It doesn’t take long to see or hear news about inflation. Whether it’s television, newspapers, or social media, we’re constantly reminded that the cost of living is rising and paychecks aren’t stretching as far as they once did. With 2024 being an election year, inflation will be a daily topic of conversation. Discussions around the Federal Reserve, government policies, supply chains, and demand are everywhere. If you turn on a twenty-four-hour news channel, it won’t take long before inflation comes up.

A few weeks ago, I started thinking about what we, as insurance professionals, can do to help protect the families we serve during these uncertain times. That led me to do some research and start conversations with Cody and the rest of our life insurance and annuity team. This topic is right in our wheelhouse, and it presents a real opportunity for you to help clients take advantage of the Inflation Protection Program.

At its core, inflation is the rate at which prices increase over time. It’s often measured broadly, such as the overall rise in prices or the increase in the cost of living within a country. We experience this every day. When we stop for gas between appointments and see prices at three, four, or even five dollars per gallon, it’s a clear example of how paychecks don’t go as far as they used to. Here in Pennsylvania, gas prices tend to be higher due in part to taxes, but that’s a conversation for another time.

We see inflation even more clearly at the grocery store. We aren’t getting stronger as individuals, yet we walk out with two bags of groceries that cost two hundred dollars. It’s not because we’re carrying more food, but because the cost of those goods has increased. That reality is causing stress for consumers. Research shows that eighty-five percent of Americans are concerned about inflation, and more than half are worried about the rising cost of living and their ability to support their families. These concerns extend beyond personal finances to the country’s financial situation as a whole.

With all of that in mind, our focus today is on how we can provide clients with peace of mind during periods of inflation. That’s where the Inflation Protection Program comes in. Much of what we’ll discuss centers on helping middle-class families protect their homes, incomes, and savings. However, these same concepts can apply to small businesses as well. Many businesses were forced to shut down during COVID, and there are ways we can help protect and support those businesses too. While today’s examples may focus on families, the strategies can extend far beyond that.

This program really boils down to education. As brokers, our role is to educate clients and make appropriate recommendations that help protect their most valuable assets. In many ways, that means acting as a fiduciary. We’re helping protect income, which keeps households running, and savings, which represent years of hard work and planning.

There are generally three financial phases most adults go through. The first is the acquisition phase, which is where Cody and I, and many of you, currently are. This is when we’re working, earning income, buying homes, purchasing vehicles, furnishing those homes, and acquiring assets. The second phase is retirement, when we rely on everything we’ve accumulated during our working years to support our lifestyle. The final phase comes later in life, when people often begin giving assets away, whether to family members or charitable causes.

The Inflation Protection Program starts with prospecting and setting appointments. That simply means having conversations and letting people know what you do. Social media can be a powerful tool here. Sharing an article or headline about inflation and explaining how you help families protect what they’ve worked so hard to build can open the door to meaningful conversations. Whether someone is still working or already retired, the goal is to help them preserve what they have.

If you’ve been receiving our emails, you’ve seen the Inflation Protection Program agent guide and the accompanying worksheet. One of the most important steps in this process is completing that worksheet together with the client, especially the household budget section. This tool is critical because many clients are not living within a structured budget. During times of inflation, understanding exactly where money is going becomes more important than ever.

I’ll be honest and use myself as an example. I’m the sole breadwinner in my household, and my wife and I have never sat down and put our budget in writing. We know what we earn and we pay our bills, but we haven’t documented our mortgage, car payments, and other expenses in a structured way. So I’ll put Cody on the spot and ask if he and his wife have a written household budget.

Cody shared that while budgeting isn’t always a priority for everyone, especially early on, having a simple one-page document can be incredibly valuable. Listing assets and expenses can be helpful not only for budgeting, but also for future planning, estate planning, and insurance or annuity applications. Having everything organized in one place saves time and reduces stress when financial decisions need to be made.

One statistic that really surprised me is that only thirty-five percent of U.S. households prepare a monthly budget. That means most people don’t have a clear picture of where their money is going. When I saw that, it was a wake-up call for me personally. During inflationary periods, knowing where your money is going is essential.

Credit card spending is another major issue. Swiping a card without tracking expenses can quickly undermine financial health. Completing the worksheet helps uncover spending habits and identify opportunities to make better financial decisions.

As part of the process, we also review any existing life insurance, disability coverage, annuities, and other investments. We discuss whether the client is concerned about outliving their money, whether they are nearing retirement, already retired, or simply looking for tax-deferred growth opportunities. Comparing household income to expenses is often eye-opening, especially when discretionary spending like dining out is added up over time. Even a modest night out with drinks and dinner can easily cost fifty dollars, and those expenses add up quickly.

