Coasting in Retirement – Episode 78
Whether you’re dreaming of relaxing on Alabama’s beautiful Gulf Coast, traveling the country in retirement, or simply enjoying more time with your family, having a financial plan that protects everything you’ve worked for is just as important as growing your investments.
In this episode of Coasting in Retirement, host Josh Null, owner of Gulf Coast Financial Advisors, welcomed guest co-host Jay Stubbs of Providence Partners to discuss an important trend in the financial industry: bringing family office-level services to everyday retirees and successful professionals. They also explored why obtaining life insurance has become easier than ever thanks to advances in technology and underwriting.
Here are the biggest takeaways from the conversation and what they could mean for your financial future.
Bringing the Family Office Experience to More Families
Traditionally, a family office has been reserved for ultra-high-net-worth families with tens of millions of dollars in assets. These firms serve as a centralized financial headquarters, coordinating investment management, estate planning, tax strategies, wealth transfer, philanthropy, and even family education across multiple generations.
Josh explained that while Gulf Coast Financial Advisors isn’t technically a family office, the firm has intentionally built a similar experience for successful individuals and families who may not have $30 million but still deserve comprehensive financial guidance.
Instead of focusing solely on investments, Gulf Coast Financial Advisors leads with financial planning. Through strategic partnerships with trusted local professionals, clients receive coordinated guidance on:
- Investment management
- Estate planning
- Tax planning
- Legacy and wealth transfer strategies
- Financial education
- Risk management, including life insurance, long-term care insurance, and disability income protection
The goal is simple: provide personalized financial guidance that looks at every aspect of a client’s financial life, not just their portfolio.
Why Life Insurance Has Never Been Easier to Obtain
One of the show’s biggest discussions centered around how dramatically the life insurance industry has changed over the past several years.
According to Jay Stubbs, obtaining life insurance today is significantly easier than it was even five years ago. Several factors are driving this change:
- Streamlined digital applications that replace lengthy paper forms
- Faster underwriting powered by technology and electronic medical records
- More flexible health guidelines from many insurance companies
- Lower mortality costs as Americans continue living longer
- Increased consumer awareness about protecting income and family wealth
Many insurers now rely on electronic health information, prescription history, motor vehicle reports, and other available data instead of requiring traditional medical exams.
For many applicants, this means receiving approval in hours or days instead of weeks.
Health Conditions That May No Longer Be Deal Breakers
One surprising part of the conversation was how underwriting standards have evolved. Jay explained that some medical histories that once resulted in higher premiums, or even automatic declines, may no longer carry the same weight.
For example, certain companies are now placing less emphasis on:
- Family history of cancer
- Recreational marijuana use (depending on frequency and overall health)
- Certain past medical conditions that are now more treatable
While every insurance company evaluates risk differently, today’s underwriting environment offers opportunities for many people who may have assumed they no longer qualified for affordable coverage.
If it’s been several years since you last explored life insurance, it may be worth taking another look.
Understanding the Different Types of Life Insurance
Another reason more people are purchasing life insurance is that consumers are becoming better educated about the options available. Jay broke down the primary categories:
Term Life Insurance
Provides coverage for a specific period of time (commonly 10, 20, or 30 years) and is often used to protect income, pay off debts, or provide for family members.
Whole Life Insurance
Designed to provide permanent coverage for your entire life while building guaranteed cash value over time.
Universal Life Insurance
Offers greater flexibility, allowing policyholders to adjust premiums and benefits as financial needs change.
Within Universal Life, there are additional options:
- Variable Universal Life (VUL): Cash value is invested directly in market-based subaccounts, allowing for higher growth potential but also greater investment risk.
- Indexed Universal Life (IUL): Cash value growth is tied to a market index while generally providing downside protection through a 0% floor.
Each option serves different financial goals, making professional guidance especially valuable when deciding which type fits your family’s needs.
New Technology Is Transforming the Insurance Process
One of the most exciting developments discussed was Providence Partners’ relationship with Ethos, an online life insurance platform designed to simplify the buying process. Ethos allows many applicants to:
- Apply entirely online
- Skip medical exams in many cases
- Receive decisions within minutes
- Obtain coverage as high as $2 million through a streamlined digital application
Jay noted that even larger policies are becoming easier to obtain, with some insurers now offering several million dollars of coverage without traditional blood work or lengthy underwriting.
Technology has dramatically reduced the barriers that once discouraged many people from purchasing life insurance.
Market Volatility: History Offers an Important Reminder
The conversation also shifted toward recent market volatility and investor anxiety. Referencing recent Morningstar research, Josh pointed out that the U.S. stock market has experienced 19 major declines of 20% or more since 1871.
The encouraging news? → The market has recovered from every one of them.
Morningstar introduced the concept of a “Pain Index,” measuring not only how far markets fall but also how long they take to recover. For example:
- The COVID market crash was severe but recovered quickly, making it one of the least painful declines historically.
- The “Lost Decade” from 2000 through roughly 2013 took much longer for investors to recover, creating greater challenges for retirees.
The discussion reinforced an important lesson: market volatility is normal, but having a thoughtful financial plan helps investors avoid emotional decisions during difficult periods.
Timing the Market Is More Difficult Than Most Investors Realize
Josh also highlighted research from Charles Schwab showing that the S&P 500 has averaged roughly a 14% intra-year decline since 1974, yet still finished positive in the majority of those years.
Perhaps even more striking, investors who missed only the market’s 20 best trading days over the past two decades would have earned dramatically lower long-term returns than those who simply remained invested.
For retirees nearing or entering retirement, this doesn’t necessarily mean taking unnecessary risk.
Instead, it emphasizes the importance of balancing growth opportunities with risk management and having income strategies that allow you to weather periods of volatility.
Why Life Insurance Demand Continues to Grow
Josh and Jay also discussed a recent LIMRA report showing that life insurance demand continues reaching record levels. According to the report:
- Total life insurance premiums increased 10% year-over-year.
- Indexed Universal Life (IUL) experienced particularly strong growth.
- Whole Life and Variable Universal Life policies also saw significant increases.
Jay believes much of this demand comes from younger generations recognizing the importance of protecting income, providing for loved ones, and planning for future wealth transfer.
Combined with easier underwriting and faster technology, life insurance has become more accessible than ever before.
Wrapping Up: Financial Planning Goes Beyond Investments
One of the biggest themes throughout this episode was that successful retirement planning isn’t just about earning strong investment returns.
It’s about coordinating every piece of your financial life, including investments, taxes, estate planning, and risk management, to create a strategy built around your personal goals.
Whether you’re protecting your family’s future with life insurance, preparing to retire, or simply looking for a second opinion on your current financial plan, having experienced professionals working together can make all the difference.
Let’s Talk About Your Retirement Plan
If you’d like to discuss your investments, retirement planning, estate planning, or determine whether your life insurance still meets your family’s needs, we’d love to help.
You can reach us at 251-327-2124, or visit gulfcoastfa.com and click the blue button in the upper right-hand corner to schedule a meeting.
We offer:
- 15-minute introductory phone calls
- 30-minute Zoom meetings
- In-person meetings at our offices in Fairhope, Orange Beach, or Mobile
No pressure. No obligation. Just an honest conversation focused on helping you build confidence in your financial future.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.