Looking for a Transamerica Contract

Bob_The_Insurance_Guy

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Decatur, Ga.
Saw a webinar about Transamerica's New LTC product, where you can step the premium, rather than paying a flat premium. Forgot who sponsored it, but I want to present it to some prospects.

Anyone have that contract?
 
Saw a webinar about Transamerica's New LTC product, where you can step the premium, rather than paying a flat premium. Forgot who sponsored it, but I want to present it to some prospects.

Anyone have that contract?

it's usually not such a great deal.
in many cases they can get level premiums from other carriers for just a little bit more than the stepped rates with TA
 
Step Rate will increase the benefit by either 3% or 5% each year, along with a corresponding increase in premium.

So, you sell a policy and tell the applicant that their premiums will increase every year. The increase is guaranteed, so there's no additional underwriting, just like a GPO or FPO.

The Step is compound, so with a 5% option, premiums will double every 15 years. That assumes (real bad assumption) that rates won't also be increased by Transamerica.

IMO, there are too many other inflation riders on the market that make a lot more sense. There is very little (if any) Step Rate options being sold.
 
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Bob, I agree with everything that has been stated above.

It would be very difficult to manage a book of business in which the premiums increase every year and then are subject to a rate increase of 50 % to boot in the future. I promise you that you will have better things to do than field phone calls from angry clients. Write levelized contracts. You will have happy clients.
 
If your goal in life is to sell a TransCare plan, it is easy to show a 65 year old that 3/5% step will save them money over starting out with a 3/5% compound if they go on benefit at or before the statistical age of 83. It takes about 11 years for the 3% step premium to catch up the initial 3% compound....and it takes about 20 years for the total premium outlay to be the same. You would not have as convincing a case for a 50 year old however.

So, it has its place.....and you can stop the step growth at any time....whereas you call TA and one day say you want to remove the compound inflation all together to lower the premium, and you have a problem.

Else, as the other poster correctly pointed out, a Mutual/United of Omaha plan will, for the next few months anyway, blow away a Trans plan in terms of a better value in many cases.

Personal preference.......and just one more choice in the overall saga of who's plan is best today. I say just wait until April when Genworth once again makes this world a better place to live in with their new product at full commission. :swoon:

And, I think Jack's point is well taken.......how many people will remember they signed up for a plan that the rates go up every year?
 
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