Another Major LTC Player Making Sweeping Changes

[2insureyou]

The points being made was that NWM clients generally do not shop & compare. They are in bed with NWM for life insurance, annuities, financial planning and other services. They are loyal to the company and will most likely stick with them for all financial products, including LTCi.

Personally I've been up against NWM many times for LTCi and in most cases have not closed the sale. The kool aid flows from the agent directly into the mouths of their clients.

Secondly, what kind of service is a NWM agent providing their clients if they're only showing a LTC policy at $10,000/yr. when other carriers offer a better policy at 40% or 50% less?

I take pride in the fact that I'm independent and have the ability to present to my prospects every available option and carrier.

Would you say the same thing if 2insureyou was captive with Bankers Life?

Ahhh... but I'm not with Bankers Life. That company should simply die, and that, we can all probably agree on.

The idea that NM is overpriced is rather silly to me. While there is certainly no guarantees for the future, which companies do you think are better positioned to remain strong in the market place? Fact is Genworth has struggled... Not only in rate stability, but in financial strength. (Yes, I realize they are still an A rated company) I hope that does not continue to be the case.

NM remains strong and stable directly because of their more realistic pricing and assumptions.And with the exception of just a couple of carriers, many others have raised their premiums and trimmed their offerings to be more inline with where NM is. What does that tell you about what the actuaries think should be happening?

Believe me, the brass at NM in Milwaukee WANTS other companies to structure their contracts to be able to make good on their promises and improve the overall marketplace. I've heard that straight from the horses mouth.

I've sold other contracts. If a client absolutely balks on price, and will not pay for the Lexus, we buy the Toyota. It's still a nice car. But when I talk mutuality and financial strength, with my clientele, at least, it resonates. They have usually shopped me, even if they are clients.

The idea that our clients never talk to other advisors/agents is crazy. I know they get talked to... I've seen competing proposals, but even with two different brand new clients recently, I was in competition with other agents who were on level ground with me in terms of relationship, and I still won with the NM contract.

So, it's not just existing clients. I rarely lose. I lose, but not often. I do hate to lose though.

 

[Mr_Ed]

Ahhh... but I'm not with Bankers Life. That company should simply die, and that, we can all probably agree on.

The idea that NM is overpriced is rather silly to me. While there is certainly no guarantees for the future, which companies do you think are better positioned to remain strong in the market place? Fact is Genworth has struggled... Not only in rate stability, but in financial strength. (Yes, I realize they are still an A rated company) I hope that does not continue to be the case.

NM remains strong and stable directly because of their more realistic pricing and assumptions.And with the exception of just a couple of carriers, many others have raised their premiums and trimmed their offerings to be more inline with where NM is. What does that tell you about what the actuaries think should be happening?

Believe me, the brass at NM in Milwaukee WANTS other companies to structure their contracts to be able to make good on their promises and improve the overall marketplace. I've heard that straight from the horses mouth.

I've sold other contracts. If a client absolutely balks on price, and will not pay for the Lexus, we buy the Toyota. It's still a nice car. But when I talk mutuality and financial strength, with my clientele, at least, it resonates. They have usually shopped me, even if they are clients.

The idea that our clients never talk to other advisors/agents is crazy. I know they get talked to... I've seen competing proposals, but even with two different brand new clients recently, I was in competition with other agents who were on level ground with me in terms of relationship, and I still won with the NM contract.

So, it's not just existing clients. I rarely lose. I lose, but not often. I do hate to lose though.

is there an emoticon for "I want to vomit?"

 

[Arthur Rudnick]

 

[Mr_Ed]

that's a good one!


when i was a captive agent i was told that the difference in price between the leading companies was never more than 10% or 15%. It is worth spending the extra premium in order to get the "name brand".

what a bunch of crock.

ignorance was bliss for about two years.

once I found out that my company was usually priced 30% to 50% higher than companies that had BETTER policies with lower rates, i realized I was NOT doing my clients a service by making them pay more to get less.

