Another Major LTC Player Making Sweeping Changes

[ltcadviser]

I don't get why everyone thinks that NML agents are all NML only kool aide drinkers. Does the kool aide taste good...yeah sure it does. Does it mean I sell NML when it doesn't make sense...no it doesn't. I am appointed with multiple carriers and use them when appropriate.
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This is Clark's honor roll, not mine. And our LTC company has the same ratings...nice try

Not that it matters, but Clark Howard, himself, did not write this list. And it is only a roll call of life insurance companies with A++ ratings.

If you or I choose to use it for marketing purposes than it is our choice.

 

[howardseigle]

Which ''Big Mutual''?

 

[ltcadviser]

Ha! Gotta love auto correct, great most of the time, but it can get you sometimes.

Well. for being such a good sport in this banter lunch at Bones is on me.

 

[ikeman07]

The point is that higher premium does NOT imply less risk to your clients.

The company that has the highest reserves per policyholder is the one that has the less risk.

You're assuming that NML sets aside more in reserves because their premiums are higher.

I propose that the higher premiums go towards the higher cost of distribution (even though you pay some of your expenses and some of the cost of your benefits, you do not pay for all of your expenses.)


Unfortunately, we have no idea how much is set aside in reserves by your company because they don't publish it.

Other leading LTC insurers do publish the amount of their LTCi reserves.

Again, higher premium does not mean less risk.
Higher reserves does mean less risk.

Company history on other product lines and higher dividends do provide some indication that future rate increases are not as likely as with some other carriers. When my main concern is with lower risk and managing cash flow, that is important to me. It is why I moved my practice to NML.
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Not that it matters, but Clark Howard, himself, did not write this list. And it is only a roll call of life insurance companies with A++ ratings.

If you or I choose to use it for marketing purposes than it is our choice.

I saw it on you blog and went to see if there was a more current one
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This is Clark's honor roll, not mine. And our LTC company has the same ratings...nice try

Gonna bust myself here...it looks like NML LTC has no rating. I am assuming it is because reserves, etc are not disclosed. Interesting. I will ask about this at our annual meeting next month.

I found this disclosure on our website, but I will look into it more:
Ratings are for Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company, as of the most recent review and report by each rating agency. Northwestern Mutual's ratings: Moody's Investors Service Aaa (highest), 10/2011; A.M. Best Company A++ (highest), 4/2012; Fitch Ratings AAA (highest), 8/2011; Standard & Poor's AA+ (second highest), 6/2012. Ratings are subject to change.

 

[Arthur Rudnick]

Question.....................

It's been mentioned a number of times that in lieu of a NWM rate increase on existing policyholders, the company would first either lower or discontinue paying dividends.

Is that an assumption or something written in stone?

 

[ltcadviser]

Company history on other product lines and higher dividends do provide some indication that future rate increases are not as likely as with some other carriers. When my main concern is with lower risk and managing cash flow, that is important to me. It is why I moved my practice to NML.
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I saw it on you blog and went to see if there was a more current one
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Gonna bust myself here...it looks like NML LTC has no rating. I am assuming it is because reserves, etc are not disclosed. Interesting. I will ask about this at our annual meeting next month.

My blog posts are to create website traffic which leads to phone calls and inquiries which leads to conversations which leads to clients.

 

[ikeman07]

I guess I will unbust myself. NML LTC doesn't show up on any of the lists of ratings showing all companies, but the individual rating agencies are all specific in stating that both the Life and LTC company hold the same ratings.
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Question.....................

It's been mentioned a number of times that in lieu of a NWM rate increase on existing policyholders, the company would first either lower or discontinue paying dividends.

Is that an assumption or something written in stone?

Completely an assumption unless Chuckles knows something different, but what I would think stands the test of any logic.
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My blog posts are to create website traffic which leads to phone calls and inquiries which leads to conversations which leads to clients.

I was just bust'n your chops...I am flattered you had NML on your blog, even if it was just on a list.

 

[Chuckles21]

Completely an assumption unless Chuckles knows something different, but what I would think stands the test of any logic.

I know as much as you, but we both see this the exact same way. Common sense says this is how it would go.

 

[Arthur Rudnick]

I know as much as you, but we both see this the exact same way. Common sense says this is how it would go.

What do the words "common sense" and "insurance" have to do with each other?

 

[ikeman07]

What do the words "common sense" and "insurance" have to do with each other?

Part of our job is to make reasonable assumptions....example: a reasonable assumption would be that if Arthur Rudnick found a hundred dollar bill on the sidewalk, he would complain about it.

Just kidding, but in all seriousness, there is no real guarantee in anything we do, only ways to improve risk.