“New Insurance Regulation” Protects Consumers from LTC Insurance Rate Increases

[Mr_Ed]

This brings up the main point, Jack.

The naysayers in the media say, "don't buy LTC insurance because XYZ company had a premium increase of 85% in 2013."

The naysayers do not tell the other side of the story, which is: "you should buy LTC insurance now that the rate regulations are in place because all of the policies issued by XYZ company in WW state since 2003 have had no increases in premium. Someone who purchased a policy from XYZ company in WW in 2003 is paying the exact same premium today that they were paying when they first bought their policy."

 

[ltcadviser]

This brings up the main point, Jack.

The naysayers in the media say, "don't buy LTC insurance because XYZ company had a premium increase of 85% in 2013."

The naysayers do not tell the other side of the story, which is: "you should buy LTC insurance now that the rate regulations are in place because all of the policies issued by XYZ company in WW state since 2003 have had no increases in premium. Someone who purchased a policy from XYZ company in WW in 2003 is paying the exact same premium today that they were paying when they first bought their policy."

It is still very difficult to tell a client "not to worry about it, things are different now".

 

[CALTCAgent]

I do think it is tough to tell a consumer about the "rate stability regulations ".

For example :

I see rate increases, then it says for policies available 1993 to 2005.

Lets say the "rate stability regulations" took effect in 2002.

Are those rate increases only for policies issued 1993 to 2002 ?

If so, how do I know ?

 

[Mr_Ed]

It is still very difficult to tell a client "not to worry about it, things are different now".

I sell LTCi, Jack.
Like you, I talk to more consumers in a month about LTCI than most agents talk to in a year.

Consumers completely understand and accept the rate regulations when I explain them to them.

Every consumer I've explained the regulations to understood and trust the regulations.

----------

I do think it is tough to tell a consumer about the "rate stability regulations ".

For example :

I see rate increases, then it says for policies available 1993 to 2005.

Lets say the "rate stability regulations" took effect in 2002.

Are those rate increases only for policies issued 1993 to 2002 ?

If so, how do I know ?

where are you reading this?
are you looking at a personal worksheet or something?

 

[CALTCAgent]

where are you reading this?
are you looking at a personal worksheet or something?

Yes, personal worksheet.

 

[Arthur Rudnick]

originally posted by ltcadviser

It is still very difficult to tell a client "not to worry about it, things are different now".

Jack,
Actually, it's very easy to tell a client "not to worry about it".

The difficult part (based on history) is for them to believe you.
You're not a member of the clergy, you're an insurance agent!
Not high up on the scale of "believable professions"

 

[ltcadviser]

I sell LTCi, Jack.
Like you, I talk to more consumers in a month about LTCI than most agents talk to in a year.

Consumers completely understand and accept the rate regulations when I explain them to them.

Yes, I know. Still, it would be a lot cleaner if LTCI would have 2 options like DI policies: non can or guaranteed renewable. Sure dont know why DI can do it but not LTCi?

 

[Arthur Rudnick]

originally posted by ltcadviser

Sure dont know why DI can do it but not LTCi?

Maybe the DI actuaries completed college and the LTC actuaries flunked out of 4th grade?

Not sure, but that would be my guess...............

 

[Mr_Ed]

originally posted by ltcadviser



Jack,
Actually, it's very easy to tell a client "not to worry about it".

The difficult part (based on history) is for them to believe you.
You're not a member of the clergy, you're an insurance agent!
Not high up on the scale of "believable professions"

What history are you looking at Arthur, the history of the failed regulation known as "Loss Ratio"?

Or are you looking at the history of policies regulated by the Rate Stability Regulations?

Based upon the history of the policies that have been issued under the Rate Stability Regulations, they have every reason to believe they will not have any premium increases.

So, which history are you looking at, Arthur?

 

[ltcadviser]

Based upon the history of the policies that have been issued under the Rate Stability Regulations, they have every reason to believe they will not have any premium increases.

Too soon to tell. Really need 15 years at a minimum to gauge success. Need time to allow blocks of business to cycle through.