LTC Premium Increases
- Thread starter sturgbe
- Start date
Arthur Rudnick
Guru
- 1,652
previously posted by Sturgbe
Funny you should bring that up..........
I was telling someone yesterday that I have 4 policyholders (2 couples) who purchased a 10-pay 9 years ago.
They will be notified within the next 6 months that their policies will be hit with a 5% increase during their final payment.
Those who purchase life-pay modes are certain to be hit with a few increases before it's over.
Funny you should bring that up..........
I was telling someone yesterday that I have 4 policyholders (2 couples) who purchased a 10-pay 9 years ago.
They will be notified within the next 6 months that their policies will be hit with a 5% increase during their final payment.
Those who purchase life-pay modes are certain to be hit with a few increases before it's over.
If reputable means Northwestern Mutual, I think you might avoid rate increases.
If reputable means Transamerica, Genworth, John Hancock, Thrivent, Omaha, I do not think you can avoid rate increases whatsoever.
A 10 Pay is definitely more likely to avoid rate increases in years 11+.
I think all of the companies are "reputable" Remember - nobody had a history of rate increases, until they had one.
10-pays are a little safer in the sense you only have to worry about 10 years, and most increases, historically have happened after that by the time they get approved by the states. That being said, there is a reason 10-pays are hard to come by these days.
- 15,041
Did you tell them that they effectively just one the lottery? Only one price increase on their LTC policy before it became paid up?
Arthur Rudnick
Guru
- 1,652
previously posted by VolAgent
I'll contact them 1 month before they get their notice.
I'm sure they'll be thrilled.
I'll contact them 1 month before they get their notice.
I'm sure they'll be thrilled.
- 15,041
I'm not sure if that was sarcasm or not.
I'm sure their natural reaction is to be upset, but if you take a step back and look at things, they got off pretty easy with on a 5% increase and only on the final premium payment.
5% isn't really an increase in the scheme of things. I will be thrilled if my 10 Pay gets to the finish with no rate increases higher than 35%. And if I get one, I hope it is in year 7 or later....
Arthur Rudnick
Guru
- 1,652
previously posted by VolAgent
Yup, with a LOT of sarcasm.
When you have to notify a policyholder of an increase, any increase, they could care less about increases to other policyholders. All they look at is their own. And, whether it's 5%, 10%, 50% or as in recent cases that I've had to deal with of 90% & 100%, they're pissed and rightfully so.
One couple's combined premium is $25,600/yr. 5% is $1,275.
The other couple is $21,369/yr, a $1,068 increase.
Yes, I understand how lucky they are. In the scheme of things one 5% increase in 10 years is no big deal. But, they're going to be unhappy and as their agent, I'm left to deal with it.
Yup, with a LOT of sarcasm.
When you have to notify a policyholder of an increase, any increase, they could care less about increases to other policyholders. All they look at is their own. And, whether it's 5%, 10%, 50% or as in recent cases that I've had to deal with of 90% & 100%, they're pissed and rightfully so.
One couple's combined premium is $25,600/yr. 5% is $1,275.
The other couple is $21,369/yr, a $1,068 increase.
Yes, I understand how lucky they are. In the scheme of things one 5% increase in 10 years is no big deal. But, they're going to be unhappy and as their agent, I'm left to deal with it.
Goddamn, them some New York premiums, Boy!
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