As a leading long-term care insurance carrier, Mutual of Omaha has a responsibility to their policyholders and distribution partners to ensure their pricing strategy and product offerings are effective. They have been monitoring industry trends, internal claims data and the economic environment over the past several years. As a result, they are refreshing their rates and implementing benefit option changes to the MutualCare® Solutions Portfolio effective September 1, 2020.*
The details are outlined below:
Impacted States
Alabama, Alaska, Arkansas, Colorado, Georgia, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming
Rate Adjustments
Premium adjustments may vary by age, sex and benefit selection. You may view the new rates by referring to the quoting software beginning September 1, 2020.
Benefit Changes
Cash Benefit:
- MutualCare® Custom: 25% of home health care benefit up to maximum of $2,000 per month
- MutualCare® Secure: 25% of home health care benefit up to maximum of $2,000 per month
Partner Premium Allowances:
- Both Issued: 15%
- One Issued: 5%
Transition Rules
New paper and e-Applications for MutualCare Solutions will be required beginning September 1, 2020. Please discontinue use of all old applications. The following transition rules will apply:
Paper Applications
- Applications with a signed date of September 1, 2020, and later will get the new rates and benefits and will require the new application.
- Applications signed prior to September 1, 2020 and received in the Mutual of Omaha home office on or before September 11, 2020, will receive the current rates and product benefits.
- Old applications received after September 11, 2020, will not be accepted regardless of application sign date. Applications will be closed, and a new application will be required to apply for coverage. No exceptions will be made.
e-Applications
- If you have a pending e-Application started prior to September 1, 2020, your application must be signed prior to September 1, 2020 to receive the old rates and benefits. You can access your pending application, complete and submit like normal.
- Pending e-Application must be received in the Home Office no later than September 11, 2020, or it will not be accepted.
Quoting Software
Winflex, MutualCare® Solutions, and mobile quote software will be available for download effective September 1, 2020.
Marketing Materials and Forms
Marketing materials are in the process of being updated. You will be notified when the materials are ready to order.
Old Applications
- Paper applications are available for download only on Sales Professional Access until August 31, 2020.
- e-Applications will be available until August 31, 2020.
New Applications
- Paper applications will be available to order through your normal ordering channels on August 19, 2020.
- e-Applications will be available on September 1, 2020 on Sales Professional Access.
MutualCare® Solutions Portfolio is Designed for Long-Term Stability
Mutual of Omaha has decades of expertise developing products and pricing them effectively for the long run. They sold their first long-term care insurance policy in 1987, and since then, they’ve paid over $1.1 billion in benefits to their policyholders. That means they will continue to be here for your clients when they need us most.
Although Mutual of Omaha understands these changes may impact your business, the benefits that make Mutual of Omaha unique in the standalone LTCi space remain in place. They include:
- Calendar Day Elimination Period
- Cash or Reimbursement Benefit
- Home Health Care
- Monthly Benefit
- Inflation Buy-Up
*These changes do not impact the LTC Rider or LTC17W.
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