Uninformed Long Term Care Insurance Agent

So, I receive this email today from a gentlemen I have been working with who told another agent that he was considering Mass Mutual for long term care insurance. This is what we have to deal with in our industry.

"May I ask, why Mass Mutual? Mass Mutual offers less in benefit than any of the others. You are exposing yourself to a lifetime of potential rate hikes with no alternatives but to either pay higher rates for a longer time or decrease benefits that you acquired and already paid for, to offset the premium hikes, (since you are both young and have a long life expectancy). The best company offering a solid flexible program is Mutual of Omaha. I would have explained that Mutual of Omaha has a flexible inflation scale that can be used to lower your premiums without losing all the growth you have built up to that point, if you ever received a rate hike. Other companies will take away the growth on your original monthly benefit if you remove the inflation or go down in your years of coverage.

Secondly, you are worried about Alzheimer’s. If that is the case, you want a policy that will pay out longer than 3 years. Alzheimer’s typically, if the body is working well, can require custodial care 5 -10 years. It’s a very different factor when you plan. Mass Mutual does not give you Shared Care if you have a policy longer than 3 years. This is an example of what I mean by very limited. Also, you cannot get the whole Pool of Money upon one spouse passing. There is a fixed Pool of Money, based on the original Pool of Money before growth that is there to share. Not so with Mutual. If the Pools of Money both build to $300,000 and a spouse dies without using some or all the benefit money, all of the leftover Pool goes to the Pool of Money of the surviving spouse.

Mutual of Omaha has the best non-raising premium history of all the Carriers. I would offer Mass Mutual last, as long-term care is not the major focus of that Carrier, alternate products are their true focus.

I will requote Mutual of Omaha as you asked. This plan will never stop growing. You have a minimum of over 4.5 years of coverage. I say minimum because the more money you have as a monthly benefit, there’s the possibility, that you may not need to use it all every month. That money remains in the Pool of Money to be used after 4.5 years pass. You also have a cash benefit to pay people who are non-licensed, offering caregiving help. This is an important benefit with all my clients. Mass Mutual will not give you what Mutual of Omaha will. My experience in the business would recommend Mutual of Omaha above all the others."
 
So, I receive this email today from a gentlemen I have been working with who told another agent that he was considering Mass Mutual for long term care insurance. This is what we have to deal with in our industry.

"May I ask, why Mass Mutual? Mass Mutual offers less in benefit than any of the others. You are exposing yourself to a lifetime of potential rate hikes with no alternatives but to either pay higher rates for a longer time or decrease benefits that you acquired and already paid for, to offset the premium hikes, (since you are both young and have a long life expectancy). The best company offering a solid flexible program is Mutual of Omaha. I would have explained that Mutual of Omaha has a flexible inflation scale that can be used to lower your premiums without losing all the growth you have built up to that point, if you ever received a rate hike. Other companies will take away the growth on your original monthly benefit if you remove the inflation or go down in your years of coverage.

Secondly, you are worried about Alzheimer’s. If that is the case, you want a policy that will pay out longer than 3 years. Alzheimer’s typically, if the body is working well, can require custodial care 5 -10 years. It’s a very different factor when you plan. Mass Mutual does not give you Shared Care if you have a policy longer than 3 years. This is an example of what I mean by very limited. Also, you cannot get the whole Pool of Money upon one spouse passing. There is a fixed Pool of Money, based on the original Pool of Money before growth that is there to share. Not so with Mutual. If the Pools of Money both build to $300,000 and a spouse dies without using some or all the benefit money, all of the leftover Pool goes to the Pool of Money of the surviving spouse.

Mutual of Omaha has the best non-raising premium history of all the Carriers. I would offer Mass Mutual last, as long-term care is not the major focus of that Carrier, alternate products are their true focus.

I will requote Mutual of Omaha as you asked. This plan will never stop growing. You have a minimum of over 4.5 years of coverage. I say minimum because the more money you have as a monthly benefit, there’s the possibility, that you may not need to use it all every month. That money remains in the Pool of Money to be used after 4.5 years pass. You also have a cash benefit to pay people who are non-licensed, offering caregiving help. This is an important benefit with all my clients. Mass Mutual will not give you what Mutual of Omaha will. My experience in the business would recommend Mutual of Omaha above all the others."



Some agents are either ignorant or liars. Since I choose to believe the best about this agent, he/she must be ignorant.

:yes:


This is a valuable resource:

http://ltcfacts.org/long-term-care-insurance/rate-increases/


mr ed
 
Very typical Jack,
We've seen this hundreds of times especially from captive agents, which this agent appears to be.

A good agent has the ability to find fault with every policy out there. Unfortunately, prospects hear what they want to hear and won't realize the ramifications of their decision until down the road, very often when it's too later.

And, that's why those looking into LTCi should always deal with an independent agent representing multiple carriers.

Incidentally, in NY (possibly other states as well) it's against the law for an agent to talk disparagingly about an insurance company.

----------

Originally posted by Mr_Ed


This is a valuable resource:

Home - LTCFacts.org

Scott,

I've mentioned to you before that your LTC Facts are inaccurate, at least as it applies to NY.
 
Very typical Jack,
We've seen this hundreds of times especially from captive agents, which this agent appears to be.

A good agent has the ability to find fault with every policy out there. Unfortunately, prospects hear what they want to hear and won't realize the ramifications of their decision until down the road, very often when it's too later.

And, that's why those looking into LTCi should always deal with an independent agent representing multiple carriers.

Incidentally, in NY (possibly other states as well) it's against the law for an agent to talk disparagingly about an insurance company.

----------

Originally posted by Mr_Ed




I've mentioned to you before that your LTC Facts are inaccurate, at least as it applies to NY.


Then tell the CA DOI. They are the source.

Source: CA DOI, December 2014.

updated reports coming this month.

http://ltcfacts.org/source-of-long-term-care-insurance-rate-increase-data/
 
Scott,

CA posted the 2015 edition earlier this month. Here you go.


Long Term Care Rate History - Active



i know it did.
i just haven't had the time to update the website yet.

----------

originally posted by ltcadviser



I HIGHLY question the accuracy of this report.
I only checked Genworth and found that not one rate increase was listed for NY, which of course is from the truth......




I think I found the problem, Arthur.
It seems that CA DOI only collects info for Genworth Life Ins. Co.
NOT Genworth Life Ins. Co. of New York.

That's why it's not showing any rate increases in NY because Genworth Life Ins. Co. does NOT do business in New York.
 
i know it did.
i just haven't had the time to update the website yet


......................

I think I found the problem, Arthur.
It seems that CA DOI only collects info for Genworth Life Ins. Co.
NOT Genworth Life Ins. Co. of New York.

That's why it's not showing any rate increases in NY because Genworth Life Ins. Co. does NOT do business in New York.


You beat me to Arthur's answer, Scott
 
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