“When certain insurers lose favor in the marketplace, that doesn’t mean consumers aren’t interested in the coverage,” Slome says. “It just means that advisors may have switched to a different company.”
Over time, Slome expects a turnaround from a continuous decline in sales.
“What makes me optimistic about potential growth in sales is certain developments like New York Life rolling out their relationship with AARP,” Slome says.
New York Life became AARP’s exclusive provider of long-term-care solutions last October and launched the program last month.
“This development is part of our strategy to grow and better serve this market,” says Aaron Ball, vice president of New York Life and head of its long-term-care business. “There have been a number of exits in recent years by other insurers, but we remain committed to the industry.”
The insurer also launched a new product called “NYL Secure Care” that pays a targeted dividend of some 20% to help offset premium costs over time.
“As we pay out the anticipated dividend over the life of the policy, the amount of the premium decreases on a net present value basis,” Ball says. “We are able to offer this because of our mutuality and financial strength, which are important factors for advisors to think about when selecting which carrier’s policy they want to sell to their clients.”