Rare Occasion – A New LTCI Product Gets Launched Today

Jul 18, 2016

  1. Brian Anderson
    Offline

    Brian Anderson Executive Editor

    Posts:
    647
    Likes Received:
    46
    State:
    Colorado
    Just posted a story (link below) about the launch today of “EssentialLTC” – a completely new LTCI product from National Guardian Life in cooperation with Jim Glickman and LifeCare Assurance.

    Interested to hear what LTCI experts think about the new product and its potential to shake up the market. Will it mainly cannibalize from other products or could it really expand the market? I have not been privy to pricing or commission details, but curious as to which features you find most intriguing, and what if any obstacles do you see to it becoming a success?

    Insurance Forums | July 18 launch of 'EssentialLTC' could generate lots of buzz in a market that desperately needs it
     
  2. Arthur Rudnick
    Offline

    Arthur Rudnick Moderator Moderator

    Posts:
    1,633
    Likes Received:
    7
    State:
    New York
    Brian,
    What I find interesting is that this product has all of the features that every product offered long, long, long ago.

    At the end of the day the success will be determined by cost & underwriting.

    It's nice to offer a lifetime benefit period but it has to be affordable. And, it seems the jury is still out on that.

    What does Glickman see that no other carrier is aware of?
     
  3. Mr_Ed
    Offline

    Mr_Ed Guru

    Posts:
    2,070
    Likes Received:
    29
    State:
    New Jersey

    It has it's competitive niches.
    It has more competitive niches than the rest of the market because it has features that no one else is offering.

    It will increase industry sales overall because it's offering features that have not been available for years, as well as some features that have never been offered.

    There are a HELLUVA lot of people who don't buy LTCi because they don't want to pay premiums for the rest of their lives (with the risk of rate increases). There are a HELLUVA lot of people who don't buy LTCi because they do not want a lifetime cap.

    This product addresses those issues and more.

    ----------


    the product is competitively priced for married couples, even with a lifetime benefit period.

    what glickman sees, Arthur, is the a heck of a lot of claims data. he wrote about it in broker's world awhile back. the only reason the lifetime bp was a loser for most companies was sloppy underwriting. his companies have always had very tight underwriting and their experience with lifetime bp has been very positive.

    it's wise not to throw all companies in the same pile.
     
    Mr_Ed, Jul 18, 2016
    #3
  4. DWPCL
    Offline

    DWPCL Super Genius

    Posts:
    127
    Likes Received:
    4
    Does NGL offer direct contracts or do they only work through FMO's?
     
    DWPCL, Jul 19, 2016
    #4
  5. Mr_Ed
    Offline

    Mr_Ed Guru

    Posts:
    2,070
    Likes Received:
    29
    State:
    New Jersey

    They work through FMO's/BGA's.
     
    Mr_Ed, Jul 20, 2016
    #5
  6. Bob_The_Insurance_Guy
    Offline

    Bob_The_Insurance_Guy Guru

    Posts:
    1,908
    Likes Received:
    14
    State:
    Georgia
  7. kpbdy99
    Offline

    kpbdy99 Expert

    Posts:
    45
    Likes Received:
    7
    State:
    Maine
    Pricing looks to be on par with the other carriers, using today's much more informed pricing assumptions, so that's good. I think it's important that, unlike the big names in the biz, NGL doesn't have a massive, stinking pool of unprofitable old business on the books that they have to carry. They're starting fresh with modern rates, conservative underwriting and a product that has features people want. Let's hope this is the first of at least a few good companies who jump into - or back into - this business.
     
    kpbdy99, Aug 4, 2016
    #7
Loading...
Similar Threads
  1. ltcadviser
    Replies:
    12
    Views:
    2,245
  2. bobwise23
    Replies:
    24
    Views:
    3,722