Arthur Rudnick
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National Guardian Life To Jump Into LTCi Market
National Guardian Life To Jump Into LTCi Market | Insurance News Net
National Guardian Life
- Thread starter Arthur Rudnick
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National Guardian Life To Jump Into LTCi Market | Insurance News Net
- 16,877
I have thought that would be the perfect marriage for years. NGL's main product is pre-need funeral insurance sold through funeral homes.
Pre-need is sold to middle class to affluent families. So is LTC.
Pre-need has a slower sales cycle than FE or Medicare. So does LTC.
People who buy pre-need are doing it partially so the nursing home doesn't eat up all their assets. Same with LTC.
People who buy pre-need are paying extra to have an inflation factor built into their policy. Understanding that costs increase is a big part of it. Same with LTC.
Agents who sell pre-need have a strong connection with their customer and meet with them not only when they buy the product but again when they pay it off. But they have nothing else to sell them...
If NGL will train the pre-need agents to cross sell the LTC, this is a winner. Should have happened 15-years earlier but better late than never.
Slow sales cycle? I don't know about that. I wrote a single premium Lincoln Moneyguard policy for $132,000 today that took about 2-3 minutes from hi to bye.
"Pricing of new LTCi policies is based on more conservative morbidity, mortality and lapse rate assumptions than in the past, Loomis explained, noting that these are the key factors that drive LTCi rate increases.
With more conservative assumptions comes less risk of rate increases in the future, he noted.
The higher prices now in effect on new policies should be an indication that today’s LTCi business is more stable than in the past, Loomis said. In addition, the industry has learned from the past, and it has much more data to use to support its pricing assumptions. Also, people in the home office and field have greater understanding of the product. “Given all that, maybe the risk really has gone down,” he said.
Accuracy in the numbers used in pricing is greater today than previously, so it is much safer for carriers to be in the market now, Glickman said.
hmmmmmm.....
where have I heard that before?????
oh, that's right:
http://www.insurance-forums.net/for...ifferent-environment-new-policies-t77465.html
and
http://www.insurance-forums.net/for...mes-sourcebook-rate-increase-risk-t75409.html
and
http://www.insurance-forums.net/for...not-making-much-profit-youd-hoped-t73933.html
and
http://www.insurance-forums.net/for...rum/market-may-need-reinvent-ltci-t73659.html
and
http://www.insurance-forums.net/for...urance-forum/long-term-care-plans-t65773.html
With more conservative assumptions comes less risk of rate increases in the future, he noted.
The higher prices now in effect on new policies should be an indication that today’s LTCi business is more stable than in the past, Loomis said. In addition, the industry has learned from the past, and it has much more data to use to support its pricing assumptions. Also, people in the home office and field have greater understanding of the product. “Given all that, maybe the risk really has gone down,” he said.
Accuracy in the numbers used in pricing is greater today than previously, so it is much safer for carriers to be in the market now, Glickman said.
hmmmmmm.....
where have I heard that before?????
oh, that's right:
http://www.insurance-forums.net/for...ifferent-environment-new-policies-t77465.html
and
http://www.insurance-forums.net/for...mes-sourcebook-rate-increase-risk-t75409.html
and
http://www.insurance-forums.net/for...not-making-much-profit-youd-hoped-t73933.html
and
http://www.insurance-forums.net/for...rum/market-may-need-reinvent-ltci-t73659.html
and
http://www.insurance-forums.net/for...urance-forum/long-term-care-plans-t65773.html
- 16,877
That's impressive. I could be way off but I assume that most individual LTC sales aren't that fast.
LTC is not complicated. I can make proper recommendations within 90 seconds.
Of course if my clients have questions and need more time, that is fine too.
But this is not complicated whatsoever.
Not anymore complicated than term life insurance.
- 10,318
You might be stretching things a bit Jack.... lol. You have a unique sales pipeline that most agents do not have. You receive an email or phone call at a point when the prospect has shown a strong interest in owning LTCI. Most agents are out there bringing the subject up to people who often where not planning on buying the product anytime soon or maybe had never had the thought cross their mind before (even though they know they need it).
If I suggest LTCI to an annuity client, it is usually 2 meetings minimum to get the app. And that is usually a month or two after I initially brought the subject up. Ive had my share of slam dunks where they are ready to pull the trigger immediately. But that is not the majority.
I do not find LTCI complicated. But it is certainly not as simple as Term Life Insurance. Not as complicated as an IUL maybe. But not as simple as Term either.
jmo
And any new carrier in the LTCI field is welcome imo. Competition drives innovation.
Seems like a silly inefficient approach.
Rather wait on people that walk into my restaurant then first make a meal and walk down the street knocking on doors to see who is hungry. Food will get cold. Won't be appetizing. Will throw the food away. I like my approach better.
- 10,318
Your method is certainly more efficient. Just not how this industry has traditionally operated. It is what it is.
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