COVID-19 Is Increasing Individual Life Claims, Too: Analysis

Link:https://www.thinkadvisor.com/2022/02/14/covid-19-is-increasing-individual-life-claims-too-analysis/

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Excerpt:

The increase in the number of individual life claims was lower than for group life claims in some quarters but higher in others.

The analysts emphasize that the numbers are incomplete and subject to change.

Early results show that the number of claims was higher in the fall than in the summer both for individual life and group life.

Author(s): Allison Bell

Publication Date: 14 Feb 2022

Publication Site: Think Advisor

DC Plans Use Pension Features to Improve Retirement Outcomes

Link:https://www.plansponsor.com/in-depth/dc-plans-use-pension-features-improve-retirement-outcomes/

Excerpt:

To help participants grow their balances, employer-sponsored DC plans are also incorporating behavioral finance concepts into plan design and architecture by automating systems.

“Now we see automatic enrollment, we see target dates, we see managed accounts that are becoming more complex and having more options as baked into defined contribution plans,” says Deb Dupont, assistant vice president for retirement plans research at the LIMRA Secure Retirement Institute. “All of these things make it much easier and in fact [a] more passive decision on the part of the participant.”

Legislation, including 2019’s Setting Up Every Community for Retirement Act, has also eased plan sponsors’ responsibilities when selecting an insurer to offer annuitization options for participants’ decumulation stage. The safe harbor has prompted sponsors to increasingly build lifetime income options into their plans to provide retirement income certainty. And prior to the SECURE Act, the Pension Protection Act of 2006 led to widespread adoption of qualified default investment alternatives, including target-date funds, which helped DC plans incorporate ideas from DB plans, Dupont adds.   

Author(s): Noah Zuss

Publication Date: 9 Feb 2022

Publication Site: Plansponsor