Another Major LTC Player Making Sweeping Changes

[Chuckles21]

The question for agents currently selling LTC is this; do you still have faith that when you sell a policy to that 55 year old, that it'll still be there for him at affordable premiums when he's 70.

Exactly, and since we don't know the future this is where that peace of mind comes into play.

Csalter,

I want your opinion as you are an actual consumer. First of all congratulations on getting coverage, no matter the company, it is a very wise step. My question is if this makes sense from a consumers perspective.

NWM has never raised rates and actually pays a dividend starting in the 5th year. Company X has a history of raising rates and a much lower financial strength score but is also much cheaper. If you can afford both options and you are say mid 50's which would you want.

A policy that is cheaper in your working years when you have money coming in to pay the premiums and has a better chance of being more expensive in your retirement years when people really want to limit expenses as your not bringing any more money in or a policy that you can afford in your working years and with projected dividends will get cheaper in your retirement years when we want less expenses?

There is no wrong answer i am just curious what a consumers perspective is on this example.

 

[2insureyou]

Csalter,

Thank you for bringing a consumer's view to the table. I've been watching your posts concerning Genworth over the past several months, and I, for one, find it very insightful as to how the PUBLIC perceives what is happening in the industry.

We captive NM advisors, and the independent agents can spin and bicker all we want... at the end of the day, the client makes his/her decision based on what is important to him/her.

Thank you again for causing all of us to step outside of our own frame of reference and lending us yours to consider things through.

 

[Mr_Ed]

What bill doesn't understand, and never will, is how much peace of mind means to a consumer. He is entirely correct in saying that there is nothing guaranteeing NWM couldn't raise rates in the future or not pay the dividends that are illustrated. On the other hand there is nothing guaranteeing all these other companies won't pull what we have seen recently and raise rates drastically or just plain pull out of the market.

So what can we really go off of when a consumer makes a very important decision? It really comes down to what company he thinks he can trust more. NWM is the only company to do both of those things you point out in not raising rates & paying dividends. No other LTC company has made good on both of those points. For most younger individuals getting into the market this is a product that they will not be using for 25-30 years. That is a long time for a lot of things to happen to ones policy especially given what the last few years have been like. In today's environment where people have lost a lot of faith in a lot of things/companies in the financial sector there are a lot that will pay more for a perceived better promise.
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In short No, factor in NWM's dividend and this is not true one bit. Also if a company raises rates 15% one time and then 5 years later raises them again by another 15% in your mind they have raised rates 30%. The truth is that every time there is an increase it compounds on itself.

the hypocrisy never ceases to amaze me.

 

[Chuckles21]

the hypocrisy never ceases to amaze me.

Ed,

Love your one line replies that add nothing. Without substance to back your claim of hypocrisy this reply is nothing. Please tell me which part is hypocritical?

 

[Mr_Ed]

Ed,

Love your one line replies that add nothing. Without substance to back your claim of hypocrisy this reply is nothing. Please tell me which part is hypocritical?

the whole thing.
but let's just focus on one point.

are the dividends guaranteed?

 

[Chuckles21]

the whole thing.
but let's just focus on one point.

are the dividends guaranteed?

Facepalm, reread the first paragraph of my previous post you quoted.

 

[Mr_Ed]

Facepalm, reread the first paragraph of my previous post you quoted.

Why is a policy with non-guaranteed dividends better than a policy that has non-guaranteed premiums?

 

[CALTCAgent]

Originally Posted by CALTCAgent Image:

In addition, It would take way more than 106% increase to equal the amount of total premium they would have paid over the years with the NWM policy. ​

I don't see that making sense to me. Glad I am independent. The best is give people all the options and let them decide.​

In short No, factor in NWM's dividend and this is not true one bit. ​

How much should I factor in for the Kool aid, I mean, dividends?

​

 

[Arthur Rudnick]

originally quoted by IKEMAN

One hour on a Monday counts for the whole week. This can help cut costs for someone during the elimination period in the beginning when they might not need too much care. Either way they should have a proper amount of cash set aside.

Please tell me how you can get a licensed home care provider to show up for one hour during a given day?

 

[2insureyou]

One hour on a Monday counts for the whole week. This can help cut costs for someone during the elimination period in the beginning when they might not need too much care. Either way they should have a proper amount of cash set aside.

Please tell me how you can get a licensed home care provider to show up for one hour during a given day?

It can be one hour, 8 hours, one day, any day of the week.

I'm not sure how there's an issue in getting a licensed care provider one hour a week though. I know of at least 3 agencies here locally who would love the opportunity to begin that relationship with the client knowing that they will soon need a much higher level of care and they will already have their foot in the door..

Not to say this is better than the Genworth arrangement, just saying it's definitely a reasonable scenario.