Mass Mutual in-force rate increase pending

[Arthur Rudnick]

I may be some what off on this, but I don't believe that MM has paid any dividends on their LTC policies for at least 5 years. And, when they did, a policy had to be in-force for a minimum of 5-6 years before dividends were paid.

90%+ of the dividends were paid to their life ins. policyholders.

 

[ltcadviser]

If the 77% increase is granted - how does that compare to Genworth, JH, NWM, and MOO's previous rate increases?

Genworth actually has not been too bad considering most of their policies had exceptional benefits and contractual language.

John Hancock, on the other hand, has been brutal to policyholders.

 

[ltcadviser]

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

No MM LTC dividends, Herman.
Policy has to be in force 10 years before any possibility of dividends, however one should not count on anything with MM LTCi.

 

[MJM1987]

Reply, dividends are also illustrated in their DI product. Obviously dividends are never guaranteed. Why not leverage the accruing of LTC credits over the life of the contract?

 

[MJM1987]

Don't expect a mutual company to perform well in a rising interest rates environment. Mass Mutual's definitions are liberal and the pay claims. solid company been around for 100 years. That's your selling point.

Dividends are not guaranteed, and mean nothing in my opinion. Maybe they offset premium but so what. Solve the clients need, and the product sells itself.

 

[wc2624]

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

When general agents could sell Mass Mutual, we were told by a Mass Mutual higher up, not to sell based on the dividends. Our interpretation on that was that the insured should not, by any means, count on dividends applied to LTC policies.