Younger clients are increasingly skeptical about the relevance of life insurance, with many under 40 citing a mismatch between traditional policies and their current life stage, according to a report by Capgemini and LIMRA. Delayed plans for marriage and parenthood, affordability concerns and a desire for immediate value contribute to their hesitancy. At the 2025 LIMRA Annual Conference, Bryan Hodgens and other experts discussed how insurers and advisors can reach this demographic.

More insights from the 2025 LIMRA Annual Conference:

• Insurance industry emerges as early adopter of generative AI
• Annuity sales expected to double by end of 2030
• Insurers adapt mortality models to post-pandemic realities
• How to keep RILA sales strong
• Life insurers assess strategies amid economic, political volatility

Financial advisors are advising high-net-worth clients on strategies to mitigate the "SALT torpedo" -- the sharp increase in marginal tax rates due to the phaseout of the state and local tax deduction under the recently passed tax and spending bill. Advisors recommend postponing income events, timing Roth conversions during low-income years, using qualified charitable distributions from IRAs and leveraging deferred compensation plans.

Retirement researcher Michael Finke argues that annuities can provide significant tax-deferred growth and guaranteed income, particularly for women who typically have longer lifespans than men. Finke highlights the benefits of annuities over municipal bonds, with insurance companies able to invest in higher-yield taxable bonds, passing on the "yield spread" to annuity holders and enabling greater lifetime income.

The Federal Reserve is expected to lower interest rates by a quarter percentage point on Wednesday to support a weakening US labor market, signaling a shift in policy after months of holding rates steady due to inflation concerns. Economists anticipate two rate reductions in 2025, but officials are divided over how aggressively to cut, as inflation remains above target while job growth has slowed.

Financial advisers can improve sales by tailoring their approach to each client's unique style, says Jacquie Lucas, assistant vice president of talent solutions at LIMRA. Lucas emphasizes the importance of understanding client behavior, urging advisors to move beyond basic questions to focus on clients' goals and gain consent along the way.

The wealth management industry is at a key inflection point, with many firms falling into a "comfort trap" and hesitating to act boldly, write Steve Gresham and Suzanne Schmitt of NextChapter. They urge firms to proactively redefine their value proposition amid key structural shifts including digital disruption and a looming advisor talent shortage.