Hybrid Concepts Look Good on Paper, Regulatory Approval Could be Lengthy

imageCombining a reverse mortgage with other financial products continues to be a topic debated in our industry and in the halls of Congress.  

An article from Investment News describes how companies like Sun Life Financial are developing a hybrid benefit linked products which could involve a reverse mortgage: 

“There are products in the space that will be more consumer friendly by combining the characteristics of what’s in life insurance with what’s in a health insurance policy,” said Jon Boscia, president of Sun Life.  “This way, the consumer doesn’t have to pay top dollar for each.” But he warned that while some hybrid concepts look good on paper, the regulatory approval for them could be lengthy. 

Later in the article, Boscia describes how you could combine a “reverse mortgage with an annuity, long-term-care insurance and a death benefit.”  He admits that a product like this would have several different obstacles to get it to the marketplace.

“Getting through the regulatory-approval process will be one hurdle, then taking that to the distribution will also be a second hurdle, and then simplifying it for the consumer will be a third,” said Boscia.  He did predict, however, that “the hybrid space will be an active space in the years to come.” 

What do you think, is there a place for a hybrid product which includes a reverse mortgage in the years to come? 

Sun Life adding VA wholesalers, cutting back on VA products

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