The Mass Mutual Dilemma for Independent LTC Agents

Sep 3, 2016

  1. ltcadviser
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    ltcadviser Guru

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    Poll question:

    You are contacted by a 62 year old single female applicant:

    You are asked by her what is her best option between either a traditional or a hybrid policy:

    You open your computer and rates are reflected:

    Upon plugging in the benefits desired, your choices are:

    Mass Mutual unisex rates $3300 year (but you can no longer sell it and earn any compensation whatsoever)

    Mutual of Omaha $4900 year (you can sell it)

    Lincoln Moneyguard $107,000 single pay (you can sell it)

    With this fact pattern what will you say to your single female prospect, and why?
     
  2. Mr_Ed
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    Mr_Ed Guru

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    refer her to your mm agent.
     
    Mr_Ed, Sep 3, 2016
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  3. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    originally posted by Mr_Ed



    BINGO!
     
  4. ltcadviser
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    ltcadviser Guru

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    Yes, Scott, this is my decision too.

    The reason I asked the question is I was contacted by a woman that was working with an online agent self-proclaimed as "independent."

    She wanted my opinion on his recomendation.

    I know for a fact this independent agent was selling Mass Mutual up until July so he is fully aware of its availability and its pricing.

    She told me he "enthusiastically" recommended Omaha to her. He did not mention Mass Mutual's unisex rates to her but he conveniently chose to show her NY Life pricing and other companies' rates which supported his Omaha recommendation to her.

    So, I am curious as to everyone's thoughts.

    Agents do have to make a living, but the decision for the consumer here is so clear cut that I also think you have to do the right thing and pick up the phone and give this business away.
     
  5. glgamerica
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    glgamerica Super Genius

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    I don't know anything about these policies but I think it depends on what you get for your money. Based on price alone, sure that make sense.

    But if she got older and the premium went up so much she couldn't afford it and had to let it go maybe not.

    Without seeing the actual contracts, I wouldn't choose any of them.

    You'd also have to convince me she had assets to protect.
     
  6. Mr_Ed
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    Mr_Ed Guru

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    I rarely see cases where the MOO or NGL policy is 50% more than the Mass policy. The last time I did a mass vs moo comparison for a single female the difference in premium was about 12%, not 50%. I'd pay 12% more for the MOO policy over the Mass policy. The MOO policy has a much better care coordinator system and the most liberal calendar day elimination period in the business. Both of these factors are particularly important for a single person.

    The cash benefit option is a nice cherry on top, too. But, the real big deal to me is how MOO handles the care coordinator versus how MM handles it. That will make a HUGE difference at the time of claim for a single person.

    We all know that Mass does not want to sell a lot of policies right now. They have put the brakes on their production until they can come out with a policy with gender-based pricing. They want less business, not more. If there's anything questionable in someone's health history, I think there's a good chance of having that application denied or rated. We've seen that in the past with every other company in this business.

    just my two cents.
     
    Mr_Ed, Sep 3, 2016
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  7. ltcadviser
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    ltcadviser Guru

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    Umm, 6 year benefit periods Scott, not 3. Loyalty discount for being a MM DI and Life policyholder too.

    ----------

    You also missed my entire point.
     
  8. glgamerica
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    glgamerica Super Genius

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    So is your point just to refer everyone to Mass Mutual?

    I'm not sure why a single woman would need long term care policy in the first place. Who is she protecting assets for? Would her care be any different if she paid for her own care rather than letting the government do it once she's exhausted her own resources?

    Is every LTC contract at these companies the same? Do they vary by state? Wouldn't contract language matter?

    I'm asking to learn more here.
     
  9. Mr_Ed
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    I rarely quote 3 year bp's.
    does this woman own a life insurance policy with mass mutual?
     
    Mr_Ed, Sep 3, 2016
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  10. ltcadviser
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    ltcadviser Guru

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    My point was about moral compass. Do you purposefully keep a blindfold on a consumer because you can not benefit from informing a consumer of an option that is in their best interest to know about.

    Take this example. You sell life insurance. Prudential is the only company that gives non smoker rates to tobacco chewers and cigar smokers. Prudential chooses to restrict its contracts away from brokers. You can no longer sell Prudential life insurance and receive any compensation. A cigar smoker calls you. Do you A) quote the best smoker rate which is double Prudential's rate? Or B) pick up your phone and call a Prudential agent to ensure the consumer receives the best policy premium?

    Make sense?
     
    Last edited: Sep 3, 2016
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