The only thing constant in life…is change!
On March 7, Prudential announced that they are discontinuing sales of their individual long-term care insurance products. They are continuing to sell to the group LTC insurance market.
While, this is not good news, it is indicative of what is going on in the financial services industry. Record low interest rates and reserving requirements have made this business challenging for our carrier partners. As a result, some carriers (MetLife, UNUM and now Prudential) have decided to focus on product lines that have a greater ROI. While we are disappointed with this news, it does not change the fact that LTC planning is more important that ever before. LTC insurance continues to be a viable product line and planning tool.
Please note that current policyholders will not be impacted by this announcement and Prudential will continue to accept new applications through March 30, 2012.
LTCI Partners has always taken pride in our diverse product portfolio. In fact, Prudential accounted for roughly 10% of our overall sales in 2011. Rest assured that we will be able to provide you and your clients with competitive products. There are eight carriers that remain committed to LTC insurance…Prudential being one of them (for group LTC).
Please read the attached announcement http://ltcipartners.typepad.com/carriernews/2012/03/prudential-ltci-news-march-7-2012.html and feel free to contract one of our sales consultants at Sales@LTCIPartners.com with any questions or concerns.