Mass Mutual LTCI Pulled from Brokerages

[Mr_Ed]

In my opinion John Hancock has the best plan because they are the only company that has addressed the rate increase issue. Have you looked at the flex credit strategy they are using? It is kind of like a Universal Life product in a way.

The flex credits will only reduce the premium if the flex credits are greater than the annual premium increases. The illustrations show that for the first 15 to 20 years the flex credits are projected to be less than the annual premium increases.

Were you aware of that?

 

[scagnt83]

The flex credits will only reduce the premium if the flex credits are greater than the annual premium increases. The illustrations show that for the first 15 to 20 years the flex credits are projected to be less than the annual premium increases.

Were you aware of that?

Most agents who sell that product have no clue how it really works. They hear the 2min sales pitch and repeat that back to every prospect they can find. It is possibly the worst LTCI product on the market right now.

 

[Mr_Ed]

Most agents who sell that product have no clue how it really works. They hear the 2min sales pitch and repeat that back to every prospect they can find. It is possibly the worst LTCI product on the market right now.

yup.
I've been private messaging the poster who thinks it's so great.
He obviously doesn't understand the differences between the JH policy and the rest of the market.

But, I wouldn't be surprised if the rest of the industry develops products similar to the JH Performance policy because it's an easy way to bypass the regulators and increase rates every year in the early policy years.

 

[ltcadviser]

Most agents who sell that product have no clue how it really works. They hear the 2min sales pitch and repeat that back to every prospect they can find. It is possibly the worst LTCI product on the market right now.

If by "worst policy" Tyler you mean the highest priced policy it is very close. Currently the New York Life Secure Care policy that just hit the market is now priced even a little bit higher than JH Performance LTC.

 

[Mr_Ed]

If by "worst policy" Tyler you mean the highest priced policy it is very close. Currently the New York Life Secure Care policy that just hit the market is now priced even a little bit higher than JH Performance LTC.

Jack, if you're only quoting 5% compound then the JH Performance seems high. If you quote the 3% GPO (which is what 99.9% of agents do) then the product seems competitive until you look at the illustration and the anticipated annual premium increases.

 

[scagnt83]

If by "worst policy" Tyler you mean the highest priced policy it is very close. Currently the New York Life Secure Care policy that just hit the market is now priced even a little bit higher than JH Performance LTC.

I would call it the worst policy because of the smoke and mirrors that they use. The more you complicate something the less consumer friendly it becomes. But yeah, its expensive too... unless you inhale the smoke and show 3% gpo.

 

[ltcadviser]

Jack, if you're only quoting 5% compound then the JH Performance seems high. If you quote the 3% GPO (which is what 99.9% of agents do) then the product seems competitive until you look at the illustration and the anticipated annual premium increases.

The cost of insurance within the policy is exactly the same however you slice it and dice it.

The product does not ever "seem" competitive.

With graded premium products every agent should be able to add up total premium outlay. Just need a calculator.

If an agent is unable to use a calculator, then the agent should simply analyze the policy with the available level benefit premium models, either with 0% inflation protection (rejecting the 3% compound increase in year 1), or with 5% inflation protection.

If an agent just wants to stare at the first year premium, then the agent should not be an agent.

----------

I would call it the worst policy because of the smoke and mirrors that they use. The more you complicate something the less consumer friendly it becomes. But yeah, its expensive too... unless you inhale the smoke and show 3% gpo.

Well, the guaranteed premium increases are there on the illustration.
The premium increases are guaranteed in the contract.

I understand your smoke and mirrors reference but the issues are fully disclosed.

It is clear it is an expensive contract today relative to the marketplace.

To me.