Living Benefits — a NOW opportunity

We believe SHM is well positioned to assist strong distributors and forward looking insurers in entering this huge, largely untapped Living Benefits market with competitive, consumer-oriented products.

Hersh Markusfeld

The insurance industry has the opportunity to provide consumers with a new generation of products to protect their assets and quality of life. Combo annuity and life products, critical illness insurance (CII), long-term care insurance (LTCI), and wellness benefits all fall into a product category we broadly define as Living Benefits, as they meet the real needs of consumers who have serious and appropriate concerns about outliving their assets.

The Pension Protection Act of 2006 provides strong tax incentives, effective January 2010, for new money purchases and for transfer via 1035 exchange of annuities and life insurance to Combo products, as well as standalone LTCI policies. This key federal legislation recognizes that traditional annuity and life products provide no protection against the real risk of long-term care or catastrophic health needs depleting retirement savings.

This convergence of factors creates a near-term opportunity for greatly-increased market penetration and the emergence of new market leaders in the distribution and underwriting of these products.

Challenges Facing Early Market Entrants

Early attempts by insurers to market Combo annuity and other Living Benefit products have not yet generated significant market traction. Challenges facing early market entrants include:

The SHM Advantage +

SHM's end-to-end solutions help distributors and insurers capitalize on emerging opportunities. Our innovative solutions are specifically designed to address the challenges facing early market entrants.

One example is our patent-pending flexible pricing mechanism which provides reduced costs and/or greater benefits at point of sale, with level premiums at higher ages when most consumers are living on fixed incomes.


By utilizing the FIPO pricing infrastructure, Strategic Health Management (SHM) can assist your organization in providing competitive, consumer-friendly long-term care and critical illness insurance products to your customers/policyholders. SHM provides consulting services featuring the computing and determination of premium rates charged for insurance coverage related to LTCI, CII and Combo/ Hybrid products.

Depth of Experience +

SHM has been a successful LTCI product innovator and distribution catalyst since the late 1980s. We've now broadened our focus to include combo annuity and life products, CII, and cutting-edge wellness products.

These "Living Benefit" products directly address the needs of consumers who want to protect their financial assets and quality of life.