LTC with Mass Mutual

[2insureyou]

NML is very committed to the market, as are Mass and NYL. Here's some more of that kool-aid for you, but NML is the only company paying a significant dividend to reduce premiums. NYL pays a nominal dividend, but I expect that to increase in the future as well, as they seem to do a great job of underwriting and pricing.

You would see these companies (who manufacture their own product, by the way... well, NML and NYL do, anyway) drop dividends before raising premiums, and then they would likely raise premiums before exiting the market.

It's unfortunate Guardian is exiting the market. They had a solid product, but it just never gained any traction. They were one of the only companies who had not raised premiums.

I know you folks aren't going to believe this coming from an NML rep, but I really hope the LTC marketplace stabilizes. I have sold some of my NM life insurance clients LTC products from other companies who have come back and already raised rates in the last 4 years. It's not good for the industry, or the public, for that matter, on a product that is already undersold and "under-understood" for lack of a better word.

 

[VolAgent]

NML is very committed to the market, as are Mass and NYL. Here's some more of that kool-aid for you, but NML is the only company paying a significant dividend to reduce premiums. NYL pays a nominal dividend, but I expect that to increase in the future as well, as they seem to do a great job of underwriting and pricing.

You would see these companies (who manufacture their own product, by the way... well, NML and NYL do, anyway) drop dividends before raising premiums, and then they would likely raise premiums before exiting the market.

It's unfortunate Guardian is exiting the market. They had a solid product, but it just never gained any traction. They were one of the only companies who had not raised premiums.

I know you folks aren't going to believe this coming from an NML rep, but I really hope the LTC marketplace stabilizes. I have sold some of my NM life insurance clients LTC products from other companies who have come back and already raised rates in the last 4 years. It's not good for the industry, or the public, for that matter, on a product that is already undersold and "under-understood" for lack of a better word.

As I recall, Mass also projects to pay dividends on their LTCi. They are supposed to start when the policy is roughly 10 to 20 years old.

 

[Mr_Ed]

As I recall, Mass also projects to pay dividends on their LTCi. They are supposed to start when the policy is roughly 10 to 20 years old.

they start after age 65 or after the 10th policy anniversary (whichever comes later.)

nadm

 

[2insureyou]

I stand corrected about Mass. I knew they were participating, but had not seen where they declared an LTC dividend. The illustrations I've seen when showing them to a client, I didn't recall showing a dividend either. Granted, it's been about a year since I sold one of their LTC policies though.

 

[Mr_Ed]

I stand corrected about Mass. I knew they were participating, but had not seen where they declared an LTC dividend. The illustrations I've seen when showing them to a client, I didn't recall showing a dividend either. Granted, it's been about a year since I sold one of their LTC policies though.

their illustration software gives you the choice of showing the page illustrating dividends or not showing that page.

nadm

 

[Arthur Rudnick]

they start after age 65 or after the 10th policy anniversary (whichever comes later.)

So,let me understand this:
As a MM or NWM agent, I tell a prospect.....

"Yes, my LTC premiums are substantially higher than every other company out there, BUT, in 10 years or so, we will (we MAY) start to pay dividends on your policy, that will (that MAY) lower your premium".

And............ do I say that with a straight face?

 

[VolAgent]

So,let me understand this:
As a MM or NWM agent, I tell a prospect.....

"Yes, my LTC premiums are substantially higher than every other company out there, BUT, in 10 years or so, we will (we MAY) start to pay dividends on your policy, that will (that MAY) lower your premium".

And............ do I say that with a straight face?

Actually, MM's pitch was they have never raised rates. Also, the projected dividends give them a cushion against having to raise rates in the future. Of course no guarantees, but they feel confident about paying dividends. If they have to raise rates, they can just eat into the money that was anticipated for dividends, thus forestalling rate increases.

Obviously said in much better verbiage.

 

[Arthur Rudnick]

OK, you & I know that, but what do you tell the prospect? It would sound like you're setting them up for a rate increase.

Keep in mind that at one point, (in the not so distant past), every company said "We've never had a rate increase on existing policyholders"

I just can't buy the concept of telling a prospect that in 10 years, you will start to get a dividend. And, I'm sure something has to be signed stating that dividends are not guaranteed.

That doesn't sound like a positive marketing tool to me.

 

[Mr_Ed]

OK, you & I know that, but what do you tell the prospect? It would sound like you're setting them up for a rate increase.

Keep in mind that at one point, (in the not so distant past), every company said "We've never had a rate increase on existing policyholders"

I just can't buy the concept of telling a prospect that in 10 years, you will start to get a dividend. And, I'm sure something has to be signed stating that dividends are not guaranteed.

That doesn't sound like a positive marketing tool to me.

same old same old from Arthur.

 

[Arthur Rudnick]

"same old same old from Arthur"

Hey NADM,
I'm not sure what you're trying to say, but I'm sure a "thank you" is in order.

So......... Thank You Scotty