Change to LTC3 SM Spousal Discount in New Jersey
As previously announced, refreshed rates for Prudential's LTC3 product became effective in the State of New Jersey on June 23, 2011 for individual and Multi-Life. Along with the refreshed rates, we want to make you aware that the spouse/partner discount in New Jersey has been realigned for nationwide consistency.
This means that applications received in our new business area Thursday, July 7, 2011 or later, are no longer eligible for a 30 percent discount when one spouse/partner applies and the other is healthy but does not apply. The discount in New Jersey is now 15 percent when only one spouse/partner applies and is approved for LTCi. When both spouses/partners apply and only one is issued the Discount remains at 15 percent for the insurable spouse/partner. When both spouses apply and accept their policies, the discount would then be 30 percent for each.
Policies already in place are not affected by this change and applications received prior to Thursday, July 7, 2011 will be processed using the old "healthy spouse" guidelines.
| Application Receipt Date |
Discount - Married/Partner - Both Apply and Both are Issued |
Discount- Married/Partner - Both Apply but only One is issued |
Discount - Married/Partner - Only One Applies (spouse/partner healthy) |
| Through 7/6/2011 |
30% |
15% |
30% (if non-applying person is healthly) |
| 7/7/2011 or later |
30% |
15% |
15% (regardless of non-applying person's health) |
We should also note that both the method for calculating the spouse/partner discount in New Jersey (additive vs. multiplicative) and the new refreshed rates are now consistent with the rest of the country. This means that N.J.'s LTC3 standard/base rates are no longer higher than rates in other states.
All of these changes, when taken together, bring a positive net result to your clients.
Note that LTC Evolution discounts in N.J. have always been consistent across the country.
Prudential will continue to apply a one-year relationship window when reviewing a partner's discount eligibility. Prudential's definition of "Partner" for LTC3 and LTC Evolution remains the most liberal in the industry for the purposes of applying discounts and being eligible for the Shared Care Optional Benefit.
If you have any questions, please contact your Madison Brokerage sales manager.
For the Education of Producers/Brokers Only. Not for Use with the Public. Long-Term Care Insurance is Issued by The Prudential Insurance Company of America, Newark, N.J.
0204400-00001-00
Email 
RSS 