Genworth long term care insurance is considered by some the Cadillac (or is that Lexus?) of long term health care insurance. As an ex-agent and LTC specialist I sold Genworth (or GE as it was called at the time).
First off let’s be clear about Genworth and where they come from. Ever hear of General Electric? I’m sure you have and since you have you know that this is about as solid a company as they come. If GE is gone from this world…well, we probably are to. You can bet your bottom dollar when it comes to comparing long term care companies that Genworth is going to be right at the top, but does that mean you should buy it?
The real issue is the contract. Most people simply do not understand this. Long term care insurance and long term care companies make money from the contract. The policy is your contract. If you’ve already read the guide and watched the videos then you know what I’m talking about. (The guide and videos teach you about long term care insurance and the contract.) I’ve said it before and I’ll say it again LTC insurance is probably the most complicated insurance contract the consumer will ever read.
Most important to you, the consumer, is the contract you purchase. The financial stability is very important as well - obviously you want the company to be there for you, but you must have a contract that benefits you.
Because of the aging population a lot of insurance companies have rushed to get on the long term care bandwagon. This is good and bad. Big companies can lose a lot of money in the LTC business simply because they don’t know what they’re doing. Often times the smaller companies can be even better when it comes to long term care insurance because they specialize in just that one thing.
Genworth long term care has not only gained in popularity but has had a history of stable premiums…although I read recently that they were raising rates. What happens is that companies take calculated risks insuring you against the claim; the calculated risk comes from the underwriting department. This is why you can’t get insured when you need it. You can only insure something that won’t trigger a claim. Companies like Genworth are experts at determining if you will be a claim or not and as such they have stricter underwriting. This can benefit you in the long run because you will have stable premiums but the bottom line is always - read ALWAYS - the contract.
To really understand long term care insurance you need to read the guide; Insiders Secrets to Long Term Care Insurance and watch the accompanying videos. This consumer guide will not only teach you what you need to know but help you save thousands of dollars over
{ 6 comments… read them below or add one }
“I’ve said it before and I’ll say it again LTC insurance is probably the most complicated insurance contract the consumer will ever read.”
I’ve got to disagree with you on this point. Have you ever read your auto policy or your homeowner’s policy?
Term life is probably the simplest insurance to understand.
Long Term Disability Insurance and Long Term Care Insurance are probably equal in ease of understanding, but more complex than term life.
Universal life is probably the next hardest to understand.
Auto and Home and Medical certainly top the list in terms of complexity.
Hey Scott…thanks for sharing your thoughts.
As an ex-agent who specialized in long term care insurance the complication I am referring to is terminology. Many of the contracts I read used little known terminology that could be used to minimize or limit benefits to the policy holder. I can’t even begin to tell you how many times I’d meet someone and read their policy with them and they had no idea what they had “really” bought. The distance between what they thought they had and what they really had was quite disturbing…this was a motivating factor in writing the guide.
My mother has a policy she has paid over $50,000 into over the years. She is 93, she is running out of money. We are worried, with GE’s problems, what if they go under, where does that leave her policy. She currently is self sufficient, living at home, no major illness other than just typcial aging process. We hate to cancel it,now that the liklihood of something happening to necessitate nursing home living is more probable, on the other hand……..
Hi Marlyn and thanks for your comments…
First off, if you can consider reducing the benefits. I go over this in the guide but I’ll share this with you here. Rather than canceling the policy you can reduce benefits. If your mother has a plan that is 3, 4, 5 year or unlimited she can easily reduce that without any underwriting. The minimum in every plan I’ve ever seen is 2 years. Many times companies and agents won’t tell you this….or think to tell you this. She could save on the premiums, still have the coverage and you wouldn’t have to worry.
As far as GE going bankrupt I used to say if GE goes we all go so it probably won’t make any difference in the long run. You might remember that General Electric was one of the first 10 companies that made up the NY stock exchange. It’s lasted this long …. I think (hope) it will continue to weather the storms.
I have been looking for online advice concerning our LTC insurance. My husband (62) and I (52) bought plans 1 year ago. The premiums total together nearly $6000 a year. Our financial adviser took the premiums our of our assets last year but this year we have received a bill. It looks much more ominous when we have to send $ out of our savings. I’m sure our adviser would gladly take it from our account again but with the decrease in our portfolio lately he has not suggested it. I suppose I should ask. As with any insurance it is always a gamble if you will need it or not…that I realize, it’s just so hard to decide the smartest thing to do now. Please advise if possible. Thank you.
Hi Claire and thanks for writing….
You are paying a lot in premium but what is it exactly you purchased? Many times we consumers rely on the “specialists” to tell us what to do or what we need to have….that may or may not be the case. As a former agent I can tell you that, in my personal opinion, many people will over-insure against the risk. I hate to say it but agents and companies and financial planners all make money from this activity. The reason I wrote the guide “Insiders Secrets” is to teach you exactly what you are asking. You can easily learn how to structure a plan, understand what your plan really is and make sure that you’re getting what makes sense for you and your husband. Because there is so much information I have to recommend you to the guide where (with zero risk) you can get all the answers to your questions. I know you may be thinking I’m just plugging the book, but the only way to really know how to structure a plan is to understand the inside details. Claire I hope you’ll consider “Insider Secrets” as your solution…it is a consumer buying guide written to answer exactly this and many other questions like this. Good luck and thanks for writing.