New York Life AARP LTC Priced Out of Reach

[ltcadviser]

New York Life Secure Care AARP LTC Priced Out of Reach

Wow, has anyone seen the New York Life's rates on its new Secure Care long term care insurance policy?!

First of all, if my computer is correct, unless an applicant is in Preferred health, New York Life Secure Care LTC will limit benefits to 3 years, $150.00 day, and 80% home care. So, for most applicants in Select or Standard health, the benefits alone are not worth considering.

But the pricing? Wow.
This NY Life LTC policy is un-buyable!
Completely unaffordable!
Outrageously high-priced!

Look at these prices!

For example-annual premiums:

55 year old couple
Preferred health
$150.00 day, 5 years each, 3% compound


NY Life AARP:
male $3387, female $5300. Combined $8687

Mutual of Omaha:
male $1382, female $2429. Combined $3811


New York Life and AARP are going to market policies for $8600 that consumers can buy for $3800.

This is bad.

New York Life obtains an AARP contract and then releases this pricing?!

New York Life's press release states the AARP program from New York Life is being launched to 37 million members this month. Through the program, AARP members may be referred to specially trained NY Life agents who can help them develop tailored coverage, including guidance around the NYL Secure Care product.

The only guidance AARP members will need is an exit sign.

And New York Life agents will not give this guidance to them.

How does AARP even let this happen?
AARP can't build any trust among its members?

This is not going to end well for consumers.
Consumers will reach the conclusion LTC insurance is absolutely unaffordable.

NYL agents will be forced (trained) to sell non inflation adjusted policies to every AARP member. (Because no one is paying $750 month for an average middle of the road policy)

How could an experienced NY Life agent even sell this policy with a straight face? One day your client's premiums are $180 month; the next day you need $480 month?

I guess NY Life will hire an AARP call center with rookie agents that do not know any better?

The negative press this policy is going to receive will not help anyone in our business.

 

[Mr_Ed]

Re: New York Life Secure Care AARP LTC Priced Out of Reach

Wow, has anyone seen the New York Life's rates on its new Secure Care long term care insurance policy?!

First of all, if my computer is correct, unless an applicant is in Preferred health, New York Life Secure Care LTC will limit benefits to 3 years, $150.00 day, and 80% home care. So, for most applicants in Select or Standard health, the benefits alone are not worth considering.

But the pricing? Wow.
This NY Life LTC policy is un-buyable!
Completely unaffordable!
Outrageously high-priced!

Look at these prices!

For example-annual premiums:

55 year old couple
Preferred health
$150.00 day, 5 years each, 3% compound


NY Life AARP:
male $3387, female $5300. Combined $8687

Mutual of Omaha:
male $1382, female $2429. Combined $3811


New York Life and AARP are going to market policies for $8600 that consumers can buy for $3800.

This is bad.

New York Life obtains an AARP contract and then releases this pricing?!

New York Life's press release states the AARP program from New York Life is being launched to 37 million members this month. Through the program, AARP members may be referred to specially trained NY Life agents who can help them develop tailored coverage, including guidance around the NYL Secure Care product.

The only guidance AARP members will need is an exit sign.

And New York Life agents will not give this guidance to them.

How does AARP even let this happen?
AARP can't build any trust among its members?

This is not going to end well for consumers.
Consumers will reach the conclusion LTC insurance is absolutely unaffordable.

NYL agents will be forced (trained) to sell non inflation adjusted policies to every AARP member. (Because no one is paying $750 month for an average middle of the road policy)

How could an experienced NY Life agent even sell this policy with a straight face? One day your client's premiums are $180 month; the next day you need $480 month?

I guess NY Life will hire an AARP call center with rookie agents that do not know any better?

The negative press this policy is going to receive will not help anyone in our business.

Jack,

The AARP/NYL captive agents will always quote the "CPI Offer" inflation benefit.

Most consumers think that every inflation benefit increases the premium every year. That's why NWM people buy the AAPB. That's why JH customers buy the "Performance" 3% GPO.

They buy those crappy inflation benefit choices because they have no idea that they can buy a policy where the premium does not go up every year.

