Prudential discontinues sale of individual LTC plans
Prudential Financial, Inc., has discontinued the sale of individual long-term care insurance plans and will focus solely on group long-term care insurance, according to a company announcement.
Prudential will honor existing individual LTC policies and the terms of those contracts, which are guaranteed renewable, will not change, the company said. As long as premiums are paid on time, and benefits are not exhausted, coverage will remain in place, although premiums can be changed subject to regulatory approval.
"The decision to exit the individual long-term care business reflects the challenging economics of the individual market and our desire to focus our resources and capital on the group market where we see the greatest opportunity," said Malcolm Cheung, vice president, Long Term Care, Prudential Group Insurance.