4 Advantages of Optimizing Your Life Insurance System

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Amber Williams

One must have a certain amount of grit, willpower, and determination to adapt if they work in the insurance industry today. In the past decade alone, insurance carriers have been extra challenged to align their legacy values and systems with extremely modern consumer sensibilities. In the wake of the health-related and socioeconomic impact of the COVID-19 pandemic, customers’ attitudes about life and annuity insurance have also changed. They may be more cautious about enrolling in insurance programs than members of the previous generation were. If they do sign up for either insurance or annuity, they seek higher standards of service and engagement than what was once asked from carriers.  

A question worth asking yourselves is this: do you want your insurance brand to keep succeeding in the long haul? If your answer is a resounding yes, then the first move that you should make towards securing your future is pursuing life insurance innovation. The time is ripe for you to revisit your life and annuity policy administration system and optimize it for the delivery of digital insurance services. Here are four advantages of exploring new technologies, like a cloud-based life insurance platform, and leveraging them to meet the insurance challenges of the future. 

You’ll Equip Your Company to Do Business in the New Insurance Landscape

The first thing you should know about delivering life and annuity products in this era is that your customers value technological prowess in their carriers. The new insurance landscape is one in which many carriers have invested resources into digital insurance delivery. Do you want to be left behind by your peers, or do you want to remain the carrier of choice?

It’s in your best interest to find a platform that can cushion you from the initial stresses of modernization and prepare you for further innovation. There will also be less of a need to keep adapting and re-adapting processes from your legacy system if you choose to optimize now. 

You’ll Reduce Your Steep Operating and Compliance-Related Costs

Another strong argument for optimizing your current life insurance system for digital delivery is the amount of money you’ll save from operations. With a new platform, your operations won’t be as dependent on work done in business headquarters. Since vital insurance data will be on the cloud, that technically means that you can operate your business from anywhere. It also means that you won’t lose money from the threat of service interruption, even if you aren’t at HQ. 

Modernizing your insurance system will also optimize processes like underwriting. You’ll spend even less time and labor arriving at the correct policy prices for your customers. You may also end up having a better grip over your compliance since it will be easy to manage huge swathes of compliance-related data. Ultimately, you will worry less about paying steep penalties for gaps in your compliance and stay in the good graces of your regulators.

You’ll Synergize with Other Partners in the Delivery of Your Insurance Products

It isn’t only insurers who feel the pressure to innovate. The same goes for other parties in the life insurance and annuity provider network, such as hospitals and clinics that accept health insurance. These institutions are doing their part to modernize their services for your shared clientele. Doing the same will enhance your synergy with them in rolling out your insurance program. 

There are several specific advantages to getting on the same page, tech-wise, as your partners in the provider network. An optimized system can help you smoothly advertise and implement bancassurance products with a partner bank. You may also be able to use information technology, like APIs or application programming interfaces, to link up with a healthcare provider’s patient portal. Because of that linkage, it may be easier for your patients to cover their healthcare expenses through your policy online. The possibilities are extremely promising and, most importantly, extremely helpful to your clients. 

Your Brand Will Resonate with a New Generation of Policyholders 

If you’re looking for a way to reinvent your insurance business as the ideal partner for a new generation of policyholders, optimization is the answer. Optimizing your system gives you the chance to develop new insurance products or rework old ones in a fraction of the time it took before. That means that you may be able to simplify or unbundle all-in-one insurance programs and manage piecemeal policies instead. You may also consider offering the insurance product catalog as a service on its own and launching it through a digital campaign. 

Actions like these will attract the attention of a new breed of policyholders, many of whom are tech-savvy millennials who value experiences and investments. You can make insurance look less intimidating than it did for their parents’ generation while also presenting it as something worth spending on given current times. If your brand can resonate with this demographic of policyholders, much of the battle to stay relevant will have been won.

Conclusion

The economy that drives the insurance system may not let up anytime soon, but carriers can choose to be tough, smart, and resilient regardless. The insurance business that stays ahead of the times has the best chances of living on and serving hopeful new generations. If you take the steps to optimize your life insurance system for the current landscape of the industry, you won’t regret it. Explore your options and upgrade to a system that can serve your current and future needs!

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Can You Use Debt to Build Wealth?

