LTC Bridge Annuity from Equitrust

[yankee466]

Anyone looked at the new Equitrust Bridge EI annuity with guaranteed issue LTC benefits?

Maybe a little like the Forecare product, but no medical records. It has three levels of LTC coverage, but no MBI, no Rx check....just a video conference with cognitive and able to view mobility. What would normally be knock out questions, just gets you level one with a vesting schedule...so unless you already need care, it seems pretty hard not to get the better offer.

 

[Marc Glickman]

Yes, we like Equitrust Bridge. Here is more info on the product: [EXTERNAL LINK] - Equitrust Bridge LTC

 

[ltcadviser]

Not a fan of it, Herman.

 

[SamIam]

Not a fan of it, Herman.

Why aren't you a fan of it?

 

[ltcadviser]

Why aren't you a fan of it?

Let me qualify my statement above. If our clients are insurable elsewhere we will do much better for our clients with a fully underwritten product through many underwriters (Nationwide, Securian, Lincoln, NY Life, OneAmerica et al)

My concern would be that agents will take their healthy clients to this product because it’s essentially guaranteed issue. I think we owe our clients better with more effort.

However, if we determine through our efforts that doors are closing with all alternatives, then yes this annuity contract can be an option for sure if our clients qualify for the 318% maximum leverage.

I like the indemnity aspect of course; not so concerned about the 5 year vesting schedule if our clients are somewhat younger, and can qualify for the 318%. The B++ AM Best rating of course is concerning somewhat.

So, the main question I have is will this policy only attract uninsurable risk through adverse selection (not a good thing >> see Penn Treaty). Or, might this policy attract some good risk too, simply because insurance agents fear fully underwritten cases? This would be helpful for all policyholders within the block of business if it plays out this way, I would think.