2015 Long Term Care Insurance Survey

[Mr_Ed]

"Nonetheless, there are hopeful signs for stand-alone LTCI. A major insurer that has been relatively inactive in LTCI the past couple of years is aggressively marketing an innovative new product. Another insurer will enter the market later this year with lifetime benefit period, a single premium alternative and term life insurance riders."

Any idea what the reference to the "innovative" new product is and/or who the insurer who'll provide lifetime benefits, single premium and term life riders might be?

"innovative new product" is referring to Hancock's Performance LTC.
"insurer who'll provide lifetime benefits and limited pay policies" is referring to LifeCare Assurance.

 

[ltcadviser]

Innovative? Well, that is an interesting word to describe that policy.

 

[Mr_Ed]

Innovative? Well, that is an interesting word to describe that policy.

I didn't say I agreed with the description.

 

[ltcadviser]

All I know is my mom received an innovative 105 % rate increase on her JH policy

 

[wc2624]

"innovative new product" is referring to Hancock's Performance LTC.
"insurer who'll provide lifetime benefits and limited pay policies" is referring to LifeCare Assurance.

Thanks for the info. I suspected that might be the case with the JH policy.

 

[Mr_Ed]

All I know is my mom received an innovative 105 % rate increase on her JH policy

In which state did she buy her policy?

 

[ltcadviser]

In which state did she buy her policy?

Pennsylvania.

JH jacked her rate up 68% 2 years ago, and this week just came back and jacked her rate up again. I suppose she should expect an increase biannually moving forward. Would not surprise me. Innovative.

 

[Mr_Ed]

Pennsylvania.

JH jacked her rate up 68% 2 years ago, and this week just came back and jacked her rate up again. I suppose she should expect an increase biannually moving forward. Would not surprise me. Innovative.

why didn't she just take the landing spot and avoid the increase?

 

[ltcadviser]

why didn't she just take the landing spot and avoid the increase?

Does not change the issue: either my mom accepts decreased benefits or pays a higher premium.

If I had started my career as a captive agent with Mass Mutual this would not be an issue today!

In reviewing the landing spot, it is much better for my mom to accept the rate increase:

Current benefit
2015 $314 day
2025 $511 day
2035 $833 day

Premium $5400

Landing spot benefits
2015 $314 day
2025 $389 day
2035 $464 day

Premium $4200

Accepting the reduction of benefits only helps if care is not needed.
I think I would like to push my mom's benefits up to $450 day before I begin to think about taking my foot completely off of the gas pedal.