LTC with Mass Mutual

[VolAgent]

While not an in-force rate increase, I received news from the Mass agency I am contracted as a broker through that they will be decreasing discounts and discontinuing riders on Signature Care 500... I did not see that one coming, honestly...

Will this effect existing policies or just new business?

 

[ltcadviser]

Will this effect existing policies or just new business?

New business, only, of course.

 

[numbernut]

Hi,
Can a "consumer" butt in here I have a NWM quote of:

Coverage: $3500 per month/6 years/5% inflation, no riders

Premium:
$1900/year for a 39 year old healthy male
$1900/year for my 40 year old wife
($1400/year at $2500 per month coverage)
So $3800 with no riders (includes the 30% spousal discount)

What concerns me are the articles about people who are 3 decades older paying almost the same price?? I don't want to budget for something and then get a 50% increase down the road, but is this an insane rate for LTCi @ ~40 years old?

Thank you

 

[CALTCAgent]

"What concerns me are the articles about people who are 3 decades older paying almost the same price"??

NWM premiums are extremely high compared to some of the other "top" carriers. You could probably cut the premium in half.

Have you looked at other carriers?

Thank you

 

[GreenSky]

Hi,
Can a "consumer" butt in here

You've been here about 10 days and now have 24 posts questioning various products from NWM. Sounds like you don't trust the agent or the company.

Why don't you just find another agent and get some competitive quotes? Asking for us to tell you what you apparently want to hear won't serve any purpose.

Rick

 

[numbernut]

Not yet. I didn't think NWM would be so much higher. But, I don't want massive increases down the road either, almost guaranteed by going with the cheapest. They approved my cancer surviving wife at their top tier for life insurance so I have mostly been looking at them for LTCi but...

Concerning the other posts I was trying to figure out the mechanics of Whole life. I talked to 2 agents face to face and they weren't able to explain what should have been explainable to them.

Anyway, It isn't really distrust. I originally picked NWM because I wanted a strong, stable company. I was seriously getting ready to pick their LTCi products, but am hesitating after researching the costs more.
The agent I bought from is very friendly, but he hasn't exactly offered other companies products until I e-mailed and asked if he could/would. Of course he tried to get me back to thinking about NWM ;*)

 

[CALTCAgent]

Not yet. I didn't think NWM would be so much higher. But, I don't want massive increases down the road either, almost guaranteed by going with the cheapest.

Why do you feel massive increases are "guaranteed" by going with a less expensive company?

With NWM you pay 50% more upfront. Year after year guaranteed.

What state are you in?

 

[numbernut]

Wis.
It seems just about everyone, from the articles I have read, has been increasing premiums substantially. Just assuming that really cheap means they have missed priced. The large NMW premium seems to be from the inflation indexing.

 

[Arthur Rudnick]

Coverage: $3500 per month/6 years/5% inflation, no riders
Premium:
$1900/year for a 39 year old healthy male
$1900/year for my 40 year old wife
($1400/year at $2500 per month coverage)
So $3800 with no riders (includes the 30% spousal discount) What concerns me are the articles about people who are 3 decades older paying almost the same
price?? I don't want to budget for something and then get a 50% increase down the road, but is this an insane rate for LTCi @ 40 years old? The agent I bought
from is very friendly, but he hasn't exactly offered other companies products until I e-mailed and asked if he could/would. Of course he tried to get me back
to thinking about NWM

Numbernut,
First of all, there's a reason your NWM agent only showed you a NWM product; he's a "captive agent" with NWM. A captive agent works for and represents only one company. He will show you their product, tell you how wonderful it is and give you a price.

What a captive agent will not do is tell you there are 6 other companies that offer a better policy and are less expensive.

You're 40 years old. The cost of a nursing home today in WI is about $200/day or $6,000/month. If you needed care tomorrow, with $2,500 in monthly benefits, you'd be out-of-pocket $3,500/month. If you received care at home, at $20/hour, your policy would provide 4 hours of care a day.

Good policy? Lousy policy! Is $3,800 in premiums fair? I just randomly checked 2 major carriers in WI and you can duplicate your NWM policy for about 1/3rd of that cost. (1/3rd, as in: approximately $1,200/year for both you and your wife).

Still like your "very friendly" agent?

Here's what you need to do.........

You need to sit down with a independent agent who will represent all of the major companies in WI. You also need to look at benefits in a more realistic manner. Depending upon where your "out-of-pocket comfort level" is, I would recommend a policy paying a minimum of $4,500-$5,000/month. Low premiums are nice, but if you ever needed care down the road, you're going to wish you had a policy that was the best on the planet. Either purchase a policy with benefits that make sense, or shoot crap and don't purchase anything.

As far as your concern about rate increases, as far as I know NWM is one of a limited number of LTC carriers that has never had a premium increase on existing policyholders. But, history is no guarantee that an increase will not be forthcoming. Every major LTC company has had rate increases in the past few years, and somewhere down the road, rates will go up regardless of what company you decide to go with.

One more thing.................. Your "friendly agent" will try and convince you that the company's dividends will make their exorbitant premium seem more competitive. You & your wife will be dead & buried long before those dividends will offset the substantially higher prices you're presently paying.

If you need an independent agent in your hometown, either of these 2 websites will help you locate one.
Long Term Care Insurance Information Compare Costs-America's long term care association
Corporation for Long Term Care Certification

If you'd like to contact me via email, I'd be happy to review some numbers and ideas with you. This is an important decision for both of you and you need to carefully review all of your options.
Good luck.........

 

[VolAgent]

Not yet. I didn't think NWM would be so much higher. But, I don't want massive increases down the road either, almost guaranteed by going with the cheapest. They approved my cancer surviving wife at their top tier for life insurance so I have mostly been looking at them for LTCi but...

Concerning the other posts I was trying to figure out the mechanics of Whole life. I talked to 2 agents face to face and they weren't able to explain what should have been explainable to them.

Anyway, It isn't really distrust. I originally picked NWM because I wanted a strong, stable company. I was seriously getting ready to pick their LTCi products, but am hesitating after researching the costs more.
The agent I bought from is very friendly, but he hasn't exactly offered other companies products until I e-mailed and asked if he could/would. Of course he tried to get me back to thinking about NWM ;*)

Alright, now it is time to call BS. Your wife did not get preferred plus after having had cancer.