Arthur Rudnick
Guru
- 1,652
This is from AARP, March, 2012
Priced Out Of His Policy
- Thread starter Arthur Rudnick
- Start date
And then Life Investors (aka TransAmerica (AEGON)) got out of the LTC business all together to supposedly re-group........and have since re-entered the market with new products using only the TA logo.
I'll wager that the guy in the article had a heck of a lot of LTC coverage for $1900/year on a policy bought way back then. It would be interesting to look at his balance sheet to see if he should have bought it in the first place. Did he not get an offer to dial back on the benefits...as opposed to taking the contingent NF option?
Bad news travels fast.....good news goes no where.
I'll wager that the guy in the article had a heck of a lot of LTC coverage for $1900/year on a policy bought way back then. It would be interesting to look at his balance sheet to see if he should have bought it in the first place. Did he not get an offer to dial back on the benefits...as opposed to taking the contingent NF option?
Bad news travels fast.....good news goes no where.
Dialing back benefits or contingent NF option really isn't the point. Point is, when you have had the policy long enough where you might use it, the rates become so high you can't afford to keep it.
Sure, I can dial back my benefits, but then why was I paying for a benefit rich policy all along?
I understand the problem carriers have with rate locks (even if inflation adjustments are allowed), but this guy learned a hard lesson about how companies close out blocks of business to drive up premium to drive people out. No problem if you are healthy, get a new LTC policy.
My issue is closing out blocks of business and not pooling the aggregate. I know I'm dreaming, but it would seem much more fair. Of course, contract language would have to change to keep up with things like LTC, but that would seem better than massive rate increases.
Dan
Sure, I can dial back my benefits, but then why was I paying for a benefit rich policy all along?
I understand the problem carriers have with rate locks (even if inflation adjustments are allowed), but this guy learned a hard lesson about how companies close out blocks of business to drive up premium to drive people out. No problem if you are healthy, get a new LTC policy.
My issue is closing out blocks of business and not pooling the aggregate. I know I'm dreaming, but it would seem much more fair. Of course, contract language would have to change to keep up with things like LTC, but that would seem better than massive rate increases.
Dan
- 1,926
Why don't LTCi companies offer a non can option similar to disability policies?
- Thread starter
- #6
Arthur Rudnick
Guru
- 1,652
They still don't have a handle of the actual costs of doing business. Maybe in 30 years when their risks/costs are finally figured out, they would consider it.
- 717
So basically, long term care insurance is a product for suckers....you buy it in the belief that it will be there for you when you need it, but realistically when you get older and income is limited, your long term care insurance company will hit you with price increases....great product.
- Thread starter
- #8
Arthur Rudnick
Guru
- 1,652
No, LTCi is a product for middle, to upper middle class people who realizes the potential risk of not having a policy in place, if a LTC event happens in the future.
A LTCi policy helps one deal with the catastrophic, emotional & financial consequences that comes with a LTC event.
A policy will generate a stream of income so if care is needed, you can manage your care, rather than have your family or friends provide it.
That all comes from LTCi 101.
You might want to sit in on a class................
Why don't health insurance companies?
- 1,926
JMO, health insurance companies have unlimited exposure, LTCi has a cap to their exposure, just like disability.
Similar threads
