"Unaffordable Care" from Metlife--the Educators' Friend

[Arthur Rudnick]

previously posted by rayluc

Now, do we really need to make this personal? Or should we share your opinion objectively... I would not mind learning if you have something valuable to share. Unless, we all think we know everything and we are always right.

For what's it's worth, my objective opinion is you really don't have much of an understanding about the LTC business. Some of your suggestions are totally out of line considering you know nothing about Debmantia other than:
1) She is 67 years old
2) She was hit with a rate increase of 102%.
and,
3) She's pissed!

The proper way to handle a situation like this would be to do a fact finder and ask some basic questions, such as:
1) What are her present benefits?
2) What is her present premium?
3) What can she comfortably afford?
4) What was her health status when her original policy was issued and what is her health status today?
5) Considering she was an educator, she most likely has life insurance. Does she have a need for more?
6) Is she married and if so, does her partner own a LTC policy?
7) When was her policy issued?

Based on the answers to these questions, you can then think about viable options to suggest.

Another thing: You assume that her policy only covers nursing homes. Why make that assumption since 98% (a guess) of all policies issued since the mid-1990s also include home care?

You also state: "Very often, I will structure the planning with multiple policies, i.e. lower recurring premium policy with a longer elimination period, say 1 year; and paired with a richer policy but shorter benefit period, or even a single pay policy".

This makes absolutely no sense and I'm not sure if there's a LTC policy available in any state that offers a 1-year benefit period.

The key to selling this product is "Keep It Simple". You "Structure your planning by selling mutiple policies" ??

And that is the reason why I asked you where you received your LTC training from, because in my opinion you should not be giving out advice on a subject that you do not understand.

 

[scagnt83]

The point is to think outside the box beyond traditional recurring premium policy. In this case, they may consider taking reduced benefit on current policy and pair it with a single pay life policy with LTC rider, if they can qualify, and if they have asset they can reallocate. Of course, simply replace policy typically won't make sense.

Ray, not to beat up on you even more, but your 2 posts are way off base.

If she cant afford a rate increase on an old policy, there will be no way in hell she could afford a new policy at her current age. Especially considering the fact that her premiums started out significantly less than an individual policy in the first place.

And if she cant afford the increase, then she really could not afford a life policy with Rider, since it is almost always more expensive than a traditional policy.


Also, I would like to see you illustrate a scenario where laddering multiple traditional LTCI policies would make sense over a single larger policy... all you are doing is paying double the policy fees/admin expenses...



The OP needs to look at options to reduce the benefit. Hopefully she is at 5% inflation and can dial it back to 3%, or has an unlimited benefit period and can dial it back to 3-5 years.
That is basically her only option.

OP,
Moving out of the state will not help. The policy will continue to be regulated by the issue state. Complaining wont help either, they mathematically proved that they would loose money or be financially unsecure on these policies without the increase.

Its an unfortunate situation.

 

[ltcadviser]

Ray, when I asked you what are you smoking, I did not mean it in a bad way. I just wanted to point out that policies are not better today than they used to be. Money is money. Does not matter how the money is packaged and marketed. Traditional, hybrid, NYL Asset Preserver, Lincoln Moneyguard, whatever. The money today costs a lot more premium than yesterday money. Bottom line is there are no better options for a consumer with an older policy. Ever. Only option is to work the best with what you have.