Longer Lives, Bigger Shifts: How Healthcare Breakthroughs Are Reshaping Insurance
What happens when people start living longer—a lot longer—but our actuarial tables are still stuck in the past?
That’s the question emerging from the rise of GLP-1 drugs like Ozempic and Wegovy. Originally designed to manage diabetes, these medications are now transforming weight loss—and with it, the health trajectory of millions of Americans.
As life and annuity professionals, we must begin forecasting the ripple effects of longer, healthier lives on insurance, retirement income strategies, and longevity risk. What was once a distant concern is quickly becoming an urgent conversation.
What’s Changing (And Why It Matters)
1. Longevity Risk Just Got Riskier
Income annuities may need to pay out for much longer than expected. If our pricing models haven’t evolved, guarantees could be seriously misaligned with reality.
2. The New Reality for Term Life
As mortality curves flatten, life expectancy pushes upward. Early death claims could decline—changing the math for carrier profitability.
3. Underwriting in a Post-GLP-1 World
Many carriers haven’t accounted for GLP-1 usage in underwriting. As these drugs become mainstream, expect a rush to update underwriting assumptions and health models.
4. Pension Plans Feeling the Strain
Traditional pension plans are already stressed. Add a few extra years of payouts to the mix, and funding gaps could become chasms.
The Actuarial Climate Crisis
We’re approaching the actuarial equivalent of climate change—slow-moving, profoundly disruptive, and dramatically underpriced.
Now is the time to adapt.
The Planning Opportunity: Action Steps for Advisors
Start stress-testing your clients’ retirement plans using extended healthspan scenarios. Focus on income strategies that scale with longevity—think guaranteed lifetime income from annuities.
And don’t stop there. Re-evaluate how life insurance can support aging-in-place strategies. Life policies with long-term care riders or chronic illness benefits could become essential as lifespans stretch.
Solutions in Action
Carriers aren’t ignoring this trend. We’re seeing innovation through programs like John Hancock’s Vitality and Life-Care suite, which reward healthier lifestyles and integrate long-term care coverage into permanent life insurance.
On the income side, tools like QLACs, RILAs, and deferred income annuities provide scalable, guaranteed income that’s designed to last well beyond the traditional retirement window. These aren’t fringe products—they’re becoming the backbone of longevity-conscious planning.
By combining proactive planning with the right tools, advisors can position clients to thrive—not just survive—well into their 90s and beyond.
The Longevity Impact, By the Numbers
GLP-1s are projected to reduce cardiovascular risks by 20–25%, according to JAMA. That alone could add 3–5 years to average life expectancy in the next decade. For the insurance industry, that’s not a blip—it’s a seismic shift.
Final Word: Stretch the Plan to Match the Life
This isn’t about "if." It’s about "when."
Be the advisor preparing clients for the 95-year-old marathoner, not just the 85-year-old couch potato. Their futures are stretching. So should your planning.
Want help running longevity stress tests or exploring new product strategies for long-life planning? Let’s talk.
