Transamerica's New Inflation Rider: CBIO

[Arthur Rudnick]

Transamerica has just introduced a new optional inflation rider:

Tailored Compound Inflation Benefit (CBIO)

Prior to age 61, the benefit amounts will increase on the policy's anniversary date each year by 5% of the previous year's amount.

From ages 61 to 76, the benefit amount will increase each year by 3% of the previous year's amount.

After age 76, there will be no additional inflation increases.

Thoughts?

 

[Mr_Ed]

Transamerica has just introduced a new optional inflation rider:

Tailored Compound Inflation Benefit (CBIO)

Prior to age 61, the benefit amounts will increase on the policy's anniversary date each year by 5% of the previous year's amount.

From ages 61 to 76, the benefit amount will increase each year by 3% of the previous year's amount.

After age 76, there will be no additional inflation increases.

Thoughts?

for younger buyers it's better than a straight 3% compound (unless they live to be 95+).

it's priced competitively.

it's partnership-qualified in most DRA Partnership states.

it's been around for awhile. it came out with the Transcare 3.

 

[Arthur Rudnick]

NY still has TransCare 2 and it was just introduced.

 

[ltcadviser]

Transamerica has just introduced a new optional inflation rider:

Tailored Compound Inflation Benefit (CBIO)

Prior to age 61, the benefit amounts will increase on the policy's anniversary date each year by 5% of the previous year's amount.

From ages 61 to 76, the benefit amount will increase each year by 3% of the previous year's amount.

After age 76, there will be no additional inflation increases.

Thoughts?

My thoughts are I do not really care about what silly inflation protection options some of these other carriers' marketing departments try to create. Remember John Hancock's 5%/3% hybrid option it tried to market 13 years ago. Consumers buy into simplicity. Why complicate this stuff. What is the point? Marketers are idiots sometimes.

 

[wc2624]

Tailored has been around for a while and will remain a tough sell as long as there are lifetime increase options with other carriers which are priced competitively. Tailored is still better than their step rated BIO.

With that said, anyone have any luck with JH's new Performance LTC? I agree that simplicity with the product is the best scenario for sales but Performance LTC is all smoke and mirrors with a series of potential questions by the client which can only be answered by the agent with a solid "who knows?".

 

[ltcadviser]

With that said, anyone have any luck with JH's new Performance LTC? I agree that simplicity with the product is the best scenario for sales but Performance LTC is all smoke and mirrors with a series of potential questions by the client which can only be answered by the agent with a solid "who knows?".

I do not understand your question? What do you mean by "do any of us have any luck" with the JH policy? We are consultants. Clients contact us to buy LTC insurance. Clients rely on us to write the best policies for their needs. So, if we know a policy has zero value we will not write it. So, how does "are we having any luck" relate to our business relationships with our clients? Writing business has nothing to do with luck. We select and write the best policies for our clients.

 

[wc2624]

I do not understand your question? What do you mean by "do any of us have any luck" with the JH policy? We are consultants. Clients contact us to buy LTC insurance. Clients rely on us to write the best policies for their needs. So, if we know a policy has zero value we will not write it. So, how does "are we having any luck" relate to our business relationships with our clients? Writing business has nothing to do with luck. We select and write the best policies for our clients.

I'll rephrase the question. Has anyone sold a JH Performance LTC policy?

I agree with you in that I'm kind of lost on what the value is in the policy and was wondering if anyone had any color.

If you don't that's fine but you can spare me the relationship lesson.

 

[ltcadviser]

I'll rephrase the question. Has anyone sold a JH Performance LTC policy?

I agree with you in that I'm kind of lost on what the value is in the policy and was wondering if anyone had any color.

If you don't that's fine but you can spare me the relationship lesson.

Well, why would you care if another agent has sold a policy you feel is not a very good option?

 

[wc2624]

....and around and around we go.

 

[ltcadviser]

....and around and around we go.

Not really sure what your problem is. You state you do not like a policy.
And then you want to know if anyone is selling a policy you do not like?

If you are smart and your IQ is 135 for example, why would you care if a simpleton with an IQ of 94 is selling a policy? Wouldn't you trust your own analytical ability to do what is best for your clients.

If someone replies to you that they "are having luck" selling a policy you find of no value, why do you really care?

Or let me "rephrase my question."

Are you a follower or a leader?