Description: Designing and Pricing LTCI Combination Products by Carl L. Friedrich from Long-Term Care Newsletter, December 2004, Issue No. 13.

Description: This article summarizes key findings from an SOA research report conducted by Milliman on a wide range of living benefit riders with medically related triggers on life and annuity products. The SOA report includes a survey of direct writers, and interviews with many reinsurers. The article focuses on chronic illness accelerated benefit riders, long term care accelerated benefit riders, and the more comprehensive long term care linked benefit products that can pay out benefits that may be much higher than the underlying base plan values. Information on regulations governing these plans, mechanics of the products, sales, and pricing structures is included The intent is to enable the reader to appreciate the issues and opportunities related to these new, innovative designs that help address a range of consumer needs..

Description: This is a research report that highlights the characteristics of combination plans that serve to reduce the risks to insurers issuing life or annuity products linked to long-term care insurance. Observations are provided to assist in the understanding of the factors that explain the profit change sensitivity results and the natural hedging against major risks that inherently is present within the linked products.