On July 31, 2012, Mutual of Omaha and United of Omaha Long Term Care Insurance announced modifications to their long term care insurance product line effective immediately.
Mutual of Omaha quotes:
“As the long term care insurance industry continues to evolve, Mutual of Omaha remains a key player in the industry. We will remain a strong, stable and secure solution for your business. Our strategy has been built on decades of experience coupled with conservative principles and a thorough understanding of market dynamics. While the current Long Term Care insurance environment is ever changing, we believe our product offerings must adapt in order to remain sustainable. Just as the market continues to mature and evolve, so does our approach. In the current low interest rate environment, changes are necessary to maintain a long term and viable product line.”
- Suspension of Lifetime Benefit option and all limited pay options (excluding flex to age 85)
- Suspension of Multi-Life sales
- New employees will be allowed to be added to existing groups provided the Home Office is already administering this process.
- The total first year gross compensation will be reduced by 15 points or less (state specials may vary)
- As part of this transition, Mutual of Omaha will not be able to accommodate requests for long term care compensation level changes until further notice.
Product and Market changes were effective as of August 1, 2012. Compensation changes will be made effective August 8, 2012.