Long Term Care Update for February 2014 - News You Can Use – Let’s Get Down to Business

[Steve Savant]

The impact of gender based pricing that replaced unisex rates has finally settled into the extended care market place. Once result was the expected increase in LTC premiums for females. What was not expected was the significance of the increase. Another shift in LTC policies is a the reduction of COLAs to 3%, impacting retirement modeling. More retirement specialists are enlisting long-term care experts to help co-design their plans with extended care indemnification. Maria Sarci explains these and other news items.

Long Term Care Insurance Update -- News You Can Use -- Update for February 2014 - YouTube

 

[ltcadviser]

Mass Mutual, NY Life, Medamerica unisex rates. Genworth unisex rates for couples. Just dont apply to Omaha, Transamerica or Hancock.

 

[Steve Savant]

Thanks for update.It's appreciated.

 

[Arthur Rudnick]

I think a very important issue that no one has discussed regarding Genworth is their decision to use family medical history as a tool in underwriting. If your parents have had Alzheimer's, diabetes or a history of heart disease, that may effect your ability to qualify for a policy.

Gender based pricing and family history, sounds like life insurance underwriting.

A good thing or a bad thing?

 

[ltcadviser]

I think a very important issue that no one has discussed regarding Genworth is their decision to use family medical history as a tool in underwriting. If your parents have had Alzheimer's, diabetes or a history of heart disease, that may effect your ability to qualify for a policy.

This is not true, Arthur.

 

[Arthur Rudnick]

previously posted by ltcadviser

This is not true, Arthur.

Well, the way it was explained to me by a Genworth regional when PCFlex2 was first introduced, was that if the cause of death to a parent was due to either cancer, diabetes of dementia, that would raise a red flag and require additional underwriting.

Prior to PCFlex2, that information was only for "statistical purposes". Effective with PCFlex2, it becomes an underwriting tool.

PCFlex2 is not yet in NY, (it will be shorthly) so I haven't experienced whether or not the health class is effected.

What's been your experience Jack?

 

[ltcadviser]

previously posted by ltcadviser



Well, the way it was explained to me by a Genworth regional when PCFlex2 was first introduced, was that if the cause of death to a parent was due to either cancer, diabetes of dementia, that would raise a red flag and require additional underwriting.

Prior to PCFlex2, that information was only for "statistical purposes". Effective with PCFlex2, it becomes an underwriting tool.

PCFlex2 is not yet in NY, (it will be shorthly) so I haven't experienced whether or not the health class is effected.

What's been your experience Jack?

It simply means that it might trigger an underwriter to order medical records to view slightly more closely but the UW is still completely umderwriting the applicant on the basis of their medical records. Does not change the offer whatsoever. Everyone still gets the health class their health deserves.

 

[Arthur Rudnick]

previously posted by ltcadviser

It simply means that it might trigger an underwriter to order medical records to view slightly more closely but the UW is still completely umderwriting the applicant on the basis of their medical records. Does not change the offer whatsoever. Everyone still gets the health class their health deserves.

So, if an applicant is at the age where an aps is required and both parents died of either dementia, diabetes or coronary artery disease, you mean Genworth is OK with that and will not go any further?

If that's the case, what's the purpose of the family history in the 1st place?

Maybe they're setting up for future "genetic testing" (which has been talked about for life insurance for a while). If someone's parents died from one of those diseases, they'll test their genes and if they are predisposed for one of those illnesses, they could be declined.

I wouldn't be surprised if that isn't on the drawing board as we speak (I mean as we type), In 19 years in the business, nothing would shock me.

 

[ltcadviser]

previously posted by ltcadviser



So, if an applicant is at the age where an aps is required and both parents died of either dementia, diabetes or coronary artery disease, you mean Genworth is OK with that and will not go any further?

If that's the case, what's the purpose of the family history in the 1st place

Yes, you understand it. Maybe if APS was not required, it might cause underwriter to look more closely. But the reality is if mom or dad didn't have alzheimers no one would even apply for coverage.

 

[CALTCAgent]

Gender based pricing and family history, sounds like life insurance underwriting.

A good thing or a bad thing?

Family history will only make it harder.


Carriers have been using the underwriting concept of "individual consideration" for many years. This means they will decide based on many factors. That means someone must make a decision based on factors that are not black and white.

Bottom line, a poor family history will not help you get accepted, IMO.