New sets of LTCI data reveal continued resistance to perceived expense

Dec 5, 2017

  1. Brian Anderson
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    Brian Anderson Executive Editor

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  2. Mr_Ed
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    Mr_Ed Guru

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    Brian,
    Have you ever heard of LTC Partnership policies?
    They are very affordable and perfect for those with less than one million in net worth.

    sao
     
  3. ltcadviser
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    ltcadviser Guru

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    Better yet Scott, just target the $2 million - $5 million net worth households.
     
  4. Mr_Ed
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    There are a lot more households with net worth under $1M. And they are the ones who can get the most benefit from LTCi, especially LTC Partnership policies.
     
  5. ltcadviser
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    ltcadviser Guru

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    Families with $2-5 million want to avoid burdening children and family just as much as the people that have no money. They derive just as much benefit as the households with modest assets. Work with the families that have the money.
     
    somarco likes this.
  6. Mr_Ed
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    Mr_Ed Guru

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    I guess if I was focused on selling over-priced single premium products then I'd look for clients over 2M in net worth.
     
  7. ltcadviser
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    Actuaries set the pricing for both traditional and linked benefit policies. An actuary isn’t underpricing one product while overpricing the other. No reason to have a bias towards or against either planning option.

    $2 Million ++ in net worth will buy traditional LTC policies all day long too, Scott.

    As the article that Brian posted clearly states, per the CNBC report the sweet spot for LTCi planning is between $2-$3 million. I definitely see the same numbers as CNBC in my practice.
     
    Last edited: Dec 10, 2017 at 3:47 AM
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  8. CALTCAgent
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    CALTCAgent Guru

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    I think Partnership policies are great. However I know of one state that needs to make changes and act much faster.
     
  9. Mr_Ed
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    Wow, Jack! Usually you're a straight shooter. It's rare to read something you've written that is so full of b.s.

    The profit margins in the hybrid products are HUGE.... 3x or 4x the profit margins of traditional LTCi. Why do you think the industry is pushing hybrids: MORE profits. The insurance industry is not pushing hybrids because the hybrids are a better value for consumers.
     
  10. ltcadviser
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    ltcadviser Guru

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    Riddle me this, Scott. If the profit margins of hybrids are “HUGE” then why did Lincoln and Pacific Life and OneAmerica all see the need to re-price their products higher in the past year? If the profit margins are HUGE then why doesn’t another underwriter file for a product 25% less expensive than Lincoln, Minnesota, Pacific, Nationwide, and OneAmerica and just capture the entire market share of a fast growing space?
     
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