Life Insurance: Tiaa-Cref's Comprehensive Coverage Options

TIAA, one of the largest annuity providers in the US, has stopped selling life insurance. The company's decision to exit the life insurance market by the end of 2019 was confirmed by its director of insurance wholesaling, Dennis Rupp. TIAA will continue to service its existing term, universal life, and variable universal life insurance policies, but it will no longer manufacture or distribute new life insurance products. This move away from life insurance will not affect the company's annuity business, which remains strong. TIAA employees seeking insurance alternatives may benefit from purchasing term life insurance, which provides coverage for a specific time period and is often referred to as temporary or pure insurance.

TIAA stopped selling life insurance in 2019

TIAA, one of the largest annuity providers in the US, stopped selling life insurance at the end of 2019. The company, which was founded in 1918, sold life insurance for over a century before exiting the market.

TIAA's decision to exit the life insurance market was confirmed by Dennis Rupp, the company's director of insurance wholesaling, in a memo in 2019. The memo stated that the company's annuity business would be unaffected by the strategic decision.

TIAA's exit from the life insurance market was particularly significant because it was one of the few providers of no-load, fee-only life insurance policies. No-load policies allow registered investment advisors (RIAs) that don't receive commissions to count the cash value of a life insurance policy towards the client's overall assets under management.

In the years leading up to its exit, TIAA's new individual life insurance premiums had been falling. In 2016, the company recorded $282.8 million in new individual life premiums, but by 2018, this figure had dropped to $198.4 million.

Following its exit, TIAA continued to service its existing term, universal life, and variable universal life insurance policies. The company also honoured any life insurance cases with a completed application submitted by 30 September 2019.

TIAA's annuity business is unaffected

TIAA is one of the largest annuity providers in the US and one of the few that sell no-load, fee-only life insurance policies. However, in 2019, TIAA decided to exit the life insurance market. This decision was confirmed by Dennis Rupp, TIAA's director of insurance wholesaling, who stated that the company's annuity business would remain unaffected by this strategic move.

TIAA's exit from the life insurance market means that it will no longer manufacture or distribute life insurance products. Despite this, the company will continue to service its existing term, universal life, and variable universal life insurance policies. Additionally, the company will honour any life insurance cases with completed applications submitted by September 30, 2019.

The decision to stop underwriting life insurance products is not expected to impact TIAA's annuity business. In fact, in the first three months of 2019, the company recorded $4.45 billion in total annuity considerations, indicating a strong start to the year for this business segment.

TIAA's focus on annuities is underscored by its group and individual annuity considerations in 2018, which amounted to $8.37 billion and $6.77 billion, respectively. This strategic shift allows TIAA to concentrate its resources and expertise on its core annuity offerings, which have been a significant contributor to the company's success.

In summary, while TIAA has exited the life insurance market, its annuity business remains not only unaffected but also a key area of focus and growth for the company.

Term insurance made up the bulk of TIAA's individual life insurance business

The Teachers Insurance and Annuity Association (TIAA) is a financial organisation that provides pension, insurance, and investment services, mainly for teachers and their families. TIAA offers retirement products, 529 college savings plans, managed investment accounts, savings products, and brokerage accounts.

TIAA was formerly also part of the College Retirement Equities Fund (CREF), which was established in 1952 to allow individuals to add equity investments to their personal portfolios through a variable annuity product. In 2016, TIAA and CREF separated, and TIAA rebranded under the shortened name of TIAA.

In 2019, TIAA decided to exit the life insurance market, and an analysis showed that its new individual life insurance premiums had been falling since 2016. As of year-end 2018, TIAA had almost 150,000 policies in force, with 81% being term policies. The amount of insurance for the term block was $53.38 billion, compared to a total of $11.17 billion for other product lines combined.

Term insurance, which is a type of life insurance that provides a death benefit for a specified period of time, made up the majority of TIAA's individual life insurance business. Term life insurance is usually the least costly type of life insurance because it offers a death benefit for a limited time and does not have a cash value component like permanent insurance. It is often attractive to young people with children, as it provides substantial coverage at a low cost.

While TIAA has exited the life insurance market, the company continues to service its existing term, universal life, and variable universal life insurance policies. The company will also honour any life insurance cases with completed applications submitted by a specified deadline. Additionally, TIAA will offer a variety of solutions from other carefully selected providers to meet its customers' life insurance needs.

TIAA employees can benefit from term life insurance

TIAA, one of the largest annuity providers in the US, has stopped selling life insurance. However, it will continue to service its existing term, universal life, and variable universal life insurance policies.

Term life insurance is a great option for TIAA employees seeking insurance alternatives. Term life insurance provides coverage for a specific time period, usually between 5 to 20 years, and is often referred to as temporary or pure insurance. It is well-suited for covering short-term needs, such as during your working years, the college years, or for the duration of a loan or mortgage.

One of the main benefits of term life insurance for TIAA employees is its low cost for a large death benefit, especially in the younger years of life. Term insurance is generally the most efficient way to achieve maximum life insurance protection for a minimum current cash outlay. When you are young and starting your career or family, you may not have much cash to pay for insurance, but with a term policy, you can usually buy a larger death benefit for less cash.

Another advantage of term life insurance for TIAA employees is its flexibility. You can buy term insurance coverage for the time period that best suits your needs, and you can increase your coverage when your needs change. Additionally, most term policies can be renewed for an additional period, although the rate generally increases with each renewal as your age and the insurance company's risk of paying the death benefit also increase.

It is important to note that term life insurance does not provide any cash value, and nothing is paid if you live longer than the coverage term. Term insurance is also not suitable for long-term needs, as the premiums can become very expensive over time.

Overall, term life insurance can be a beneficial option for TIAA employees, especially those with a high need for insurance but limited cash flow. It provides flexibility, a large death benefit, and low initial costs, making it a good choice for those starting their careers or families. However, it is important to consider the limitations of term insurance, such as the lack of cash value and the increasing premiums with age.

TIAA life insurance premiums were $593.7 million in 2018

TIAA is one of the largest U.S. annuity providers and one of only a handful that sell no-load, fee-only life insurance policies. However, in 2019, TIAA decided to exit the life insurance market, citing a decline in new individual life insurance premiums since 2016.

In 2018, the company's combined new individual premiums were $1.26 billion, with only $198.4 million coming from its life business lines. After adding renewal premiums, TIAA's total individual life insurance premiums were $593.7 million in 2018, ranking them 48th in the industry.

Despite exiting the life insurance market, TIAA continued to service its existing term, universal life, and variable universal life insurance policies. As of the end of 2018, the company had almost 150,000 policies in force, with 81% being term policies. The amount of insurance for the term block was $53.38 billion, while the total for other product lines combined was $11.17 billion.

TIAA's decision to exit the life insurance market did not affect its annuity business, which remained strong in 2019 with $4.45 billion in total annuity considerations in the first three months of the year.

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