A. The long-term care market has been in a turmoil - more than a few insurance carriers have left the business, current policyholders have dealt with a number of rate increases and are likely staring more of them in the face and wonder this question: should I continue my coverage or not?
Who's out of the LTC market?
Here's a quick rundown of who's now out of the market:
- Unum exited in 2009
- Allianz exited in November 2009
- MetLife exited in December 2010
- Guardian exited in February 2011
- SunLife exited Linked Benefits in 2011
- John Hancock exited Single Pay Linked Benefits in 2011
- Prudential exited in March 2012
How significant is the price increases?
How about an 85% increase like the one proposed by CalPERS?
The recently released draft Bulletin from the NAIC may be an indicator of more bad news to come on that front.
What options do consumers have?
If you don't trust the conventional long term care products anymore (other than the risk that you might end up paying the premium for the rest of your life without using it at all), you have two other options:
a. Self insure. If you can stomach the $300 or more a day cost for a few years, this might be your option.
b. MoneyGuard leading the way. This is a quite unique product from Lincoln Financial.
With the rest of the LTC market as a backdrop, MoneyGuard is simply brilliant - single pay or flex pay:
- Total outlay - A client's spend on MoneyGuard is guaranteed. Once they have completed the scheduled premium payment period, Lincoln can't come back to them for more money. Period.
- ROP - Even if Lincoln could raise rates, the ROP feature would allow the client to walk with all premiums paid to date rather than nothing if a client walks away from something like the 85% premium increase at CalPERSs.
- Death Benefit - Somebody (you or your beneficiary) will benefit from this contract, no matter what. Live, die or quit is incredibly powerful in this environment.
In the end, the obvious solution for those who want to be self-sufficient, regardless of net worth, is MoneyGuard.
Lincoln has been in the Linked Benefits space longer than anyone, and the peace of mind that can provide is incredibly hard to place a value on.
If you want to know more about MoneyGuard from Lincoln, please feel free to contact me.