Change is Coming to Genworth Long Term Care Insurance
We just received official word that on April 15, 2013, Genworth Financial will be rolling out their new Genworth Privileged Choice Flex 2 Long Term Care Insurance product in virtually all states. This new product will have some major changes and will be the biggest one-time shift in underwriting the Long Term Care Insurance has ever experienced in history. It’s a much needed change to keep the industry healthy for the long-term. After all, the companies need to be financially sound for years to come, so improving internal processes and standards is to be expected.
Benefit Changes to Genworth Privileged Choice Flex 2
There are numerous changes, but there are three important Genworth Privileged Choice Flex 2 benefit changes to consider:
Like Life Insurance underwriting, where men pay more because they are the higher risk, women will soon pay for for Long Term Care Insurance. Women account for around 70% of all Long Term Care Insurance claims. It is natural to see the insurance companies wanting to shift the cost more to those actually requiring the most benefits. That fact does not make it more palatable for woman though. For those thinking about buying Long Term Care Insurance now, the good news is that we have about two months to grandfather you into the old product. Request your information here.
The second important change is the shift to consideration of family history in the underwriting mix. We speculate that people who had parents with conditions like Alzheimer’s will be paying more as a result.
Finally, the third change is a move to a required Paramed Exam, again similar to underwriting of Life Insurance. This will gives the insurance companies the most up to date data on clients when deciding on approval or not.
Genworth Privileged Choice Flex 2 Actuarial Changes
- Apply Gender Based Rates (See our blog specifically for women found here)
- Require Family History for Underwriting
- Require Paramed Exam for Underwriting
Genworth Privileged Choice Flex 2 Benefit Changes
- Add 4% Compound Inflation Protection
- Other Important Changes
- Reduce Maximum Issue Age from 79 to 75
- Lifetime Benefit Multiplier is not available
- Eliminate 7-Year Survivorship option
- Apply Claims Offset on all Compound Benefit Increase Options
- Informal Care (untrained/uncertified caregivers) available for Homemaker and Chore
- Redefine “Couples”, eliminating relatives and restricting to two people
At LTC Tree we are “plugged into” these changes and can help you navigate them to ensure you find the best product at the best price. As of now Genworth is the first to announce these changes, but since they are the industry’s leader the other companies are guaranteed to follow shortly. If you’d like to learn more please fill in the form below and we will mail you quotes from Genworth and all of the other top companies.