2015 Long Term Care Insurance Survey

[Arthur Rudnick]

LTCI Update from Broker World

Our thanks to Steve Moses of the Center For Long Term Care Reform. for making this article available.

 

[Justin Bilyj]

Arthur, do you agree with the article that Millenials are good prospects for ltci?

 

[Arthur Rudnick]

originally posted by emptyeternity

Arthur, do you agree with the article that Millennials are good prospects for ltci?

By definition, millennials are categorized as those born from the early 1980s thorough the early 2000s. So, that would put them at ages 10 through 35.

I'm planning on sending out a direct mail piece next week to 10,000, 10 year olds.

I'll let you know my response rate.............

 

[Justin Bilyj]

I hear the response rate is huge, like 20% but then there's a lot of crayon on them...

 

[CALTCAgent]

“The placement rate dropped to an all-time low (60.9 percent, including work-site cases which sometimes permit easier qualification), despite a significant drop in cases above age 70. Thirty-three percent (32.9 percent) of such applications were declined, withdrawn or suspended. Many observers feel that higher prices result in a less healthy pool of applicants and that insurers have tightened underwriting.”

I found this interesting and kind of what I expected. Blood and urine testing I would think goes along with tightened underwriting.

4 out of 10 LTC applications not placed. Not good. There has to be a better way.

 

[Mr_Ed]

“The placement rate dropped to an all-time low (60.9 percent, including work-site cases which sometimes permit easier qualification), despite a significant drop in cases above age 70. Thirty-three percent (32.9 percent) of such applications were declined, withdrawn or suspended. Many observers feel that higher prices result in a less healthy pool of applicants and that insurers have tightened underwriting.”

I found this interesting and kind of what I expected. Blood and urine testing I would think goes along with tightened underwriting.

4 out of 10 LTC applications not placed. Not good. There has to be a better way.

There are two reasons for this:

1) A lot of agents who submit LTCi applications do NOT understand LTCi underwriting.

2) A lot of agents will have the same client apply to two or three different companies at the same time, "hoping" that one of them will approve the applicant.


The 60% placement rate is not a problem caused by the insurers.
This is a problem caused by the agents.

 

[ltcadviser]

I see way more declines on my traditional LTC applications than I do on my asset-based LTC applications.

 

[Mr_Ed]

I see way more declines on my traditional LTC applications than I do on my asset-based LTC applications.

If you were an insurer, would you rather insure someone who was paying you $2,000 per year for $250,000 of risk or someone who paid you $100,000 one-time for $250,000 of risk?

 

[ltcadviser]

If you were an insurer, would you rather insure someone who was paying you $2,000 per year for $250,000 of risk or someone who paid you $100,000 one-time for $250,000 of risk?

$100,000 for $250,000 of risk? Not my clients. I generally write asset based policies with Unlimited pool of money risk.

Anyway, my point was that I consider myself a good agent with proper knowledge of UW guidelines, prequalification procedures, etc. and declines are nevertheless inevitable with LTCi even doing business correctly. Medical records often reveals adverse health history not disclosed or discussed with the agent.

 

[CALTCAgent]

I am amazed when I hear people taking 2 or 3 applications though. I am too lazy for that.

I wished there was an easier way to fill out 2 or 3 app's and maybe I would do it.