Long Term Care Policy to Provide Less for More

A client recently purchased LTC insurance after two years of thinking it over.  Whew, I thought, just in time!  Genworth’s newest policy becomes available next week, complete with 30% higher premiums and the following reduction in benefits:

  • Maximum Daily Benefit amount changed from $400 to $300
  • Maximum Monthly Benefit amount changed from $12,000 to $9,000
  • Minimum issue age will now be 40
  • Benefit multiplier options no longer include 6, 8 or 10 years
  • 2% compound inflation protection option added
  • Future Purchase Option changed from 5% to 3% compound
  • Home care services require an Agency, if available
  • The following riders are no longer available: Transition Benefit, Restoration Benefit and Refund of Premium Benefit

I suspect the other carriers will follow suit over the next year.  If you’ve procrastinated on reviewing Long Term Care policies, don’t delay any further!  If you’ve recently received a quote from an insurance provider for LTC, make sure you’re comparing Genworth to other coverage options.