So long. Farewell. Auf Wiedersehen. Goodbye!
Some of you may have already heard, but TransAmerica is leaving the Long Term Care Insurance market. This large holding company offers life and supplemental insurance as well as retirement services.
As of recently, TransAmerica announced its departure from Long Term Insurance due to challenging market environments. While this is BIG news, it’s also GREAT news to other carriers. Specifically, the other two large remaining product providers are Mutual of Omaha and National Guardian Life. It’s important to note there are still some carriers out there like New York Life and Northwestern Mutual offering long term care.
What does this mean for you? Just because TransAmerica halted sales of their individual standalone Long Term Care, LTC riders on life insurance policies are not affected — meaning, any existing policies are not impacted. Claims and other associated functions will remain unchanged.
We suspect TransAmerica may increase their rates after the policy rate guarantee period is up. With recent periods good for three years as opposed to five in previous years, it could prove more preferential for LTC riders or even hybrid LTC/UL policies. Upgrades to existing policies will only be allowed to the extent provided in the insurance policy.
With yet another departure from a large corporation like TransAmerica, this seems to be the trend with Long Term Care. If you’re looking into coverage, don’t delay — we can help you find the best policy with only the best carriers!
Questions about your policy? Give us a call — we’re ready and waiting to help!