We also help clients understand the financial impact their family would face if a wage earner became disabled or passed away. For those on fixed incomes, such as Social Security recipients, preserving income becomes especially important. There are strategies to help protect Social Security income, which we cover in more detail in a separate program.

When it comes to life insurance, the goal is to pay off debts, replace lost income, and provide ongoing living expenses so families can maintain their standard of living. Inflation protection is about ensuring stability, even when unexpected events occur.

At that point, I turned the conversation over to Cody to discuss annuities and how they can help provide income and peace of mind, particularly during inflationary periods.

Cody shared that reviewing budgets often reveals opportunities to reallocate money. For his family, childcare was a significant expense that highlighted future possibilities once that cost goes away. Inflation impacts nearly every aspect of daily life, from groceries to daycare, and understanding those expenses can shape long-term planning.

One of the most common concerns Cody hears from clients is income. People want protection against inflation and certainty about their future cash flow. That’s where annuities often enter the conversation. Annuities can provide guarantees that many clients value, especially as they approach or enter retirement.

One example is a multi-year guaranteed annuity, which functions similarly to a bank CD. These products offer a guaranteed interest rate for a set period of time, providing predictable growth and a guaranteed return. With interest rates rising, these annuities have become increasingly attractive, offering competitive guaranteed rates. They can also be useful as a short-term bridge to help cover income needs while waiting to turn on Social Security or pension benefits.

There are two primary ways people tend to use annuities. The first is simply to grow the principal they put in. The second is to generate income, and that’s the example I want to focus on here.

Let’s say a client deposits one hundred thousand dollars into an annuity earning six percent over the next ten years. That client is guaranteed to receive a paycheck of five hundred dollars per month for ten years. At the end of that period, they walk away with their original one hundred thousand dollar investment. That’s a powerful concept when you’re sitting down with a client, and it resonates quickly.

It also doesn’t have to be a ten-year period. You may be working with someone who is sixty-two and waiting until sixty-five to turn on Social Security, or someone who wants to delay benefits until sixty-eight because the payout is significantly higher. We see that scenario frequently. These multi-year guaranteed annuities can act as a stopgap, providing income until Social Security or a pension begins.

Beyond multi-year guaranteed annuities, we also have fixed indexed annuities. I often describe annuities as falling into two broad categories: guaranteed annuities and fixed indexed annuities. What makes fixed indexed annuities especially appealing is their ability to provide guaranteed lifetime income.

When we talk about guarantees, this is exactly what clients want to hear. A fixed indexed annuity can pay a guaranteed income for life, regardless of what happens to the account balance. That’s a concept many people have never heard before.

Here’s what that looks like in real life. A client turns on income from their annuity and begins receiving a consistent paycheck, just like they did when they were working. Fifteen years later, they’ve received income exactly as expected. Now imagine that at that point, the account balance is zero. Even then, the annuity continues paying the same income for the rest of their life. That income does not stop, regardless of the balance. That is one of the most powerful benefits of a fixed indexed annuity.

A common comparison I use is lottery payouts. Lottery winners often have the option of taking a lump sum or choosing a payout over time, sometimes even for life. That payout structure is powered by annuities. While our clients aren’t dealing with lottery winnings, the concept is similar when we’re talking about 401(k) rollovers and retirement savings. Income riders allow us to turn those savings into predictable, guaranteed income.

Let’s look at a few examples. Imagine a sixty-five-year-old male preparing to retire with one hundred thousand dollars. He could place that money into an annuity and begin income within thirty days of the policy issuing. That would generate approximately $7,930 per year, or about $660 per month, for the rest of his life.

If that same individual had two hundred thousand dollars, the income more than doubles. He would receive approximately $15,860 annually, or about $1,322 per month, guaranteed for life. These are the types of numbers that catch people’s attention, especially when they hear the word “guaranteed.”

Clients want to know they will not outlive their money. They want reassurance that they won’t be forced back into the workforce later in life because their retirement savings ran out. These guarantees directly address that concern.

Another important feature many clients overlook is the ability to structure income for both spouses. With pensions, income is often tied to a single individual. While beneficiaries may be listed, the income typically stops or is reduced when one spouse passes away. Annuities allow us to add a joint income rider, ensuring income continues for as long as either spouse is alive.

This is especially important because Social Security income is reduced when one spouse passes away. Losing a portion of that income can be devastating. With a joint annuity rider, income continues regardless of who passes first, providing stability and peace of mind for the surviving spouse.

