I would like some industry professional's opinion on how to best answer the following question? Thanks so much.

Here is a strategy question.
With social security, there is a disadvantage of having been in the business many years, since now there are more people taking benefit than there are working and contributing. The baby boomers have aged.

Why wouldn't it in turn be advantageous to select a LTC company which began say 2 or 5 or 10 years ago, since they would inherently not being paying out much in benefits for say the next 5 to 10 years?

Of course it depends on how their underwriting has been, but since Genworth had to be competitive to get any business, does this not mean they would have "loss" customers they are legally obligated to serve currently on their books? In other words, why wouldn't they have more bad apples than someone fairly new to the business?

Ballplayer,
And, why might you be asking a question such as this?
Are you a consumer or you an agent? I'm not really sure what you're asking and why.

In a ideal situation, you'd want to go with a company that has had years of experience. You want one that has hundreds of thousands of policyholders and years of claim history. Some LTC carriers have been around for 30 years.

A company that just opened their doors last week does not have a clue about the business and not many LTC agents would recommend a company until they have proven themselves in the market.

Social Security benefits have nothing to do with a LTC policy.

Arthur

Arthur:

Maybe Ballplayer wants to go with a fly by night company. If he hurries, he can still get a Guardian plan before they drop out. I think they sold about 20-30 policies all together.

I know that American General (AIG?) recently got into the business......now there is some extra peace of mind.

and......don't lose sight of the famous Humana top secret pilot LTC program!!!! Now there is a ground floor opportunity if I ever saw one.

Herman

Hello,

I know, it's an odd question....and even though it's an easy answer that we all know the answer to.....(of course longevity in this business is important).....but in a strange way I see the point of the question as well. By the way...yes I'm an agent. The question is from a pending client of mine......I'm more than anything just curious as to how others in the business would answer it in a detailed way to make sense of it to this person that's all.

Welcome to the board then. You are likely new to the LTC business or simply do not focus on it, else it is really an odd question.

Feel free to ask as many questions as you like.....you'll have to put up with some occasional off color comments at times..... but this is a pretty good forum to get some good insight on LTC options.

Where are you and who all do you write for? Captive or independent? favorite color?

Best of luck with your client.

Herman Bruns
Suwanee, GA

Herman,
What the hell happened to you? You're from NJ, what does WHO ALL Mean?

It's time to come home from Suwanee.

Arthur

How about..... who y'all writen fer?

Just curious, do you say that before you spit in the bucket, or after?

depends on whether I put my teeth in first.