New MassMutual LTC

Feb 28, 2019

  1. DWPCL
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    DWPCL Super Genius

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    Has anybody had a chance to review the new MassMutual 600 series that's now available for brokers? How does it stack up against competitors?
     
    DWPCL, Feb 28, 2019
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  2. Mr_Ed
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    P.R.I.C.E.Y.
     
    Mr_Ed, Feb 28, 2019
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  3. Allen Trent
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    That could be a good thing long term if pricey now means adequately priced. Some of those deemed pricey in the 90s ended up in hindsight having more accurate assumptions than those that were the cheapest. Only time will tell
     
  4. Mr_Ed
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    If we lived in a one-variable world, you'd be correct.
     
    Mr_Ed, Feb 28, 2019
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  5. ltcadviser
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    ltcadviser Guru

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    75% higher. Zero value today. Less than zero.
    With this price point one can simply purchase fixed cost hybrid policies through Lincoln, OneAmerica, Securian et al at no risk whatsoever.

    Or just apply to Mutual of Omaha for a great traditional policy and bank the 75% premium savings.
     
  6. Allen Trent
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    wowza. that isn't just a bit pricey, it seems priced to not be sold.
     
  7. ltcadviser
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    Yes, that is exactly what Mass Mutual told me.
     
  8. Tothetop
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    Tothetop Super Genius

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    I was told pretty much the same thing except the way they worded it to me was the new product would be priced so high that you (meaning the agent) will not want to sell it.
     
    Tothetop, Feb 28, 2019
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  9. Allen Trent
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    A way to exit the market without having to publicize you left the market. Crazy part, just like life insurance carriers, some of the most profitable ones temporarily are those that have quit selling product because it greatly reduces their expense ratios. Rarely helps long term
     
  10. ltcadviser
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    ltcadviser Guru

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    Well, they might not quit selling product.
    Captive agents will still sell it. The agents might have to sell less benefit to bring the premiums down, but the captive agents will do what they have to do. Mass Mutual uses Fidelity Investments to sell its hybrid CareChoice One policy which also is not competitive. Fidelity is not allowed to sell any other LTC product. I would bet that Mass Mutual will open up access to this product to Fidelity Investments next.

    So, Mass Mutual will market to Fidelity accountholders. NY Life will market to AARP members. Often, marketing wins, not pricing. Even if something is 2x more expensive.
     
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