Federal Life supplements Why are rates to lower than others?

M

muckmail

Member
An Agent recommended Federal Life for an supplement N

I noticed that their rates are lower than other companies for all age categories for southern Indiana on the
Indiana department of insurance webpage.

Why are there rates lower and what risk am I taking if I choosing them?


I am also looking at Mutual of Omaha & Manhattan Life for supplement N (maybe G)

Thank you,
 
Unhealthy people aging in to Medicare typically stick to the names they have heard of. The small companies rely on healthy individuals to choose them, so their pool of enrollees are usually healthier and the company can pass those savings on in the form of lower rates. Companies that are new to a market may deliberately set their rates low to attract customers and increase rates after their enrollment goals have been met.

A word of caution about Mutual of Omaha (MOO). They have a habit of closing the books on one company and opening another under a different name in order to keep rates low for new customers. The enrollees in the old company who are not healthy enough to pass medical underwriting and change companies tend to see higher rate increases. There are no young, healthy people joining the old company (United World Life in the example below). There is no Guaranteed Issue Right for them to change since the company has simply stopped taking new enrollees and is not bankrupt.

We are pleased to announce you can begin selling our new competitively priced Medicare supplement plans in Indiana and Maryland. [Mutual of Omaha Insurance Company] Plans A, F, G, High Deductible G and N are available for sale effective August 4, 2022.

Indiana United World Life Insurance Company applications signed by September 4, 2022 and received in the home office on or before September 4, will be processed and provided prior coverage...Old company applications for Indiana or Maryland with a signed date of September 5, 2022 and later will not be processed. No exceptions will be made. A new application will be required to apply for coverage.

Source: https://blogs.mutualofomaha.com/exp...are-supplement-plans-in-indiana-and-maryland/
Click to expand...
 
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I have not heard anything bad about Manhattan Life. I do believe Plan N is a better value than G for most people. Good luck.
 
I noticed that Mutual of Omaha has lower rates that ML for a variety of ages on the rate charts.
Does that booking issue rule them out?
 
muckmail said:
I noticed that Mutual of Omaha has lower rates that ML for a variety of ages on the rate charts.
Does that booking issue rule them out?
Click to expand...
Yes, I would avoid MOO. It's just a matter of time before they close the current book of business causing rates to increase for those who cannot switch.
 
What company do you recommend for me to look at?

Is there any company does not play games and actually take's care of it customers?

I know that all companies will raise price because of medical inflation but
just looking for a company that is fair to it's customers in the long term.

A company that treats both younger and older customers fairly.

Maybe in this day an age a fair insurance company does not exist anymore.

Any suggestions?

Thank,
 
I am on Cigna right now. There first year but rate was ok but I noticed over 10%
after the first year. I think I need to get away from them If I can.
 
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