California LTCi Bill

[ltcadviser]

it's amazing how so many insurance agents are duped into thinking that the ltc insurers are "barely squeaking out a profit" on their ltci blocks.

Well, many insurance agents repeat the oft mention marketing statistic that 40% or 50% of people "may need some long term care" and sell policies based upon spreading that marketing BS.

Or, how about agents stating that companies are dropping out of the arena because "people are living longer, and the lapse ratios are higher than were projected, and we are in a low interest rate environment," blah blah blah, none of which are relevant to why companies are exiting the arena.

There is a low bar to entry to be an insurance agent.

 

[2insureyou]

Well, many insurance agents repeat the oft mention marketing statistic that 40% or 50% of people "may need some long term care" and sell policies based upon spreading that marketing BS.

Or, how about agents stating that companies are dropping out of the arena because "people are living longer, and the lapse ratios are higher than were projected, and we are in a low interest rate environment," blah blah blah, none of which are relevant to why companies are exiting the arena.

There is a low bar to entry to be an insurance agent.

Lets change your name from ltcadviser to ltcgod... please, then, inform me of why these companies are exiting the arena if not for these reasons?

I'm such a buffoon...

 

[VolAgent]

Lets change your name from ltcadviser to ltcgod... please, then, inform me of why these companies are exiting the arena if not for these reasons?

I'm such a buffoon...

Yes, I want to hear this too. Someone please tell me why companies are running from such a profitable product line.

I am dying to meet the first business executive to tell me, "Yeah, it is perfectly legal, but it is just too darn profitable. We don't want to do it anymore. We're going to focus on less profitable lines going forward."

And if you don't want to give us a reason, just admit now that it is BS.

 

[csalter]

The 3 of you are at either the Super Genious or Guru status on this forum. I can't wait to see the answers.

 

[Chuckles21]

Well, many insurance agents repeat the oft mention marketing statistic that 40% or 50% of people "may need some long term care" and sell policies based upon spreading that marketing BS.

Hold up one second, you mean those "BS" statistics that your own promoted website uses. Oh except they use the 70% statistic that must be even more BS.

Link here second paragraph down.

Or, how about agents stating that companies are dropping out of the arena because "people are living longer, and the lapse ratios are higher than were projected, and we are in a low interest rate environment," blah blah blah, none of which are relevant to why companies are exiting the arena.

I forgot about the black death coming through the country killing us all off at early ages, and all those people buying a policy to protect themselves that as they get older and that need is more likely they drop it just because, or how super awesome bond yields, especially through our government, are doing right now.

The truth is all those matter and this is one of the best lines i have heard on the subject.

At this point doctors have pretty much cured everything that kills us instantly, how we live after that illness is the big difference.

There is a low bar to entry to be an insurance agent.

One it seems you just cleared.

 

[2insureyou]

Hold up one second, you mean those "BS" statistics that your own promoted website uses. Oh except they use the 70% statistic that must be even more BS.

Link here second paragraph down.



I forgot about the black death coming through the country killing us all off at early ages, and all those people buying a policy to protect themselves that as they get older and that need is more likely they drop it just because, or how super awesome bond yields, especially through our government, are doing right now.

The truth is all those matter and this is one of the best lines i have heard on the subject.

At this point doctors have pretty much cured everything that kills us instantly, how we live after that illness is the big difference.



One it seems you just cleared.

Chuckles, that was amazing... simply... amazing! ltcgod, i mean, ltcadviser left himself wide open on that one, and you walked through it. Kudos, my good man!
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they can request and get approved rate increases even when they are making a profit.

Perhaps, but it must not be enough profit for the companies to feel good about their long-term prospects in the market place. Or am I missing something?

 

[ltcadviser]

Lets change your name from ltcadviser to ltcgod... please, then, inform me of why these companies are exiting the arena if not for these reasons?

I'm such a buffoon...

Companies are exiting the arena for one reason, and one reason only. The companies have no faith and confidence that state insurance commissioners will approve their future requests for rate increases carte blanche.

Unfortunately, that message doesn't spin too well.

And LTCi is a very capital intensive business, and companies feel they can achieve a better ROI elsewhere.
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Hold up one second, you mean those "BS" statistics that your own promoted website uses. Oh except they use the 70% statistic that must be even more BS.

Link here second paragraph down.

It is definitely a BS statistic that is used for marketing purposes. There is a ton of content on my website, and I try to manage it the best I can. I have now adjusted the sentence to my liking.

 

[ikeman07]

Hold up one second, you mean those "BS" statistics that your own promoted website uses. Oh except they use the 70% statistic that must be even more BS.

Link here second paragraph down.

I am curious as to what the real number is. Here is what I am finding when I search:

NML & Genworth both throw out the 70% number, I couldn't find Mass, John Hancock, Lincoln or really anyone else

Here is a piece from the American Association of Long Term Care Planning.
Long-term care planning information - long term care insurance information

Estimated Years Of Needing Long-Term Care After Turning Age 65
More than 5 years 20%
2 to 5 years 20%
1 to 2 years 12%
1 year or less 17%
None 31%

 

[ltcadviser]

I really don't know what the real likelihood is. For me, however, long term care planning is simply about:

the cost of care today; the future cost of care at age 80, 85, 90; and whether you have the desire or the financial means to retain the risk or transfer the risk.

Whether the likelihood of needing care is 20%, 50% or some other number, doesn't change the above issue.

At least not for me.