2016 LTCi Sales

[Mr_Ed]

No they didnt.

Just looking at total lives, traditional LTC insurance had twice as many new lives as Life/LTC or Annuity/LTC hybrids did in 2016.

No matter how you look at it, either in terms of total lifetime premium or in terms of total new lives, traditional LTCi sales were much higher in 2016 than hybrids.

 

[ltcadviser]

228 million of life pay premium is a lot more than 3.6 billion of single pay premium. Do the math, Jack.


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Hybrids can be funded as 10 Pay, 20 Pay and Lifetime Pay, Arthur.

 

[Mr_Ed]

Hybrids can be funded as 10 Pay, 20 Pay and Lifetime Pay, Arthur.

Be honest, Jack.

You know as well as I do that over 90% of the hybrids are single-premium. The biggest seller of non-single premium hybrids didn't even sell 3,000 lifepay/10pay/20pay hybrids in 2016.

 

[ltcadviser]

Be honest, Jack.

You know as well as I do that over 90% of the hybrids are single-premium. The biggest seller of non-single premium hybrids didn't even sell 3,000 lifepay/10pay/20pay hybrids in 2016.

I do not know that. I certainly write multi-pay way more than 10% of the time.

 

[Mr_Ed]

I do not know that. I certainly write multi-pay way more than 10% of the time.

You and i are the exception. LIMRA was studying the industry, not us.

The fact is that twice as many people in 2016 bought traditional long term care insurance than those that bought hybrids.

 

[ltcadviser]

I will write about $6 million of hybrid premium for every $200,000 of traditional premium.

 

[Mr_Ed]

.... what is the ratio in terms of lives?

 

[ltcadviser]

Probably close to 50/50.

 

[ltcadviser]

Maybe more traditional lives overall. But compared to 1998-2013 the trend is towards hybrids. Its a shame NY wont approve any good product so Arthur can get involved!

 

[Mr_Ed]

My point is that the article by LIMRA is deceptive. They are trying to make agents think that hybrid sales are 20x more frequent than traditional LTCi sales. When the truth is that traditional LTCi sales are twice as high as hybrid sales. They are misrepresenting the hybrid sales by 4000%.