Wilton Re to Acquire Allstate Life of New York

[Northeast Agent]

Wilton Re to Acquire Allstate Life of New York | ThinkAdvisor

What You Need to Know

• Allstate says it's now out of the life and annuity business.
• The Allstate Benefits unit still sells cancer insurance, disability insurance and critical illness insurance.
• The company's agents already sell life insurance and annuities from other companies.

 

[Jewlee]

Wilton Re to Acquire Allstate Life of New York | ThinkAdvisor

What You Need to Know

• Allstate says it's now out of the life and annuity business.
• The Allstate Benefits unit still sells cancer insurance, disability insurance and critical illness insurance.
• The company's agents already sell life insurance and annuities from other companies.

With life insurance being so profitable for a company, I'm wondering if they know something is going to drastically happen to the industry and planning ahead. What would that be they might know about? Well consider if HR 842 actually does pass and becomes law, that would do away with independent contractors which would then make Allstate have to go back to have the agents as employees. Back in the early 90s, I helped my ex transition the employee agents to independent contractors since I had the experience working as a Dealer Manger for AT&T Wireless. So I know how much they saved by doing this move. If you're not familiar with HR 842 look it up. Many think it won't pass, but I think it will. Have a great day.

 

[Allen Trent]

With life insurance being so profitable for a company

This might be your 1st mistake. Life insurance currently is not profitable to the extent you might be thinking. Many life carriers have discontinued sales or sold off their life companies or demutualized and many more have dropped dividends, interest rates, cap rates, etc. If life insurance was so profitable in todays low interest rate environment, you wouldn’t be seeing all these moves I mentioned above. Many legacy life products & annuity products priced under old or normal interest rate environments are not “so profitable”, they have actually become a drain on many of carriers