Genworth 10 Pay/Survivorship Question

[ltcadviser]

They can't take money in advance because of the possibility a rate increase would occur and the policy would need more premium to be paid up. Too much liability for a policy owner to say "hey, I paid it up"

If someone sends in more money the company will hold it in suspense, though. It just won't be applied.

 

[csalter]

My rep told me up front when I decided on 10 pay to drop the survivorship. When he told me the reasoning, I said, Okay." When he then told me I was going to be saving money on the premium, I said, "Absolutely!!"

Hey, I thought that once you bought 10 pay that they could not go up on your premium. Is that not true?

 

[ltcadviser]

My rep told me up front when I decided on 10 pay to drop the survivorship. When he told me the reasoning, I said, Okay." When he then told me I was going to be saving money on the premium, I said, "Absolutely!!"

Hey, I thought that once you bought 10 pay that they could not go up on your premium. Is that not true?

Absolutely not true. Sure, it can go up. I would set the over under of number of rate increases in a 10 year period at

-1.5 (+140)
+1.5 (-160)

I would probably bet the under and lay the 8-5. California might be a tough state to get 2 passed in 10 years moving forward.

I put the over under for the first rate increase at 5.5 years, -110 on both sides.

Probably would bet the over 5.5, but it will be close.

 

[csalter]

Absolutely not true. Sure, it can go up. I would set the over under of number of rate increases in a 10 year period at

-1.5 (+140)
+1.5 (-160)

I would probably bet the under and lay the 8-5. California might be a tough state to get 2 passed in 10 years moving forward.

I put the over under for the first rate increase at 5.5 years, -110 on both sides.

Probably would bet the over 5.5, but it will be close.

So are you saying that there is a chance of rates increasing once in 10 years?

 

[Chuckles21]

So are you saying that there is a chance of rates increasing once in 10 years?

What he is saying is that there is always a chance of rate increases, even with your 10 pay. Once your 10 years are up they cannot increase your rates (hence why they are getting rid of this option) but during your premium paying years anything is possible.

 

[Arthur Rudnick]

I would set the over under of number of rate increases in a 10 year period at

-1.5 (+140)
+1.5 (-160)

Jack,
Don't you realize that gambling is against the rules & regulations of the Forum?

 

[ltcadviser]

So are you saying that there is a chance of rates increasing once in 10 years?

Good chance. You still have a great valued policy even with a risk of a rate increase.

 

[csalter]

Thank you for that information. Well, I am not going to rush to getting old, but I will just hope I can get lucky and avoid a rate hike prior paying it off. :-)

 

[TriciaS]

There is a difference between quoting & issuing. I've had other combinations that didn't make sense rejected when it came time to issue. I think this might be one of them.

 

[ltcadviser]

There is a difference between quoting & issuing. I've had other combinations that didn't make sense rejected when it came time to issue. I think this might be one of them.

Ahhh.....no it is not one of them. But thanks for your post.