Is Genworth LTCi Block At Risk?
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Who are some of the better LTCi firms that are solid financially? I know NW Life and some of the other mutuals are rock solid but I do not want to be captive.
Are there any good selling systems for LTCi? I am not looking for things like Dean Cipriano's selling large Life cases from home in my underwear or Jeff Paul's bimbo infomercials selling Internet get rich systems.
Are there any good selling systems for LTCi? I am not looking for things like Dean Cipriano's selling large Life cases from home in my underwear or Jeff Paul's bimbo infomercials selling Internet get rich systems.
There are a lot of solid companies that sell LTCi (alphabetically):
AFLAC, Allianz, Genworth, John Hancock, Mass Mutual, Medamerica, Met Life, Mutual of Omaha, New York Life, Physicians Mutual, Prudential, State Farm, and others.
In terms of a "selling system", which one to use depends upon if you want to sell LTCi over the phone or if you want to sell it face to face.
AFLAC, Allianz, Genworth, John Hancock, Mass Mutual, Medamerica, Met Life, Mutual of Omaha, New York Life, Physicians Mutual, Prudential, State Farm, and others.
In terms of a "selling system", which one to use depends upon if you want to sell LTCi over the phone or if you want to sell it face to face.
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I think most of us will agree that the LTC companies are going to start raising rates at some point, and probably the hikes will be big.
It looks like they are all waiting at this point for one or two of the big companies to open the dike. Historically, none of the major players have made significant hikes, some companies have never made hikes at all.
Unlike a lot of other insurance business, LTC companies can raise prices as needed and only have to worry about the effect of hikes on new business.
It looks like they are all waiting at this point for one or two of the big companies to open the dike. Historically, none of the major players have made significant hikes, some companies have never made hikes at all.
Unlike a lot of other insurance business, LTC companies can raise prices as needed and only have to worry about the effect of hikes on new business.
Charpress, you stated, "I think most of us will agree that the LTC companies are going to start raising rates at some point, and probably the hikes will be big."
Genworth has been selling LTCi since 1974. That's 35 years this year. They've had ONE rate increase which was on about half of their policyholders. That rate increase was 12% or less for each of them, depending upon state of residence and policy series.
Do you consider a 12% rate hike "Big"?
One rate hike in 35 years... do you consider that too frequent? My medical insurance goes up more than 12% every six months.
Hancock has been selling LTCi for about 22 years. They've had ONE rate increase on about half of their policyholders. The rate increase was 18% or less for each of them, depending upon state of residence and policy series.
Do you consider one 18% rate increase over a 22 year period too big and too frequent?
The same is true for Met Life. About 22 years of experience and one rate increase.
You also state, "Unlike a lot of other insurance business, LTC companies can raise prices as needed and only have to worry about the effect of hikes on new business."
That statement is patently false for a number of reasons:
1) Most states require DOI approval for a rate increase. And, in most states, the rate increase needs to be supported by claims data showing a higher percentage of claims than originally projected.
2) Secondly, the primary concern to the insurer, when requesting a rate increase, is NOT the effect on new business, but the effect on in-force policies. If the rate increase is too high, they know that healthy policyholders will cancel their policy, and only those who are severely ill will keep it. Too large of a rate increase creates a "downward spiral" or a "death spiral" on a block of business.
Lastly, many states have made it VERY difficult to implement a rate increase. To my knowledge, not a single rate increase has ever been approved in Indiana. Only one or two rates increases, have been approved in NY. And, FL passed some legislation in 2003 that has made rate increases on policies issued since 3/1/2003 extremely difficult.
Other than whole life insurance and non-cancellable Disability Insurance, I'd love for someone to show me any insurance product that has as strong of a track record for rate stability as LTCi.
Genworth has been selling LTCi since 1974. That's 35 years this year. They've had ONE rate increase which was on about half of their policyholders. That rate increase was 12% or less for each of them, depending upon state of residence and policy series.
Do you consider a 12% rate hike "Big"?
One rate hike in 35 years... do you consider that too frequent? My medical insurance goes up more than 12% every six months.
Hancock has been selling LTCi for about 22 years. They've had ONE rate increase on about half of their policyholders. The rate increase was 18% or less for each of them, depending upon state of residence and policy series.
Do you consider one 18% rate increase over a 22 year period too big and too frequent?
The same is true for Met Life. About 22 years of experience and one rate increase.
You also state, "Unlike a lot of other insurance business, LTC companies can raise prices as needed and only have to worry about the effect of hikes on new business."
That statement is patently false for a number of reasons:
1) Most states require DOI approval for a rate increase. And, in most states, the rate increase needs to be supported by claims data showing a higher percentage of claims than originally projected.
2) Secondly, the primary concern to the insurer, when requesting a rate increase, is NOT the effect on new business, but the effect on in-force policies. If the rate increase is too high, they know that healthy policyholders will cancel their policy, and only those who are severely ill will keep it. Too large of a rate increase creates a "downward spiral" or a "death spiral" on a block of business.
Lastly, many states have made it VERY difficult to implement a rate increase. To my knowledge, not a single rate increase has ever been approved in Indiana. Only one or two rates increases, have been approved in NY. And, FL passed some legislation in 2003 that has made rate increases on policies issued since 3/1/2003 extremely difficult.
Other than whole life insurance and non-cancellable Disability Insurance, I'd love for someone to show me any insurance product that has as strong of a track record for rate stability as LTCi.
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