MassMutual exiting LTC market by 1/28/2021

[DHK]

Per Bill Comfort, CSA, CLTC on LinkedIn:

MassMutual is ending all traditional LTCI sales (including for the NEW product) effective 1/28/2021! Its two hybrids and life LTC ADB rider will continue to be sold.

I’m not surprised. Disappointed, but not surprised. They mismanaged the older product by waiting WAY too long to implement a rate increase which made it even larger, they continued selling an underpriced product (for sure for women) thru in-house channels, dithered too long in getting an updated product to market that’s over-priced with no shared benefits which is a MUST for couples buying traditional.

 

[Life Hawk]

Another LTC plan bites the dust. Hard to stay competitive while making money on this product. Companies are going to need to retool. And what if any effect will the Wuhan flu have on product on the books?

 

[ltcadviser]

Per Bill Comfort, CSA, CLTC on LinkedIn:

MassMutual is ending all traditional LTCI sales (including for the NEW product) effective 1/28/2021! Its two hybrids and life LTC ADB rider will continue to be sold.

I’m not surprised. Disappointed, but not surprised. They mismanaged the older product by waiting WAY too long to implement a rate increase which made it even larger, they continued selling an underpriced product (for sure for women) thru in-house channels, dithered too long in getting an updated product to market that’s over-priced with no shared benefits which is a MUST for couples buying traditional.

Yes, MM 600 series failed because it is overpriced. But absence of a “shared benefits” rider has NOTHING to do with it. The 500 series was priced great, but the Shared Care rider on the 500 series was overpriced and any agent that sold the Shared Care rider on the older MM 500 policy series failed at math. The 500 policy was able to be sold solely because it’s core benefits were affordable and its unisex pricing was great for females. The 600 series failed because it is unaffordable. Nothing more, nothing less. Well, the underwriting was difficult too. Shared Benefits? Meaningless here.

(But current pricing isn’t stopping traction for NWML AND NYL sales, policies that are even higher priced than MM)

 

[Allen Trent]

Does their Care Choice hybrid get bought by people? Looks quite overpriced compared to the other plans out their & requires expenses to be reimbursed or to count as deductible period compared to the indemnity plans. Just can't see why anyone would buy the Care Choice. Only area is seemed decent was the cash value, but who buys a plan so they can cash it out instead of using for care or death benefit.

 

[Tothetop]

Does their Care Choice hybrid get bought by people? Looks quite overpriced compared to the other plans out their & requires expenses to be reimbursed or to count as deductible period compared to the indemnity plans. Just can't see why anyone would buy the Care Choice. Only area is seemed decent was the cash value, but who buys a plan so they can cash it out instead of using for care or death benefit.

Yes it does by folks who have Fidelity advisors

 

[Allen Trent]

Yes it does by folks who have Fidelity advisors

Interesting. If these Fidelity Advisors have fee based licenses or subject to fiduciary or best interest standards, how do you think they could justify this reimbursement product that appears to cost more than the similar indemnity products that may even have larger extension of LTC benefit amounts. Looks more like product a smaller captive carrier might offer as their 1st offering. But maybe I am missing something compared to the similar Nationwide, Securian & others products not to mention the various ADB CIA no lapse products that can offer 3-4x the death benefit to be used at 2-3x the monthly benefit amount

 

[Tothetop]

Interesting. If these Fidelity Advisors have fee based licenses or subject to fiduciary or best interest standards, how do you think they could justify this reimbursement product that appears to cost more than the similar indemnity products that may even have larger extension of LTC benefit amounts. Looks more like product a smaller captive carrier might offer as their 1st offering. But maybe I am missing something compared to the similar Nationwide, Securian & others products not to mention the various ADB CIA no lapse products that can offer 3-4x the death benefit to be used at 2-3x the monthly benefit amount

To my knowledge, they are contractually obligated to only sell CareChoice One. They have no other choice if their client asks for LTC insurance.

 

[ltcadviser]

Interesting. If these Fidelity Advisors have fee based licenses or subject to fiduciary or best interest standards, how do you think they could justify this reimbursement product that appears to cost more than the similar indemnity products that may even have larger extension of LTC benefit amounts. Looks more like product a smaller captive carrier might offer as their 1st offering. But maybe I am missing something compared to the similar Nationwide, Securian & others products not to mention the various ADB CIA no lapse products that can offer 3-4x the death benefit to be used at 2-3x the monthly benefit amount

Fidelity advisors are not required to act as fiduciaries when they sell insurance products. Recommendations just need to meet low standard of suitability.

 

[ltcadviser]

N

To my knowledge, they are contractually obligated to only sell CareChoice One. They have no other choice if their client asks for LTC insurance.

Not true Michael.

 

[Tothetop]

N

Not true Michael.

???