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Link below to Leslie Scism's Aug. 29 Wall Street Journal article about New York Life pitching a new "simplified" LTC product to middle market...
Couple of excerpts:
New York Life Insurance Co. is trying to find a new way to sell a product that some middle-class customers don’t want to buy anymore.
The company said it recently started offering a simplified version of long-term care insurance that makes the coverage easier to understand and more predictable in cost...
The new offering from New York Life is one of very few long-term-care policy introductions of the past five years, according to insurance-industry organizations, consultants and academics. It is designed to appeal to middle-class consumers. The longtime seller of such coverage will continue offering its existing stand-alone product...
The new policies from New York Life will generally cost at least $100 to $150 a month per person, depending on age and designated benefit level. As much as $500,000 in future payouts for a couple is available. The cost will generally be in the midrange of top-selling products, according to industry figures.
The insurer is scrapping use of “elimination periods,” which are typically 90-day waiting periods before the policies pay out. Instead, it is using a one-time deductible. A deductible is a specified amount of money that a policyholder is responsible for paying.
The “elimination period” concept can be off-putting to consumers because the amount they would need to pay isn’t known when they are purchasing a policy.
New York Life Tests New Pitch for an Unpopular Insurance Policy
Couple of excerpts:
New York Life Insurance Co. is trying to find a new way to sell a product that some middle-class customers don’t want to buy anymore.
The company said it recently started offering a simplified version of long-term care insurance that makes the coverage easier to understand and more predictable in cost...
The new offering from New York Life is one of very few long-term-care policy introductions of the past five years, according to insurance-industry organizations, consultants and academics. It is designed to appeal to middle-class consumers. The longtime seller of such coverage will continue offering its existing stand-alone product...
The new policies from New York Life will generally cost at least $100 to $150 a month per person, depending on age and designated benefit level. As much as $500,000 in future payouts for a couple is available. The cost will generally be in the midrange of top-selling products, according to industry figures.
The insurer is scrapping use of “elimination periods,” which are typically 90-day waiting periods before the policies pay out. Instead, it is using a one-time deductible. A deductible is a specified amount of money that a policyholder is responsible for paying.
The “elimination period” concept can be off-putting to consumers because the amount they would need to pay isn’t known when they are purchasing a policy.
New York Life Tests New Pitch for an Unpopular Insurance Policy
