Metlife Rate Increase

[Mr_Ed]

I use a GA that specializes in LTC. So my commissions are split with someone who knows LTC better than I do. The account Reps that are assigned to me communicate very well and work with about 6 large LTC carriers. Thanks for your POV though.

The quotes are the exact same criteria:

$150 for nursing daily benefit and $150 HH care benefit. Shared care rider. Simple 5% increase inflation protection. Married couple aged 56 and 57. Wife is rated standard for osteoporosis and husband is rated preferred. Met came in at $5160 this week, way up from $3400 originally quoted in Nov.


I would post the actual quotes here but I'm not going to risk disclosing my clients personal info so you'll just have to take my word for it.

a) ML is usually not very competitive with the shared care rider (for example, you can get a 5 year Benefit Period for each spouse for about the same premium as 6 years of shared benefits.)

b) The longer Benefit Periods (5 or 7 years) with ML are often priced higher than a Lifetime/Unlimited Benefit Period with other companies.

c) Since they are under age 61 they should probably buy a compound automatic inflation benefit because of the inflation benefit requirements of the TX LTC Partnership program:

http://www.dehpg.net/LTCPartnership/state documents/Texas State Matrix.pdf



You need to requote it with some kind of a compound automatic inflation benefit.

 

[Benefits Man]

hmm thank you sir. I am going to look into that and discuss with my ga and client.

 

[Mr_Ed]

hmm thank you sir. I am going to look into that and discuss with my ga and client.

you're welcome.


let us know what you find out.

 

[yankee466]

My thoughts were that the person sitting with the client better know his LTC. Having a GA that goes with you to your clients home to help you understand what you should be saying/asking so you can build an appropriate plan is not something i have seen yet. There is a difference between a split and an overide.
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I use a GA that specializes in LTC. So my commissions are split with someone who knows LTC better than I do. The account Reps that are assigned to me communicate very well and work with about 6 large LTC carriers. Thanks for your POV though.

The quotes are the exact same criteria:

$150 for nursing daily benefit and $150 HH care benefit. Shared care rider. Simple 5% increase inflation protection. Married couple aged 56 and 57. Wife is rated standard for osteoporosis and husband is rated preferred. Met came in at $5160 this week, way up from $3400 originally quoted in Nov.


I would post the actual quotes here but I'm not going to risk disclosing my clients personal info so you'll just have to take my word for it.

The only way I can make a Met Life plan come out to about $5160 for that couple is to make a 7 year plan each and share it. Personally, I would say that is an overkill plan for most people. Of course the rate stinks. You could put them with GNW and give them 20 years to share for about $3300.

 

[Benefits Man]

GNW is only on a reimbursement basis correct? I think indemnity plans provide more value personally.

The GA I work with is on a hybrid split/override sort of system. I can bring the client to their office and they will sit down with us to discuss or we can have a conference call with their account reps. The account reps are only there for independent brokers like myself to get deals closed and make sure everyone in the transaction is taken care of.

I understand that handing off my customer to a guy that has done ltc for 20 years may be better for the client. However, I got into the insurance business to make money and if the LTC market gets hot I don't want to start from square one, especially considering the direction this economy is headed in.

 

[yankee466]

GNW is only on a reimbursement basis correct? I think indemnity plans provide more value personally.

The GA I work with is on a hybrid split/override sort of system. I can bring the client to their office and they will sit down with us to discuss or we can have a conference call with their account reps. The account reps are only there for independent brokers like myself to get deals closed and make sure everyone in the transaction is taken care of.

I understand that handing off my customer to a guy that has done ltc for 20 years may be better for the client. However, I got into the insurance business to make money and if the LTC market gets hot I don't want to start from square one, especially considering the direction this economy is headed in.

GNW is only reimbursement....as is John Hancock. Metlife, Medamerica, Prudential and others offer indemnity/cash plans....but they are rather pricey compared to pure reimbursement. The "cash alternative" plans like Pru/MoO/UoO are competitive options for some. Keep in mind that the vast majority of plans sold in this country are reimbursement only.

Indemnity implies that a service was provided on that day, whereas cash plans pay regardless of whether service was provided. Each option has its place, but cash is more expensive than indemnity.

On the topic of splits/overrides, I never suggested to hand your clients to others.....I was suggesting that you partner with someone who specializes in LTC to sit with (talk to) your client and yourself so that you can split commissions.....and hopefully at the same time you can learn enough about the options/concepts so you can get the point of self sufficiency, if that is your goal. Your GA will get the override regardless. If your office does that for you, then fine.

I have a FMO/GA that I pay little attention to because there is essentially nothing they can tell me about LTC that I do not already know. However, there are a lot of brokers in my local agency who will pass me their client names in exchange for a referral fee, or if they are licensed and appointed/certified, for a fixed percentage split. Many of the health/life agents, or P&C agents have little desire to branch out into the LTC market.....else they can be spreading themselves too thin.

 

[Benefits Man]

Didn't mean to sound defensive, my apoloogies.

Thank you for your input. We are going shopping again! Rate increases suck no matter what line of insurance.

 

[Mr_Ed]

GNW is only on a reimbursement basis correct? I think indemnity plans provide more value personally.

The GA I work with is on a hybrid split/override sort of system. I can bring the client to their office and they will sit down with us to discuss or we can have a conference call with their account reps. The account reps are only there for independent brokers like myself to get deals closed and make sure everyone in the transaction is taken care of.

I understand that handing off my customer to a guy that has done ltc for 20 years may be better for the client. However, I got into the insurance business to make money and if the LTC market gets hot I don't want to start from square one, especially considering the direction this economy is headed in.

All things being equal, an indemnity policy is better than a reimbursement policy. But all things (particularly premium) are rarely equal.

 

[davesmith]

Hello,

Metlife Rate Increase it is very sad news for all the people who have taken insurance for them

Thanks
Dave Smith