Products September 1, 2010

Hand Benefits Selects Sub-Advisers for Target Date CITs

Hand Benefits & Trust Company has selected Blue Prairie Group LLC (BPG) and Target Date Solutions (TDS) as managers of the SMART Fund target date collective investment trusts.
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David Hand, CEO of HB&T, said in a press release that TDS uses a financially engineered glide path and Blue Prairie Group is an investment consulting firm focusing on manager search and selection.  

According to the announcement, the SMART Funds are designed to end at the target date (e.g., 2020, 2030, 2040, etc.) in safe asset classes. The emphasis is placed on risk control by changing the allocation at retirement to over 90% in TIPS and Treasuries.   

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Hand says the collective investment trust (CIT) structure and low cost underlying investments result in overall operating expenses that are dramatically lower than most other target date strategies on the market.

 

Products September 1, 2010

More Workers Choosing Life Insurance Benefit, and More Paying for It

 A recent national survey of full-time workers by The Hartford Financial Services Group found the overall number signing up for life insurance benefits increased from 64% in 2009 to 69% in 2010.
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Women showed the biggest jump in participation, going from 60% last year to 69% this year. Men increased their participation by two percentage points to 70% in 2010.   

In addition, the survey found more employers are asking their employees to pick up more of the cost of life insurance compared to last year, according to a press release. The number of workers who said their employer pays 100% of life insurance dropped from 37% last year to 33% in 2010. The percentage of employers that pay for some of the insurance costs dropped by three points in 2010.   

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The survey showed employees with a high school education had the lowest level of understanding of life insurance and were least likely to sign up for this benefit (65%) compared to workers with a college degree. Thirty percent of workers with only a high school education said they completely understand life insurance, the press release said.   

Survey respondents with a household income of less than $50,000 were least likely to completely understand life insurance (29%) and were least likely to sign up for this benefit (64%). Sixty-four percent of Gen Y (ages 18-29) said they completely or mostly understand life insurance compared with 77% of Gen X (ages 30-44) and 79% of Baby Boomers (ages 45-65). Gen Y had a 64% participation rate compared to 70% for Gen X and 71% for Boomers.   

A recent LIMRA study found individuals want advice on life insurance needs (see Individuals Want Advice on Life Insurance Needs).  

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