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Author: Larry Plite
Date: 02-12-05 12:05
Can anyone tell me why I don't see many NY Life, Northwestern, Mass Mutual LTC policies out in the field?
I believe they all offer LTCI. Are their rates too high, strict underwriting or aren't their agents pushing these? These are mostly captive agents I believe.
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Author: Arthur Rudnick
Date: 02-12-05 13:27
Larry;
You've answered your own question: Other than Mass Mutual, they are all sold by captive agents.
Arthur
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Author: Larry Plite
Date: 02-12-05 17:21
Why don't I see many of these companies out in the field in which people own policies from these great companies? In fact, I have never seen one and I have been in LTC for several years.
Just a guess is that their agents might concentrate in other areas besides LTC.
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Author: Robyn
Date: 02-12-05 20:57
I don't know anything about New York Life. I used to work for Northwestern Mutual. The NML agents that I know are not selling their product---too expensive. NML agents are not quite captive. They are allowed to sell other products if NML doesn't fit. The problem is that only NML agents can sell NML products. If you aren't running across NML agents, you won't see NML LTC.
As for MassMutual, I think that they have not done a good job of getting the word out about their product. I was astonished at their rates when I started to run MM quotes.
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Author: Larry Plite
Date: 02-13-05 05:20
Robyn,
"I was astonished at their rates when I started to run MM quotes."
Astonished their rates were so low or so high?
The reason I ask is I have never seen their rates.
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Author: Robyn
Date: 02-13-05 07:02
So low. For someone who can get their best rates, they are often 65-70% of GE and 50% of Hancock. (The rates will be going up.) I ran a quote yesterday for a guy in his 40's with a lifetime benefit and the price was 40% of Hancock. Hancock won't give their best rates with a lifetime benefit.
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Author: Steve Eads, CLU
Date: 02-14-05 10:34
The down side of buying business is that many carriers who come into the market really cheap end up with inforce policy rate increases on those policy forms within 5-7 years.
Good news, bad news potential.
Steve Eads, CLU
www.LTCiPro.com
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Author: Robyn
Date: 02-14-05 10:50
Steve,
I mentioned it on another thread. MassMutual did not buy business. They have simply been a little slower with price increases.
Out of curiousity, what companies have raised rates on existing clients? I am only interested in companies that are still selling individual LTC.
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Author: Steve Eads, CLU
Date: 02-14-05 11:04
Robyn, pardon my frankness but unless you are a member of the MM Board of Directors, the Exec. VP of marketing, Operations, Actuarial, etc., etc., how would you possibly know what any company's business model and overall marketing plans are?????
No offense, Robyn, but for those of us who have been in this business for well over 25 years, we've "been there and done that." What you can be assured of is that you will "NEVER" know for sure what any carriers intentions are until you see it in the MEDIA or an AGENT ADVISORY!!!
That, you may take to the bank!!!
I do admire your loyalty to the product and company you sell. You are a carriers "dream agent."
Happy Valentines Day.
Steve Eads, CLU
www.LTCiPro.com
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Author: Robyn
Date: 02-14-05 11:26
Steve,
Your franknes is fine. I have no loyalty towards MassMutual or any other company. My loyalty towards them lasts from now until early April when they will no longer be relatively underpriced.
"how would you possibly know what any company's business model and overall marketing plans are?????" I don't claim to know. We all, however, should know that they never had a business model to buy business. How do we know this. 1)Until 2000, they came out publicly many times and said that they would not enter the LTC business until they could do it profitably (NML and Guardian said the same thing)and at the then current premiums, they could not do it profitably 2)To buy business, they would have had to introduce LTC at a price cheaper than their competition. They never did this. That gives me enough information to know that their business model is not about buying business. They've just been slow in raising prices (which has already taken place except for the fact that in most states brokers have a choice of selling old or new policy for 60 days.)
Do you have an answer to my question about rate increases for companies that are still selling individual LTC?
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Author: Steve Eads, CLU
Date: 02-14-05 12:49
Bankers Life and Casualty...the most recent (I think) to announce rate increases for this year on inforce business. I seriously doubt they will fold the LTCi tent as a result, do you?
Steve Eads, CLU
www.LTCiPro.com
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Author: KRISTA SIBLEY
Date: 03-18-05 03:51
I work for Banker's and we didn't raise premiums for our inforce customers. We have remained consistent with our premiums.
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