AARP and LTC

Jul 16, 2007

  1. policy doctor
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    Looks like AARP is serious about becoming a behemouth in the insurance field. And with the aging population growing exponetially, esp with baby boomers aging , they are positioning to be The company of choice.
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    Genworth and AARP Announce New Strategic Alliance
    On July 12th, Genworth announced a new relationship with AARP to offer Long Term Care to their 38 million members. They will soon introduce their "Cornerstone Advantage" product, offering a price roughly half that of today's mainstream products. Endorsed by AARP, the new product will be available for sale July 30. Later this year, Genworth will launch it as a group product for AARP members that will include a special 5-year rate guarantee, 60-day opt-out clause, and unprecedented inflation protection features. It appears our top provider is making a move to become the nation's choice for LTCi!
     
  2. Winter_123
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    How will this play out? Does this mean anything for independant agents appointed with Genworth or is this all in-house through AARP. They may handle med supps without agents but how the heck would that work with long term care. Whats the arrangement here?

    Winter

     
  3. James
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    Likely to be simplified issue with very low benefits and likely squirrely wording on how any payout will be done.
     
    James, Jul 17, 2007
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  4. policy doctor
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    AARP and Metlife had a contract for this ltc. Basically it was a 3 yr plan w/o inflation, no restoration of benefits, a 60 or 90 day waiting period, and some other details I can't remember. They really blitzed this for a while to their senior mkt, but I don't see the mktg like I used to.

    Guess in light of GE now signing with them, I would imagine Met is out of the picture. But they did sell a lot because they made the policy easy to understand and priced it comfortably.

    And GE agents will not get a cut of the pie, just like the Met agents got zilch. But i'm signing up with Ge...because when they start that media blitz you can always match that advertised plan, and perhaps enchance it for the same premium $$$.
     
  5. Winter_123
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    Right, I had the same thought, although I am already appointed with them. All of the advertising will only increase the name recognition and also any carrier who is out there advertising LTC only increases awareness of the need. The competition is not really between carriers yet. The biggest barrier is lack of perception that is needed or a belief that Medicaid will take care of you. When you see Mutual of Omaha ads on TV it makes it easier to make a Genworth sale and vice versa. My view.

    Winter
     
  6. bluemarlin08
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    I have a brother who has been career GE for 15 years and he told me a few weeks ago that AARP was going to endorse GE and that the career guys would be getting the AARP referrals as part of their lead program, albeit at reduced commissions.
     
  7. senior-advisor-indiana
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    GE makes good refrigerators.
     
  8. James
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    James, Jul 18, 2007
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  9. policy doctor
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    AARP is preparing to modify its primary source of long term care insurance (LTCI) and has chosen Genworth Financial Incorporated to supply coverage for its main program.

    While this move is expected to take place starting in October, the AARP says it will continue to use MetLife, its previous LTCI supplier, to maintain existing AARP LTCI policies and provide service for those policyholders.

    In addition, Genworth has agreed to spend $7.5 million on long term care research, as well as educational efforts, according to the AARP.

    Genworth will also provide a variety of products.

    Finally, the AARP says its products will cost nearly half of what typical LTCI products cost — with 5-year rate guarantees.
     
  10. senior-advisor-indiana
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    Now that would be great if they could offer LTC at half the price. Not great for us but great for the clients.
     
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