GenWorth VS John Hancock

[ltcadviser]

5% compound is a dinosaur.

No, 5% compound is the gold standard. And I am glad i own it, and I am glad my wife owns it, and I am glad my mom owns it.

Sure, for clients buying coverage today the cost of the 5% compound is out of reach of most consumers. Well, so is a Mercedes S Class. Does not make it a dinosaur.

 

[scagnt83]

No, 5% compound is the gold standard. And I am glad i own it, and I am glad my wife owns it, and I am glad my mom owns it.

Sure, for clients buying coverage today the cost of the 5% compound is out of reach of most consumers. Well, so is a Mercedes S Class. Does not make it a dinosaur.

Maybe he meant its a dinosaur because the rate increases have affected the 5% compounding policies the most....


And for someone in their 40s 5% compound should be a no brainer imo (assuming they can afford it)

 

[ltcadviser]

Maybe he meant its a dinosaur because the rate increases have affected the 5% compounding policies the most....


And for someone in their 40s 5% compound should be a no brainer imo (assuming they can afford it)

But we have rate stability regs now, remember?

 

[Mr_Ed]

Maybe he meant its a dinosaur because the rate increases have affected the 5% compounding policies the most....


And for someone in their 40s 5% compound should be a no brainer imo (assuming they can afford it)

No, 5% compound is the gold standard. And I am glad i own it, and I am glad my wife owns it, and I am glad my mom owns it.

Sure, for clients buying coverage today the cost of the 5% compound is out of reach of most consumers. Well, so is a Mercedes S Class. Does not make it a dinosaur.

sometimes I just want to shoot myself when I read such stupidity.

5% compound is NOT the gold standard. 5% compound WAS the gold standard. (it was picked out of thin air by a group of regulators back in the 80's when we were having high inflation). Now 5% compound is OVERPRICED by the insurers.

5% compound should never be sold today to someone in their 40's.

Why? Because in most states, with most companies, 5% compound costs 2.6 times what the exact same policy with 3% compound costs for a 45 year old.

In other words, a 45-year old can buy a $100 Daily Benefit with 5% compound inflation benefit.

OR

for the exact same premium buy a $260 Daily Benefit with a 3% compound inflation benefit.

Using my trusty dusty excel spreadsheet, he/she would be MUCH better off with the starting Daily Benefit of $260 growing at 3%, rather than the $100 growing at 5%.

From age 45 to age 94 the 3% compound would provide MORE benefit than the 5% compound FOR THE EXACT SAME PREMIUM!

 

[ltcadviser]

sometimes I just want to shoot myself when I read such stupidity.

5% compound is NOT the gold standard. 5% compound WAS the gold standard. (it was picked out of thin air by a group of regulators back in the 80's when we were having high inflation). Now 5% compound is OVERPRICED by the insurers.

5% compound should never be sold today to someone in their 40's.

Why? Because in most states, with most companies, 5% compound costs 2.6 times what the exact same policy with 3% compound costs for a 45 year old.

In other words, a 45-year old can buy a $100 Daily Benefit with 5% compound inflation benefit.

OR

for the exact same premium buy a $260 Daily Benefit with a 3% compound inflation benefit.

Using my trusty dusty excel spreadsheet, he/she would be MUCH better off with the starting Daily Benefit of $260 growing at 3%, rather than the $100 growing at 5%.

From age 45 to age 94 the 3% compound would provide MORE benefit than the 5% compound FOR THE EXACT SAME PREMIUM!

Go look at new york life's rates in California, and get back to me. Each company's rates and age of the client needs to be analyzed to determine the crossover point.

5% compound will help buyers; if the cost of 3% compound presents arbitrage, sure utilize 3% but buy more daily benefit initially to overcome the shortcomings of 3% compound. A lot more benefit.

 

[rayluk]

Nyl rate in ca is changing. Don't count on the current rate. I don't even recommend 5% compound with the old rate frankly because I think it is overkill even for younger folks. I own CPI-u options policy and decide if I want to increase the benefit annually. When the rate hike hit the block, I am certain my clients and I will be somewhat more comfortable with the rate than those with unlimited 5% comp policy.

 

[wc2624]

Being a Partnership Plan doesn't add any specific benefit to the plan. What it does is that it gives the policy holder an "Asset Disregard" if they would ever get into a Medicaid Spendown situation.

You don't have to explain the machinations of a Partnership Plan to me. What I'd be interested in hearing is how likely a couple which can afford a $9000 per year plan would be to ever exercise the Partnership aspect of a LTC plan? It's very unlikely. I didn't notice which state this was in, but there are income qualifications as well which apply to Partnership plans in terms of protection as well.

In this case, Partnership may be a selling point because it sounds good but it is really an empty benefit.

 

[ltcadviser]

Nyl rate in ca is changing. Don't count on the current rate. I don't even recommend 5% compound with the old rate frankly because I think it is overkill even for younger folks. I own CPI-u options policy and decide if I want to increase the benefit annually. When the rate hike hit the block, I am certain my clients and I will be somewhat more comfortable with the rate than those with unlimited 5% comp policy.

Well, I think CPI-U is significant "underkill!" But to each their own.

 

[csalter]

Just an observation from a consumer. I live in California. When rate increases were granted here, I noticed at the time I received my policy that no increases had been given to the partnership policies but individual and group policies did receive them. Up until 2012, partnership policies did not have any rate increases approved.

 

[ltcadviser]

Just an observation from a consumer. I live in California. When rate increases were granted here, I noticed at the time I received my policy that no increases had been given to the partnership policies but individual and group policies did receive them. Up until 2012, partnership policies did not have any rate increases approved.

Yes, in CA the CA Department of Health also has to approve rate increases, not just insurance commissioner. Much harder to get increase on CA Partnership policy. Should always buy a Partnership policy in CA if possible.

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You don't have to explain the machinations of a Partnership Plan to me. What I'd be interested in hearing is how likely a couple which can afford a $9000 per year plan would be to ever exercise the Partnership aspect of a LTC plan? It's very unlikely. I didn't notice which state this was in, but there are income qualifications as well which apply to Partnership plans in terms of protection as well.

In this case, Partnership may be a selling point because it sounds good but it is really an empty benefit.

Yes, can be an empty benefit with many applicants in many States.