Thoughts on NGL Essential LTC?

Dec 2, 2016

  1. Mackaroo
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    Has anyone sold NGL Essential LTC? Any feedback or thoughts? They say they have a 1 pay which suggests a way out of possible rate increases.
     
  2. Mr_Ed
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    You might want to read up a little bit on Virginia's Rate Stability Regulation.

    "There are 16 insurance companies that have issued over 80% of the long-term care insurance policies. Based upon data published in December 2015, of those 16 companies, 97.01% of their rate increases in Virginia have been on policy forms that are not protected by Virginia's rate stability regulation. Only 2.99% of the rate increases in Virginia have been on policy forms protected by the rate stability regulation. In fact, 12 of the top 16 companies have not had any increases on any of the policy forms they’ve sold in Virginia since October 1, 2003 (which is when the regulation took effect)."

    https://www.ltcshop.com/long-term-care-insurance/rate-increases/virginia/


    NGL will be the #2 or #3 seller of LTC insurance for the next 5 years. It will NOT be because of their single pay option. It will because of their 10-pay option, their return of premium option, and their lifetime benefit period.
     
    Last edited: Dec 2, 2016
    Mr_Ed, Dec 2, 2016
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  3. kpbdy99
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    I like the 10 pay a lot, and I have a single pay in underwriting now. I would expect the underwriting to be conservative but reasonable, but time will tell. I like that Lifecare is behind them. I'm showing them regularly. I hope they have a good experience and stick with it, they don't have a massive, nasty block of underpriced business to drag them down. Hopefully they'll do well, and their success will bring some more new players in.

    Don't like the daily benefit. Don't like that you have to rider to get the premium waived for home care. Rarely ever talked about lifetime benefits, so that's not a big draw for me.
     
    kpbdy99, Dec 2, 2016
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  4. ltcadviser
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    I met with a client on Monday and showed the single pay Lifetime benefit. It was exactly the design she was looking for BUT I also showed her State Life Asset Care with Lifetime benefits. Premiums were close. Both around $105K. She wanted monthly home care. She chose Asset Care. I had her interviewed this week and her policy is already approved. NGL would take 6 weeks. Asset Care took 20 minutes. 20 mins of underwriting is better than 6 weeks. Having cash value better than not having cash value. Monthly HC better than daily.
     
    Last edited: Dec 2, 2016
  5. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    When I used to sell LTCi, I always liked the monthly benefit. They could rack up 10 times their daily limit in a couple of days and be in the hole on a daily.
     
  6. ltcadviser
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    Agreed. My client on Monday completely based her decision on the monthly benefit.
     
  7. Mr_Ed
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    how is that possible?
     
    Mr_Ed, Dec 3, 2016
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  8. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    Medicare pays for more home health care than they did when I last sold LTCi, so my "10 times" amount is exaggerated.

    So for the sake of easy figuring, let's just say that someone needed 24 hour care for 2 days at $25 an hour = $1,200 and they had a $100 a day benefit that would pay $200, so their expense was 6 times what their policy's benefit is, so $1,000 in the whole. If they'd had a $3,000 monthly benefit the whole expense would be covered. They could also have more than one type of home health care expense in a day.

    I know that you know how it works, but you asked.:)
     
  9. Mr_Ed
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    in your example, do they need no care the other 28 days of the month? or are they also getting 24 hour care the other 28 days of the month?
     
    Mr_Ed, Dec 3, 2016
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  10. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    How the hell do I know?

    Now, you're just being silly.:laugh:
     
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