Any Comments on Prudential Evolution?

[yankee466]

I was curious what some of the experienced agents on this board may have to say about the relatively new Prudential Evolution product....good or bad. You can present it as the best thing since sliced bread if you wish, and in many ways it can be with no daily max to ever worry about (albeit 80/20).......or you can view it as a simple product for agents who can't figure out how to explain the more configurable LTC products, like their LTC3 offering.

I would venture to say that if you presented Evolution and LTC3 to the same client.....the client will have no idea what to do when you are done. Not suggesting for you to do that.....but I threw that out as a possible concern with such a radical difference in the construct of the plan.

I've studied the plan in much detail, and one of these days I may actually present it to someone...... since it is easy to convince myself of the merits of the plan....with GIF only IMHO. Here is a plan with technically no "inflation clause", yet it is partnership eligible at all ages (at least in most states).

All thoughts and/or experiences welcome.

 

[Mr_Ed]

I was curious what some of the experienced agents on this board may have to say about the relatively new Prudential Evolution product....good or bad. You can present it as the best thing since sliced bread if you wish, and in many ways it can be with no daily max to ever worry about (albeit 80/20).......or you can view it as a simple product for agents who can't figure out how to explain the more configurable LTC products, like their LTC3 offering.

I would venture to say that if you presented Evolution and LTC3 to the same client.....the client will have no idea what to do when you are done. Not suggesting for you to do that.....but I threw that out as a possible concern with such a radical difference in the construct of the plan.

I've studied the plan in much detail, and one of these days I may actually present it to someone...... since it is easy to convince myself of the merits of the plan....with GIF only IMHO. Here is a plan with technically no "inflation clause", yet it is partnership eligible at all ages (at least in most states).

All thoughts and/or experiences welcome.

all things being equal, it's a brilliant way to design a policy, if someone is comfortable co-insuring (and most of our target market is comfortable co-insuring).

the only problem is that "all things are NEVER equal".

the only way to know if this policy design is a good value is to compare it with a more traditional policy.

I've only made the comparison on a couple of occasions, and my initial reaction was that it was not a good value.

 

[Graham]

While I do like the policy design there does not seem to be much traction with it. It is easy to explain and most people don't buy a traditional LTC policy with a large enough benefit to ensure 100% of their risk so I don't think the 80/20 part is much of an issue. It is more expensive that a traditional LTC policy WITHOUT an inflation rider but gives you a way to deal with inflation although limited since you will just burn through the pool of money faster. It gives you more flexibility since there is no daily or monthly max but I am not sure that flexibility is worth the cost. Genworth's Cornerstone has the same concept but that had a huge deductible built in too and that never got much traction either.

 

[yankee466]

While I do like the policy design there does not seem to be much traction with it. It is easy to explain and most people don't buy a traditional LTC policy with a large enough benefit to ensure 100% of their risk so I don't think the 80/20 part is much of an issue. It is more expensive that a traditional LTC policy WITHOUT an inflation rider but gives you a way to deal with inflation although limited since you will just burn through the pool of money faster. It gives you more flexibility since there is no daily or monthly max but I am not sure that flexibility is worth the cost. Genworth's Cornerstone has the same concept but that had a huge deductible built in too and that never got much traction either.

I agree......and I refused to ever show Cornerstone to anyone, as I viewed it as pure trash. It does have a daily limit though, and in many states it does not cover assisted living room rates unless you checked off an extra box. Its like "what were they thinking on that?" At least Evolution covers everything at 80/20. The "starter benefit" in Evolution is not a terrible feature...but like we all seem to be agreeing, it is a tad pricey product. Not sure what they consider their sweet spot in terms of age/benefit.

Guess time will tell with this product.