Long Term Care Policy Vs Rider on Life Policy

[Justin Bilyj]

if an agent thinks that a company that has had premium increases in the past will have the same premium increases on the policies offered today, the agent is doing a disservice to the consumer because the agent doesn't understand LTC insurance.

I understand where your coming from with regards to different policies being offered today, but are you going to be able to trust or convince someone to trust that company has learned how to effectively price ltc to avoid large rate increases?
Do you sell AIG?
or Aflac Supps? (rhetorical)

 

[Mr_Ed]

Why?................................................

most regulators won't even approve a 10-year rate guarantee let alone a lifetime rate guarantee.

Even companies that have 5-year rate guarantees on their policies, some regulators require them to lower it to a 3-year rate guarantee.

Why do the regulators want that?

I do not know.

I'm just telling you that if an insurer can't get a regulator to give them a 10-year rate guarantee, how the heck are we supposed to get a lifetime rate guarantee.

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I understand where your coming from with regards to different policies being offered today, but are you going to be able to trust or convince someone to trust that company has learned how to effectively price ltc to avoid large rate increases?
Do you sell AIG?
or Aflac Supps? (rhetorical)

once people understand that the current policies already have the prior rate increases built into them, they have no qualms about buying the policy.

 

[scagnt83]

Why do the regulators want that?

I do not know.

The only explanation would be that the regulators do not trust that the current actuarial assumptions have a high probability of being correct.

If they wont allow guaranteed rates past 5 years, then they are operating under the assumption that the Carrier needs the ability to raise rates to stay solvent on that block of biz.

 

[VolAgent]

The only explanation would be that the regulators do not trust that the current actuarial assumptions have a high probability of being correct.

If they wont allow guaranteed rates past 5 years, then they are operating under the assumption that the Carrier needs the ability to raise rates to stay solvent on that block of biz.

So.... pretty much no one has any faith that the carriers have appropriately priced the risk?

 

[Arthur Rudnick]

previously posted by VolAgent

So.... pretty much no one has any faith that the carriers have appropriately priced the risk?

They haven't figured it out in 30 years...........

 

[ltcadviser]

regulators won't approve it.

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the problem isn't just with consumers.
the problem starts with agents.
if an agent thinks that a company that has had premium increases in the past will have the same premium increases on the policies offered today, the agent is doing a disservice to the consumer because the agent doesn't understand LTC insurance.

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why is a reimbursement plan bad?

Scott,

Reimbursement is bad because the life insurance salesman needs to believe this if the peddler wishes to push $250,000 cookie cutter UL policies with 2% LTC indemnity riders rather than writing an LTC reimbursement policy with 5% compound inflation that will give the client $1.5 million @$20,000 month reimbursement for LTC, that is why.

Oh, and I write life insurance too. I just do not confuse the two products.

Long Term Care Insurance Quotes, Reviews, Ratings & Expert Advice - LTC Partner

 

[Mr_Ed]

Scott,

Reimbursement is bad because the life insurance salesman needs to believe this if the peddler wishes to push $250,000 cookie cutter UL policies with 2% LTC indemnity riders rather than writing an LTC reimbursement policy with 5% compound inflation that will give the client $1.5 million @$20,000 month reimbursement for LTC, that is why.

Oh, and I write life insurance too. I just do not confuse the two products.

Long Term Care Insurance Quotes, Reviews, Ratings & Expert Advice - LTC Partner

scott who?
i'm mrs. ed.

good post, though.

 

[Newby]

What if that insurer's current policy series is priced 80% higher than the previous policy series that had the increase?

Obviously that would be much better. But if they leave the door open to raise more it's not good. They need to fire their number crunchers if they were that far off.

 

[ltcadviser]

Anyway, I don't receive a ton of phone calls from consumers looking at these life policies generally; I do however probably receive a half dozen or more calls per day from consumers that "were shown Lincoln Moneyguard by their financial adviser." Now these Merrill Lynch, Edward Jones types need to definitely undergo LTC training 101. For the most part, they are just preying on their books of business with absolutely zero understanding of long term care insurance. The advice these "financial advisers" are giving their clients is wretched, for the most part.

 

[Newby]

Anyway, I don't receive a ton of phone calls from consumers looking at these life policies generally; I do however probably receive a half dozen or more calls per day from consumers that "were shown Lincoln Moneyguard by their financial adviser." Now these Merrill Lynch, Edward Jones types need to definitely undergo LTC training 101. For the most part, they are just preying on their books of business with absolutely zero understanding of long term care insurance. The advice these "financial advisers" are giving their clients is wretched, for the most part.

They do the same with life insurance. When people refer to them as a "Financial Advisor" I explain that's usually a fancy title for a stock broker.