John Hancock Discontinuing LTC Sales

Nov 10, 2016

  1. ltcadviser
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    Great news! Very happy to see this.
     
  2. yankee466
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    wouldn't sell their product on a bet...so no big deal.

    If MoO discontinues, I'm screwed. :biggrin:
     
  3. Mr_Ed
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    yeah!

    their new product was terrible. That's for sure.
     
    Mr_Ed, Nov 10, 2016
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  4. kpbdy99
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    I didn't like the product, but I still hate to see them pull the plug.
     
    kpbdy99, Nov 10, 2016
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  5. yankee466
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    it's like.....how could they possibly lose money on the product the way it was structured? it was theoretically better than sliced bread from their prospective.

    Obviously someone in Canada (Parent company) figures the US will be socialized medicine soon enough with cradle to grave care...making LTCi obsolete. Maybe they missed the announcement that Trump won. :goofy:
     
  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Well, that practically ends the CA Partnership for LTC:

    CPLTC Partner Contact Info

    Bankers - only for captives and I wouldn't ever bother.
    Genworth - eh
    John Hancock is gone
    New York Life no longer sells LTC
    CalPERS is only available to state employees and not sold by agents.

    Nice experiment California.
     
    DHK, Nov 10, 2016
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  7. Mr_Ed
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    Last I checked Canada's "socialized medicine" does NOT pay for long term care. Most "single payer" countries do not provide free long-term care.

    When you have 1.2M in-force policies and you are only selling 6,000 new policies each year, you can make more money by NOT selling new policies and just focus on managing your current block. That's why CNA, Met, and Pru all stopped selling.

    All 4 of these companies (CNA, Met, Pru and now JH) came out with "innovative" products that were going to "change the industry". Their "new and innovative" products meant: lousy benefits for higher premiums. When you have a crappy, overpriced policy, NO ONE is going to buy it. Yet you still have HUGE overhead expenses including:

    underwriters' salaries
    new business personnel salaries
    wholesale marketing salaries
    filing fees
    brochures
    legal
    etc......

    If you've got $10M in overhead expenses each year and you're only getting $12M in new premium each year, you're losing money.


    The only reason it makes sense to stop selling new policies is if you're not selling enough policies to justify your overhead expenses.

    microeconomics 101.
     
    Mr_Ed, Nov 10, 2016
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  8. yankee466
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    You mean the Class Act no longer exists? wow.


    :D
     
  9. ltcadviser
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    Yes. I also would like to see Omaha stay in the arena.

    The marketplace is definitely moving towards hybrids.

    However I want to always have traditional policy options.

    Right now there is only MOO, GNW, Mass, Thrivent, Transamerica, NGL, NWML, NYL, State Farm, Bankers. Shrinking marketplace.

    ----------

    CA Partnership is no big deal.

    Mass Mutual and NY Life still have excellent options for California residents..
     
  10. Mr_Ed
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    With 10 to 12 companies selling LTCi in most states, that means that each state has about 3x as many companies selling LTCi as they do the number of companies selling Individual/Family Medical policies.
     
    Mr_Ed, Nov 10, 2016
    #10
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