Lincoln Benefit Life Company, an Allstate Company, to Cease Issuing New Lincoln Benefit Life Branded Long-Term Care Insurance Policies
Lincoln Benefit Life Company, an Allstate Company, has decided to no longer issue new Lincoln Benefit Life branded long-term care insurance policies, effective October 31, 2005. Customers who have existing long-term care insurance policies with Lincoln Benefit Life Company will not be affected. They will continue to have their policies serviced through LifeCare Assurance, a third-party company that has administered the Lincoln Benefit product since its inception.
“This decision is in line with the focus of Allstate Financial, the life and retirement savings business unit of The Allstate Corporation, which is to simplify and strengthen our product offerings by developing a limited portfolio of top-tier products,” explains John Lounds, senior vice president in product management, Allstate Life Insurance Company.
The Lincoln Benefit Life long-term care insurance product is currently offered through independent financial representatives appointed to sell Lincoln Benefit Life Company products, along with Allstate exclusive agencies and financial professionals. The company has offered long-term care insurance since 1997.
According to Lounds, the actual Lincoln Benefit Life long-term care product and its administrator, LifeCare Assurance, have performed well, and this decision is not reflective of any aspects of the actual product performance, rather of the category in which the product resides.
“Lincoln Benefit Life’s focus is on developing and offering retirement savings and life products and we want to focus more of our attention and resources on our core product lines,” he explained.
This recent decision is one of many product decommissionings undertaken by the business unit. In fact, according to Lounds, Allstate Financial has decommissioned more than 100 products since the end of 2000. This strategy has strengthened the business unit.
The company does not expect this decision to impact net income or its workforce.
Despite this decision, Allstate recognizes the need to be able to offer long-term care insurance to the Allstate customer base, many of whom are nearing retirement. In line with this, Allstate plans to offer a long-term care insurance product issued by a third-party carrier, yet to be determined. The product would be sold through Allstate exclusive agencies and financial professionals.
Besides long-term care insurance, Lincoln Benefit Life, an Allstate Company, also offers fixed and variable life insurance, and fixed and variable annuities.
For more than 65 years, Lincoln Benefit Life Company has been an innovator in bringing insurance and annuity products to policyholders nationwide. Lincoln Benefit Life was acquired in 1984 by Allstate Life Insurance Company specifically for its ability to develop competitively priced insurance and annuity products for distribution through independent agents. By the end of 2004, the company had $211.3 billion of life insurance in force and more than $2.7 billion in assets under management. And its financial strength and ability to meet its obligations to policyholders are reflected in the high rankings it has received by independent statistical rating agencies. Lincoln Benefit Life prides itself on its ability to provide exceptional products and service to its customers.
Lincoln Benefit Life Company is a proud member of the Insurance Marketplace Standards Association - IMSA. Membership signifies commitment to honesty and fairness in the sales and service of individually sold life insurance, long-term care, and annuity products.
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