Another Major LTC Player Making Sweeping Changes

[Mr_Ed]

I've stated this before and was called a hypocrite and I'm really not sure why as it is the truth from everything i know. The fact is NWM is the only company selling LTC to both not have a rate increase and have a history of LTC dividend payment. That is a pretty strong sentence in today's market.

It is an incorrect sentence.

NY Life pays dividends on their LTCi and they have never had an in-force rate increase.
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Thank you, you just proved my point. I am not an AGENT, I am an ADVISOR. My job as a fiduciary is to do what I believe is in the best interest of the client. If they just want to see all the options they can use google.

I suggest you ask your compliance department at NWM if you should call yourself a fiduciary.

 

[ltcadviser]

This truly isn't meant to be argumentative, but what are you defining as the rest of the market? I will give you that Genworth can be very cheap, but I have run many spreadsheets with many companies, and NML just isn't anywhere near 70% higher than the rest of the market, nor 40% higher after the dividend. They are a tally very competitive especially with the dividend.


As far as the 10 pay example you gave is concerned, you just did the same thing that you were complaining about. You compared your 10 pay to someone else's lifetime pay. Compare 10 pay to 10 pay or lifetime to lifetime.

Personally, I am still on the fence about 10 pays, I like the fact that they should lock out your future rate increases and reduce your cash outlay in retirement, but many times the amount you put into them over those 10 years, and the lost power of those dollars doing something else over a lifetime is still hard for me.

The "rest of the market" means all possibilities. When I was captive with an A++ carrier, the marketing department used to cherry pick the premiums of companies it looked good against, and stated "see Jack, we are the best! Now go sell."

If you become aware that your life pay is the same as Genworth's 10 pay and you refuse to sell Genworth's 10 Pay, then you are the definition of "captive.". Not that there is anything wrong with that. I say sing loud and sing proud about your captivity. Just don't bring fiduciary into it

 

[Mr_Ed]

was th JD part supposed to impress me?

I have my 7, 66, CLU, ChFC, & CFP....I think I understand fiduciary responsibility. While I have only been in the business for 7 years, and almost 3 with NML, I have never had a written or verbal complaint. I have only lost two clients in those 7 years. One due to financial troubles and a long unemployment, and one who died.

I believe that my clients are more well informed than most after the time that I spend with them up front and on an ongoing basis. Way more than someone who has an AGENT that just throws all the options on the table and says pick one.

So yes, I feel like all of my clients and files will stand up to any judge's scrutiny anytime.

Is this where I say "the defense rests?" I didn't go to law school, so I am not sure...

... for all your learning it's amazing that you think that you're a fiduciary.

Please do the following:

1) Call your compliance department at NWM.
2) Tell the person you speak with to lie down on the floor so as to avoid any injury.
3) Tell them to have a automatic defibrillator on standby
4) Tell them you think you're a fiduciary.
5) Wait for them to revive or for the AED to work--also you should tell them to have someone nearby with smelling salts--that might help.
5) After they climb back onto the phone and tell you that you're not a fiduciary, come back to the forum and tell us hoiw that conversation went down.
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My initial long term care planning meeting with my clients is typically 3-4 hours.

wow... that's a long time. that's about fifteen times longer than mine.

 

[ikeman07]

WOW.

$94 per policy!

That is amazing.

"Honey, we can go out to eat at Denny's tonight."
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what amazes me is that you don't see how hypocritical this is.

Well...some supp DI policies only cost a couple hundred bucks a year...get it on a multi life discount and it can be even cheaper...all DI policies aren't $5,000 a year.
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The "rest of the market" means all possibilities. When I was captive with an A++ carrier, the marketing department used to cherry pick the premiums of companies it looked good against, and stated "see Jack, we are the best! Now go sell."

If you become aware that your life pay is the same as Genworth's 10 pay and you refuse to sell Genworth's 10 Pay, then you are the definition of "captive.". Not that there is anything wrong with that. I say sing loud and sing proud about your captivity. Just don't bring fiduciary into it

I don't use my marketing department to shop the market for me, I use a guy by the name of Mike Lynch at National Insurace Brokerage to shop my LTC and I use Mass to look at their quotes.

 

[Chuckles21]

NY Life pays dividends on their LTCi and they have never had an in-force rate increase.

I stand corrected, thanks for the information.

 

[Mr_Ed]

Why do Muni's pay less than corporates? Why do AAA bonds pay less than junk bonds? Why do...you get the point.
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Bad analogy.

Why does a flat screen TV cost $1,000 at Costco but the same TV costs $1,500 at Sears.

Overhead and Volume.


What you don't understand is that it COSTS your company A LOT of money to pay you.

Between benefits, your office, the office staff, etc.... the cost to distribute any product through a captive agency force is HUGE.

Selling LTCi policies through independents is VERY inexpensive.

That savings is passed onto the consumer in the form of lower premiums.

PERIOD.

The higher premium they are paying is NOT because more money is being set aside to pay future claims.

The higher premium is because of the high cost of distribution.



(fyi... the only way to prove that they are buying a policy with less risk is if the insurer is setting aside more in reserves than other LTCi companies. find out how much your company has set aside in reserves for LTC. then we can compare it with other LTC insurance companies and then we'll know which company offers "less risk".)

 

[ikeman07]

It is an incorrect sentence.

NY Life pays dividends on their LTCi and they have never had an in-force rate increase.
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I suggest you ask your compliance department at NWM if you should call yourself a fiduciary.

I have already conceded the confusion as it pertains specifically to insurance, but my ADV and CFP disclosures spell out my fiduciary roles pretty clearly. I can also do fee only planning for clients if they like and charge a couple grand and sell nothing which I do from time to time.

 

[ltcadviser]

wow... that's a long time. that's about fifteen times longer than mine.

That's really only for my local clients, though. The Internet clients are different.

 

[ikeman07]

Bad analogy.

Why does a flat screen TV cost $1,000 at Costco but the same TV costs $1,500 at Sears.

Overhead and Volume.


What you don't understand is that it COSTS your company A LOT of money to pay you.

Between benefits, your office, the office staff, etc.... the cost to distribute any product through a captive agency force is HUGE.

Your example on TVs is for the same product at different places, my example was for similar product but with different risk levels.

Holly crap, can you tell my GA that I can stop paying rent, phone, fax, copy, and mail expenses. Oh yeah...and please call my assistant and tell him that he needs to return the 40k I paid him last year, my GA was supposed to pay that!

 

[ltcadviser]

Well...some supp DI policies only cost a couple hundred bucks a year...get it on a multi life discount and it can be even cheaper...all DI policies aren't $5,000 a year.
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I don't use my marketing department to shop the market for me, I use a guy by the name of Mike Lynch at National Insurace Brokerage to shop my LTC and I use Mass to look at their quotes.

Tell Mike, Marie and Jim I said hi! Are you in Marietta? Atlanta ?