Prudential Bites the Dust

[yankee466]

just learned that Prudential Financial will be exiting the individual long-term care insurance market effective immediately.


Applications dated and signed as of today (March 7, 2012) will be accepted by Prudential through March 16th

 

[VolAgent]

Re: Prdential Bites the Dust

Quick, someone post out there are literally dozen of companies still writing LTC.

Its Genworth, a couple of the major mutuals and the seven dwarfs at this time.

 

[xrac]

Long Term Care seems to be a market that several companies are pulling back from.

 

[somarco]

Thanks for the heads up Herman

But wait . . .

http://www.lifehealthpro.com/2012/02/28/aaltci-prepares-may-ad-campaign

So 8 days ago they appear in a promo piece for LTCi and now this?

Not saying you are wrong but WTH?

http://www.expertclick.com/NewsRele...ce_Awareness_Campaign_Expanded,201239453.aspx

 

[Crabcake Johnny]

http://www.prudential.com/media/managed/LTCCostStudy.pdf

 

[VolAgent]

Long Term Care seems to be a market that several companies are pulling back from.

Everyone but a few of our resident LTC Gurus seem to get that.

They can tell us it is great and profitable as long as they want, but there is a reason that these companies are getting out. Here is a hint, it isn't because it is too profitable.

 

[Full Throttle]

I like to send in applications on Fridays, maybe I shouldn't hold onto the LTC apps that long. The carrier may no longer be in the LTC business!

Just last night I presented Pru and United of Omaha as options. The client picked United of Omaha. When a carrier exits the LTC business, is there any trend showing higher rate increases later on those clients compared to a carrier still writing new business?

 

[Crabcake Johnny]

The other factor is, who is the heck is selling this? I wouldn't even know where to start regarding prospecting for clients. Where would I get solid training? Dunno. And if I don't know, imagine being a new agent.

It would likely take a rather large marketing budget and take quite a while to get off the ground. I have heard, but cannot confirm, that the applications are "bears."

I'm also just guessing that the seniors who really want it have trouble qualifying while the more healthy younger seniors don't see the immediate need.

It also seems to be a relatively complicated product. At least, that's my perception and if that's the perception of most seniors then it's a tough pitch.

What the industry needs is a rather large base of healthy younger seniors. But getting agents to commit to this product line is a definite challenge.

 

[yankee466]

The other factor is, who is the heck is selling this? I wouldn't even know where to start regarding prospecting for clients. Where would I get solid training? Dunno. And if I don't know, imagine being a new agent.

It would likely take a rather large marketing budget and take quite a while to get off the ground. I have heard, but cannot confirm, that the applications are "bears."

I'm also just guessing that the seniors who really want it have trouble qualifying while the more healthy younger seniors don't see the immediate need.

It also seems to be a relatively complicated product. At least, that's my perception and if that's the perception of most seniors then it's a tough pitch.

What the industry needs is a rather large base of healthy younger seniors. But getting agents to commit to this product line is a definite challenge.

LTC is a tough business to get into, but like any other insurance product, if you have someone to mentor you and you posses good walking/talking skills, you can be successful. Every person you meet past the age of 50 is a candidate, and unlike health insurance, most people don't have it and don't understand it......so there is an opportunity if you know how to introduce the subject. Thanks to a Mutual of Omaha "fire sale" in January, I sold about 20 policies that month...so it is not always hard....but that was a GREAT month. Like anything else, it is easy to sell, but it can be hard to find someone to buy it.

LTC insurance is one of the easiest to qualify for medically.......when you compare it to health, disability, or life insurance. And, an ap is an ap is an ap.

I partner with agents on a referral basis who do not want to sell it themselves....and we can handle almost all 50 states, so email me anytime with questions.
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Thanks for the heads up Herman

But wait . . .

AALTCI Prepares May Ad Campaign | LifeHealthPro

So 8 days ago they appear in a promo piece for LTCi and now this?

Not saying you are wrong but WTH?

Long Term Care Insurance Awareness Campaign Expanded

They are staying in the Group LTC market....so they are not exiting all together.

 

[Full Throttle]

The other factor is, who is the heck is selling this? I wouldn't even know where to start regarding prospecting for clients. Where would I get solid training? Dunno. And if I don't know, imagine being a new agent.

It would likely take a rather large marketing budget and take quite a while to get off the ground. I have heard, but cannot confirm, that the applications are "bears."

I'm also just guessing that the seniors who really want it have trouble qualifying while the more healthy younger seniors don't see the immediate need.

It also seems to be a relatively complicated product. At least, that's my perception and if that's the perception of most seniors then it's a tough pitch.

What the industry needs is a rather large base of healthy younger seniors. But getting agents to commit to this product line is a definite challenge.

John,

I just started selling some last year. All I did is ask my clients between 50 to 65 at our annual reviews to their health plan if they had anything in place already. If not, I asked if anyone had taken the time to educate them on the topic.

I've found it's a relatively easy sale to a current client, a tough sale to non-client. I'm not a LTC guru, but last year I did a little shy of 30 lives by the end of the year just asking current health insurance clients in that age range if they had it. I didn't sell 30 clients, some of them were small business owners that needed to go multi-life to qualify for coverage and I wrote a number of tiny fringed policies for $50 daily benefits. Most of the groups were young, so there wasn't a lot of buying-up on the policies by the employees.

If I was going to lead with it, I would market one of two ways:

1. Center of influence prospecting as already stated. Most advisors already have that trust level with their clients, work out a split. Possibly host a 30 minute lunch & learn for their clients.

2. I would walk into businesses and pitch the owner on their personal needs, then sell them on doing a small fringe benefit or completely voluntary for a discount and easier underwriting.

JMO. I would be curious to know how the real LTC pro's market.