LTC Discounts vs. Rebating

[JMO Fan]

Time & Children & Family coverage

That is not universal. Some carriers, such as Time, charge for each additional child.

When Time covered my family 10 years ago, they didn't charge more for 2+ children. We had 9 children. I'm sorry if I caused this!

 

[arnguy]

JMO Fan, you spoiled this for everbody signing up with TIME.

 

[Crabcake Johnny]

GR adds on for each child until you reach 8 kids.

 

[senior-advisor-indiana]

Is this thread going in cirlcles? I am getting dizzy.

 

[JMO Fan]

Med Supp, as well as LTC, often includes a spouse discount. It seems the risk is lower, possibly due to living together. But some limit the discount to those who purchase two individual policies from the same company.

This hurts the people who lose due to unfair discrimination. They pay extra premiums even though they're buying the same insurance. Buyers don't know they're being cheated, and usually feel powerless to stop it.

Suppose a carrier will only give Joe a discount if his wife buys Med Supp from them. If Joe's wife is only 60, or already bought a policy from another company, she doesn't need it. Joe is cheated out of the discount.

In addition, the company rate has a minimum legal loss requirement. They don't meet it for the people who don't get the discount. Married people whose spouses don't buy a policy are charged illegally excessive rates.

Suppose Joe's wife buys a policy, so he gets the discount. If she drops it, he loses the discount. His contract has been improperly changed by his wife's contract (despite the entire contract provision).

If married people get a discount, Joe should. It shouldn't matter whether his wife buys from the same company. Carriers need to protect Joe's rights.

 

[LTCiPro]

It's not illegal until it has been challenged in a court of law and found to be so. So what's your point, anyway?

?????

 

[JMO Fan]

It's not illegal until it has been challenged in a court of law and found to be so. So what's your point, anyway?

?????

Driving 60 in a 55 zone is illegal, whether or not you get a ticket. Breaking the law is not "OK as long as you don't get caught." Unfair discrimination is a violation, and hurts people, even if it's never challenged.

When somebody buys insurance, they're supposed to get the best rate the company can offer for their risk class. It shouldn't matter whether they get their spouse to buy it, or buy it at work from a list-bill specialist, or from a discount broker. Everybody with the same risk should get the same deal.

 

[LTCiPro]

Driving 60 in a 55 zone is illegal, whether or not you get a ticket. Breaking the law is not "OK as long as you don't get caught." Unfair discrimination is a violation, and hurts people, even if it's never challenged.

When somebody buys insurance, they're supposed to get the best rate the company can offer for their risk class. It shouldn't matter whether they get their spouse to buy it, or buy it at work from a list-bill specialist, or from a discount broker. Everybody with the same risk should get the same deal.

You answered your own question/statement. Discounts are a result of risk-reduction, cost containment for carriers, resulting in rate reduction against future claims and lower reserve requirements. Spousal discounts are offered simply because the presence of a spouse/partner in the home reduces the likelyhood of early "facility care" requirements...simply put, the claimant stays in the home for care (less expensive care) much longer than a single claimant with no one there to assist in care needs. It's basic claims experience modeling.

So, the married couple "is" getting the lowest possible cost.

Is it really fair to the married couple if they get no discount for being a more favorable risk? I prefer to get the lowest, most accurate cost that "I" earn based on my personal insurabilty assessment. I certainly don't want to pay the same rates as a rated class individual when I'm a Preferred Risk.

Blessings!

 

[JMO Fan]

Lower rates for married individuals are justifiable. But some carriers won't reduce the rate unless both my wife and I buy a contract from the same carrier. If I buy a contract, and my wife doesn't, it doesn't change my risk, and shouldn't affect my rate.

 

[policy doctor]

Ever hear of a multi-car discount? Same principle. Insuring a spouse with same company gives them additional revenue. This is all about money.