Wellness

[patbz]

DH and I have had LTC insurance with a major insurance company since I was 59 (19 yrs) and over the years we've had two major increases ( mine is around 3k annually and DHs is less; he's 7 years younger but crappy health history ( bet BCBS has paid out well over 1 million dollars in last 35 years).  I probably will keep our coverage ( 3 yrs nursing care either in home or in a facility) if at all possible.  Both my parents required over 10 years each of 24/7/365 care ( they self insured).  Bottom line: if you need it you couldn't possibly afford it for long on your own. That's why I have NO sympathy for those who try to beat the system by transferring title to family home so the rest of us pay their freight.

[lynne6was7]

@granddi I work in the insurance field.  Long term care (LTC) insurance premiums are increasing due to the high cost of long term care services and, in part, because the industry under priced the policies at the onset.  Most life insurance policies are terminated by the policy owner well before they pay a death benefit.  The industry, when pricing LTC insurance, thought that policy owners would do the same with LTC policies but that is not the case.  Those lucky enough to get long term care insurance are hanging onto the coverage.  In today's insurance marketplace, you cannot purchase a policy with benefits that resemble those originally available.

The options outlined in the letter you received from Genworth are not your only options.  (In fact, those options are likely poor choices.)  You can adjust your coverage to keep your premium relatively the same.  If you have an inflation rider in your LTC policy, the letter you received from Genworth likely offers you a Stable Premium Option.  In my opinion, this is not a good solution as it will take your inflation protection down to 1%, which is never going to keep up with the rising cost of long term care services.

Therefore, contact your agent, or Genworth directly, to request a quote letter for three "Benefit Change Options."  Leaving your inflation protection percentage unchanged, ask them to quote a benefit period one year shorter than your current duration; a benefit period two years shorter than your current duration; and a monthly benefit that is 75-80% of the current maximum monthly benefit - you may want to provide a round number.  For example, if your current maximum monthly benefit is $10,300, ask them to quote $8,000.  (If you ultimately decide to decrease the monthly benefit at this time, it will continue to adjust up per your inflation protection rider in future years.)

Once you receive these three Benefit Change Options, you can see how the three quoted premiums compare to your premium before the upcoming increase.  If none of them quite meet your premium budget, you can ask for additional quotes adjusting whatever coverage parameters you prefer.  But, as I said, keep your inflation protection as-is.

Once you decide on one of the Benefit Change Options, check the appropriate box on page 1 of the quote, sign and date page 2, and fax or mail the form to Genworth as indicated on page 2.  Keep a copy for your records.

Hope this helps.

[89135]

I agree with @lynne6was7 ...She is spot on...Please check with your agent...I have never gone with the options they give you and my agent has always come up with the best option for me..and usually always changing the monthly benefit and keeping my inflation protection which is compound 5%..and BTW, I wish my max monthly benefit was 10K..not close but something is better than nothing