. We have deep relations that go back decades with our distribution partners,” says Holweger. “Our reputation and ongoing operational excellence make these new term options even more attractive to consumers and financial professionals.”
Same affordability with longer duration coverage
OPTerm 35 and 40 provide the same affordable term insurance that consumers have come to expect, but for extended years of coverage. In fact, on average, for the same length of coverage, the price of this product is about two times more affordable than the cheapest or the most competitive GUL* in the market, Holweger explains.
“We’re excited to revolutionize the market and help meet an important need for consumers and financial professionals,” he adds.