Mass Mutual in-force rate increase pending

May 1, 2018

  1. Mr_Ed
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    Mr_Ed Guru

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    The CA DOI rate increase data does not distinguish between rate increases on policies issued before Rate Stability and rate increases on policies issued after Rate Stability.
     
    Mr_Ed, May 20, 2018
    #21
  2. ltcadviser
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    It clearly shows year policy sold, rate increase requested, and rate increase granted by every company in every state.

    Seems detailed enough for my clients.
     
  3. Mr_Ed
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    Mr_Ed Guru

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    But it doesn't show which rate increases were under the old rules and which rate increases are under the new rules.

    Do you explain to your clients that, in most states, over 95% of the rate increases have been on policies that were sold under the old rules?
     
    Mr_Ed, May 22, 2018
    #23
  4. ltcadviser
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    ltcadviser Guru

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    Yup
     
  5. stevesmith007
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    stevesmith007 New Member

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    I purchased a LTC policy from Mass Mutual for $98 per month when I was 54 years old 17 years ago. The contractual agreement was that the policy amount was fixed and the amount insured would raise the same as COLA. Now that the company fears the unknown even more they want to penalize me by increasing the rate by 77%! I am healthy and will probably never need the coverage. It is painful to even think that the rate will likely be $175 going forward and that they can raise the "fixed" rate again when they fear more unknowns. So if I decide to drop the coverage I lose the over $17,000 I have invested in Mass Mutual. This is outrageous. Face the reality. The rate may be less than the current hybrids - but that was not what we were looking at in 2001! They should live up to their contractual agreements with the policy holders.
     
  6. bluemarlin08
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    bluemarlin08 Guru

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    Did your policy guarantee your rate? Consider you were way underpaying for years.
     
  7. stevesmith007
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    stevesmith007 New Member

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    Yes, the rate was guaranteed. I must confess I am not an insurance professional...the written contract back in 1998 said no rate increases and COLA increases annually to the daily benefits. The benefits have steadily increased.... I realize what a good deal it seems today, but they made the offer and it was accepted. I've paid the amount faithfully with the expectation they would fulfill their end of the contract.
     
  8. ltcadviser
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    Hi Steve,

    Your Mass Mutual policy is a Guaranteed Renewable contract. Mass Mutual is required to renew your contract annually so long as your premium is paid. With guaranteed renewable contracts the premiums are not guaranteed. Mass Mutual is allowed to request rate increases on the entire class of policyholders. You are incorrect in stating your rate is guaranteed. Mass Mutual’s right to increase premiums will be boldly stated on the first page of your policy. Please open up your policy and read it.
     
  9. Botoman
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    Botoman New Member

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    This is very helpful! Thank you!
     
    Botoman, May 31, 2018
    #29
  10. yankee466
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    While we are on the topic of Mass Mutual....does anyone know if they (MM) have ever applied dividends to offset premium payments on their LTC policies? I have a client, who is obviously talking to MM, that is asking me for an MoO illustration showing the future premiums offset by dividends. Of course MoO does not pay dividends under any circumstances. Sales tactic by MM to promise something that will never happen?

    I would be more concerned about rate hikes than I would MM rewarding clients with dividend payments. I think all the dividends go to the life insurance clients,

    Thanks
     
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