Priced Out Of His Policy

[xrac]

Thisa is becoming a big issue. I would want to be selling LTCI as my bread and butter.

 

[billberry12]

bluemarliin08,

"LTCi has a cap to their exposure"

not so on unlimited.

Arthur, what was you goal in posting the link to the article in your original post?

Thanks,
Bill

 

[yankee466]

Why don't LTCi companies offer a non can option similar to disability policies?

They do!!! for example......its called a single pay premium from TransAmerica. One annual premium and you are done. You can also get a 10-pay from United of Omaha with a 10 year rate guarantee. You can take your chances on a plain old 10 pay....or spend a fortune on a "mutual company that pays dividends".

The old Assurity LTC plan with 80% back if you change you mind was a nice feature..........I think someone else may still offer something like that.

Dialing back your benefits does not lose what you have accumulated. Not all carriers go back to day one and start over.....so you get your 5% compound for lets say 15 years....and then from that point on it only grows by say 3% to keep your premium level. What have you lost? You could take the industry term of "step rated" inflation clause in that example.....where inflation rates adjust as you age.

I think agents who do not understand LTC are the most negative about it IMHO.

 

[Arthur Rudnick]

Arthur, what was you goal in posting the link to the article in your original post?

Bill,
This is a LTC forum and I believe it's appropriate to post articles, (the good, the bad and the ugly) relating to the product and the industry.

 

[billberry12]

Cool...just wondering.

 

[tlmarketing]

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.

Is this part of your sales presentation to your clients? If it is, great as you may be one of the few who give this type of honest full disclosure...but if it's not, hmmm.

 

[Mr_Ed]

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.

this should be nominated for most ignorant post of the year award.

 

[Arthur Rudnick]

Is this part of your sales presentation to your clients? If it is, great as you may be one of the few who give this type of honest full disclosure...but if it's not, hmmm.

No it's not part of my presentation. But reviewing a Financial Suitabilty Disclosure is. That shows a carriers' history of rate increases and specifically states that premiums are not guaranteed and can be raised by Class.

 

[tlmarketing]

No it's not part of my presentation. But reviewing a Financial Suitabilty Disclosure is. That shows a carriers' history of rate increases and specifically states that premiums are not guaranteed and can be raised by Class.

Interesting...Rewind 8 years....

If I was a consumer buying long term care insurance 8 years ago, would there have been any history of 90% rate increases in the "financial suitability disclosure" form?
- - - - - - - - - - - - - - - - - -

this should be nominated for most ignorant post of the year award.

sorry, nominations are full....for a complete list of ignorant posts, just search for all posts by Mr_Ed

 

[Arthur Rudnick]

Interesting...Rewind 8 years....

If I was a consumer buying long term care insurance 8 years ago, would there have been any history of 90% rate
increases in the "financial suitability disclosure" form?

8 years ago, there very few (if any at all) LTC rate increases.
What products do you sell? Health Insurance? I'm paying 100% more for my health insurance today than I did 8 years ago. I don't recall my agent advising me of that and I don't recall seeing that disclosure on my application.

My auto insurance is higher today than 8 years ago, so is my homeowners.
I'm not sure what your point is.