They don't need new people to buy policies in order to pay claims.
They don't need new people to buy policies to make a profit.
How many times did you fail Insurance 101 before you got a license?
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They don't need new people to buy policies in order to pay claims.
They don't need new people to buy policies to make a profit.
You guys need to stick to medical insurance.
You don't understand LTCi.
Well then, please explain how premiums are determined.
Rick
investment return
lapse ratio
morbidity
utilization
overhead
profit
What happens to premiums when lapse ratios drop and utilization increases? I won't even ask about investment returns.
Rick
the same thing that happens to medical insurance.... just not every year.
Thank you for clarifying. So LTC is a ponzi scheme but medical insurance is not.
You should be teaching insurance rather than selling it.
Rick
someone implied that new policy premiums were needed to pay claims. that's absurd. that would be a ponzi scheme.
All I asked before is if anyone really believed that the LTC insurers were losing money on their blocks? (obviously most of the participants in this forum think the LTC insurers are losing money on their LTCi blocks--which means the P.R. people are actually earning their salaries.)
They're not losing money. The claims data is made public every year. a couple of the smaller companies lost money, but the rest are making a profit.