Prudential Group LTC

[Full Throttle]

I have a client who works for an airline, has Prudential as a group LTCi option, but they are separating ways shortly. The client asked me to evaluate his options:

$100/day $39.77/month
$150/day $59.66/month
$200/day $79.54/month
$250/day $99.43/month

(50% Home Health Care, FPO only, not state partnership qualified)

All the limitations I listed are concerns, but even given those, if I try to run comparison rates to benchmark with Genworth or MoO, they are no where close to touching these rates. Anything big I am missing?

 

[Arthur Rudnick]

originally posted by Full Throttle

Anything big I am missing?

1) What's his age?
2) How's his health?
3) What's the elimination period?
4) What's the benefit period?
5) What state does he live in?
6) Is he married or single, and if married, is his spouse/partner applying?

 

[ltcadviser]

I have a client who works for an airline, has Prudential as a group LTCi option, but they are separating ways shortly. The client asked me to evaluate his options:

$100/day $39.77/month
$150/day $59.66/month
$200/day $79.54/month
$250/day $99.43/month

(50% Home Health Care, FPO only, not state partnership qualified)

All the limitations I listed are concerns, but even given those, if I try to run comparison rates to benchmark with Genworth or MoO, they are no where close to touching these rates. Anything big I am missing?

You are not missing anything. These rates were filed 5 years ago so the rates are relatively inexpensive compared to Omaha and Genworth rates filed within past 3-18 months. I live in Atlanta and I have a lot of clients with Delta so I analyzed the Prudential Delta Group LTC plan many times. If your client wants an FPO plan the Prudential plan is priced well. For now. The key is: does your client WANT an FPO plan with 50% Home Care? If so, the key with an FPO plan is to buy as much coverage as possible today! (over-purchase). And then accept the FPO offers every single time as they are priced at offered age. This way you build up your coverage for age 80-90. FPOs are expensive to purchase coverage in 70s and 80s so buy early and often then put it on cruise control.

Long Term Care Insurance Quotes, Reviews, Ratings & Expert Advice - LTC Partner

 

[Arthur Rudnick]

Mr. Adviser,
Is Pru still around offering group plans?

 

[Mr_Ed]

Mr. Adviser,
Is Pru still around offering group plans?

tomorrow is the last day to sign up for a pru group ltci policy.

 

[ltcadviser]

Mr. Adviser,
Is Pru still around offering group plans?

Please call me Jack. Scott answered above.

 

[Full Throttle]

You are not missing anything. These rates were filed 5 years ago so the rates are relatively inexpensive compared to Omaha and Genworth rates filed within past 3-18 months. I live in Atlanta and I have a lot of clients with Delta so I analyzed the Prudential Delta Group LTC plan many times. If your client wants an FPO plan the Prudential plan is priced well. For now. The key is: does your client WANT an FPO plan with 50% Home Care? If so, the key with an FPO plan is to buy as much coverage as possible today! (over-purchase). And then accept the FPO offers every single time as they are priced at offered age. This way you build up your coverage for age 80-90. FPOs are expensive to purchase coverage in 70s and 80s so buy early and often then put it on cruise control.

Long Term Care Insurance Quotes, Reviews, Ratings & Expert Advice - LTC Partner

You are correct, it is Delta and the last day they will take applications is tomorrow. The client called me frantic last night asking what to do. After getting more details this morning, it looks like it does have a 5% compound inflation rider option and it's hard to come close to the current pricing with the other carriers I shopped (MoO, Genworth, JH, Trans). That makes me a little nervous since that could mean a large rate increase later, but it's the option I would take if I were the client.

Age 56, MN, Good Health, Widowed:

90 Day Elimination, 5 year benefit, 5% compound:

$100/day = $111.13
$150/day = $166.70
$200/day = $222.26
$250/day = $277.83

I figured it would be simplified or guaranteed issue, but it sure doesn't look that way from the application that will need to be completed. Downside is 50% HHC benefit, but at least it should now qualify as a partnership plan with the inflation benefit option.

 

[Mr_Ed]

You are correct, it is Delta and the last day they will take applications is tomorrow. The client called me frantic last night asking what to do. After getting more details this morning, it looks like it does have a 5% compound inflation rider option and it's hard to come close to the current pricing with the other carriers I shopped (MoO, Genworth, JH, Trans). That makes me a little nervous since that could mean a large rate increase later, but it's the option I would take if I were the client.

Age 56, MN, Good Health, Widowed:

90 Day Elimination, 5 year benefit, 5% compound:

$100/day = $111.13
$150/day = $166.70
$200/day = $222.26
$250/day = $277.83

I figured it would be simplified or guaranteed issue, but it sure doesn't look that way from the application that will need to be completed. Downside is 50% HHC benefit, but at least it should now qualify as a partnership plan with the inflation benefit option.

it won't be a partnership policy.
it has to be filed as a partnership policy in order to be a partnership policy.

group policies are RARELY partnership policies.

 

[ltcadviser]

For a large segment if LTCi buyers, Partnership benefits will never be accessed or desired to be accessed.

 

[NWBenefitProvider]

For a large segment if LTCi buyers, Partnership benefits will never be accessed or desired to be accessed.

I'm sort of new to the LTC arena and would be curious about your statement above. Are you speaking of partnership benefits like when you add a surviving spouse benefit rider or something else? Also, why do you think they wouldn't use it? I'd appreciate any insight, because another broker here is really trumping the benefits of the surviving spouse riders.

Thanks.