LTCI is worth it

Second, one way of looking at the increases is that the policyholders received a heavily discounted price on their policies in the period before the increases took effect, or will take effect.

Getting LTCI coverage for half of what, from an actuarial perspective, the coverage ought to cost is like buying a $30,000 car and paying on a $16,000 loan for half of the loan period. What a deal!

Third, the consumers who hold the policies are still receiving a great value at the increased premium, because the issuers are not likely to get close to break-even results on these policies, even with the rate increases.

Fourth, the truth is that some of the increases we’re seeing are truly excessive in my opinion, no matter what the reasons are. We have to acknowledge that.

Fifth, as far as we can tell, the policies we are selling today are priced conservatively and correctly.

Sixth, if you and consumers don’t buy what I’m saying, one alternative is to sell linked products that offer a combination of guaranteed premiums and benefits linked to long-term care triggers.

See also:

• LTCI Watch: California
• 12 Questions for 1 Successful LTCI Agent: Leonette Francia
• How To Sell – Or Buy – An LTC Agency