Prudential Long-Term Care has been compelled to temporarily suspend the sale of its popular LTC3 product in California. Prudential’s LTC3 rate efresh was filed nearly one year ago in California and while other states have approved the new business rate increase the California Department Insurance has been so slow in acting that Prudential was forced to take this action.
No one, including me, wants to see higher premiums on long-term care insurance policies. That being said the realities of the marketplace, economy and claims experience requires that insurance companies offer products that are viable for years to come. Prudential has been indicating to us for some time that California rates and claims experience were becoming a big issue for them. I’ve been telegraphing to you for months now that a LTC3 new business rate increase and product changes were imminent. Prudential long-term care has been one of our best selling products for the last 5 years. Now, thanks to the glacial workings of the California Department of Insurance, consumers here will have fewer long-term care planning choices.
If you have any Prudential LTC3 proposals pending with clients you need to act today. Applications must be in our office by Monday, February 24, 2012 so that we have adequate time to process and overnight them to the home office prior to the February 29th deadline. Employer Sponsored Program (ESP) employer applications must also be in the home office by February 29th. You will have 60-days from the date of home office approval to submit these applications to the home office.
PLEASE CLICK HERE to download Prudential’s official announcement and read carefully. Contact your BJFIM/Paradigm marketing representative for proposal refreshes and help. Remember, Prudential LTC3 is very competitive and the 50% cash alternative benefit is the best in the industry. If you haven’t purchased a policy on yourself, Prudential offers a 5% affinity discount to agents and their spouses.
You’ve got 30-days to make the sale. Please let us know how we can be of assistance to you.
CLICK HERE to register for our February 2, 2012 webcast featuring more information on this and other important sales opportunities.