- 10,806
How is the new LTCI product going after a different target market than MM?
Massachusetts Mutual Sales Suspension
- Thread starter scoop_1974
- Start date
How is the new LTCI product going after a different target market than MM?
Some insurance companies leave when they begin to lose money but the smart ones like some of the big mutuals leave before they even begin to lose money. MM ate up a lot of business in the LTCi industry but even with Lifecare I believe they are quitting while they are ahead.
your statement doesn't make any sense.
MM's older policies are very profitable. they have one of the lowest loss ratios in the business.
MM's current policies are even more profitable because they are priced even more conservatively than their older policies.
they have little to no assets/personnel tied up in LTCi because they use Lifecare to do all the work.
MM has nothing to gain by cessation of new LTCi sales.
I'm not seeing how you don't see that. Lifecare takes on the weight through admin and maintenance. But correct me if I am wrong, aren't they just reinsurance? So doesn't that mean that MM is sharing some risk with them? Hence, wouldn't Mass be concerned about claims paying ability down the road?
I would think their mentality is take on what you know you can handle now, make a nice penny with Lifecare doing back end work, then move on with life.
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At the end of the day, MM just like all the other mutuals have to boast about how much dividends they pay each year. They wouldn't want to possibly jeopardize that and these guys aren't thinking just next year. The companies are looking 10, 20, 30 years down the road when policies they sold today will go into claims.
#1) LTC gains or losses don't affect life insurance dividends. The life insurance dividends are calculated based solely on the performance of their life insurance portfolio.
#2) Ceasing to sell a profitable product does not increase your profit, it decreases your profit.
#3) They don't have to wait 20 or 30 years to determine how profitable the product is. You're aware of that, right?
OK. Whatever you say.
The majority of agents appointed with National Guardian Life are most likely final expense agents.
(Rural, blue collar)
The majority of Mass Mutual agents work with upscale white collar educated professionals.
Are these not two separate and distinct client bases?
Those rural, blue collar workers are going to fall in love with the tax savings of the 10-pay plan with the full return of premium rider and the 80% cash refund!
- 657
ltcadvisor,
excuse my ignorance, but why does the collar color of a person dictate whether a particular policy is designed for them or not. In other words, why is a MM LTCI policy better suited for white collar, and a NGL better suited for a blue collar?
excuse my ignorance, but why does the collar color of a person dictate whether a particular policy is designed for them or not. In other words, why is a MM LTCI policy better suited for white collar, and a NGL better suited for a blue collar?
- 10,806
Your logic does not hold.
FE carriers are strange animals. Many "FE Carriers" are also annuity carriers. They serve two separate types of clients that are polar opposite demographics. One division of the company serves those who make under $30k per year.... the other serves those who have millions in retirement assets saved.
From an annuity specialists eyes, a FE carrier getting into the LTCI biz makes perfect sense. They tend to do annuities for the same demographic (50+ with moderate to high income and a decent but not huge nest egg) very well.
You already have American Equity (a FE & Annuity carrier) with a very strong LTC Benefit on their Income Rider (2 of 6 and includes home care). It is not surprising that a FE carrier is offering a strong LTCI policy.
Also, NGL is not just a FE carrier. They do own Settlers, but they also own Commercial Travelers Mutual, which is a health insurance focused company that serves the education market.
Assuming its a strong product, it will be sold to the normal LTCI demographic.
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