Prudential Bites the Dust

I have found the same thing. Back in 2008, when the sky started falling, people started to see how their "nestegg" could become much smaller quickly. When you add the thousands of dollars a month that a long term care event cost, it makes sense to at least explore the options of long term care insurance. But, usually they either get it or they don't, and when they don't, it is almost a futile effort to try to change their mind. Some do, some don't, next please.
 
Here is Pru's Bulletin:


Prudential LTCi News
March 7, 2012

Prudential to Discontinue Sales of Its Individual Long-Term Care Insurance Products

After a thorough analysis of our long-term care insurance business, we've made the difficult decision to discontinue sales of our individual long-term care insurance products, including LTC3SM, LTC EvolutionSM, and our multi-life programs (ESP and Affiliation). We will continue to market our group long-term care insurance products, Solid SolutionsSM and LTC123SM. Our decision reflects the challenging economics of the individual market and our desire to focus our resources and capital on the group market, where we see the greatest opportunity.

Our decision to stay in the group long-term care insurance business, which we have proudly been in for more than 25 years, also reflects the strong strategic fit with our broader group insurance product offerings, including life, accidental death and dismemberment (AD&D), disability, and dental. The demographics of the employer market align well with our focus on providing voluntary benefit solutions to individuals through our group marketing and distribution platforms.

Timing
All individual long-term care insurance applications must be received by March 30, 2012 to be considered for issuance. Any applications received after March 30, 2012 will not be processed.

Employer Sponsored Program (ESP) and Affiliation cases must be approved on or before March 30, 2012. Once approved, applications under these programs must be received no later than 60 days from the date of case approval or May 30, 2012, whichever is sooner.

Existing Policyholders
We take our commitment to our policyholders seriously. Existing individual long-term care insurance policyholders will continue to be covered under the terms of their Prudential LTC insurance policies, which are guaranteed renewable. This means that as long as premiums are paid on time, and benefits are not exhausted, coverage cannot be cancelled, although premiums can be changed based on experience, on a class basis, in accordance with the terms and conditions of the policy.

Policyholders will continue to receive customer service and claims support. Plan upgrades will be allowed as permitted by their contract.

All existing individual long-term care insurance policyholders will receive a letter with the above details in the next few weeks. Click here to see a copy of the letter.

ESP and Affiliation Cases
All ESP and Affiliation cases approved prior to January 30, 2012 will be closed to new entrants effective March 30, 2012. For cases approved after January 30, cases will be closed 60 days from the case approval date but no later than May 30, 2012. Please notify your ESP and Affiliation plan sponsors accordingly.

Producer Commissions and GA Bonuses
Commissions will continue to be paid out per the terms of your contract. GA bonuses will be paid in 2012 using the 2011 formula, pro-rated based on four months of production. Applications signed on or before March 7 and received by Prudential on or before March 16 will be counted toward the 2012 bonus. Applications signed March 8 or later, or received by March 17 or later, will not be counted toward the 2012 bonus. You'll be receiving additional information about the 2012 bonus program shortly.

We would like to thank our entire producer community for all of their support, hard work, and partnership over the years. Together we helped hundreds of thousands of Americans protect their assets, retirement income, and independence.

Producer Appointments
Producer appointment paperwork received on or before March 30, 2012 will be processed as long as it's accompanied by a completed application. Any appointment paperwork received after March 30, 2012 will not be processed.

Group Long-Term Care Insurance
As stated above, this announcement has no effect on our group long-term care insurance business. We expect to continue as a leader in the group market as we enhance our current product offerings and develop other innovative products for the employer and association markets.

Questions
We value our relationship and wanted you to have this information as soon as possible. Please click http://www.prudential.com/media/managed/FAQ_GA_PRULTC.pdf to review an FAQ document which will help answer many of the questions you may have.



If you have any additional questions related to this announcement, you may call 1-800-732-0416 or
Elite GAs may call 1-866-630-7203.

Prudential is proud of all that it has accomplished in the long-term care insurance business for more than 25 years. We look forward to continuing to serve as a world leader in the financial services industry and to continuing our tradition of helping people handle their toughest financial challenges.

Sincerely,

Malcolm Cheung
Vice President
Prudential Long-Term Care Insurance

So, no more Pru, MetLife is history, Unum closed their door s[FONT=Arial","sans-serif][FONT=Arial","sans-serif]and it wouldn't surprise me if Hancock closed up shop within the next 12 months.[/FONT][/FONT]

[FONT=Arial","sans-serif][FONT=Arial","sans-serif]Genworth will own 60% of the business and it's certainly not a good thing when any one company, in any industry controls that much market share.[/FONT][/FONT]
 
Just curious what was Pru's pricing like compared to the rest of the industry? Say Male and Female both 55 and good health.
 
"although premiums can be changed based on experience, on a class basis, in accordance with the terms and conditions of the policy."

Gotta feel sorry for their clients - we all know what's coming down the pike.
 
well....if nothing else, I will continue to place most of my cigar smoking, dipping clients who will test positive for nicotine with Prudential life insurance plans....as they are one of the few that will give them good non-smoker rates. Great rates in general, and a nice xpress application process. Guess they can't be good at everything.

Pru was never that high on my list of best valued LTC carriers, but they were ok. Mutual of Omaha would blow them away until the last rate hike in Georgia. I always wondered if anyone ever sold an Evolution product. Best "concept" in the market, but not $ attractive IMHO.
 
I seem to remember someone ridiculing the mutuals for their much higher premiums (okay, SEVERAL someones)... excuse me while I strut my stuff...

I too seem to remember a lot of criticism towards the crazily overpriced Mutuals, and the only one that had a "competitively" priced product for a while is now out of the market as well.
 
I too seem to remember a lot of criticism towards the crazily overpriced Mutuals, and the only one that had a "competitively" priced product for a while is now out of the market as well.

that's not true.
pru was never one of the more competitively priced products. they were usually mid-to-high end range.
of course they were a lot more competitive than "the mutuals" you're referring to.

even with an in-force rate increase they'd still pay less than if they'd bought one of the policies from "the mutuals" you're referring to.
 
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