Based on recent sales results, the traditional way of selling LTC insurance (direct mail, face-to-face sales, customized plan designs that require a specialist to explain) is not working. Research shows that the current LTC consumer is very price sensitive and does research online. The research is not to find an agent - but to learn more about plans quickly.
Today's internet buyer is accustomed to "subscription models" in which they pay a monthly fee for services - look at how health insurance is now packaged with Gold, Silver, and Bronze plans.
With that in mind, carriers and distributors are changing the way they are bringing LTC insurance to the market. One way that people are very familiar with is the "good - better - best" approach that offers three plan choices. As Jesse Slome of the AALTCI recently discussed at the producers summit, many products or services offer this marketing strategy as shown below:
(you can view the complete presentation with audio along with 5 other sessions from the meeting at this link - price is $9 for a year)
From gas stations to car washes, health insurance to cable TV, people are accustomed to deciding what to buy this way. With that thought, the people at Transamerica LTC have come up with Transamerica Secure. Transamerica Secure is based on the their current product but just packaged differently, and includes a consumer website at www.tasecure.com. Here is a snapshot of the product:
And here are some rates estimates:
The decision can be driven by a coming up with a reasonable premium amount. For example, a 55-year-old couple can select the 100 plan and therefore get access to $200,000 of LTC coverage for about $250 per month.
Genworth also has recently introduced a new packaging of their long-term product that addresses the pricing and complexity barriers. To learn more about FlexFit, click here.