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They may be overpriced, but the cost of not having them is more expensive than the cost of having one.
Don't want to pay $400/mo? Fine, lose your estate to the govt if you ever need LTC.
John Hancock Discontinuing LTC Sales
- Thread starter ltcadviser
- Start date
They may be overpriced, but the cost of not having them is more expensive than the cost of having one.
Don't want to pay $400/mo? Fine, lose your estate to the govt if you ever need LTC.
- Thread starter
- #12
Or just buy an insurance policy elsewhere that is a better contractual value. Which was Scott's point.
I was captive with John Hancock 1998-2002. Once I became independent in 2002 I stopped recommending JH because there have always been better options.
15 years of better options.
Performance LTC was unsellable.
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.
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.[/QUOTE]
You're such "a know it all"... seriously. This is coming from the same guy who couldn't understand Mass would ease up on their LTC sales and stated that a life policy's dividend is only affected by the company's life insurance performance. Than has the nerve to finish his statement with "microeconomics 101."
You probably sit in the mirror and argue with yourself for fun when you have free time...smh
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.[/QUOTE]
You're such "a know it all"... seriously. This is coming from the same guy who couldn't understand Mass would ease up on their LTC sales and stated that a life policy's dividend is only affected by the company's life insurance performance. Than has the nerve to finish his statement with "microeconomics 101."
You probably sit in the mirror and argue with yourself for fun when you have free time...smh
You're such "a know it all"... seriously. This is coming from the same guy who couldn't understand Mass would ease up on their LTC sales and stated that a life policy's dividend is only affected by the company's life insurance performance. Than has the nerve to finish his statement with "microeconomics 101."
You probably sit in the mirror and argue with yourself for fun when you have free time...smh[/QUOTE]
you think i'm bragging because i took a freshman level econ class?
- 656
Just background from the Nov. 10 Manulife 3Q earnings report regarding the announcement for those who might have missed details:
In response to industry trends and stagnant consumer demand, we are also announcing that we will discontinue new sales of our stand-alone individual long-term care product. This decision will not have a material impact on our on-going earnings. We are committed to serving our existing customers and honoring our obligations to our over 1.2 million long-term care policyholders. We intend to continue to offer long-term care coverage as an accelerated benefit rider to our wide range of life insurance products, as this has become an increasingly popular alternative to stand-alone long-term care insurance policies in recent years.
JH LTC 3Q16 sales of US $8 million decreased 33% compared with 3Q15, reflecting lower sales across all products.
http://www.manulife.com/servlet/servlet.FileDownload?file=00P5000000hybaxEAA
In response to industry trends and stagnant consumer demand, we are also announcing that we will discontinue new sales of our stand-alone individual long-term care product. This decision will not have a material impact on our on-going earnings. We are committed to serving our existing customers and honoring our obligations to our over 1.2 million long-term care policyholders. We intend to continue to offer long-term care coverage as an accelerated benefit rider to our wide range of life insurance products, as this has become an increasingly popular alternative to stand-alone long-term care insurance policies in recent years.
JH LTC 3Q16 sales of US $8 million decreased 33% compared with 3Q15, reflecting lower sales across all products.
http://www.manulife.com/servlet/servlet.FileDownload?file=00P5000000hybaxEAA
If your new business overhead expenses don't justify the amount of new business sales, then it makes sense to shut down the new business section. They will save TENS of millions of dollars in new business overhead expenses each year. They've got $1.7 BILLION dollars of in-force premium. From the perspective of a CEO do they need more than $1.7 BILLION of in-force LTCi premium?
- 2,375
Wow another one gone
geez, we only have 12 left!
that means we've got three times as many LTC insurance companies than there are medical insurance companies in most states.
- Thread starter
- #19
Like Herman says....All we need are Omaha, ...and Lincoln Moneygurd and State Life and we are good.
Omaha came out with a statement today,based on recent events, re-affirming their continued commitment to the traditional LTC industry. I did not see it, but it was read to me.
Hopefully it does not mean they will pull the plug next week.
Hopefully it does not mean they will pull the plug next week.