 

[ltcadviser]

Northwestern Mutual Quiet Care is a rock star compared to this piece of crap. NWML is at least still okay for men. This NYL Secure Care AARP policy is a ripoff!

 

[yankee466]

Thanks for the update......very helpful....and surprising. Can one go to AARP web page yet and look at LTC options? I could not find it..but i am also not a member. Straticision confirms the rates....but no AARP logo.

 

[ltcadviser]

Thanks for the update......very helpful....and surprising. Can one go to AARP web page yet and look at LTC options? I could not find it..but i am also not a member. Straticision confirms the rates....but no AARP logo.

Herman, I am not sure the policy will be branded with an AARP logo per se. The press release just indicates a marketing relationship in which AARP funnels its members to NY Life agents so that they can be advised on this policy.

I pray Mass Mutual does not move in this direction!

----------

Jack,

The AARP/NYL captive agents will always quote the "CPI Offer" inflation benefit.

Most consumers think that every inflation benefit increases the premium every year. That's why NWM people buy the AAPB. That's why JH customers buy the "Performance" 3% GPO.

They buy those crappy inflation benefit choices because they have no idea that they can buy a policy where the premium does not go up every year.

Agents know the difference!
And we are working with seniors on fixed income on retirement!
You cant sell this policy!
Ny Life cant market this policy!

If NYL is going to limit standard health applicants to $150 day, 80% home care, 3 year benefit period multiplier, and 3% compound inflation, with charging women $5000 year, NY Life has zero risk and NY Life is getting a free ride!

 

[scagnt83]

I think that maybe New York life feels that the demographics of the referrals they are going to get are going to be from a higher risk pool of prospects. New York Life was or still is the go to life insurance option for AARP members. So New York life has some experience with the type of demographics they will receive from AARP. Maybe that has something to do with the design of the policy and how much they are or are not willing to risk...?

Keep in mind that this has been in the works for a while now. There was talk at NYL 8 or 9 years ago about AARP wanting to extend the relationship to LTCI.

 

[L5tc]

Having been a newbie at NYL just long enough to learn I'd better get out quickly...I can tell you they will line up the new Org agents and tell them in no uncertain terms either sell these things - which means to friends and family - or you're out on your ass. It was usually that subtle. "You got the f'n AARP banner I don't wanna hear no excuses YOU UNNAATAND!"

----------

Having been a newbie at NYL just long enough to learn I'd better get out quickly...I can tell you they will line up the new Org agents and tell them in no uncertain terms either sell these things - which means to friends and family - or you're out on your ass. It was usually that subtle. "You got the f'n AARP banner I don't wanna hear no excuses YOU UNNASTAND!!

----------

Good point that they're trying to get through someone of the riskier apps.

 

[Newby]

Herman, I am not sure the policy will be branded with an AARP logo per se. The press release just indicates a marketing relationship in which AARP funnels its members to NY Life agents so that they can be advised on this policy. I pray Mass Mutual does not move in this direction! ---------- Agents know the difference! And we are working with seniors on fixed income on retirement! You cant sell this policy! Ny Life cant market this policy! If NYL is going to limit standard health applicants to $150 day, 80% home care, 3 year benefit period multiplier, and 3% compound inflation, with charging women $5000 year, NY Life has zero risk and NY Life is getting a free ride!

New York Life has been selling some of the worst life insurance known to exist to seniors for over a decade by paying AARP in order to use their branding. It works. A portion of the senior population thinks of AARP like they would of Consumer Reports. They think AARP is looking out for their interests and will blindly make decisions based on that logo.

How do you think United Healthcare sells so many Med Sups when the same supplements are available for much less cost? They pay AARP for their branding.

It works.

 

[L5tc]

It does work thankfully their F is the cheapest in New York so it works out.

 

[agentjhc]

It does work thankfully their F is the cheapest in New York so it works out.

Their rates are all over the place. I think lowest in FL as well for T65. In TN10% higher +/- in GA 20% +/- I know an agent in FL that is selling a ton of AARP.