Another powerful benefit relates directly to inflation and rising healthcare costs. Many annuities offer income-doubling features for long-term care events. If a client requires nursing home care or home healthcare, the annuity can double the income payments for up to five years. After that period, the income simply reverts back to the original amount. Nothing is lost; the client only gains additional support during those costly years.

Some carriers even allow both spouses to access that benefit separately. For example, if one spouse uses two years of the benefit and the other spouse needs care several years later, the remaining years may still be available. This can have a significant financial impact when discussing long-term care costs.

In addition, some annuities offer optional inflation protection riders. While not available with every carrier, several companies allow clients to purchase inflation-adjusted income, typically increasing payouts by three to four percent annually. This helps income keep pace with rising costs and adds another layer of peace of mind.

All of these features make annuities a natural fit in inflation-focused conversations. Whether a client needs a short-term solution or wants to replace a paycheck for life, annuities offer flexible and powerful tools. They also pair very well with life insurance, providing protection during both the acquisition and retirement phases of life.

Inflation doesn’t stop just because someone retires or passes away. Costs continue to rise, and families still need protection. That’s why guarantees—whether for growth, income, or family protection—are so important. And because prices continue to increase, having these conversations sooner rather than later is always beneficial.

Annuities often make the most sense as people approach or enter retirement, while life insurance typically plays a larger role during the acquisition phase. Together, they create a comprehensive protection strategy and help deliver peace of mind.

To bring this back to the worksheet, imagine sitting down with a hypothetical family—John and Mary—both in their early forties. John earns eighty thousand dollars annually, and Mary earns fifty thousand. Together, they bring in about $130,000 per year, or roughly $10,800 per month before taxes and deductions.

They have three children, ages thirteen, ten, and seven. As you go through their budget, you identify expenses such as an $1,800 mortgage, $800 in car payments, insurance costs, and miscellaneous spending like vacations, hobbies, or discretionary purchases. By laying everything out clearly, you can show them exactly where their money is going each month.

In this example, their monthly expenses total around $5,800. From there, the question becomes: what do we need to protect?

Since they are still in the acquisition phase, life insurance plays a critical role. One simple method is using income replacement, multiplying income by ten. That would suggest $800,000 of coverage for John and $500,000 for Mary.

Another approach is the DIME method—debt, income, mortgage, and expenses. This strategy ensures debts are paid, income is replaced, the mortgage is covered, and funds are available for education or household expenses.

A third option is using the Life Happens life insurance needs calculator, a free resource available through URL. By entering information from the worksheet—final expenses, debts, mortgage balance, income needs, years of income replacement, savings, and retirement assets—the calculator provides a precise recommendation that factors in inflation and investment assumptions.

In our example, the calculator recommends just under $700,000 of coverage per person. As insurance professionals, rounding up to $700,000 or even $750,000 is not only acceptable, it’s often prudent. Beneficiaries rarely complain about having too much life insurance, and with inflation continuing to rise, additional coverage helps stay ahead of future costs.

It’s also worth noting that life insurance premiums, especially term insurance, have generally decreased over time. Despite inflation, term insurance remains very affordable, making this an excellent time to secure coverage.

Shifting back to annuities, there are certain phrases and situations that signal an opportunity. Clients may mention receiving an inheritance, retiring, losing a job, rolling over a 401(k), poor investment performance, or concerns about market losses. These are all natural entry points for annuity conversations, especially when safety, guarantees, and income protection are priorities.

For agents who feel less confident discussing annuities, simplicity is key. One of the most effective tools is a visual chart comparing a volatile 401(k), a fixed annuity, and a fixed indexed annuity. This clearly illustrates market risk versus protected growth and helps clients understand diversification in a straightforward way.

Another helpful approach is focusing on a few core concepts: safety, protection, tax deferral, and guarantees. If a client remembers just one phrase, it should be this: you participate in the gains, but you don’t suffer the losses. That single statement captures the essence of many annuity benefits.

Preparation builds confidence. Using pre-built materials, comparison charts, and support from the annuity team makes these conversations far less intimidating. And it’s okay to “make a mess” at first. That’s how learning happens. Our role is to support you, answer questions, and help you grow into new revenue streams.

At URL, we are committed to supporting you with tools, products, and expertise so you can better serve your clients. We believe we are in the people business, and our mission is to help you help others.

If you have questions, we encourage you to reach out. Cody can be reached at 717-216-8063, and I’m available at 717-216-8041. The recording of this presentation, along with the tools and resources discussed, will be sent to all attendees.

Thank you again for your time, your partnership, and your commitment to serving clients with integrity. We’re here to support you every step of the way.