By Allison Bell
Prudential Financial Inc. says it is ending sales of individual long-term care insurance (LTCI) and focusing solely on the sale of voluntary LTCI products through the worksite.
Prudential, Newark, N.J. (NYSE:PRU), says it will honor existing individual LTCI policies.
The terms of the contracts, which are guaranteed renewable, will not change, the company says.
Other carriers have dropped individual LTCI product lines, group LTCI product lines
, or both in recent years, and many have raised rates dramatically.
Prudential seems to indicate that individual LTCI
increases are coming in the announcement of the suspension of individual LTCI sales.
"As long as premiums are paid on time, and benefits are not exhausted, coverage will remain in place, although premiums can be changed subject to regulatory approval," Prudential says in the announcement.
Prudential notes that it has been selling group LTCI coverage for 25 years, and that the product line complements other group insurance lines, such as group life and group disability.
"The decision to exit the individual long term care business reflects the challenging economics of the individual market and our desire to focus our resources and capital on the group market,” Malcolm Cheung, a vice president in Prudential's group insurance unit, says in a statement.
Originally published on LifeHealthPro.com