Transamerica's Newest Long Term Care Insurance Product Available for Sale

At the time this article was originally published in 2013, Transamerica's newest Long Term Care Insurance product, Trans Care III, was available in all 36 interstate compact states across the US.

Opportunity for Solutions

Long term care planning is an important component of preparing for retirement and despite the market concerns about the industry, the company emphasized their belief in the "tremendous opportunity for long term care solutions" in their latest product announcement.

Transamerica was then giving quotes and taking applications for the product, which included a number of changes from Trans Care II, including a 3 year rate guarantee, an expanded elimination period, and an increased daily benefit. Gender-based pricing also took effect in the new policy, which affected rates for various applicant types.

Rate Changes

TransCare III changed the pricing conversation because it introduced gender-based pricing for individual applicants in the states where it launched. That meant otherwise similar men and women could receive different premiums, with women generally priced higher because carriers expected longer average claim durations.

The product also changed several plan levers that affected quotes, including a three-year rate guarantee, higher daily benefit limits, expanded elimination-period options, and a couples discount of up to 30%. Those details made apples-to-apples comparisons important because a rate change could depend heavily on age, gender, inflation option, marital status, and selected benefits.

Couples, who under the new product terms received an increased discount of up to 30%, could see a different result from single applicants because the household discount partly offset other pricing changes.

Why the Increase?

Like the life insurance industry, where mortality assumptions can affect gender-based pricing, the long term care insurance industry updated underwriting and pricing standards to align with expected claims. Women tend to live longer and, according to federal long-term care planning data, need care for longer on average than men. In response, carriers raised women's rates to reflect the higher expected cost of coverage.

At the time, several major long term care insurance companies were in the process of implementing gender-based pricing, including Genworth and John Hancock. Although rates were increasing, the policies still held a tremendous value for those who had assets to protect. The cost of long term care can often be devastating to one's retirement nest egg, and protecting against the risk of needing care is a financial move that more Americans are beginning to consider.

Begin Planning Early

The time to buy long term care insurance is when you are young and healthy, in order to secure the best rates. People who wait until their 60s often find that they are uninsurable or their rates are significantly higher than they would have paid had they applied in their 40s or 50s. Working with an independent agent is crucial to comparing offers from today's top-rated carriers.

If you are interested in learning more about the different policies, call us today at 1-800-800-6139 or request a quote online.