Long Term Health Archives

Long Term Insurance Rate Increase

By Ed Crowe | Long Term Care | 0 comment | 11 July, 2012 | 0

Trans America has applied for a national rate increase on all new long term care sales. This will affect new business only and will not change rates for current clients. The rate changes being applied for are substantial and are part of a trend for LTC discontinuance and rate increase from most LTC carriers. Genworth, Mutual of Omaha and John Hancock recently raised rates. Met Life and Prudential stopped selling new plans going forward. To see the average cost of long term care in Connecticut (Click Here)

Read the Press Release below….

At Transamerica Long Term Care, we aim to be a leader in the long term care marketplace. To achieve that objective, we actively manage our long term care business to ensure our programs and offerings align with our core underwriting and business management philosophy. We believe that long term care is a core product that helps us achieve our key objective: “Protecting Families and Their Dreams”.

In fact, Transamerica is currently launching its new Trans Ace product with a long term care rider. And additional chronic and critical care life offerings are currently under development.

Due to the ongoing, historically low interest rate environment and current industry dynamics, we are implementing a series of changes to our current product offerings to ensure that our long term care business continues to grow in a financially responsible manner.

a.	We are filing for an across the board 15% increase on all new business premium rates. The new premiums will apply to all new business sold after the implementation date of the change.
b.	The current spousal discount of 30% will be reduced to 20%. The “married spouse not applying” discount will be reduced from 15% to 10%.
c.	The Preferred Health discount applicable to single applicants will be reduced from 15% to 10% to be consistent with the Preferred Discount applied to married couples.
d.	We are suspending sales of all of our limited pay options, including Single Pay, Pay-to-65, 10-Pay, and 15-Pay. We will no longer accept 1035 Exchanges to our long term care product
e.	We are eliminating the Lifetime (Unlimited) Benefit Period. We will continue to offer all benefit periods up to and including those benefit packages that produce a 6 year benefit period.

These changes will apply to all states.

We will begin implementing the new rates and all of the other changes as soon as approvals are received from the states and Interstate Compact, and new illustration software and marketing materials are available.

As approvals are received, additional field communications will be provided. These communications will include information regarding implementation dates by state, transition timelines and information on availability of new marketing materials and illustration software. This information will also be available on our Agent Resource Center (www.taltc.com).

We will continue to quote multi-life cases using current rates until such time as the new rates are approved. Once the new rates have been approved and implemented, we will only continue the current rates for the limited period of time required to complete an enrollment that has already begun or to honor a Service Group Request form that we have previously approved or an Implementation Memo that we have previously issued.

We believe that the TransCare^®II product is and will remain a competitively priced product in today’s long term care marketplace, providing the flexibility you need to tailor a long term care plan to help meet the needs of your client.

Transamerica’s key competitive advantages remain:

1. The 0-Day Elimination Period for Home Health Care and the Cash Benefit.

2. The Built-In Cash Benefit.

3. The Return of Premium to Age 67.

4. The Double Accident Benefit to Age 67.

5. The Step-Rated Benefit Increase Option and the built-in Deferred Benefit Option.

6. Multi-Life Programs Available in all 50 States.

7. Outstanding Financial Ratings.

8. More than 25 years of long term care experience and expertise.

9. Outstanding Claims paying history, including nearly $1.5 million in claim benefits paid each business day.

CALL Ed Crowe at 203-796-5403 or email Edward@croweandassociates.com if you have any questions or concerns.