Resources

MARKET UPDATES JUNE 2023

WORKSITE

Chubb GI Hybrid Worksite Product
We're excited to partner with Chubb on our upcoming group enrollment platform, making it easier for employees and association members to obtain LTC coverage. Chubb's hybrid worksite product is gaining traction in the market with competitive pricing/benefits, employer funding strategies, and expanding availability to new groups

Federal Life Indexed Universal Life with LTCi Rider
Launched by Reframe Financial in partnership with Federal Life. Some of you may recall that Federal Life has been around for a while but is being rebooted by a private equity firm. May be a good addition to the portfolio approach for executive carve-outs or small groups.

Our Take: There are some exciting opportunities on the horizon in the group market.

INDIVIDUAL

• Brighthouse SmartCare gaining traction in NY
• Equitrust Bridge Annuity + LTCi product (with GI option) continues to gather more state approvals and traction
• Guardian Life launched SafeGuard 360, Life + LTCi + DI hybrid
• Securian SecureCare new pricing reduction continues to impress and win new cases.
• Metlife adds LTCi rider to group WL product. Gains approval in 40 states including CA to be released after 7/1/2023 for new enrollments
• Mutual of Omaha small underwriting update:
  • Removed $5,000 monthly benefit cap for one parent with history of Dementia or Alzheimer's. Total initial benefit will, however, be limited to $300,000. Inflation protection can still be added
  • Medical marijuana use once/day for sleep or mild anxiety is now considerable for coverage
• Nationwide new joint CareMatters product expected to be released in June

Our Take: Carriers are making positive moves in both traditional and hybrid solutions. With traditional, the movements are more on the underwriting side, whereas with hybrids it's more on the pricing side. Good for consumers overall and we’ll likely see this trend continue.

ALTERNATIVE

True Freedom, a non-insurance product, is gaining traction as a simplified approval alternative to traditional LTCi for individuals and small to mid-size groups.

Our Take: It’s important to understand both hybrids and non-insurance solutions so that we can provide other remedies in the event that a client does not qualify for traditional LTCi.

MARKET UPDATES MAY 2023

WORKSITE

Lots of activity in this space as more employers seek to offer LTCi as a valuable benefit to retain great employees. Milliman conducted its third annual Combination Product Experience Study and included carriers with worksite-sold products. Watch for more to come in this space.

Chubb

• New and exciting developments for the enrollment process and product access!
  • Group enrollment portal with BuddyIns planned for September
  • Potential access to Chubb product for individuals (with potential guaranteed issue) coming soon. Stay tuned!

Trustmark

• Product is 7702(b) in NY! Huge for potential payroll tax program in the future

True Freedom

• Available for association/fraternal business

Our Take: Katie bar the door as this business starts to bubble up from the employer/employee market. It’s important for all of us to look through our book of business and prospects to identify conversations that we can have with large and medium-sized employers.

INDIVIDUAL

Aetna Short Term Care

• Plans in the next year to go up to $500 per day of benefit for recovery care. Currently, you can buy up to $400 per day of benefit

Our Take: This continues to drive home Aetna as an important STC option. Though they’re limited on the length of benefit that you can buy, you will continue to be able to buy a robust daily benefit, making this a very strong alternative product.

Brighthouse

• Released in NY state in March

EquiTrust Bridge Annuity LTC

Still relatively new, but you’ve probably heard from us on this product a few times if you’ve been on recent carrier calls or study groups. 

• FIA product with LTC rider that offers guaranteed insurability if the client meets suitability guidelines
• Currently available in 36 states, with more filed. The most recent releases were in TX and WA in January

GTL Home Care Secure and Life Select

Newcomers to the scene! Home Care Secure is currently in Product Buddy. Watch for Life Select to be added soon.

Lincoln

Released their conversation catalyst tool for their market advantage product. The tool will be functional with their fixed advantage product (similar to what was previously Moneyguard) sometime in Q2-Q3.

Mutual of Omaha

• MoO recently released new underwriting information. Included in their new guide:
  • The top health conditions that Mutual of Omaha is looking at right now
  • Good questions to ask centered around these conditions, making it easier to consult and conduct field underwriting
  • Important facts about specific health conditions from the carrier’s POV
  • Information directly from the UW guide on these conditions

Our Take: Carriers in the traditional LTCi space are continuing to tinker ever so slightly with certain aspects of their underwriting to win more business, accept more clients, and be more competitive in areas beyond just pricing. If this gets even one more client approved than before, then it’s a win for everyone.

Nationwide

• CareMatters II has launched in California effective 4/17/23! Separately identifiable LTC premium for tax deductions now available with this release!
• May 2, 2023, will be the last day for the old product to be signed and received for CA

OneAmerica

• New and expanded COB options for Annuity Care II
• Effective 3/11/2023, OneAmerica is activating a 6-year COB feature on Annuity Care II.
  • This change allows clients ages 40-69 to qualify for up to 4x leverage on Annuity Care II, subject to underwriting approval
  • Applicants ages 70-80 receive the 3 year COB benefit and do not qualify for the 6-year
  • Ideal client for these changes:
    • Ages 40 to 69
    • No current major health issues
    • Own a non-qualified annuity with gains
    • Have no LTC plan in place or need to supplement

Our Take: Though there are likely better options to look at for Annuity LTC coverage, this is a great sign for the industry that the improved interest rate environment is continuing to benefit consumers by giving carriers more leeway to make these enhancements. 

