John Hancock Performans LTC

Bob_The_Insurance_Guy

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Decatur, Ga.
The person who is the DM in my area for this product, came by and went through the brochure with me. They, admittedly, were not too familiar with the product, and I had a few questions for anyone here who is familiar with it.

It has a Contingent Nonforfeiture built in, but also has a Nonforfeiture as an add on. The only difference I can see is: with the add on it has to be in force three years, but with the Contingent Nonforfeiture, it has to be in force twenty years.

Am I reading that right? Other than that, they are both the same.

They couldn't explain the Loyalty Credits too well. Other than what I've read in the brochure, is there any other bits of information I should know?

Going to play around with the quoter.
 
The person who is the DM in my area for this product, came by and went through the brochure with me. They, admittedly, were not too familiar with the product, and I had a few questions for anyone here who is familiar with it.

It has a Contingent Nonforfeiture built in, but also has a Nonforfeiture as an add on. The only difference I can see is: with the add on it has to be in force three years, but with the Contingent Nonforfeiture, it has to be in force twenty years.

Am I reading that right? Other than that, they are both the same.

They couldn't explain the Loyalty Credits too well. Other than what I've read in the brochure, is there any other bits of information I should know?

Going to play around with the quoter.



The 3 year has to do with lapse. If they had it 3 years and lapsed, it'll remain in force at a reduced policy limit equal to the premiums that have been paid in.

The Contingent is based on either being in force for 20 years or the company increasing the premiums by more than a specified (age/% of cumulative increase over initial premium) amount listed in the policy. If this happens they'll have 3 options:
1. Pay the increased premium.
2. Decrease their benefits to a level supported by their current premium.
3. Elect the Contingent Nonforfeiture Benefit. Under the Contingent Nonforfeiture Benefit, their policy will remain in force with a reduced policy limit equal to the sum of the premiums they've have paid. This means that a
reduced benefit will be payable instead of the full Policy Limit.

I haven't seen the new product, but I'd bet it works the same as in the past.

I don't know about the Loyalty Credits, but I do know that it's pathetic that a DM is out pushing a product that he doesn't understand.
 
The person who is the DM in my area for this product, came by and went through the brochure with me. They, admittedly, were not too familiar with the product, and I had a few questions for anyone here who is familiar with it.

It has a Contingent Nonforfeiture built in, but also has a Nonforfeiture as an add on. The only difference I can see is: with the add on it has to be in force three years, but with the Contingent Nonforfeiture, it has to be in force twenty years.

Am I reading that right? Other than that, they are both the same.

They couldn't explain the Loyalty Credits too well. Other than what I've read in the brochure, is there any other bits of information I should know?

Going to play around with the quoter.

Bob, just send your LTC business to Mass Mutual. Level premiums, not increasing premium structure.
 
I would send my LTCI biz to GW before JH.... and I would by no means use GW. (I realize carrier choice can be state specific)

That JH policy is nothing but smoke and mirrors designed to confuse both the client and agent. LTCI is complicated enough for consumers to grasp. Complicating it even more is just asking for trouble.

Not to mention the heavy rate increases that JH has seen very quickly after issuing policies in the past. Why sell that history when you can sell Mass who has premiums better or competitive with JH, plus no rate increases ever. Plus the policy gets dividends starting year 10.
 
I would send my LTCI biz to GW before JH.... and I would by no means use GW. (I realize carrier choice can be state specific)

That JH policy is nothing but smoke and mirrors designed to confuse both the client and agent. LTCI is complicated enough for consumers to grasp. Complicating it even more is just asking for trouble.

Not to mention the heavy rate increases that JH has seen very quickly after issuing policies in the past. Why sell that history when you can sell Mass who has premiums better or competitive with JH, plus no rate increases ever. Plus the policy gets dividends starting year 10.


JH Performance LTC is priced 50%-100% higher than other policies if 5% compound is elected and then you need "flex credits" to get you back to where you might have been with other policies. If 3% compound is elected (most likely what a regional wholesaler will illustrate) you have built-in rate increases with Performance LTC so the initial premium is meaningless.

I was contacted testerday by a woman in Washington state who was being shown JH by an agent. Mass Mutual's level premium design was same price as JH initial premium with escalator graded premium design.
 
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The person who is the DM in my area for this product, came by and went through the brochure with me. They, admittedly, were not too familiar with the product, and I had a few questions for anyone here who is familiar with it.

It has a Contingent Nonforfeiture built in, but also has a Nonforfeiture as an add on. The only difference I can see is: with the add on it has to be in force three years, but with the Contingent Nonforfeiture, it has to be in force twenty years.

Am I reading that right? Other than that, they are both the same.

They couldn't explain the Loyalty Credits too well. Other than what I've read in the brochure, is there any other bits of information I should know?

Going to play around with the quoter.


run one illustration then go directly to the disclosure page which the applicant is required to sign.

you will see on that page 3 different projections of what the premiums may look like in the future.

all you need to do is read that page and that will let you know if you should sell this policy or not.
 
So you're only currently selling Mass Mutual LTC products? No other companies?

I've had troubles trying to get appointed with them in the past. Any advice?

I sell everyone. I currently have applications in underwriting with Mass Mutual, Mutual of Omaha, Lincoln, State Life, New York Life, Genworth and MedAmerica.

Call me at (800) 891-5824 and I can help you get appointed with Mass Mutual.
 
I sell everyone. I currently have applications in underwriting with Mass Mutual, Mutual of Omaha, Lincoln, State Life, New York Life, Genworth and MedAmerica.

Call me at (800) 891-5824 and I can help you get appointed with Mass Mutual.

You sell everyone, but do you recommend everyone?
 
You sell everyone, but do you recommend everyone?

There are policies today that I can not recommend in good faith to healthy clients that will not be in my client's best interest. Now if a client is uninsurable with 13 underwriters and insurable with only one underwriter, I might not have a choice. However, I will let my client know the inherent downside risk of the policy/underwriter being considered.

Scott said above everything that needed to be said.
 
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