Over 150.000 insurance professionals and consumers come to the Insurance Forum every month. Click here to register for FREE


Go Back   Insurance Forums > Insurance Agents and Brokers Forum > Long Term Care Insurance Forum

Reply to We Need To See The Numbers/Premiums First......     
Old 06-01-2017, 12:11 PM   #11
Guru
 
Join Date: Nov 2009
Posts:583
State: yankee466 is an Insurance Agent from Georgia
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
Originally Posted by Mr_Ed View Post
having a hybrid policy is better than having no policy.
having a traditional policy is better (usually) than having a hybrid policy.

The actual cost of the single premium hybrid policy is the opportunity cost PLUS the entire single premium (because if they need care, their single premium is used to pay for their care).

A hybrid is like having a two-year or a three-year elimination period on a traditional LTCi policy.
yes...but so is paying into a traditional plan for 20-30 years before you use it.....they still have a lot of your money, albeit a little at a time.

  Reply With Quote to We Need To See The Numbers/Premiums First......

Old 06-01-2017, 12:42 PM   #12
Guru
 
Join Date: May 2007
Posts:1,891
State: bluemarlin08 is an Insurance Agent from Undisclosed Location
bluemarlin08 is a member of 1000 posts VIP club
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
Don't you have lost opportunity cost on traditional policies plus the "loss' of the non guaranteed premium?
------------------------------------
  Reply With Quote to We Need To See The Numbers/Premiums First......
Old 06-01-2017, 12:52 PM   #13
Guru
 
Join Date: Nov 2008
Posts:1,851
State: Mr_Ed is an Insurance Agent from New Jersey
Mr_Ed is a member of 1000 posts VIP club
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
Originally Posted by yankee466 View Post
yes...but so is paying into a traditional plan for 20-30 years before you use it.....they still have a lot of your money, albeit a little at a time.
I'll do the math for you later.
I don't have time now.

----------

Originally Posted by bluemarlin08 View Post
Don't you have lost opportunity cost on traditional policies plus the "loss' of the non guaranteed premium?

"non guaranteed premium"...gimmeabreak.

#1) Some hybrids are NOT guaranteed, were you aware of that?

#2) are you aware that for LTCi policies purchased in TN since 2004, in order to get a rate increase the insurance company has to decrease their profits?
------------------------------------
  Reply With Quote to We Need To See The Numbers/Premiums First......
Old 06-01-2017, 01:07 PM   #14
Guru
 
Join Date: May 2007
Posts:1,891
State: bluemarlin08 is an Insurance Agent from Undisclosed Location
bluemarlin08 is a member of 1000 posts VIP club
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
I only use the guaranteed. Back to my question though, aren't those lost opportunity costs? Do you tell your clients about potential rate increases?
------------------------------------
  Reply With Quote to We Need To See The Numbers/Premiums First......
Old 06-01-2017, 01:26 PM   #15
Guru
 
Join Date: Nov 2008
Posts:1,851
State: Mr_Ed is an Insurance Agent from New Jersey
Mr_Ed is a member of 1000 posts VIP club
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
Originally Posted by bluemarlin08 View Post
I only use the guaranteed. Back to my question though, aren't those lost opportunity costs? Do you tell your clients about potential rate increases?

of course I tell them about potential rate increases....geez.
don't you tell your clients about Tennessee's Rate Stability Regulation and how it penalizes an insurance company if they have a rate increase?
------------------------------------
  Reply With Quote to We Need To See The Numbers/Premiums First......
Old 06-01-2017, 01:31 PM   #16
Guru
 
Join Date: May 2007
Posts:1,891
State: bluemarlin08 is an Insurance Agent from Undisclosed Location
bluemarlin08 is a member of 1000 posts VIP club
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
I tell them rates are not guaranteed. Are you not going to answer my initial question? Geez, as you say.
------------------------------------
  Reply With Quote to We Need To See The Numbers/Premiums First......
Old 06-01-2017, 01:55 PM   #17
Guru
 
Join Date: Nov 2008
Posts:1,851
State: Mr_Ed is an Insurance Agent from New Jersey
Mr_Ed is a member of 1000 posts VIP club
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
Originally Posted by bluemarlin08 View Post
I tell them rates are not guaranteed. Are you not going to answer my initial question? Geez, as you say.

Assuming a 2% interest rate, the opportunity cost of a $100,000 single premium is $2,000 per year EVERY YEAR!

That means the $100,000 single premium has the same opportunity cost as a policy that has a $2,000 annual premium.

The difference is when you need to make a claim. With the traditional, you pay the first 90 days. With the single premium hybrid, you're paying for the first 2 to 3 years.

And, in most cases, the traditional policy is going to have a higher monthly benefit, a better inflation benefit, and a longer benefit period.

And if interest rates go up, the opportunity cost of that $100K single premium will be even worse.

----------

Originally Posted by bluemarlin08 View Post
I tell them rates are not guaranteed. Are you not going to answer my initial question? Geez, as you say.


don't you tell consumers about Tennessee's Rate Stability Regulation and how it penalizes an insurance company if they have a rate increase?
------------------------------------

Last edited by Mr_Ed; 06-01-2017 at 02:53 PM. Reason: And if interest rates go up, the opportunity cost of that $100K single premium will be even worse.
  Reply With Quote to We Need To See The Numbers/Premiums First......
Old 06-13-2017, 06:56 AM   #18
Expert
 
Join Date: Feb 2011
Posts:24
State: kpbdy99 is an Insurance Agent from Maine
We Need To See The Numbers/Premiums First...... Re: We Need To See The Numbers/Premiums First......
Just give them a sample plan, show them the cost. If they're serious shoppers, they already have a rough idea, and they'll still talk to you. If they pitch a fit at the sample, they were never going to buy anything anyway, and it's better you know that now than after meeting with them two or three times.
------------------------------------
  Reply With Quote to We Need To See The Numbers/Premiums First......
Reply to We Need To See The Numbers/Premiums First...... 

  Insurance Agent Forum > Insurance Forums > Insurance Agents and Brokers Forum > Long Term Care Insurance Forum






All times are GMT -5. The time now is 05:20 PM.

Forum enabled with vBulletin®
Copyright ©2000 - 2017, vBulletin Solutions, Inc.


Join the Forum - It's FREE

Share This Page



Weekly Poll

Where do we go from here? POLL
Nothing - No ACA fixes - status quo
29.82 %
HHS Rulings and band aid bills
17.54 %
Hail Mary repeal and/or replace bill
17.54 %
A bipartisan bill to fix ACA
35.09 %

Voters: 57. This poll is closed