MetLife LTC to begin Launch 44 implementation of in-force rate action on November 1, 2019.
Launch 44 Impacts LTC97, VIP1, VIP2 and LSA individual policies in certain states.
In October 2015, we announced that we would be filing, where required, for an additional rate increase on our LTC97 and VIP1 individual policy series, and an additional rate increase on our VIP2 and LifeStage Advantage (LSA) individual policy series under the old rate basis. We also announced that we would be filing, where required, for a rate increase on our VIP2 and LSA individual policy series under the new rate basis.
Based on an in-depth analysis of our individual business, we are continuing the work we started in 2008. For most product series, we have filed, and will be filing for a rate increase that varies by state, depending on the level of increases that were previously approved in that state.
On November 1, 2019, MetLife LTC will implement the in-force rate increase for impacted policies that were issued in the following states:
| Launch 44 Implementation – 5 states (effective beginning March 1, 2020) | ||
| State | Policy Series | Max Increase |
| Maine | LTC97 | 8.83%*** |
| Maine | VIP2* | 7.54%*** |
| Maine | VIP2** | 3.09%*** |
| Maine | LSA new | To be implemented over 3 years (15%, 15%, 11.11%) |
| Michigan | VIP2 old | 9.04%*** |
| Minnesota | LTC97 VIP1 VIP2* | 15%**** |
| Minnesota | VIP2** | 3% |
| Missouri | VIP2* | 9.04%*** |
| Nevada | LTC97 | 17.42**** |
| Nevada | VIP1 | 29.32**** |
| Nevada | VIP2* | 20.97*** |
*Policies under the old rate basis.
**Policies under the new rate basis. Generally, the new rate basis was introduced in 2009. However, each state may have varying new rate basis implementation dates.
***Offer to decrease inflation may be available. (Please note: policyholders that are provided an offer to decrease inflation will not be provided with a total lifetime benefit option on their coverage change form. They may call Customer Service should they wish to explore other decrease options that may be available to them.)
****This is phase 3 of the rate increase. Phase 1 of the rate increase was previously implemented beginning February 1, 2018. Phase 2 of the rate increase was previously implemented beginning February 1, 2019.
This increase will apply to policyholders of all ages. Policyholders may reduce their coverage to lessen the impact of the rate increase, where available. Please note insureds can only make bill mode changes on or after the policy anniversary following their premium increase date. In addition, for those policyholders who elected automatic compound or automatic simple inflation, we will, where applicable, provide an offer to mitigate the increaseby reducing their annual benefit increase coverage from 5 percent to a lower annual percentage benefit increase.
Please find included a State Implementation Chart providing a summary of the states included in previous implementations, including any applicable state variations.
In addition, eligible policyholders who do not have a nonforfeiture feature or rider as part of their policy will be offered a no-cost Limited Coverage Upon Lapse Endorsement (LCUL) that will provide them limited coverage should they lapse as a result of the rate increase. Note that some VIP2 policyholders who have the Ten Year Premium Payment Rider or Paid Up Premiums Rider may be eligible for an alternative nonforfeiture feature. This feature may provide limited paid-up benefits for eligible insureds who, at any time between the date of their policyholder letter and 120 days following the date of the rate increase effective date, lapse or cancel their policies. The amount of time that the insured has paid premiums for the policy under the Ten Year Premium Payment Rider or the Paid Up Premium Rider will impact the amount of the limited benefits for those insureds that qualify for such benefits.
Launch 44 IMPLEMENTATION TIMELINE
November 1, 2019 MetLife mails notification to Multi-Life Program Sponsors
November 15, 2019 MetLife mails producer state notification letter with policyholder list
November 25, 2019 MetLife mails policyholder increase letter
January 24, 2029 Coverage change forms due
February 1, 2020 MetLife begins mailing bills to policyholders impacted on March 1, 2020
March 1, 2020 First effective date for Launch 44 (Policyholder effective dates will occur on a policyholder’s premium bill due date which occurs on or immediately following the first effective date.)
PRODUCER RESOURCES
We have created the following documents to help you prepare for the implementation of this in-force rate increase and discussions with your clients.
- Sample Policyholder Letter
- Sample Coverage Change Form
Customer Service Team
A Customer Service Team will be available to assist producers, program sponsors and policyholders with any questions about the implementation of the in-force rate action. Policyholder information will be available beginning November 15, 2019 coinciding with the mailing of impacted policyholder lists to assigned producers.
LTC97 policies: (800) 308-0179
VIP1, VIP2, and LSA policies: (888) 285-8140
Available Monday through Friday
You will continue to receive updates via Field Announcement as the in-force rate increase is implemented in subsequent launches.