Upcoming Changes in the Long Term Care Insurance Industry
In the next month, some big changes are happening within the Long Term Care Insurance market. If you happen to be shopping for policies at the moment, it’s important that you are aware of the upcoming changes and how they will affect your buying ability.
Genworth Financial, the largest Long Term Care Insurance provider on the market, has announced plans to roll out a new product called Privileged Choice Flex 3. The third generation of its Privileged Choice Flex policies, the new version includes some changes from the original plans.
The main thing to be aware of with the new policies is that prices will be going up. According to LTC Tree analyses, Genworth Long Term Care Insurance policies are currently very competitively priced, about 15-20% less expensive when compared to policies from the other major carriers. This new product includes adjustments for various factors that essentially bring the premium rates more in line with other companies.
Aside from premium rates increasing, another change with the new policy is that the benefits offered will be more limited. Whereas you could once purchase a policy with a 10 year benefit period, the new products limit the benefit period to 5 years. Some other slight changes may be included in the new policies, as well, as the company will be adjusting their rates based on the current low interest rate environment, the lower than anticipated lapse rate, and the change in mortality risk.
State of Long Term Care Insurance
The Long Term Care Insurance market has seen some shifts in the past several years as companies adjust their estimates to line up better with current economic and social factors that affect the ability to turn a profit on policies. Smaller companies who did not do so well have mostly exited the market, while several larger, more established companies remain selling the majority of policies. Genworth, especially, has reaffirmed their commitment to the Long Term Care Insurance industry and to ensuring they are able to continue selling policies in the future.
CEO Tom McInerney was featured in some short videos recently that highlight Genworth’s new direction with policies and their plans for the future. This new product represents their vision for how Long Term Care Insurance policies should be structured in the future.
Rest assured, if you already own a Long Term Care Insurance policy or have already submitted an application for a policy, these changes don’t apply to you. Only if you have yet to submit an application do these changes apply, but even if you haven’t, there is still time to get the less expensive and less limited Genworth policy now before the new product is released.
You Can Still Get the Lower Rates
Privileged Choice Flex 3 will be made available in most states on July 21, according to the information we received. For those who are looking to acquire a policy and be grandfathered into the current rate structure, we have established an ideal application deadline date of July 15 to ensure all applications are in on time to avoid the rate hikes and obtain the more expansive coverage if desired.
We will help you shop the market of all the top rated Long Term Care Insurance providers, including Genworth, and provide you with a free quote comparison of several different companies and policies without the need for a sales pitch. We want our clients to be as informed as possible about their different choices so you can make the best decision for you and your family with no pressure. Remember that buying when you are young and healthy (in your 50s) is the best time to purchase a policy because it enables you to get the lowest rates available. Waiting a few years to buy only increases your risk of not qualifying for a policy or paying higher rates, so if you are thinking you might get Long Term Care Insurance in the next few years, now is a good time to start looking at policies.
If you would like to take advantage of the more competitively priced policies while they are still available or view quotes from other companies, please fill out this form and we will be in touch with you shortly.