• This makes Annuity Care II worth exploring and shopping 
• OneAmerica is a financially strong company (95 COMDEX) with a strong claims concierge program that can provide peace of mind when the rubber meets the road
• It’s a shame that those aged 70-80 can’t qualify for 4x leverage/6 year COB, but we’ll take whatever we can get!

Additional OneAmerica Updates

It’s all in the details. A little OneAmerica ABLTC 2022 in review:

• Average age of issues = 60.6
• Joint policies made up 48% with the remaining 52% individual
• Plan designs
  • Premium mode:
  • Single premium 23% 
  • Annuity funding whole life / Asset Care III (i.e. qualified dollar strategy) 14%
  • Recurring premium 63% 
  • Duration:
    • Base only 4%

• • • Limited duration 36% 
    • Lifetime 60% 

OneAmerica New Business Interest Rates effective 3/2023

OneAmerica First Premium Payment Methods are changing Effective June 28, 2023

The carrier is putting more security in place to keep data safe and secure.  Due to these measures, they will no longer be able to accept credit cards as a method of payment for the first premium as of June 28, 2023.  They will continue to accept Personal Check, Cashier’s Check, and eCheck.

Securian

• At the beginning of 2023, Securian announced a 25% price decrease across the board for all states except AZ, CA, CT, DE, DC, FL, IN, MT, NJ, ND, NY, SC and SD
• There may still be rollouts for other states over time, but we will see

Our Take: If you haven’t dug into illustrating Securian to see how competitive they are compared to what you’re typically offering for Hybrid plans, it’s worth your time to do so! It seems that Hybrid carriers in the space, since they’re structured very similarly, are going to continue to compete on price to try and win as much market share as possible. This kind of competition is ONLY good for agents and their clients.

Thrivent

Underwriting Information:  

There’s a preferred health checklist in the UW guide to give you a clear picture of what rate class they’ll come back with. 

1. They will look at clients with a family history of dementia, as long as it’s not early onset
2. Consider Thrivent for conditions like arthritis, A-fib, or heart bypass, depending on residual effects and stability
3. They’ll take a look at a variety of cancers, based on stage, treatment, and stability. One example is that they will consider someone recovered and treatment-free for Stage 4 for Hodgkin’s).
   Please Note: They won’t look at cancer of the bone, brain, esophagus, liver, lung, kidney, ovaries, pancreas, stomach, or any metastatic cancer
4. Crohn’s is something they’ll consider, whether single or multiple flares.
5. Type 2 Diabetes: A1C can be up to 8.5. They are looking for stability of meds or insulin. They do not list a max # of units for insulin, so if insulin is being used, you’ll want to discuss with the pre-qual line.
6. Osteoporosis- History of fragility fracture but otherwise acceptable risk, stable T-score (-3.0 to -3.9), stability > 24 to 48 months rates may be available

We’re seeing a greater willingness to innovate when it comes to product development and a desire from some important carriers to improve technology and enrollment processes. Much more exciting news to come on that in Q2.

Life Insurance + LTCi Hybrid

Nationwide

Hot off the presses! CareMatters II will be released in CA on 4/17. There are no materials or collateral yet, but watch the Facebook group for more information. 

Securian

A quick reminder that Securian underwent a 25% price decrease across the board in a large number of states. Speaks to a competitive Hybrid LTCi space that can result in new consumer advantages.

Brighthouse

This carrier just released their product in New York State in March. Check out our Brighthouse Carrier Call with Matt McCormack.

Guardian Life

Released SafeGuard360 - A unique and well-rounded and “holistic” insurance policy that offers whole life, LTCi, and disability income insurance in one. Read the press release for additional information from Guardian. We’re very excited about the innovation we’re seeing in the market.

Annuity + LTCi Hybrid

OneAmerica

Update on the Annuity Care II: This product now provides a 6-year COB benefit, essentially offering more LTC coverage.

• Product Announcement

Breakdown of Product Enhancements

• Persona: Age 40-69
• No current major health issues
• Own a non-qualified annuity with gains
• Have no LTC plan in place or have a need to supplement existing plan

Additional Annuity Care II Benefits

• Turn non-qualified annuities from tax-deferred to tax-free for long-term care
• 4x leveraging for ages 40-69 and 2.5x leveraging for ages 70 to 80
• True monthly LTC benefit versus pro-rated amount for days of care
• Client concierge assigned at claim time to work 1 on 1 with family
• A+ rated company (AM Best) with 95 Comdex score

EquiTrust

Still very new but very exciting product that's slowly but surely releasing in more states. The most recent releases were TX and WA as of mid-January. For more information on this up and coming product, watch the carrier call with David Hall, and the very informative Study Group with Phyllis and Erik. Also, check out the microsite for more info.

Worksite

Chubb

Coming soon to the BuddyIns product and technology suite is a new worksite enrollment platform and some exciting developments in worksite enrollments. Stay tuned as there are more opportunities to come in the worksite market. With California on the payroll tax track, this is a great time to plan for the future of this market.

Trustmark

Trustmark's group product is 7702(b) long-term care in New York! A great discovery, especially given future payroll tax considerations.

Join the Conversation in our Facebook Group

• In 2021, sales of stand-alone products tripled
• Other states such as California, New York, and Minnesota have made moves to explore similar legislation
• Carriers are taking state legislative action more seriously - this may result in new product development

• The stand-alone market is consolidating (6-10 carriers) and has been relatively stable
• Asset-based LTCi options have improved recently with reduced pricing and a new product launch
• Rising interest rates may be contributing to recent product stability
• Alternative annuity-based and short term care products are growing in popularity to address health issues
• The variety of life insurance accelerated benefits continue to grow