Indiana rates.
55 year old husband and wife
NO preferred health discount (just to be fair since NWM doesn't offer one.)
$6,000mb
5% compound
3 year bp.

annual premiums per spouse:

company 1: $1,845
company 2: $1,869
company 3: $2,257
company 4: $2,404
company 5: $2,694
company 6: $3,276

(guess which one is 2sureforyou's company?)

company 2 (a highly rated MUTUAL insurance company) would have to have a 75% premium increase just to match "company 6".

If the couple could get the 15% preferred health discount, then it would take a 106% premium increase in order for Company 2 to have a premium equal to Company 6.

... but i'm sure that 2sureforyou is certain that Company 6 is not overpriced.

(I thought everybody else was "inline with other offerings.")


where's that emoticon, Arthur, I think I need it again.

 

[ltcadviser]

The points being made was that NWM clients generally do not shop & compare. They are in bed with NWM for life insurance, annuities, financial planning and other services. They are loyal to the company and will most likely stick with them for all financial products, including LTCi.

Personally I've been up against NWM many times for LTCi and in most cases have not closed the sale. The kool aid flows from the agent directly into the mouths of their clients.

Secondly, what kind of service is a NWM agent providing their clients if they're only showing a LTC policy at $10,000/yr. when other carriers offer a better policy at 40% or 50% less?

I take pride in the fact that I'm independent and have the ability to present to my prospects every available option and carrier.

Would you say the same thing if 2insureyou was captive with Bankers Life?

I am happy I am independent too. I do not need to convince myself that my company is a Lexus and everyone else is a Toyota. That's just moronic talk. But it doesn't matter. NWML agents are going to sell NWML. Bankers Life agents are going to sell BL policies. I don't worry about it. I've replaced a ton of NWML life policies, and if you think they are proud of their LTC, you should see them defend their life products. Whatever, the country is big enough for all of us to work with the clients that wish to work with us.

 

[billberry12]

"I take pride in the fact that I'm independent and have the ability to present to my prospects every available option and carrier."

Arthur, some of us are in it for the client's best interest, and some of us are in it for the agent's best interest, and, for a reason I'll never understand, some of us are in it obviously for the "company's" best interest.

The consumer does have a selection to pick from.

All you and I can do is educate the prospect, and they make the decision to purchase from whoever they feel is best for them.

If they choose to look at NWM, and no further, that's their loss. The price of kool-aid is high I guess.

 

[Chuckles21]

"I take pride in the fact that I'm independent and have the ability to present to my prospects every available option and carrier."

Arthur, some of us are in it for the client's best interest, and some of us are in it for the agent's best interest, and, for a reason I'll never understand, some of us are in it obviously for the "company's" best interest.

The consumer does have a selection to pick from.

All you and I can do is educate the prospect, and they make the decision to purchase from whoever they feel is best for them.

If they choose to look at NWM, and no further, that's their loss. The price of kool-aid is high I guess.

Billberry,

You might want to watch your tone here. I love how all independents bash NWM agents and then turn around and do exactly what they supposedly hate NWM agents doing. This post is as elitetest sounding as anything i have ever seen posted by a NWM agent. All of you need to take a step back and listen to ltcadviser as his previous post on the other page hit it on the head .

The fact of the matter is that NML prices policies based on their assumptions and to maintain AAA rating. This is very key for them and many clients as well. Other companies price it for their own purposes and are not as worried about AAA ratings. The correct policy for the consumer is the one that is around when he needs it. At that point, who cares what he paid as he will get it back 10 fold no matter who he is with.

 

[billberry12]

I've always had a problem with tone, but I promise to watch it from now on.

 

[Mr_Ed]

I've always had a problem with tone, but I promise to watch it from now on.

it always amazes me how someone can read tone from a text or an email.

 

[billberry12]

I suppose some people are just more advanced specimens of our species.