LTC Insurance is Changing

     This blog does not endorse any LTCi company.  The best LTC policy is the one enforce at time of claim.  It is my cardinal rule not to discuss commission.  If you are selling LTCi to get rich, you'll be disappointed.  My purpose is to inform, educate and comment on Long Term Care and the Long-Term Care insurance industry that I have been dedicated to for over 18 years.
     I have been witness to a lot of changes as this industry has evolved and matures.  The need for coverage has never been stronger.  Due to the economic environment of prolonged historically low interest rates and the LTCi unique industry dynamics, companies have made independent decisions on how to react to the market.    This year Prudential left.  Genworth and TransAmerica are in the process of making fundamental changes to NEW business being sold.  It is important to note that until the States approve the changes requested they WILL NOT be in effect in that state. As always producers check with your marketer on the current status of the changes that are occurring.


    Genworth has announced:

• Elimination of Preferred discounts  (20% single / 10% for couples)
• Couples discounts to be reduced:
•  Two apply two issued from 40% to 20% 
• Two apply one issued from 25% to 10%

 Genworth will also be eliminating the sale of Unlimited Benefits (expected) and limited payment options


    TransAmerica has announced:

• Rate increase of 15% across the board in all States
• Spousal discount reduced 
• Two apply two issued from 30% to 20%
• Only one married spouse applies from 15% to 10%

TransAmerica like Genworth will be eliminating the sale of Unlimited Benefits and limited payment options.


My question to the industry is when our economy improves will we see a decrease in issued policy premiums?
Schug The LTC Guy