MetLife to Discontinue Offering Long Term Care Insurance

MetLife announced the decision to discontinue the sale of individual and group long term care insurance policies. Over the past few years MetLife has pulled back from the long term care insurance marketplace. MetLife has indicated there decision to discontinue the sale of long term care products will not impact existing policy holders.

MetLife is one of the largest long term care insurance companies with approximately 600,000 insureds. MetLife indicated they do not have plans to sell this block of business, and will continue to support the policies already in-force. Provided premium payments are made on time, coverage cannot be cancelled.

Each MetLife long term care insurance policy has contractual obligations to the insured (also referred to as guarantees). MetLife cannot legally violate these contractual obligations. However, MetLife can increase premiums for coverage on a class basis.

The most effected groups are those covered by a multi-life policy or an employer group policy. With existing multi-life long term care insurance programs offered by MetLife, the program will be closed to new entrants. The date of program closure to new entrants will vary by group, and will be driven by the termination provisions in each multi-life program sponsor’s offer letter.

MetLife made a similar announcement in September 2008 for their Employer Group long term care insurance plan when they announced they intended to complete closing of these plans to new entrants by the end of 2011. After an extensive review MetLife has determined the actual and projected cost of this block of business significantly deviates from original pricing. As a result, MetLife plans to file for an in-force rate increase on their Employer Group long term care insurance business, and is expected to be significant.

If you have questions or concerns about a MetLife long term care insurance policy please contact us at (877) 579-9574 or complete our long term care insurance quote form to be contacted by a long term care insurance specialist.