Hybrid LTC Insurance Eliminates Uncertainty
- Thread starter ltcadviser
- Start date
Nice interview!
Unfortunately, the financial advisor who wrote it doesn't know what he's talking about.
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...the first comment at the bottom of the article is very interesting reading:
Protecting Yourself from Long-Term Care Insurance Rate Increases – AARP
- Thread starter
- #4
Scott,
I agree with you that getting future rate increases passed will be much more difficult for the insurance companies however consumers and advisers do not necessarily share your (or my) perspective.
consumers (and financial advisors) think that if an insurer is losing money on a policy form they sold 15 years ago that the insurer can increase the premium on someone buying a policy today in order to make up for the losses on the older policies.
if that was true, I wouldn't own LTC insurance either!
Once the concept of a "policy form" is explained to a consumer their greatest fears are allayed.
The problem is that agents don't even understand it--and if an agent doesn't understand it they won't even try to sell LTC insurance anymore.
Last edited:
Arthur Rudnick
Guru
- 1,652
originally posted by ltcadviser
I have to agree with Jack..............
Scott,
The point of the matter is not only do consumers NOT understand the workings of a LTC insurance company and what their justification is for rate increases, they could care less!
All they know is what they know.
And what they know is companies have been raising rates exorbitantly and consistently for years. They don't want to know about Reserves, they don't want to know about Model Regulations and all the other stuff that you think is so important.
They speak to their friends who have policies and based on their friends rate increase experience, they have no interest in purchasing a policy at all.
Just look at the AARP article that started this whole conversation. I think more people look at an AARP article than listen to Scott talking about why the AARP article is not correct.
Yesterday I received a notice from a carrier about some of my CT policyholders.
I sold them policies from 2004-2006 and in 2013 they were all hit with a 40% rate increase. Effective on their 2015 anniversary date they're getting another 12% increase. That's a 52% increase in 2 years.
That's what the consumer population hears, not your explanation about Model Regulations and how new policyholders will never be hit with future rate increses, unless the carriers get permission to raise their rates in the future, which in spite of what you say, is no different than it is today.
originally posted by Mr_Ed
I have to agree with Jack..............
Scott,
The point of the matter is not only do consumers NOT understand the workings of a LTC insurance company and what their justification is for rate increases, they could care less!
All they know is what they know.
And what they know is companies have been raising rates exorbitantly and consistently for years. They don't want to know about Reserves, they don't want to know about Model Regulations and all the other stuff that you think is so important.
They speak to their friends who have policies and based on their friends rate increase experience, they have no interest in purchasing a policy at all.
Just look at the AARP article that started this whole conversation. I think more people look at an AARP article than listen to Scott talking about why the AARP article is not correct.
Yesterday I received a notice from a carrier about some of my CT policyholders.
I sold them policies from 2004-2006 and in 2013 they were all hit with a 40% rate increase. Effective on their 2015 anniversary date they're getting another 12% increase. That's a 52% increase in 2 years.
That's what the consumer population hears, not your explanation about Model Regulations and how new policyholders will never be hit with future rate increses, unless the carriers get permission to raise their rates in the future, which in spite of what you say, is no different than it is today.
I don't see why you think it's so difficult to explain it to someone, Arthur.
I do it every day and they understand it when I explain it to them.
I'm sorry that your experience is different.
If you think about it, Arthur, it's just like any other objection.
What if someone says to you, "Executive Life Ins. Co. of NY went bankrupt so I'm not going to buy a LTCi policy because insurers can go out of business." Do you just say, "oh well...I'm sorry you feel that way." Or do you educate your client and answer the question?
Last edited:
Arthur Rudnick
Guru
- 1,652
originally posted by Mr_Ed
Scott,
You're missing an important point.
There are millions of potential policyholders out there who you will never even have a conversation with because they have no desire to purchase a policy.
And, that's due to the bad press and articles like the one from AARP that scares consumers away. You need to be talking with someone in order to handle an objection. If you never have the conversation the sale is over before it starts.
Scott,
You're missing an important point.
There are millions of potential policyholders out there who you will never even have a conversation with because they have no desire to purchase a policy.
And, that's due to the bad press and articles like the one from AARP that scares consumers away. You need to be talking with someone in order to handle an objection. If you never have the conversation the sale is over before it starts.
Arthur Rudnick
Guru
- 1,652
originally posted by Mr_Ed
You still don't get it.
"There are millions of potential policyholders out there who you will never even have a conversation with because they have no desire to purchase a policy".
And, a conversation includes the word "Internet"
You still don't get it.
"There are millions of potential policyholders out there who you will never even have a conversation with because they have no desire to purchase a policy".
And, a conversation includes the word "Internet"
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