Interesting LTCi Article...

[Arthur Rudnick]

Just curious...........
What's your thoughts on Mass Mutual & NorthWestern Mutual? I hear they pay dividends. Any truth to that?

 

[billberry12]

Where is the moderator when you you need one? Please stop this thread.

 

[2insureyou]

Yankee and NADM, This wasn't intended to be a thread about NML's LTCi... It was about the industry in general...
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Just curious...........
What's your thoughts on Mass Mutual & NorthWestern Mutual? I hear they pay dividends. Any truth to that?

The first I heard of Mass actually declaring a dividend was on this forum. I knew it was participating, but I had not seen a declaration of dividends. I've shown their product before to clients, and nowhere in the illustration did it illustrate dividends.

NML and NYL were the only two contracts I knew of that were actually paying a dividend.

Northwestern Mutual has been paying dividends since, I think, 2006. Maybe before, but I'm not sure.

On their 10 pay and "paid up at 65" contracts, the dividend continues to accrue in an account that is payable upon the insured's death to their estate.

I have no idea how Mass's dividend works long term or what the projections are.

 

[Arthur Rudnick]

"Yankee and NADM, This wasn't intended to be a thread about NML's LTCi... It was about the industry in general"

Threads on this forum usually end up off-topic. The next post will probably be on the benefits of cooking a kosher turkey.

The actual software proposal from NWM lists dividends payable every year through the life of the policy. Of course there's a disclaimer, but each year there's an actual dollar amount.

MM does not list dividends on their proposals.

 

[GreenSky]

"Yankee and NADM, This wasn't intended to be a thread about NML's LTCi... It was about the industry in general"

Threads on this forum usually end up off-topic. The next post will probably be on the benefits of cooking a kosher turkey.

Already playing the moderator card Arthur?

Rick

 

[yankee466]

"Yankee and NADM, This wasn't intended to be a thread about NML's LTCi... It was about the industry in general"


MM does not list dividends on their proposals.

When I run a MM quote, I can optionally request a projected dividends page to be included in the proposal. Of course it has all the disclaimers on it, but it shows that dividends are projected when the applicant turns 65 or after 10 years, whichever occurs later. It shows the reduced premiums in the future based on projected premiums.

But since you brought it up.....how does one cook a Kosher Turkey?

 

[bluemarlin08]

Curious about the NWM policy, how are they handling cost of living increases? The last policy I looked at you had to buy the additions each year rather than have a rider that automatically increased benefits?

 

[yankee466]

Curious about the NWM policy, how are they handling cost of living increases? The last policy I looked at you had to buy the additions each year rather than have a rider that automatically increased benefits?

If Straticision is correct, they offer 3/4/5% compound and GPO....but I am not a NML person to confirm that. Hopefully someone else can respond.

 

[Mr_Ed]

If Straticision is correct, they offer 3/4/5% compound and GPO....but I am not a NML person to confirm that. Hopefully someone else can respond.

bluemarlin is referring to an inflation benefit which NML calls "AAPB".

(Automatic Additional Purchase Benefit)

It is similar to the GPO except it occurs every year automatically (unless they decline it.)

 

[2insureyou]

Curious about the NWM policy, how are they handling cost of living increases? The last policy I looked at you had to buy the additions each year rather than have a rider that automatically increased benefits?

I am an NML guy, so I'll respond.

You have two options. AAPB or ABI.

AAPB, you pay for the cost of inflation each year. Starts off lower, goes up over time.

ABI, you pay for the inflation up front.

My resident state is Indiana, and I'm pretty sure all companies are required to do 5%, but can choose between simple, compound, and other ways of purchasing it.

In other states, such as KY, you can pick 3% or 5% for example.

NML does not offer simple inflation. They only offer compound inflation. This is more expensive, yes, but it more accurately keeps up with the rising cost of care as well.

I don't offer up front to my clients a contract from anyone that does simple inflation. The cost of care is going up, on average, 5% compound per year.

That being said, if price becomes too much of an issue, we will drop to a carrier that offers simple inflation versus having no inflation at all, but the client must sign a separate letter with me that says we discussed that I do not believe that is in their best interest.

But, the basic answer to your question is, yes, NML offers an up front, level structure to the inflation beneift, called ABI (Automatic Benefit Increase). The other is AAPB (Automatic Additional Purchase Benefit)