After reading a Huffington Post Long Term Care article entitled: Genworth Financial Exploits Obamacare Loophole To Charge Women More For Insurance, we had to respond to the irrational logic the journalist who wrote the piece expressed. The position of fairness she took just does not hold water with multiple other insurance products where men pay much higher rates… say Life Insurance or Auto Insurance!
Huffington Post Long Term Care Slams Genworth with Hyperbole
Here’s a bit from the Huffington Post Long Term Care article on Genworth:
Many women soon can thank Obamacare for ensuring that they won’t have to pay higher health insurance premiums than men. But elderly women can’t say the same of long-term care insurance.
Thanks to an Obamacare loophole, long-term care insurance providers can charge women more than men for the same coverage. And Genworth Financial, the largest U.S. provider of long-term care insurance, plans to charge some women higher premiums than men starting this spring, Kaiser Health News reports.
But wait, don’t men pay more for Life Insurance and Auto Insurance?
Men pay more for Life Insurance than women and a 16 year old boy pays higher auto insurance rates than a girl. This is simply because men and boys are higher risk to the insurance company in those categories… and that’s ok because it’s common sense.
I ran several Life insurance rates comparing what men pay vs. what woman pay to give the reader and idea of this pricing structure.
- A 40 year old male will pay 28.12% higher rates than a female for a 30 year Term Life policy.
- A 55 year old male will pay 40.09% higher rates than a female for a 30 year Term Life policy.
- A 60 year old male will pay 46.28% higher rates than a female for a 25 year Term Life policy.
- A 65 year old male will pay 58.16% higher rates than a female for a 20 year Term Life policy.
Woman account for 70% of all Long Term Care Insurance claims
Women account for about 70% of all Long Term Care claims, so unlike the Federal Government who can just print money with QE to infinity, companies must turn a profit. A profit is a good thing and not a dirty word like some want you to think.
Without profits, this Mac computer I’m typing on would not exist because Steve Jobs would not of sold his first big order of 50 computers to The Byte Shop in 1975. With those early seeds of profit, Jobs grew what is today the world’s largest company, Apple.
The real key for woman who are thinking of buying Long Term Care Insurance, is to buy it in your early 50’s. Even with the increased pricing that is coming, the premiums will be much less than a woman who buys it now who is say 65 years old.
Unlike the Huffington Post Long Term Care article on Genworth, LTC Tree provides clients with facts, logic and the ability to shop all the LTC companies with one source. If you don’t like how Genworth is pricing the product, buy it from another company and we’ll do the shopping for you. We’re independent and work with all of the LTC Insurance companies, but at the same time pride ourselves on defending the common sense that was lacking in the Huffington Post Long Term Care article.