Another Major LTC Player Making Sweeping Changes

[ikeman07]

OMG.
I'm sure that spreadsheet is "compliance approved"!

Please let us know what your compliance manager says after you send them to them.

I gave it to the client with all of the complete illustrations and the disclosures. I emailed through my company email address and when it was caught in our compliance system it was reviewed and released to be sent to the client.

 

[Mr_Ed]

I gave it to the client with all of the complete illustrations and the disclosures. I emailed through my company email address and when it was caught in our compliance system it was reviewed and released to be sent to the client.

I'm calling bullsh*t on that.

Have you any idea how much trouble that can get you in with EVERY LTC insurer listed on that spreadsheet?

Where do you have the gall to show a 60% premium increase (FROM YEAR ONE) considering that:

Genworth has NEVER had a 60% increase on any of their LTCi policyholders
The highest premium increase any Genworth policyholder has ever had (OVER THE PAST 38 YEARS) is only 30%--and that affected about half of their policyholders.
About a quarter of Genworth's policyholders have NEVER had a premium increase.
About a quarter of their policyholders have had only a 12% premium increase.
AND their current policies are already priced SIGNIFICANTLY HIGHER than the policies on which they requested the premium increases.


I suggest you remove that spreadsheet before you start getting a letters from attorneys representing every insurance company on that spreadsheet.

 

[ltcadviser]

Agreed! The mutuals are going to come out ahead in the LTC game in my opinion...li will let you know for sure in another 20 - 30 years though.

- - - - - - - - - - - - - - - - - -



I will have to go back and look at which Met contract it was. I had some Indian clients and they plan on reting back in India one day. Met's policy will pay a claim there. It was a nice feature to have a policy that will pay overseas.



Can you shorten this thread a little and just tell me what you don't like about the policy?

Quiet Care is a standard issue long term care reimbursement contract that does not do anything different than any other standard issue long term care reimbursement insurance contracts;

Met Life Ideal 1 circa 2004 was a great reimbursement contract. Privileged Choice was a great reimbursement contract. Met Life Premier and Medamerica Simplicity are the best contracts ever written.

Quiet Care is a non descript plain Jane contract.
Distributed by a AAA insurance company.

 

[ikeman07]

The gall to show a 60 % rate increase from year one.....umm I didn't show that to the client, it is what the new premium is going to be. That is what the whole thread is about Genworth's pricing. As you said, you can shut up now

Just bust'n your chops man. Read the rest of the thread. This is about Genworth, not NML, MM, or any other provider. The increase is already announced, not on old blocks, but new business. I was just showing the forum here the different in price. I killed a tree when I showed the client everything the first time. Then he wanted to see both a 6 year and a 3 year benefit so I put that together and emailed him everything.
- - - - - - - - - - - - - - - - - -

I'm calling bullsh*t on that.

Have you any idea how much trouble that can get you in with EVERY LTC insurer listed on that spreadsheet?

Where do you have the gall to show a 60% premium increase (FROM YEAR ONE) considering that:

Genworth has NEVER had a 60% increase on any of their LTCi policyholders
The highest premium increase any Genworth policyholder has ever had (OVER THE PAST 38 YEARS) is only 30%--and that affected about half of their policyholders.
About a quarter of Genworth's policyholders have NEVER had a premium increase.
About a quarter of their policyholders have had only a 12% premium increase.
AND their current policies are already priced SIGNIFICANTLY HIGHER than the policies on which they requested the premium increases.


I suggest you remove that spreadsheet before you start getting a letters from attorneys representing every insurance company on that spreadsheet.

You don't have to believe me, I will live. The green column is what the August 1 numbers will be...I just edited it for the purpose of this discussion, as I said.

 

[Mr_Ed]

The gall to show a 60 % rate increase from year one.....umm I didn't show that to the client, it is what the new premium is going to be. That is what the whole thread is about Genworth's pricing. As you said, you can shut up now

Just bust'n your chops man. Read the rest of the thread. This is about Genworth, not NML, MM, or any other provider. The increase is already announced, not on old blocks, but new business. I was just showing the forum here the different in price. I killed a tree when I showed the client everything the first time. Then he wanted to see both a 6 year and a 3 year benefit so I put that together and emailed him everything.

So you told them that if they were to buy the Genworth policy before July 31st that on August 1st their premium would go up 60%?

That's misrepresentation.

 

[ikeman07]

Okay.....enough punishment from the independents for one day. I hope you guys all have a good rest of the 4th.

 

[Mr_Ed]

Okay.....enough punishment from the independents for one day. I hope you guys all have a good rest of the 4th.

Answer my question.

Did you tell them that if they bought the Genworth policy before July 31st that after August 1st it would go up 60%?

If you told them that you (or even implied it) then you misrepresented the policy.

 

[ikeman07]

So you told them that if they were to buy the Genworth policy before July 31st that on August 1st their premium would go up 60%?

That's misrepresentation.

Ok, one more post.....i didn't have the green column in there a few months ago....I showed the, illustrations for all of their options at the time and I used the spreadsheet to give them a quick cash outlay snapshot.

I added the green column today to show everyone here what the pricing structure was...I arranged them from cheapest to most expensive over a 30 year time frame....Genworth old and new still in first place on price alone.

I said this when I first posted the sheet....

 

[ltcadviser]

The funny thing to me is he represented the impact to Genworth clients that would get Preferred rates but he misrepresented Omaha and Transmerica by not reflecting their Preferred health discounts and purposefully showing a high price.

 

[Mr_Ed]

Seeking Alpha article on Genworth LTC

Bloomberg article on potential downgrade


Insurance policies are only as good as the company backing them. I have sold a Genworth LTC policy and used some of their life products from time to time...but it isn't typically my first choice on companies to go to. With insurance you need to not only have the best policy today, but also the best policy in the future at a price that the client can afford. With the history of rate increases in the LtC market, companies like Genworth make me nervous. They have already had one rate increase on old blocks of business and it seems like they are trying to avoid the need for doing it again in the future by drastically changing their contract. I just hope it isn't too late.

Is there anything more hypocritical than an agent concerned about the "future price of an LTCi policy" when that agent regularly sells a policy with an inflation "benefit" that is guaranteed to increase the client's premium over 400% over his client's life expectancy?