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This article originally appeared on Payment1.com

 

The short answer is YES. You definitely can. It all depends on what kind of debt, and how smart you are about using the money you borrowed, and how diligent you are at paying it off. So now you may be asking, if debt can be used to build wealth, how do I do it?

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First off, you need to know about the two kinds of debt: Good Debt and Bad Debt. Good debt is a kind of debt that has low interest and is used to increase your value in the long run. Bad debt, on the other hand, has atrociously high interest and depreciates in value fairly quickly. Examples of good debt would be student loans and small business loans. Bad debt would be payday loans and credit card debt.

 

So if you really want to start getting a lot of money using loan money, you need to make sure it’s the good kind of debt. That part is simple. Now let’s get to the hows.

 

Let’s start with small business loans and the idea of leverage. You can take out a small business loan to help you improve your business. The more you invest in yourself and your business, the greater your chances are of increasing the flow of your income. You can use your small business loan to increase your inventory, or add a branch or service to the current ones you already have. Using loan money as financial leverage to increase your cash flow is a good idea. If you don’t have a business, you can always get a small personal loan and then start a business or invest in educating yourself about a particular business or skill. The more you invest in yourself, the bigger your value will be.

 

But what if you already have bad debt? Would this affect your ability to build wealth using debt? It would, but perhaps not as much as you might think it will. For example, you have several credit card debts and they are growing by the month. You struggle to pay off even just the minimum and building wealth is beginning to look like a pipe dream. You can try doing debt consolidation. What this does is lumping all of your debt into one big debt with a lower interest. This way, you don’t owe several banks different amounts of debt with various interest rates.

 

In order for you to be able to build wealth, using debt or not, the very first step is to get rid of, or to manage your bad debt. Once you get that squared away, you can start building your wealth. It is a good thing to remember to always live within your means. And the simple math of income being greater than living expenses should always be something you live by.

 

Which leads us to the next tip: Reduce your living expenses. The greater the difference is between your expenses versus your income, the more money you have to use as an investment. And perhaps, the best advice one could give when it comes to finance is this: always pay your debt on time and if at all possible, always pay in full.

 

 

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How to Avoid Falling Into A Deep Debt Hole

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This article originally appeared on Payment1.com

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Debt is a fact of life. From student loans to mortgages, it seems like every milestone of adulthood requires some form of debt. It’s no wonder that a majority of adults are buried in it, causing major anxiety for people. They dread the day their bills would come, fearful of the words “default” and “late fees”.

 

In today’s world of mounting debts, how can you avoid sinking into this deep dark hole? Here are few important things to remember to keep you off the path of debt.

Live within your means. It’s simple but smart. If you don’t want to be in debt, learn to live within your means. Only spend the money you have and can afford to part with. If you see something you want but cannot purchase yet because you lack the cash, assess if you really need to have it now or if you can wait until a little later to buy it.

Be frugal. Ask yourself: do you really need that overpriced latte? Or that new expensive phone? Do you have to eat out–for the third night this week? Always think twice before swiping that card or digging for cash. Make your own cup of coffee, prepare your own meals instead of ordering or eating at a restaurant, and do your research and opt for less expensive alternatives offering the same quality when purchasing something.

You don’t need all those credit cards. Stick to just one or two. And make sure that when you are choosing your credit card, you pick one that has low interest rates and great perks.

But what about when you already have debt?

Pay at least the minimum, but if at all possible, pay more than that. Credit card debts, especially unpaid ones, are very quick to get larger because of high interest rates and late fees. Make it a point to pay at least the minimum. If you can afford to pay more, then do so. This will go towards you slowly chipping away at your credit card debt and not just staving off defaulting on it.

Have a monthly budget. It is very important to operate on a budget. It will help you avoid overspending and even help you start on your savings. Having a budget will also force you to keep track of your expenses and your bills.

 

Try debt consolidation. This means consolidating all your debts from different institutions into one large debt that you can pay off. It would also mean that you can enjoy a smaller interest rate. But do make sure pay this off, too, which brings us to our next tip.

Pay your debts. If you owe something, pay it off. If you avoid paying debts, your bank will slap you with late fees that could compound your debt into something that would someday seem insurmountable. Not paying your debt will also bring your credit score down. Having a bad credit record can sometimes affect employment prospects as well as affect the approval of any future loans like mortgages.

When it comes to debt, having as little of it as possible is always a good thing. Never bite off more than you can chew and always pay back what you owe.

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