Changes to Benefit Increase Options Effective March 9, 2015

As you know, Transamerica LTC is committed to the long term care market. We believe that providing stand-alone long term care products represents a key element of any solid financial plan.

 

Transamerica LTC will continue to manage our products and offerings to help ensure their long term sustainability and maintain our position as a leader in the long term care industry.

 

To ensure we stay true to this objective, we’re announcing the following two changes to our product portfolio effective March 9, 2015:

 

1. We are suspending sales of the 3% Compound Benefit Increase Option (BIO) Rider across all of our product lines: TransCare II®, TransCare III®, and Transamerica Secure®
2. We will discontinue commissions for sales of the 5% Compound BIO Rider.

All applications that include the 3% Compound BIO must be received by Transamerica LTC no later than close of business onFriday, March 6, 2015. You may continue to use the current application forms.

 

Why the change?
These changes are consistent with our strategy to have sustainable products for the long term and reflect our ongoing commitment to the long term care market.

 

Worksite Sales
If you are currently enrolling a worksite case, you may continue to enroll the case and offer the 3% Compound BIO Rider until the end of the open enrollment period. All re-enrollments are subject to the new modifications listed above.

 

To learn more about each of these benefits, please view our BIo flyer here.

 

Effective February 9, 2015 Lincoln MoneyGuard II is now available for sale in Florida.  MoneyGuard Reserve Plus Ticket  and point of sale forms must be received at the home office by March 11, 2015 for the previous product.

MoneyGuard II offers a couples discount, which provides between 15% to 20% more in benefits than the MoneyGuard Reserve Plus.  Males qualify for up to 10% to 15% higher benefits then Lincoln MoneyGuard Reserve Plus.

As you’re aware, the interest rate environment has been difficult for years. In order to continue offering the desired coverage, we developed innovative Real Time Pricing^SM on our TransACE^® products.

Unfortunately, the interest rate environment has continued to deteriorate and we’ve therefore made the difficult decision to exit the market.

As a result, we are withdrawing two of our TransACE products for new sales, effective immediately. The following products are no longer available for sale in any jurisdictions.

• TransACE
• TransACE Survivor^®

In addition to withdrawing these products for new sales, we have also stopped processing applications in underwriting and new business. We will be sending letters to affected applicants (and any premium refunds), with copies to General Agencies. Policies that are already out for delivery are not impacted. However, there will be no extensions of delivery periods.

We have also stopped processing applications that involve 1035 exchanges unless the request for funds has been sent to the existing carrier. The normal Real Time Pricing guidelines will apply to these cases while we are acquiring the 1035 funds from the existing carrier. We will issue the policy and apply the 1035 funds when they are received.

We understand what this decision means for general agents, producers and customers. We believe in the value of UL products but the current TransACE design is no longer sustainable in this economic environment. We are reviewing our UL product offerings and will seek consumer input as we develop a new design..

NOW IS THE TIME TO LOCK IN RATES AND BENEFITS FOR YOUR FLORIDA LTC CLIENTS Major Long Term Care Company announces a LTC product change in Florida. Time is limited to lock in the current Long Term Care Product and rates for Florida Cases. The New Product will offer : Gender Based pricing Decreased maximum limits for daily and monthly benefits Reduce maximum benefit years Home Care Services will now only be reimbursed for Agency Services Contact our office now to update your quotes and lock in the current product benefits and rates for your clients.