John Hancock Increases Long Term Care Rates by 90%

[tlmarketing]

If you are the unfortunate owner of a John Hancock Long Term Care Insurance Policy in Pennsylvania, you may have just received a letter increasing your long term care premiums.

Effective in May 2012, your premiums may increase by 90%....But don't worry, it's ok.....

According to Jim O'Brien, VP LTC Operations and IT at John Hancock, the PA Department of insurance approved the 90% increase....that should be comforting to seniors...

Are there any class action lawyers on this forum???

 

[sellinmachine]

Even tho this does not surprise me, or effect me, IT ANGERS THE STUFFIN' OUT OF ME. Last Co. that I wrote biz for I was captive. LTC was their lead marketing product. They provided leads, so guess what I sold.

I did not beleive at the rates that we were charging then
that the biz was sustainable. One rainy aft. sat in a house while man and wife argued loudly over it. Sat there to watch, ultimately wrote one, one refused. Once I left with the one app, inside the house got noisy before I reached my car, no surprise, either.

One day asked my Dist Mgr how long it took to get off advances. He did'nt have a clue, he'd been there 5 years, and still on it he said. That sugg ested the drop rate was also high.

Today, I see that co.'s logo on website, I move on immediately! Irregardless of any other co,s offered! It does make a statement, ladies and gentlemen.

 

[Guest]

Can you give an example of what the old and new rates are/will be for say a 55 year old for a $250 a day benefit, for 3 and 5 years with a 60 day elimination period?

 

[scagnt83]

20%-90% increase..... OUCH!!!!!!!!!!!

The higher increases are for the compound inflation riders.

Links (Al, the articles give rate examples)

How is a 90% long-term care rate hike OK? - Chicago Sun-Times

Long-term-care insurance may go way of the dinosaur - InvestmentNews

Minnesota seniors facing a spike in long-term care cost | StarTribune.com



Genworth is asking for an 18% increase in most states...

2012 premiums are up an average of 10% over 2011.

LTCI is not looking good these days.

Dropouts are:
Met
Pru
Allianz
Unum
Guardian
CNA
who am I leaving out??
who will be next????

 

[sellinmachine]

Al, if you're asking me, I sold LTC in 97, I beleive. Pitfching retired folks mostly ages 67 to 75 or so. So, few details can I remember. I remember that we rated up, of course, for certain pre-existing conditions. Most folks that purchased seldon ws willing to go over 1200-1500 premium. But I did write a very few 2200 and over. Personnally I ner saw a lead of someone 55, but the DM worked a nes lead drop first, I got the left-overs. Surprise, surprise ----- I never did understand that. When I trained at anything sold direct I let the newbies have some easy ones, I took the tough ones, cuz I anted the new guy to make it.

I truly do not have a clue what LTC premiums are today. Scary tho to even think about it.

 

[Crabcake Johnny]

John Hancock tried to impose 40% in MD last year. Problem is, that's illegal.

Md. rate cap may cut John Hancock’s 40% long-term care rate increase | Insurance & Financial Advisor I IFAwebnews.com

 

[VolAgent]

Where is Scott to tell us we are full of it and that everything is just fine in LTC land?

 

[sellinmachine]

Supplement comment to my previous post.

It had only been about 1-2 years since my father-in-law had passed while living in a nursing center, so I was familiar with nursing home cost and he lived their for 17 months.

The average premiem I sold was apporx equal to one months charges at the home. H e was there 17 months, and I was selling and getting accepted cases tht were within just a short time from expecting to enter a home.

Hence my assumption that it was unsustainable.

 

[scagnt83]

Basically they are saying that they missed their actuarial assumptions by close (enough) to 100%...

Watch Genworth rise 20% year over year for the next 5 years!

 

[tlmarketing]

20%-90% increase..... OUCH!!!!!!!!!!!

The higher increases are for the compound inflation riders.

Links (Al, the articles give rate examples)

How is a 90% long-term care rate hike OK? - Chicago Sun-Times

Long-term-care insurance may go way of the dinosaur - InvestmentNews

Minnesota seniors facing a spike in long-term care cost | StarTribune.com



Genworth is asking for an 18% increase in most states...

2012 premiums are up an average of 10% over 2011.

LTCI is not looking good these days.

Dropouts are:
Met
Pru
Allianz
Unum
Guardian
CNA
who am I leaving out??
who will be next????

Thanks for the links....It is unbelievable that state insurance departments would allow 90% increases in 1 year.