LTCI Rate Increases for Women

[csalter]

I agree others will follow suit, maybe not the next new product / pricing rolling out but very soon. Just like with removing lifetime benefits, limited pay options, the other carriers couldn't get their changes out fast enough once Genworth announced.

When companies discover a way to pad their bottom line, they will do it. I don't see the insurance company being any different as you have already mentioned TriciaS.

They are no different than the airlines who jumped on board making us pay for checked baggage and more room in seats. I remember when I was a kid no stores were open on Sundays and banks were closed by three and closed on weekends. As soon as one of their competitors changed and began making money, others in their industry followed as long as money could still be made.

Let's not fool ourselves folks.

 

[Arthur Rudnick]

originally posted by csalter

When companies discover a way to pad their bottom line, they will do it. I don't see the insurance company being any different as you have already mentioned TriciaS.

They are no different than the airlines who jumped on board making us pay for checked baggage and more room in seats. I remember when I was a kid no stores were open on Sundays and banks were closed by three and closed on weekends. As soon as one of their competitors changed and began making money, others in their industry followed as long as money could still be made. Let's not fool ourselves folks.

Spoken like the true consumer that you are.

Let's not get carried away here. There is only one reason that carriers request rate increases on existing policyholders, and that's to be sure that funds are there (Reserves) when policyholders go on claim. And, rate increases must be approved by each state's DOI. Airlines let the free market determine what to charge.

Unfortunately, an insurance company that exists under strict government rules & regulations cannot charge $1,000 for a premium to beef up sales, when the actual cost of doing business may be 3 or 4 times that amount.

That's a little different than an airline charging for checked bags without anyone's approval. And why do they charge for checked bags? Because they can.

Just about every airline has filed for bankruptcy over the years and some have filed more than once. If their rates were regulated by the the government that wouldn't happen.

I'm surprised at you. Over the past year you seemed to be a good student and I thought you were almost ready to graduate from the LTC Academy.

Unfortunately, you just flunked your final exam.

 

[ltcadviser]

originally posted by ltcadviser



I do not necessarily believe there will be rate increases on existing policyholders.......

Well, Northwestern Mutual and New York Life and Mass Mutual have never raised rates. Maybe there is a correlation with A++ rated mutual company and premium stability.
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originally posted by ltcadviser



I do not necessarily believe there will be rate increases on existing policyholders.......

Well, Northwestern Mutual and New York Life and Mass Mutual have never raised rates. Maybe there is a correlation with A++ rated mutual company and premium stability.

 

[csalter]

Well, Northwestern Mutual and New York Life and Mass Mutual have never raised rates. Maybe there is a correlation with A++ rated mutual company and premium stability.
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Well, Northwestern Mutual and New York Life and Mass Mutual have never raised rates. Maybe there is a correlation with A++ rated mutual company and premium stability.

But their rates start out higher than everyone else's. If an existing policyholder had bought one Northwestern, NYL or Mass Mutual originally, would they have saved money in the long run because their premiums would have not gone up, or are the lower premiums they had now caught up to those three?

 

[Mr_Ed]

But their rates start out higher than everyone else's. If an existing policyholder had bought one Northwestern, NYL or Mass Mutual originally, would they have saved money in the long run because their premiums would have not gone up, or are the lower premiums they had now caught up to those three?

great point.

 

[Mehler91]

Interesting discussion. I was talking with one of our estate planners this past week and he told me Genworth has filed a request in NC to raise rate anywhere from 50-78% on their existing book of business depending on how old the policy is.

 

[csalter]

It is interesting to see how much more the existing policies will increase. Genworth has been losing profitability so they have to keep stockholders happy. However, even with their increases they will still be competitive with most of their competitors. From what I have read about the variances in prices from company to company, one could have their rates increased 100% from one company and still have a cheaper policy with the same benefits of another company. To me that's ridiculous!

If in fact, women file more claims than men since they live longer, other companies will join Genworth. The companies that charge astronmical rates already won't really have to but they will too on their new policies.

 

[ltcadviser]

But their rates start out higher than everyone else's. If an existing policyholder had bought one Northwestern, NYL or Mass Mutual originally, would they have saved money in the long run because their premiums would have not gone up, or are the lower premiums they had now caught up to those three?

CSalter, you are incorrect. These companies' rates do not always start out higher than other companies. Depends on age, and State of residence. For many years NY Life had best rates in country for 40-50 year olds; currently, NY Life and Mass Mutual are very competitive in California. Mass Mutual is still priced the best in Washington and Missouri. Granted, Northwestern rates have never been terribly competitive. But NYL and Mass have presented many opportunities for buyers at times. LTC pricing is a game of leapfrog.
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Interesting discussion. I was talking with one of our estate planners this past week and he told me Genworth has filed a request in NC to raise rate anywhere from 50-78% on their existing book of business depending on how old the policy is.

90% in California I think.

 

[Mehler91]

Wow, that's amazing. Wonder how much the DOIs will approve.

 

[csalter]

CSalter, you are incorrect. These companies' rates do not always start out higher than other companies. Depends on age, and State of residence. For many years NY Life had best rates in country for 40-50 year olds; currently, NY Life and Mass Mutual are very competitive in California. Mass Mutual is still priced the best in Washington and Missouri. Granted, Northwestern rates have never been terribly competitive. But NYL and Mass have presented many opportunities for buyers at times. LTC pricing is a game of leapfrog.
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Yes. NYL is competitive, but don't sell policies to people under 40. I am not sure if they changed that yet, but they were not a few months back.