How Can Your Finance Business Harness the Potential of Equity Indexed Life Insurance?

Key takeaways:   

• Introduction to the equity-indexed life insurance  
• Potential of equity business life insurance 
• Strategies implemented by key players 

What is equity indexed life insurance?   

Equity Indexed Life Insurance (EILI) is a life insurance plan that blends elements of traditional life insurance with features commonly found in investment or savings accounts. Its purpose is to offer a death benefit to beneficiaries upon the policyholder's death, while also potentially accumulating cash value based on the performance of a designated stock index. Additionally, like standard life insurance policies, EILI ensures payment of a death benefit to the policyholder's beneficiaries. It is gaining popularity among individuals seeking life insurance that offers the potential for a cash value increase. 

One of the prominent types of equity indexed life insurance is whole life insurance. A whole Life Insurance plan is a unique policy contract providing financial protection throughout the policyholder's life. As long as premiums got paid consistently, the insurance remains active, ensuring beneficiaries receive a death benefit upon the policyholder's passing. The whole life insurance category is projected to garner $2897.1 million by 2032.  

How can equity indexed life insurance be beneficial for your business? 

Equity Indexed Life Insurance presents an opportunity for your finance business to cater to individuals seeking a blend of life insurance protection and the potential for wealth accumulation. EILI policies typically come with a minimum guaranteed interest rate, safeguarding policyholders from the complete impact of market downturns. 

By integrating EILI into your financial products, your business not only meets the life insurance needs of clients but also provides them with an opportunity for growth that perfectly aligns with their financial objectives. Offering required consultations and solutions, Equity Indexed Life Insurance can position your finance business as a trusted partner in exploring the complexities of financial planning. This, in turn, strengthens client relationships and contributes to the overall success of your business. 

What strategies are leading companies using to stay strong in the sector? 

The global equity indexed life insurance sector is dynamic with a huge number of key investors implementing novel strategies to sustain the top position across the industry. The strategies involve advanced product launches, partnerships, mergers and acquisitions, and collaborations.   

Life insurance companies have historically viewed new-product development as an area where they possess a unique edge or specialization. For instance, HSBC has introduced an AI based equity index in collaboration with AWS. HSBC created the HSBC AIGT Index and employs AWS's AI technology to conduct an investment process based on artificial intelligence across the index. Additionally, the solution utilizes AWS AI services to analyze and learn from data faster than human capability.   

 As per the regional analysis, India is set to display a notable CAGR of 22.8% between the period of 2022 to 2032. However, Canada is estimated to gain second rank with a 22.3% CAGR during the forecast period.  

In short, the equity-indexed life insurance sector is expanding rapidly due to advanced technologies, consumer education and awareness, and rising investor interest. However, the long-term investment perspectives will offer prolific opportunities to the sector in the upcoming years.     

To kickstart a new chapter of your business journey with robust strategies and informed decisions, connect with our experts today!  

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