I am a Genworth policy holder and am involved in class action suit settlement. The options have one keeping their policy but if you have one in which you have over 1% compounded inflation added annually you can face severely high rate increases. My wife and I have a policies that give us 5% annual compounded inflation protection. Our policies are in California. Genworth in their correspondence to us that they will seek increases over the next several years that will reach 320%! That would raise my monthly amount for my policy to close to $1000/month and my wife’s policy to nearly $800/month. Those are astronomical increases. Of course because they ask for it does not mean they will receive that amount from the California Department of Insurance, but with Genworth now C++ rated by AM, they could get what they are asking. My question as a consumer is should I cut my losses after paying for over 13 years and find another avenue for LTC or somehow pay potentially crazy premiums. One good thing is either my wife or I pass, the. Other’s policy will be paid up. I once thought I had this under control, but I feel far from that. Does anyone have any suggestions on the best way to approach this? The other options basically give you some cash and you have very limited benefits.
Genworth options for policy holders are not good
- Thread starter csalter
- Start date
- 2,263
Before you give up on the policy, and I'm assuming that this is a LTC policy, look to raise your deductible and lengthen the time before your policy kicks in. You don't state what the max on the policy is and that can also be adjusted.
- 10,330
In regards to a new policy. Maybe, maybe not.
Your age and health status are the main determining factors for that.
---
You also did not state what the monthly benefit and total benefit pool are.
Those are important factors in regards to if you even need the 5% inflation option.
At this point, 1% might be enough to meet your needs.
You can reduce inflation. Reduce monthly benefits. Reduce the length of benefits. All of which will lower your premium.
I would highly recommend considering the 1% option moving forward.
Especially if you are over the age of 70, especially if you already have a large benefit pool.
Chances are, this will not be the only rate increase over the next decade.
But those older LTCI policies can have richer benefits than the ones sold today. Make sure you are comparing apples to apples if you consider a change.
Your age and health status are the main determining factors for that.
---
You also did not state what the monthly benefit and total benefit pool are.
Those are important factors in regards to if you even need the 5% inflation option.
At this point, 1% might be enough to meet your needs.
You can reduce inflation. Reduce monthly benefits. Reduce the length of benefits. All of which will lower your premium.
I would highly recommend considering the 1% option moving forward.
Especially if you are over the age of 70, especially if you already have a large benefit pool.
Chances are, this will not be the only rate increase over the next decade.
But those older LTCI policies can have richer benefits than the ones sold today. Make sure you are comparing apples to apples if you consider a change.
- Thread starter
- #4
I am 64 years old and my wife is 50. Each of our policies are for four years. The policy is a California Partnership Policy which automatically came with the 5% compounding. If I am able to change that, I probably will. They are not increasing policies that are at 1%. At least for now they aren’t raising them. One good thing that is to my advantage now is that we have relocated to Texas for retirement and the cost for LTC is less expensive.
There is no monthly rate benefit, just the daily benefit which is currently $359 per day and the maximum lifetime amount is about $525,000. We don’t have a pool of benefits for the two of us.
My wife and I have two separate policies with Genworth. In which if one dies the other will have a paid off policy. In a normal situation, I would probably pass first and she’d have a paid off policy. This to me was a great benefit. However, I am concerned if Genworth will even be around.
- Thread starter
- #5
It is a long term care policy. As of now the max on the policy is about $525,000. I guess I would need to look at various scenarios as you have stated. I did not think about lengthening the elimination period. I don’t think I would do that. It’s already at 90 days.
- 16,881
If you do cancel it might be to your benefit to do it at the time of a rate increase. in some states, if you cancel the policy within 60 days of a rate increase, the company has to give you a paid up policy that is dollar for dollar the amount that you’ve paid in premiums.
Rate increases on CA Partnership policies have to be approved not only by the CA state insurance commissioner, but also by the CA Dept. of Health. Don’t do anything. See what transpires. Relax.
- Thread starter
- #8
They’ve given us until February to make a decision on which option to choose.
I know you are smarter than this. They are “seeking” rate increases. If they get a rate increase approved, it will then be required to disclose the amount of the increase approved and will make you additional offers to reduce your benefits. Genworth wants policyholders to give up their benefits. That’s the purpose of the marketing letter you received. Don’t do anything. There is no “deadline” to ever reduce your benefits.
- Thread starter
- #10
Well, I did consider what you say. I don’t really want to reduce my benefits, but a potential 320% increase does get one’s attention. I do know that California has traditionally been difficult for insurers to get high increases but if Genworth is having such issues they may give them a bit of a pass. I am going to hold on.
Similar threads
