unum ltc
- Thread starter Arthur Rudnick
- Start date
Long-term care insurance is great for policyholders.
Not-so-great for stockholders.
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- #3
Arthur Rudnick
Guru
- 1,652
With 100% rate increases, I'm not sure that many policyholders will agree with you.....
Rate increases? Arthur, I thought I read on the internet somewhere that rate increases don’t occur anymore
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- #5
Arthur Rudnick
Guru
- 1,652
check with Scott, he can explain..............
Scott:
Lets say a Genworth 2006 policy (Privileged Choice 7044) has requested a 50% rate increase.....and since something was approved, they have now raised 12%, then another 10%, and now another 20%,and likely to keep going.......is there any protection at some point that it will be harder to keep doing this, or since it was sold before the magic date, is that client more likely to continue to keep getting these rates hikes, or by virtue of the fact that the rates have been refiled and raised, does it move it into the new 2008+ category? Getting tired of all my GNW clients calling about "what if it goes up by 10-20% EVERY year from now on?"
Sure glad none of my MoO clients have ever had to call (yet)
What do you tell them Herman?
First response would be that it would be unlikely to continue, but they are free to dial back the benefits if they like....since, despite the rate bump, they have an absolute bargain. When they start asking about re-shopping, and I tell them it would cost $8000 to replace their now $4000 plan that they paid $3000 originally, it usually changes their feelings immensely. Also, my GNW policy has increased right along with theirs.....and I am not making any adjustments
Hoping GNW becomes a well funded Chinese company soon too.....but I do not go out of my way to bring that up.
What do you like to say? I was curious as to Scott's answer of course.
I tell them to write the check.
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