An Overview of Genworth Privileged Choice Flex
Genworth Privileged Choice Flex is the top-selling Long Term Care Insurance product in 2012. It was introduced in most states between August and November of 2011, and is Genworth’s latest incarnation in a series of Long Term Care Insurance plans going back to 1974. Since HIPPA in 1996, Genworth has marketed policies intended to be Tax Qualified under IRS regulations, and Privileged Choice Flex is no exception.
Consult the policy in your State for specific details. This is a summary based on client questions and feedback. This product is not available in all states. As of July 29, 2012, there were 45 states where PC Flex is available.
Privileged Choice Flex vs Privileged Choice and Classic Select
So, how does Privileged Choice Flex compare to past versions of Genworth LTC products? Prior to 2011, Genworth had two products for Long Term Care Insurance:
- Privileged Choice (no Flex) was the premium product offered primarily to couples, and included three bells and whistles in most states:
- Monthly payment of benefits
- Home Health Care 0-day waiting period for benefits
- 10-year Survivorship (not available in Florida)
- Enhanced inflation protection options (no claims offset) and International Long Term Care Coverage were included.
- Classic Select was the “a la carte” plan that offered core Long Term Care Insurance coverage at a lower price than Privileged Choice.
Enhanced Shared Coverage Options
Virtually every Long Term Care insurer offers Shared coverage options, where a spouse or partner combines their policies to pool benefits for greater risk protection. What makes Genworth Privileged Choice Flex different is that even if one spouse exhausts all of the benefits for both spouses, there’s a backup reserve fund of 50% of theoriginal benefit for the non-claiming spouse. This is not subject to inflation protection, so as time goes on this 50% pool will be smaller and smaller in real terms, but it is a nice benefit as a hedge to a rare “circuit breaker” event where one spouse has an ongoing claim.
We recommend 5% Compound Inflation for all clients under 70 years old.
Inflation Protection Options
- 3% Compound
- 5% Simple
- 5% Compound
- Future Purchase Option
- No inflation protection
With a Privileged Choice Flex plan, you have coverage abroad for up to four years, and without waiver of premium. This means you’d need to transfer back to the US to receive full benefits, including having your premiums waived. See our complete International Long Term Care Coverage page for more details.