Commentary: How the Insurance Industry Is Being Disrupted, and Why Now
February 17, 2021 by David Lau
The financial insurance and annuity industries are multi-trillion-dollar industries, and they should be. These products are important components of holistic financial plans for individuals and families.
Life and disability insurance can help protect income during wealth-building years, while annuities provide secure lifetime income during retirement, which mitigates significant risks that can derail a retirement plan (like sequence risk and longevity risk), and that often are created by investments themselves. Frankly, with all the challenges of retirement today, a combination of investments and annuities are necessary to provide the income and security retirees crave.