Long Term Care In The News...... March 7, 2005

Volume 34

Welcome to the thirty-fourth edition of Long-Term Care in the News. We, at Custom Care Solution, LLC, want you to be on the cutting edge of changes and updates within the Long-Term Care industry. We will accomplish this through these email bulletins distributed each week to our brokers, agents and their staffs.

NY LIFE WILL BE FIRST TO DECLARE DIVIDENDS ON LTC

New York Life announced on February 16, 2005, that its Board of Directors has approved a dividend for its LTCSelect Premier long-term care insurance product, making New York Life the first insurer ever to declare a long-term care insurance dividend. The dividend will be paid to LTCSelect Premier policyholders with policies that have been in-force for 3 years in the form of a decrease in their next premium payment. New York Life will offer its first dividends in March 2005. New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Please contact us to learn more about the LTCSelect Premier product now available to brokers.

HAVE YOU SEEN THE WALL STREET JOURNAL LATELY??

In the last two weeks, the Wall Street Journal has published two articles regarding Long Term Care Insurance. On February 24, an Editorial was printed, entitled Medicaid for Millionaires. This editorial placed an emphasis on encouraging people to buy their own long-term care insurance, rather than qualify for Medicaid. As we know, long-term care accounts for about one-third of federal and state expenditures on Medicaid, to the tune of $100 billion last year. It is the biggest driver of skyrocketing Medicaid costs that are bankrupting many states and localities. “Medicaid was created 40 years ago to care for the needy. The rest of us have an obligation to pay for our own care – or to protect our wealth with private insurance.” On Wednesday, March 2, an article entitled “As Fee Increases Hit Holders of Insurance for Long-Term Care, is It Safe to Buy?” Though this piece does talk about the fact that carriers have had to raise premiums on some existing policyholders, there are signs that the LTC industry is stabilizing. The industry’s three largest remaining players, Genworth, Manulife Financial Corp.’s John Hancock Financial Services unit and MetLife are financially sound and have been among the more conservative in pricing their policies. For a complete copy of these articles, please contact us.

CARRIERS TO BE ANNOUNCING NEW PRODUCTS

As we have been announcing in previous LTC in the News, many of our top LTC carriers will be launching their next generation products very soon. NOW is the time to revisit those clients and prospects who have not made a purchase decision regarding Long Term Care. The premiums will NEVER be lower than they are today. Prudential, MetLife and Mass Mutual have all rolled out new products in many states with the Tri-State area not far behind. Though these products may contain slight differences in policy design, the premiums can be anywhere from 9 to 30 percent higher. Call us today and we will help you close these sales.

ING SECURE INDEX – NY’S ONLY EIA ANNUITY

GOING OFF THE MARKET- MAY 6, 2005

ING announced this week that due to changes in NY states non-forfeiture laws, they have been forced to take NY’s only Equity Indexed-Annuity off the market. Friday May 6, 2005 is the cut off date for all new applications. Non-Reg 60 & Reg 60 applications and accompanying paperwork must be received to ING by Friday, April 15, 2005, no exceptions will be made. Once your client owns this product, they can continue to add new money into this popular annuity. Rates have just increased. For purchases between $5,000-100,000 Fixed Rates are 3.5% and the Guaranteed Strategy has a 6.5% Cap. (1.5% Floor). For $100,000 +, Fixed Rates are 3.5% and the Guaranteed Strategy has a cap of 7.5%. (1.5% Floor). Agents only need their life license in order to sell this product.

HUGE LTC SALES OPPORTUNITY IN 5 STATES - NJ, VA, NV, ID, AK

NJ LTC Awareness Campaign is in full swing. Acting Governor Richard Codey, as sent a letter for over 820,000 residents between the ages of 50 and 70 telling them about the “Own Your Future” campaign. The letter from the Governor introduces a very important issue – planning for your future long-term care needs. In addition to the letter, an extensive public relations and media event has taken place for the entire month of February and will continue into March. The campaign focuses on raising awareness among the media on key long-term care planning issues and placing articles in local and community news publications. A 30 second Public Service Announcement will be targeted to the state’s nine broadcast and cable stations. The TV exposure will be supplemented by 30 second radio spots during popular times for the target market. The media campaign will also include TV and radio talk show appearances by local spokespeople appropriate to address the long-term care planning issue. Awareness activities will also focus on reaching private businesses in New Jersey, with an article planned for New Jersey Business, a leading publication for the New Jersey business community. Now is the time to get in touch with your NJ clients both individuals and employers.

We at CCS are continually looking for ways to keep our brokers up to date. If you’d like to send comments or suggestions to make this newsletter better, please feel free to contact us.

Debra A. Walker, LTCP, CLTC Karin L. Wertheim, LTCP, CLTC

C U S T O M   C A R E   S O L U T I O N ,   L L C

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New York, New York 10119
info@customcaresolution.com

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