Q. During the client appointment, I need to explain about rate increases – why they occurred and the future probability. How do you handle that conversation so that the prospect understands the reasons and still feels comfortable buying this product?
A. Understanding why rate increase have occurred is the first step. For that information, I turned to Jim Glickman, president and CEO of LifeCare Assurance Company and a past chairperson of the Long Term Care Section of the Society of Actuaries.
Some companies reacted right away and increased new business rates quickly, while others reacted more slowly. By 2006, prices were 40 to 45 percent higher than in the pre-rate stabilization time.
4. Pricing of 5 percent compound inflation protection.