Prudential Financial (NYSE: PRU) said Wednesday it will discontinue sales of new group long-term care (LTC) insurance policies.
Joining Metlife and Unum, Prudential is just the latest insurer exiting the LTC business, which has become less profitable in the continued low interest rate environment.
The second-largest U.S. life insurer said the halt would be effective Aug. 1, 2012, in all states except Indiana, Iowa, Kansas, Louisiana and South Dakota, where it will continue to offer products for a period of time as required by state law. Prudential will also notify clients of its intent to continue to accept group long-term care enrollments until June 30, 2013.
The company said terms and conditions of coverage provided under existing group long-term care insurance certificates will not change. This coverage is guaranteed renewable, and as long as premiums are paid on time and benefits are not exhausted, coverage will remain in place—although premiums may change on a class basis, subject to regulatory review. Prudential is committed to ensuring that current group long-term care insurance clients and plan participants will continue to receive service.