A conversation exploring product design, industry innovations, illustration realities, interest rate dynamics, and the evolving life insurance landscape with Bobby Samuelson.
The Big PictureThree Points: September is Life Insurance Awareness Month. With your perspective across product development and analytics, what is the single biggest misconception financial advisors and consumers still hold about life insurance today?
Bobby: The single biggest misconception is that life insurance is a complex product. It’s not. Premiums go in, charges go out, whatever is left over earns interest. We do ourselves a disservice by making it seem more difficult and sophisticated than it actually is.
Evolution of the ProductThree Points: You’ve seen life insurance from every angle—from third-generation family ties to heading up product design at major carriers. How has the ‘chassis’ of modern life insurance evolved over the last decade, and what makes today’s products fundamentally different than what our parents bought?
Bobby: They’re not. The core Whole Life and Universal Life chassis are largely unchanged over the past few decades – and that’s a good thing. It’s proof that they work as intended. The advancements have been primarily in optionality for riders, crediting strategies and guarantees that have expanded the applicability of the product.
Risk vs. ProtectionThree Points: We often hear people view life insurance strictly as an expense rather than an asset class. How should clients and advisors evaluate life insurance when balancing protection against broader wealth transfer and liquidity goals?
Bobby: Because mortality is certain, life insurance is an asset whether the client and advisor see it that way or not. There is obviously an expense element to every policy but, fundamentally, premiums are contributions to build a future asset (death benefit) amortizing in the form of a current asset (cash value).
Navigating Industry TrendsThree Points: With living benefits, chronic illness riders, and hybrid designs becoming table stakes, where do you see true innovation happening versus what is just marketing fluff?
Bobby: Almost all of the marketing fluff revolves around crediting strategies and illustrated performance. Real innovation is happening in making the process of buying life insurance easier and quicker – and providing more benefits on the core chassis that make it more applicable to more people.
The Illustration TrapThree Points: You’ve been vocal about managing expectations and understanding how life insurance policies actually perform over decades under different interest rate environments. What should a consumer look for on a policy illustration to know it’s built on realistic assumptions?
Bobby: I’d rather consumers actually understand how the policy works. If they do, then they’ll also understand that the illustrations are helpful only insofar as they disclose policy charges. The credited rate is pure conjecture and it’s impossible to know what’s reasonable and what’s not. Unfortunately, the industry gets this backwards – we focus on the illustrated performance and neglect to explain how the policy actually works.
Macroeconomics & Interest RatesThree Points: We’ve shifted from years of historically low interest rates into a higher-for-longer yield environment. How does this shift impact carrier health, dividend options, and credited rates for policyholders?
Bobby: It should be a net positive, but there will be significant lags at some carriers. We shall see!
The Crystal BallThree Points: Looking ahead at the next 5 to 10 years, what major trend, whether technology, underwriting AI, or economic shifts do you think will have the biggest impact on how life insurance is bought and sold?
Bobby: I think tax treatment will actually be the driver.
The Lightning RoundThree Points: If you could rewrite one rule or standard practice in the life insurance industry tomorrow to instantly make it better for the end consumer, what would it be?
Bobby: Remove the traditional ledger from the illustration, which combines charges and credits into one demonstration, and replace it with separate disclosures for charges and credits.
The Non-Work ConsumptionThree Points: When you’re not reading actuarial tables, carrier filings, or industry newsletters, what book, podcast, or show are you currently recommending to friends?
Bobby: 40 Minutes in the Old Testament, a chapter by chapter, verse by verse walk through the Old Testament.
About Bobby Samuelson
Bobby is the Executive Editor of The Life Product Review, the industry’s best source for independent and objective life insurance product intelligence. He regularly presents at major industry events and has been quoted in the Wall Street Journal.
Bobby is also the President and CEO of Life Innovators, an independent product development firm helping life insurers create and implement unique life insurance and annuity products.
Previously, Bobby was the Senior Vice President and Head of Product Development and Pricing for life insurance and annuities at Brighthouse Financial, formerly MetLife US Retail. Prior to joining MetLife in 2013, he published The Life Product Review and was an independent consultant to life insurers, distributors and advisors. He is the third generation of his family to work in the life insurance industry.
