In October 2012, we announced that we would be filing, where required, for a rate increase on our two newer individual policy series, VIP2 and LifeStage Advantage (LSA), as well as an additional rate increase on our two older individual policy series, LTC97 and VIP1, which were subject to an earlier rate increase that we announced in 2008. (Policyholders that purchased VIP2 and LSA policies with the new rate basis were not impacted). This decision was laregly driven by cumulative changes in actuarial assumptions since the initial pricing of our products.
We have continued to evaluate the assumptions used to price our products. Based on an in-depth analysis of our individual business, we are continuing the work we started in 2008 and 2012 as well as taking new rate action on certain VIP2 and LSA policy forms issued beginning in 2009.
As we communicated in October 2015, 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 previusly approved in that state. However for the VIP2 and LSA policies under the new rate basis, no prior rate increase has been filed in any state and we have filed and will be filing for the same rate increase in every state, subject to regulatory restrictions.
On August 5, 2016, MetLife LTC will implement the in-force rate increase impacted policies that were issued in the following states:
| Phase 7 Implementation – 4 states (effective beginning November 1, 2016) | ||
| State | Policy Series | Max Increase |
| Alaska | VIP21 | 34% |
| Missouri | VIP21 | 34% (to be phased in over 2 years – 15.76%, 15.75%) |
| Missouri | LSA1 | 42% (to be phased in over 2 years – 19.16%, 19.16%) |
| Connecticut | LSA1 | 33.32% (to be phased in over 3 years – 10.06%, 10.06%, 10.06%)1 |
| New Jersey | VIP21 | 18.26% (to be phased in over 3 years – 5.75%, 5.75%, 5.75%)2 |
| New Jersey | LSA1 | 22.5% (to be phased in over 3 years – 7%, 7%, 7%)2 |
The increase will apply to policy holders of all ages. Policyholders may reduce their coverage to lessen the impact of the rate increase, where available. Click here for 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 non-forfeiture 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.
Phase 7 Implementation Timeline
August 5, 2016: MetLife mails notification to Multi-Life Program Sponsors
August 15, 2016: MetLife mails producer state notification letter with policyholder list
August 25, 2016: MetLife mails policyholder increase letter
September 26, 2016: Coverage change forms due
October 1, 2016: MetLife begins mailing bills to policyholders impacted on November 1, 2016
November 1, 2016: First effective date for Phase 7 (Policyholder effective dates will occur on a policyholder’s premium bill due date which occurs on or immediately following the first effective date.)
Producer Training & 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.
- MetLife LTC in-force Rate Action Producer Guide and Multi-Life Addendum, January 2016
- Overview of rate action
- Sample communications to producers, policyholders, and Multi-Life program sponsors
- In-force Rate Action Training Addendum, January 2016
- Sample rate increase scenarios
- Talking points for use with clients
- Sample Policyholder Letter
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 August 15, 2016 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, 8:30a.m. – 6:30p.m., Eastern Time
For the original announcement, click here.
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1 Please note the percentage to be implemented is less than the percentage we requested from the State. It is our intent to request an additional increase, and if authorized, the additional increase will be implemented no sooner than four years form the policyholder’s rate increase effective date, which will be noted on their letter.