Transamerica's New Inflation Rider: CBIO

[wc2624]

Simple. I was looking for input on whether I might be missing something. I guess not.

 

[ltcadviser]

With that said, anyone have any luck with JH's new Performance LTC? .

Yeah, ....well this is what you said.....spoken like a true insurance hustler......

----------

So, let me share a conversation that I had with a 48 year old California woman last night. She contacted me to help her decide between two finalist policies that she had presented to her: (so I acted as the pro bono arbitrator and told her to buy Mass Mutual) Then she told me about all of the agents she had spoken with and all of the different policies each one recommended including one nice agent who told her about a deal that seemed to good to be true:

"it credits inflation protection in the amount that the company earns over 3% in its investments."...And the premiums seemed so low...

So, I knew she was referring this time to "Benefit Builder" by John Hancock.

Fortunately, she stated she read the disclosures and illustration and figured out for herself that the inflation protection component credited inflation nothing like as described and would most likely be minuscule, certainly nowhere near the 3-4% compound the agent implied.

When she informed the agent the inflation protection crediting component was nothing as the agent had described in trying to sell her the policy the nice agent told her " well, I think it works as I described it and I even bought this very policy for myself"

So, there you have it.
This is our industry.

Sometimes agents sell on initial price only without understanding important contractual terms.

 

[Mr_Ed]

Yeah, ....well this is what you said.....spoken like a true insurance hustler......

----------

So, let me share a conversation that I had with a 48 year old California woman last night. She contacted me to help her decide between two finalist policies that she had presented to her: (so I acted as the pro bono arbitrator and told her to buy Mass Mutual) Then she told me about all of the agents she had spoken with and all of the different policies each one recommended including one nice agent who told her about a deal that seemed to good to be true:

"it credits inflation protection in the amount that the company earns over 3% in its investments."...And the premiums seemed so low...

So, I knew she was referring this time to "Benefit Builder" by John Hancock.

Fortunately, she stated she read the disclosures and illustration and figured out for herself that the inflation protection component credited inflation nothing like as described and would most likely be minuscule, certainly nowhere near the 3-4% compound the agent implied.

When she informed the agent the inflation protection crediting component was nothing as the agent had described in trying to sell her the policy the nice agent told her " well, I think it works as I described it and I even bought this very policy for myself"

So, there you have it.
This is our industry.

Sometimes agents sell on initial price only without understanding important contractual terms.

well done, Jack.

 

[wc2624]

Yeah, ....well this is what you said.....spoken like a true insurance hustler......

----------

So, let me share a conversation that I had with a 48 year old California woman last night. She contacted me to help her decide between two finalist policies that she had presented to her: (so I acted as the pro bono arbitrator and told her to buy Mass Mutual) Then she told me about all of the agents she had spoken with and all of the different policies each one recommended including one nice agent who told her about a deal that seemed to good to be true:

"it credits inflation protection in the amount that the company earns over 3% in its investments."...And the premiums seemed so low...

So, I knew she was referring this time to "Benefit Builder" by John Hancock.

Fortunately, she stated she read the disclosures and illustration and figured out for herself that the inflation protection component credited inflation nothing like as described and would most likely be minuscule, certainly nowhere near the 3-4% compound the agent implied.

When she informed the agent the inflation protection crediting component was nothing as the agent had described in trying to sell her the policy the nice agent told her " well, I think it works as I described it and I even bought this very policy for myself"

So, there you have it.
This is our industry.

Sometimes agents sell on initial price only without understanding important contractual terms.

I appreciate your input and agree that the agent is not disclosing, or doesn't understand, how benefit builder works.

Getting back to Performance LTC, JH seems to have simply taken the credits and moved them to potentially keeping the premium down with no guarantee of what the insured's premium would be even in year 2. At least with TAs step rated BIO the insured can see what the premium will be in the future absent rate increases.

With the removal of benefit increases based on the CPI from JH's portfolio where Performance LTC is available, it essentially cuts out a carrier I've used in the past.