Holy Genworth Rates!

[ltcadviser]

So, I just take one last PC Flex 2 application for a 51 year married couple in Missouri. Typical application. $5000 month, 6 year shared benefits, 4% compound inflation. Annual combined premium is $3574.

Decide to peak at Genworth's new rates for PC Flex 3. $7100!!!!!
Are you kidding me? 99% change in rates. $3574 to $7100.

The 3% compound looks to only change the premium about 50% from PC Flex 2 rates; but 4% or 5% compound are now completely out of sight.

 

[LGilmore]

I'm starting to feel LTC is going to be the next Disability Insurance Product. Everyone basically needs it, but either through price or underwriting, it becomes a hard coverage to place.

I've got one I am finishing up on next month. Not even going to run quotes now as they may be entirely different in August.

 

[ltcadviser]

I'm starting to feel LTC is going to be the next Disability Insurance Product. Everyone basically needs it, but either through price or underwriting, it becomes a hard coverage to place.

I've got one I am finishing up on next month. Not even going to run quotes now as they may be entirely different in August.

Easy coverage to place, actually.

 

[dgoldenz]

More like the new health insurance, where you get half the product for double the price...

 

[scagnt83]

Easy coverage to place, actually.

Not at those new rates!!!!

 

[ltcadviser]

Not at those new rates!!!!

Consumers will just buy 3% compound inflation.
Or hybrids.

 

[scagnt83]

Obviously this is just my opinion... but there is no way that will not hurt traditional LTCI sales.

Even the 3% option you say increases it by 50%... that is $5,361 vs. $3,574 ... for less of a benefit.


Also, isnt 3% below most states regs for it to qualify for Partnership status?



Sure consumers will gravitate more towards hybrid products, but as you know they are no where near as comprehensive as traditional LTCI. And at todays interest rates the only competitive hybrids (imo) are UL riders, which is basically just a self insurance policy.

 

[Mr_Ed]

Obviously this is just my opinion... but there is no way that will not hurt traditional LTCI sales.

Even the 3% option you say increases it by 50%... that is $5,361 vs. $3,574 ... for less of a benefit.


Also, isnt 3% below most states regs for it to qualify for Partnership status?



Sure consumers will gravitate more towards hybrid products, but as you know they are no where near as comprehensive as traditional LTCI. And at todays interest rates the only competitive hybrids (imo) are UL riders, which is basically just a self insurance policy.

3% compound qualifies for Partnership in every state except for NY, IN, CT and CA.

3.5% compound qualifies for Partnership in NY.

IN, CT and CA are the only states that require 5% compound for Partnership policies.

Many states will allow ANY compound to qualify for Partnership, including 1% compound and 2% compound.

 

[ltcadviser]

Even NWML GPO is partnership approved.

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but as you know they are no where near as comprehensive as traditional LTCI.

So, how are stand alone LTC policies more "comprehensive" than Lincoln Moneyguard or Genworth TLC?

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Obviously this is just my opinion... but there is no way that will not hurt traditional LTCI sales.

Will it hurt Genworth's LTC sales. Yes, absolutely.
Will it hurt sales from Mass Mutual, Omaha, Transamerica, Lincoln Moneyguard, NY Life, NWML? Nope. It will help.

People shopping for coverage will not know or care what the GNW price was on July 21, 2014; just like they wont know nor care what the Allianz Life price was in 2001.

 

[HealthGuy]

traditional LTC blows ! great product that nobody buys..its fun trying to sell it ha ha