Thrivent Long Term Care Insurance

Thrivent Long Term Care Insurance

2015 Update: Thrivent has not only announced their new policy, but it has hit the market.  Thrivent purchased the Newman Long Term Care agency to market this through independent brokers, so there should be no complaints about the widespread availability of the policy.  Early analysis of the policies indicates that Thrivent has chosen to increase premiums over past products.

The Texas Department of Insurance collects rate increase filings from Thrivent in all states, and the report is available here (PDF link).  Policies sold as late as 2003 had rate increases up to 59% in many states according to the Texas government report.

Thrivent Financial is now selling Long Term Care Insurance once again.  Thrivent, a non-profit Minneapolis-based company, announced welcome news for the Long Term Care Insurance industry in October 2012.  The Thrivent LTC policy will compete with many other private-market offerings, and has a fairly standard set of options for those planning for the risk of Long Term Care.

Thrivent (formerly AAL) is an insurance company marketed primarily to Lutherans.  If you’re one of the 2.5 million American members who is part of a Thrivent chapter, and you’re considering LTC coverage, you may want to compare the Thrivent offering with insurance policies from other carriers.  That’s our primary business here, and we encourage all consumers looking for this type of coverage to shop around.

Long Term Care Market Re-Entry Not Unprecedented

Graph from 07-12

The carriers we cover at CompareLongTermCare have varied over the years, and an uptick is welcome.

Thrivent originally sold Long Term Care policies earlier in the decade, but exited the business in 2003, citing difficult business conditions.  Fast forward to 2012, and Thrivent sees a healthier market, which for an insurer means higher premiums.  Transamerica did a similar about-face in 2010 and re-entered a market it had lost interest in during its first stent in the business.

In the case of Transamerica, they have evolved their offerings over time, and in late 2012 stopped offering riskier benefits like Unlimited/Lifetime benefit payouts, and premiums that only last for ten years.  In addition, other insurance carriers have been paring back the more generous benefit options they offer.  As a result, consumers are still able to find significant value, but at a higher cost than before.  For the premium rate-payer, this may not seem like a healthy market, but it is more sustainable pricing for the long term, which actually is beneficial to all policyholders.

State of the Long Term Care Insurance Market

With Thrivent re-entering the market, consumers are served by another strong competitor vying for their valuable Long Term Care Insurance dollars.  Since 2008, several major insurers had exited the market, including Allianz, MetLife, CNA, and Prudential.  Carriers facing less competition have increased the price new policyholders pay, leading to the market opportunity that Thrivent clearly sees and is looking to capitalize on.  If you’re shopping the market, why not take a moment to Compare Long Term Care options right here on our site.  The variance in pricing from one insurance company to another can be large, as can the financial ratings of the insurers.  Our comprehensive package includes information on all of these things.

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