The Mass Mutual Dilemma for Independent LTC Agents

[HoosierLife]

You planning on referring every case out??

 

[glgamerica]

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?

Yeah I picked up on that. That's why I questioned why she needed it in the first place.

I'd saved her $3300 a year (assuming she had no kids and wasn't planning on getting married.)

While you guys just want to help your Mass Mutual friend get a paycheck!

 

[Mr_Ed]

Yeah I picked up on that. That's why I questioned why she needed it in the first place.

I'd saved her $3300 a year (assuming she had no kids and wasn't planning on getting married.)

While you guys just want to help your Mass Mutual friend get a paycheck!

You admitted earlier that you don't know much about LTC insurance and that you are willing to learn. I assume that is still the case.

LTCi makes more sense for couples than for singles, because it's easier for a single person to "self-insure" than for a couple to "self-insure".

Married couple's who "self-insure" can rarely cover the full cost of extended care without a severe lifestyle change for the healthy spouse.

It is easier for a single person to "self-insure" because there is no other party dependent upon the income. But, keep in mind, single women who are comfortable financially want to make sure they will never outlive their money. They especially don't want to outlive their money a point in life where they are their most vulnerable (e.g. when needing extended care at home or in a facility.)

Some LTCI agents think that everyone needs a policy that will cover 100% of the projected costs of care regardless of how long the policyholder may live. That is absurd.

For most single women, if they buy a policy where they "co-insure" the risk, they will achieve their objective.

 

[ltcadviser]

You planning on referring every case out??

Yes, every single female applicant or 2 female partners looking for a traditional LTC policy I will refer out. Stinks, but what can I do. It might only last for another 6-12 months. Mass Mutual will move to gender based pricing at some point. I went through this in 2012 when Genworth sold policies through AARP agents for 40% less premium than Indy agents could sell the same policy for. Lasted 6 months. Referred every Genworth client to an AARP agent. Fortunately, I can afford to send this business away but some agents might not be in a position to do so which places the agent in a compromising position.

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Yeah I picked up on that. That's why I questioned why she needed it in the first place.

I'd saved her $3300 a year (assuming she had no kids and wasn't planning on getting married.)

While you guys just want to help your Mass Mutual friend get a paycheck!

People buy policies for various reasons. Many people want coverage so as not to burden their children; many people buy coverage so they can leave their nest egg to children/grandchildren.

If an individual has $2million, sure they can pay for their care out of assets. But they can also pay a $4500 annual premium too.

People make personal choices that they are comfortable with.

The woman that contacted me has 2 children and wants to protect her nest egg for them. But many single people with no children buy LTCI and they desire coverage to ensure they remain independent and ensure they don't ever outlive their money.

 

[scagnt83]

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.

Mass has one of the best LTCI contracts on the market by far. They also have the most stable rates in the industry.

People who know the LTCI market realize what Jack is talking about. Do some searches on the forum about Mass LTCI. Lots of comparative info if you want to learn.

The woman would be a fool not to take the Mass policy if she wants traditional LTCI.

____________________________________

Jack,
Your only moral option would be to show her asset based options and hope that peaks her interest for some reason.

I would also suggest you take a hard look at their 20pay WL combined with the LTCI Rider. Very strong alternative to MoneyGuard and AssetCare for people that want to ensure their asset keeps growing at a half decent return.

 

[ltcadviser]

Mass has one of the best LTCI contracts on the market by far. They also have the most stable rates in the industry.

People who know the LTCI market realize what Jack is talking about. Do some searches on the forum about Mass LTCI. Lots of comparative info if you want to learn.

The woman would be a fool not to take the Mass policy if she wants traditional LTCI.

____________________________________

Jack,
Your only moral option would be to show her asset based options and hope that peaks her interest for some reason.

I would also suggest you take a hard look at their 20pay WL combined with the LTCI Rider. Very strong alternative to MoneyGuard and AssetCare for people that want to ensure their asset keeps growing at a half decent return.

Yes, Tyler, but you agree because you are aware of the existence of this option you would tell her about the Mass Mutual policy option, even though you can no longer sell it, correct?

 

[scagnt83]

Yes, Tyler, but you agree because you are aware of the existence of this option you would tell her about the Mass Mutual policy option, even though you can no longer sell it, correct?

Yes. I mean your only option is to tell her about Mass but hope an asset based solution fits and is appealing to her.

I have turned away and farmed out business before because of similar situations. Im sure I will have to do it again.

I recommend what I personally would do. Even if I cant do it for them. Karma can either be a bitch or a blessing for you in life. jmo

 

[Tahoe Ray]

Yes, Tyler, but you agree because you are aware of the existence of this option you would tell her about the Mass Mutual policy option, even though you can no longer sell it, correct?

Only if you want to maintain your credibility...

My thought would be to partner w/ a good Mass agent. We all know that their underwriting can be a little tight. Maybe there's a good opportunity to create a strong referral relationship.