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Old 02-05-2010, 08:01 PM   #1
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Metlife Rate Increase Metlife Rate Increase
I dabble in very little LTC but do it if someone asks... So I have a client that got a quote in November. Client likes Met and finally comes back a week or so ago and we find out that Metlife has increased their rates by almost 50%? What gives? Now we're looking at Assurity or JH.

Also, are all LTC policy rates subject to rate increases after they pull the trigger/not locked in?

Thanks
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Old 02-05-2010, 08:48 PM   #2
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Metlife Rate Increase Re: Metlife Rate Increase
MetLife was just downgraded....coincidence? Probably not. JH/Genworth are the two most competitive in most cases. LTC rates are always subject to increase. Still don't think there are any companies out there with guaranteed premiums for life. You could always do a 10-pay to limit potential rate increases, but obviously there is a higher up front cost for doing that.

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Old 02-05-2010, 11:00 PM   #3
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Metlife Rate Increase Re: Metlife Rate Increase
Originally Posted by dgoldenz View Post
MetLife was just downgraded....coincidence? Probably not. JH/Genworth are the two most competitive in most cases. LTC rates are always subject to increase. Still don't think there are any companies out there with guaranteed premiums for life. You could always do a 10-pay to limit potential rate increases, but obviously there is a higher up front cost for doing that.
And Genworth is even worse rated than Met. What makes you feel that they're a better LTCi company for the client given that Met has raised their rates 50% in the face of a rating decline?
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Old 02-05-2010, 11:27 PM   #4
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Metlife Rate Increase Re: Metlife Rate Increase
Originally Posted by Benefits Man View Post
I dabble in very little LTC but do it if someone asks... So I have a client that got a quote in November. Client likes Met and finally comes back a week or so ago and we find out that Metlife has increased their rates by almost 50%? What gives? Now we're looking at Assurity or JH.

Also, are all LTC policy rates subject to rate increases after they pull the trigger/not locked in?

Thanks

a) what state are you in?

b) by "increased their rates" you're referring to their new business rates, right?
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Old 02-06-2010, 12:33 AM   #5
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Metlife Rate Increase Re: Metlife Rate Increase
Originally Posted by Death Cab For Tootie View Post
And Genworth is even worse rated than Met. What makes you feel that they're a better LTCi company for the client given that Met has raised their rates 50% in the face of a rating decline?
What are the premiums for Genworth and what are the premiums for MetLife for a typical 60 year old couple in good health, same benefit structure? How long has MetLife been in the LTC game? Do they plan on staying there or raising the rates 50%, pulling out of the LTC market, raising the rates another 50%, and screwing over the clients? Genworth seems to be in the LTC market for the long haul, MetLife does not. Just my opinion.

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Old 02-06-2010, 07:34 AM   #6
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Metlife Rate Increase Re: Metlife Rate Increase
Still think JH is the place to go, especially for married couples.
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Old 02-06-2010, 07:53 AM   #7
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Metlife Rate Increase Re: Metlife Rate Increase Benefits Man is the thread starter for: Metlife Rate Increase

Neverdull:

1. TX

2. Yes, I was told they had a rate increase by over 50% Jan 1st....customer came in November 09 for quotes came back last week to apply
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Old 02-06-2010, 07:54 AM   #8
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Metlife Rate Increase Re: Metlife Rate Increase
Originally Posted by dgoldenz View Post
What are the premiums for Genworth and what are the premiums for MetLife for a typical 60 year old couple in good health, same benefit structure? How long has MetLife been in the LTC game? Do they plan on staying there or raising the rates 50%, pulling out of the LTC market, raising the rates another 50%, and screwing over the clients? Genworth seems to be in the LTC market for the long haul, MetLife does not. Just my opinion.
In my opinion, a person who only dabbles in LTC should not be selling LTC. They should be partnering with someone who focuses on LTC, and split the commission if you have to....else you will not be doing your client the best service due to the complexity and variety of products available. UW guideline differences alone should cause you to have at least 3+ carriers to look at at all times.Reimbursement, cash, indemnity are all high level options....let alone all the bells and whistles that plans offer today.

You are likely referring to the fact that MetLife restructured their LTC pricing to make them IMHO totally uncompetitive in the younger age market when inflation clauses are added, but at the same time made them extremely competitive in the older markets with none/GPO. It was actually closer to a max of 18% as I recall...as opposed to 50%. If your quote changed that much, I can only guess something else is wrong somewhere.

Since you did not list a specific benefit structure, I can not comment on what GWN or JH charges, but I can assure you that if you click on 5% compound that MetLife will not be competitive at all. Some would argue that MetLife is the only carrier smart enough to know that plans with big inflation clauses are going to hurt the insurance company down the line by forcing larger reserves, so they are charging a fair value today so as not to have a history of rate increases in the future . Maybe GNW and JH will be sorry one day they are not charging more? NWM and others seem to think LTC should cost more.

Of course the majority of my business for people under 70 is placed with Hancock, Genworth, Prudential, and Mutual of Omaha. Many of my 70+ people seem to really like a MetLife Value plan with an indemnity option set to "yes". Else, every case is different.

Hope this helps.
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Old 02-06-2010, 10:47 AM   #9
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Metlife Rate Increase Re: Metlife Rate Increase
Originally Posted by yankee466 View Post
In my opinion, a person who only dabbles in LTC should not be selling LTC. They should be partnering with someone who focuses on LTC, and split the commission if you have to....else you will not be doing your client the best service due to the complexity and variety of products available. UW guideline differences alone should cause you to have at least 3+ carriers to look at at all times.Reimbursement, cash, indemnity are all high level options....let alone all the bells and whistles that plans offer today.

You are likely referring to the fact that MetLife restructured their LTC pricing to make them IMHO totally uncompetitive in the younger age market when inflation clauses are added, but at the same time made them extremely competitive in the older markets with none/GPO. It was actually closer to a max of 18% as I recall...as opposed to 50%. If your quote changed that much, I can only guess something else is wrong somewhere.

Since you did not list a specific benefit structure, I can not comment on what GWN or JH charges, but I can assure you that if you click on 5% compound that MetLife will not be competitive at all. Some would argue that MetLife is the only carrier smart enough to know that plans with big inflation clauses are going to hurt the insurance company down the line by forcing larger reserves, so they are charging a fair value today so as not to have a history of rate increases in the future . Maybe GNW and JH will be sorry one day they are not charging more? NWM and others seem to think LTC should cost more.

Of course the majority of my business for people under 70 is placed with Hancock, Genworth, Prudential, and Mutual of Omaha. Many of my 70+ people seem to really like a MetLife Value plan with an indemnity option set to "yes". Else, every case is different.

Hope this helps.


Ditto to what Yankee said.
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Old 02-06-2010, 01:02 PM   #10
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Metlife Rate Increase Re: Metlife Rate Increase Benefits Man is the thread starter for: Metlife Rate Increase

I use a GA that specializes in LTC. So my commissions are split with someone who knows LTC better than I do. The account Reps that are assigned to me communicate very well and work with about 6 large LTC carriers. Thanks for your POV though.

The quotes are the exact same criteria:

$150 for nursing daily benefit and $150 HH care benefit. Shared care rider. Simple 5% increase inflation protection. Married couple aged 56 and 57. Wife is rated standard for osteoporosis and husband is rated preferred. Met came in at $5160 this week, way up from $3400 originally quoted in Nov.


I would post the actual quotes here but I'm not going to risk disclosing my clients personal info so you'll just have to take my word for it.
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Last edited by Benefits Man; 02-06-2010 at 01:10 PM.
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