….(1) People who purchased their long-term care insurance 5, 10 or 15 years ago are extraordinarily pleased that they have the coverage at a price that now pales compared to similar coverage today. (2) Agents who have not spoken to their clients in the last few years about LTCi are stunned to see how much new business premiums have increased. The take away here is that early adopters made the best choice from a cost-to-benefit perspective and that those who continue to put off this important risk management decision will pay either higher premiums or not be able to get coverage at all.
Category Archives: News and Current Events
The California State legislature is at it again. Swaddled in the diaper of consumer protection AB999 (Yamada) would put what [...]
……as we continue to search the marketplace we’re finding a myriad of long-term care planning solutions, life, annuity, disability and critical illness products (linked/hybrids), that will provide consumers with benefits if they suffer from a chronic illness. These products, while not traditional LTCi, suit different age groups, lifestyles, budgets and planning objectives. They also allow a consumer’s premium dollars to “multi-task” providing them with important benefits when they need or choose them.
As euphemisms go “rate refresh” can be tangy or pungent…… the BIG pricing HIT will be on the 5% simple and compound inflation options. If history is any judge, when other companies have repriced their 5% inflation riders we’ve seen increases of 20% to 50% depending on simple or compound as well as the applicant’s age.
The National Debt Commission report issued December 1, 2010 recommends fixing or nixing the CLASS program. Prior to it’s inception the American Academy of Actuaries stated that CLASS was “actuarially unsustainable”. Senator Kent Conrad (D-ND) Budget Committee Chairman called CLASS a “Ponzi Scheme of the first order”.
Now let’s return to making lemonade! Our phones at BJFIM/Paradigm have been ringing off the hook since this morning and not because people are upset or complaining (at least not much). My brief email notice yesterday afternoon has spurred many of you to action. You’ve seen the opportunity and are reaching for it. Let me review:
……the purpose of today’s post is not to rail against CLASS. U.S. Department of Health & Human Services is currently in the process of sorting through the issues it faces with creating a viable and actuarially sound long-term care benefit within the parameters set forth by Congress in PPACA. Believe me, they have their work cut out for them. When we do start getting the facts I’ll share those with you along with analysis. Right now, CLASS is a talking point and not a reality.
your client/prospect will never see better premiums then NOW on 5% compound inflation protection. How do you say going, going, gone!
Calling CalPers long-term care coverage, “insurance”, is like calling me a tri-athelete! Trying to paint real insurance companies with the grease brush of CalPers long-term care insurance is the height of hypocrisy …….
If an insurance company designed and marketed a product like this to consumers its executives, including the actuaries, would be “perp-walked” out on the nightly news.