Click here for the full communication from Transamerica.
As you know, Transamerica LTC is committed to you, your clients and the Multi-Life Market. Due to the ongoing, historically low interest rate environment and current industry dynamics, a series of changes to our Business Advantage Program® discounts and underwriting will be implemented to ensure that our long term care business continues to grow in a financially responsible manner.
- Transamerica Executive Advantage Program® – an employer-paid program for key executives and business owners will now include a 10% discount (5% in NY).
- Transamerica Corporate Advantage Program® – the employer chooses to pay a portion of the premium for employees will now include a 10% discount (5% in NY).
- Transamerica Employee Advantage Program® – an insurance plan is made available to employees on a voluntary basis (no employer contribution) will now include a 5% discount.
- Modified Guarantee Issue (MGI) underwriting will only be available for Employer Funded cases that meet the criteria outlined in the updated Multi-Life Producer Guide (available 5/24 at the Agent Resource Center) or click here for a brief overview. There will be no Multi-Life discount available with MGI cases.
The reduction in discounts and the additional restrictions on MGI underwriting are decisions that will help keep Transamerica LTCi more sustainable for the long-term. These new discounts will be effective in ALL states on May 25, 2013.
We are committed to the Multi-Life market and continue to make changes in order to be a long-term player. Our actions demonstrate our commitment:
- We’ve recently created a new staffing position to focus exclusively on Multi-life – Regional Sales Director of Multi-Life Field Sales, Richard Christman.
- We’ve added Scott Wirtz as our new Multi-Life Internal Wholesaler.
- We’ve launched new customizable Multi-Life enrollment materials that can be co-branded through TransBuilder – an industry first.
- We’ve expanded the benefit options available for Multi-Life enrollments with the introduction of the 3% & 5% Step-Rated Compound Benefit Increase Options.
Yes, you heard right, the Step-Rated Compound Benefit Increase Option (BIO) is NOW AVAILABLE with the Executive Advantage Program® (EPA) and the Employee Advantage Program® (voluntary) plans (in all states except HI, MN & SD). This will help open up new opportunities and allow your multi-life clients to take advantage of the guaranteed benefit increases of a compound BIO at a reduced premium (as compared to the traditional Compound BIO). All you have to do is write in “Step-Rated Compound BIO” in the benefits section of the Service Group Request (SGR) form.
How does the Step-Rated Compound BIO work and how it can help you? Learn more about the Step-Rated Compound BIO today by accessing the Step-Rated eKit.
TRANSITION PERIOD: WRITING NEW BUSINESS
You will be able to begin ordering materials in 5 days. The new discounts will be available on TransQuote® Illustrations on Saturday, May 25, 2013.
On May 25, 2013 you can begin quoting Multi-Life cases under the new discount structure with TransQuote® Illustration software at the Agent Resource Center and with TransQuote® Mobile for Android and Apple devices. New discounts will also be available in VitalLTC and Stratecision.
For New Multi-Life Enrollments:
In order for a case to receive current discount levels, the enrollment requests must be received by Friday, May 24, 2013 and must include a fully completed Service Group Request form (SGR) along with a complete census file. Enrollments for these cases must be completed within 90 days of May 24, 2013 or within the terms of the implementation memo agreed upon by Worksite Administration.
If you have an active enrollment going on right now or an approved Implementation Memo as of today, we will honor those. For enrollment requests that have not been approved by Friday, May 24, 2013, the discounts and underwriting requirements will automatically transfer to the new rates and rules.
For Annual Re-Enrollments and New Hires:
Enrollments for Annual Re-Enrollments and New Hire cases after Friday, May 24, 2013 will receive the new discounts and be subject to the new underwriting eligibility rules.
You know Transamerica LTC is your one-stop for Multi-Life sales. The combination of knowledge and experience can help you improve your sales and increase your bottom line. Incorporate that with our innovative customizable multi-life materials through TransBuilder and the NEW Step-Rated Compound BIO available on a multi-life platform and you have a recipe for success. This helps show you the many ways that Transamerica LTC is committed to the Multi-Life market.
Should you have any questions; more information can be obtained by calling our Internal Wholesalers at 888-545-2713, option 3.