Setting Up a Group LTC Plan & Problem Case 55 & a Stroke

[Freddie]

Question 1:
I work with a groups with a few thousand people and they have quite few seniors. They may be growing in 2010. I had considered trying to do an LTC plan to help the people and possibly make some money. Any companies who will do group? I think Great American was but they are getting out.

Question 2:
Healthy 55 year old woman who had a stroke about 15 years ago caused by trauma of a car accident. I have seen this before with blood clots after accidents. She has been fine, healthy and exercises.

She only tried Prudential for LTC and they turned her down. Any other possible companies? Doctors wrote notes but told her the MIB info will be know by others. Nice lady who is very depressed about it.

Question 3:
If I set this group LTC plan for these 3,000 to possibly 6,000 people - what sort of savings and will it help people like this lady?

Thanks and happy new year.

 

[Mr_Ed]

Question 1:
I work with a groups with a few thousand people and they have quite few seniors. They may be growing in 2010. I had considered trying to do an LTC plan to help the people and possibly make some money. Any companies who will do group? I think Great American was but they are getting out.

A group that size is not really a "group LTC" sale, it's considered a "multi-life" sale.

Nearly every leading long term care insurer can provide a discount and some form of "short form underwriting".



Question 2:
Healthy 55 year old woman who had a stroke about 15 years ago caused by trauma of a car accident. I have seen this before with blood clots after accidents. She has been fine, healthy and exercises.

She only tried Prudential for LTC and they turned her down. Any other possible companies? Doctors wrote notes but told her the MIB info will be know by others. Nice lady who is very depressed about it.


She was declined by Prudential because Prudential is one of the long term care insurers that will automatically decline someone who has had a stroke, regardless of how long ago the stroke was. She could most likely be approved by another leading long term care insurer, as long as she does not have diabetes.



Question 3:
If I set this group LTC plan for these 3,000 to possibly 6,000 people - what sort of savings and will it help people like this lady?

Most multi-life cases can give anywhere from a 5% to a 10% discount. But, the discount is only worth it if the premiums are competitive to begin with. What's better a policy that costs $1,500 per year and has "no discount" -OR- a policy that costs $2,000 per year and has a "10% discount"?

There may or may not be any savings for this particular lady. She can probably qualify for an individually underwritten LTCi policy at standard rates.


NADM

 

[Freddie]

Thanks. Are there any providers you would recommend for me to contact about this group program? Hancock's LTC is supposedly good. NW Mutual is also from what I heard but they only work with captive agents.

Also for the 55 year old - are there any companies you would suggest? Thank you.

 

[bluemarlin08]

You work with these large groups and you are coming on a insurance forum asking advice about who to quote, what do you sell these large groups and don't you think the customer would be well served if you bring in an expert on lines you aren't experienced with? Just wondering.

 

[Justin Bilyj]

got to cut your teeth somewhere lol,

I have looked at John Handcock which is insured by Genworth for groups. Great options..

 

[Mr_Ed]

Thanks. Are there any providers you would recommend for me to contact about this group program? Hancock's LTC is supposedly good. NW Mutual is also from what I heard but they only work with captive agents.

Also for the 55 year old - are there any companies you would suggest? Thank you.

To be frank, I'm not a big fan of "multi-life sales". In my opinion, the best insurer and the best policy for each person depends upon their unique health history and what benefits they want in their policy. In my opinion, doing a "multi-life sale" is taking a one-size-fits-most approach to LTCi.

 

[Graham]

The big advantage of the multi-life sale is if you get short form underwriting. That way if there are those with issues they still have a shot at getting issues. To me it' simportant to have a plan that allows for buy up's because as Never_a_dull_moment said the one size fits all approach does not work well with LTC.

You need to approach the multi-life sale as just a source of leads. It is still a needs based sale and will require more work selling than most other voluntary products in a group setting. You will likely do a employee presentation then need to set up individual meetings with those interested. The one really good thing that short form underwriting provides you with is a call to action because there is typically a short 30 or 60 day window then it reverts back to full underwriting.

One thing to watch out for is the commission haircut, pick a carrier that does not cut commissions for multi-life sales.