re[2]: [LTC-Sales_Discussions] Question for the group
Earl Redfern
ltc-sales_discussions@ltpcalums.com
Thu, 30 Oct 2003 12:47:51 -0500
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<font size=4 style="font-family:'Tahoma';font-size:11pt;"
color="#000080"><b>Jerry, <p>
I hesitated to mention it, because I didn't want it to become personal to
anyone who represents them, and we all have favorite companies. But, I guess it
may help the group. The company is Penn Treaty. I used to believe (and still
do) that the non-tax qualified contract is better from a consumer standpoint
and I assure you (without wanting to dig up a can of worms or a discussion on
this subject) I have spoken with <i>numerous</i> CPA's, agents, attorneys,
state insurance staff members, "experts" etc on this subject and
would prefer that no one start to "instruct" me of where I am wrong.
My focus has<i> always</i> been to offer the consumer a choice, educate them
on those choices and get them to take action. My compensation was the last
thing on my mind. I sell LTC as part of my overall planning practiced. The NTQ
thing actually became somewhat of a moot point as PTNA has not sold in NC for
some time now so I couldn't sell anything by them if I wanted to. I had several
discussions with some people I respect and it came down to this - one of the
reasons I sold NTQ was because of the medical necessity definition. I have a
good number of clients on claim, and some would not have been if they had a
standard TQ contract so I see where it has had an advantage. I can stand on my
soap box all day but the trend I see is that there are fewer and fewer
companies that sell this with a decent definition of "your doctor"
within the medical necessity definition. I have grudgingly come to the
conclusion that it is "safer" for me to go with larger companies with
larger assets (ala what Phyliss Shelden always preached - although just because
you are bigger doesn't guarantee rate stability) and they generally happen to
sell TQ contracts. That doesn't mean that I don't tell my clients/prospects
about the differences between TQ and NTQ and give them options, however. The
longer I have been in this business, the more of a rebel I become, but also,
the more I also see the need to do some CYA as well. PTNA has tremendously
disappointed me as to have a 35% rate increase, followed up by a 25% rate
increase on some of their contracts is frustrating to be kind. However, an
important point to be fair - even with the rate increase, they are still
cheaper than most other companies if I try to do apples to apples (although
increased age, insurability, etc makes that impossible) and their particular
contracts are still some of the best I have seen from a consumer standpoint.But
the big question is, will they continue to increase premiums every year? Will
the effect of caps on premiums by states, have any adverse effect on
non-grandfathered policies to have more rate increases. I guess I have become
very distrustful of insurance companies in general. I have learned not to look
at what they say, but what they do. There are important for our general welfare
however, but I have this uneasy feeling that stockholders want great Return on
Investment and I don't think LTC policies bring that to the table - yet it is
so crucial that the industry provide this product with some premium stability
and yet have them priced reasonably.<p>
So, I apologize for this "War and Peace" novel, folks, I guess I can
say this:<p>
It is a complicated issue. It is scary for the consumer and agent. and I am
confused for sure. :-)<p>
<p>
<p>
R. Earl Redfern, CLU, ChFC, CSA<br>
<img src="cid:XXXXX1" alt="[image]"><br>
7008 Harps Mill Rd., Ste. 101<br>
Raleigh, NC 27615<p>
(T) 919.845.5315 (F) 919.845.5346<p>
Securities offered through Commonwealth Financial Network, Member NASD,
SIPC.<br>
Advisory Services offered through Commonwealth Financial Network, Member NASD,
SIPC.</b></font></body>
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