Should I Be Concerned About LTC W/Genworth

[Arthur Rudnick]

WHy the concern about the carrier? Aren't all carriers funded, like FDIC, etc.. I know when I get flood, etc I dont care how low the carrier rating is bec the fed or state ALWAYS steps in. Am I missing something?

The financial stability of carrier should always be a concern. Would you purchase a policy (any insurance product) from a company with a 'D' rating just because there may be a federal or state back-up? Some agents, rightfully so, will not deal with a company with anything less than a 'A-' rating. Personally, I like to sleep at night and will always consider a financial rating as part of the mix.

Yes, most states have a Guarantee Fund. But benefits are limited and personally, if I ever needed to access my benefits, I'd rather deal with an insurance company, rather than some $12.00/hour state worker.

 

[yankee466]

The financial stability of carrier should always be a concern. Would you purchase a policy (any insurance product) from a company with a 'D' rating just because there may be a federal or state back-up? Some agents, rightfully so, will not deal with a company with anything less than a 'A-' rating. Personally, I like to sleep at night and will always consider a financial rating as part of the mix.

Yes, most states have a Guarantee Fund. But benefits are limited and personally, if I ever needed to access my benefits, I'd rather deal with an insurance company, rather than some $12.00/hour state worker.

Just to add to it....the state guarantees are often much less than the benefit provided by the product. Most states limit the protection to between $100k and $300K. How does that protect a lifetime benefit with claims over $1M?

The other question is YES, the carrier is supposed to have reserves to pay all claims........

 

[csalter]

It would seem to me with the recent resigning of Genworth's CEO, I have really had a legitimate concern about Genworth's stability and maybe their future existence. The agent I bought my LTC policy from shared with me the Genworth is raising the rates on all of their new policies by 25 or 30 per cent.

 

[Arthur Rudnick]

You have made it perfectly clear that you're uncomfortable with the Genworth policy you just purchased.

Why not just cancel the policy and buy one from another carrier? I'm sure every other LTC company is in much better shape than Genworth and no other company other than Genworth will ever have a rate increase.

And, just curious..........
How come your agent is aware that Genworth is planning for an across the board rate increase on all new policies? Is he/she a member of Genworth's Board of Directors? The bigger question is if your agent is aware of a 25%-30% rate increase on a policy the was just sold to you, how come he/she sold you the policy in the first place? And more importantly, what were you thinking when you bought it?

Can you please ask your agent what date Genworth is increasing their premiums by 25%? I'd like to notify all of my Genworth policyholders.

 

[csalter]

I can't believe that it is unnatural to ask questions about things that should raise one's eyebrows? I feel it would be a natural concern. I am not concerned about a rate increase during the first few years of the policy. I just worry about the company being around when I need it.

I did say he said that NEW policies that were to be issued would be going up soon. I think salesman would be aware of that. He also said that Hancock was going to be or did (I can't remember) raise their rates significantly too.

Genworth, according to my agent, has been really good to California partnership holders, with rate increases so far.

Mr. Rudnick, this is an open forum, at least I thought it was, for people to share their opinions and thoughts. I would think it would be a place that was safe to bring up thoughts, ideas, and concerns without attack. Am I wrong to expect that?

 

[Arthur Rudnick]

I can't believe that it is unnatural to ask questions about things that should raise one's eyebrows? I feel it would be a natural concern. I am not concerned about a rate increase during the first few years of the policy. I just worry about the company being around when I need it.

I did say he said that NEW policies that were to be issued would be going up soon. I think salesman would be aware of that. He also said that Hancock was going to be or did (I can't remember) raise their rates significantly too.

Genworth, according to my agent, has been really good to California partnership holders, with rate increases so far.

Mr. Rudnick, this is an open forum, at least I thought it was, for people to share their opinions and thoughts. I would think
it would be a place that was safe to bring up thoughts, ideas, and concerns without attack. Am I wrong to expect that?

I'm by no means attacking you. You came onto this forum months ago asking about LTCi. You asked and you were advised by a numberr of agents that a Partnership policy was not appropriate for you, yet you purchased one anyway.

You have consistently gone against the advice of forum members, and you call that an attack. We can only give advice, and that's what we've tried to do. What you do with that advice is your call.

You went ahead and purchased a Genworth policy and AFTER the fact, you determine you're not comfortable with your purchase. I had suggested that the time for your due dilligence was before you purchased a policy, not after.

No, it's not unnatural to ask questions but again, your questions and concerns should have been addressed prior to purchase.

There's no guarantee that ANY insurance company will be around in 20 or 30 years. That's true for LTC, Life, DI or homeowners insurance. But, there are a number of state safeguards to protect you if that ever happens. LTC blocks of business do not disappear. If a company has financial problems the blocks of business are sold to other companies. Or, they leave the business for new sales, but are around to service their existing policyholders.

I'm not sure what your agent told you, but Genworth has not announced any 25%-30% rate increases on new policies and Hancock announced rate increases on existing and new policies last year.

I'll say again: If you're concerned with your Genworth policy, replace it with a policy from another company. That's NOT an attack, it's sound advice and common sense.

 

[ltcadviser]

I am raising my hand up in the air. I would love to assist should a new application be needed.

 

[Arthur Rudnick]

That's very kind & thoughtful of you Jack..........

 

[billberry12]

ltcadviser,

It is so warming how all us LTCI specialist's are willing to help out a possible client isn't it? We just keep on giving.

 

[MedSuppPro]

WHy the concern about the carrier? Aren't all carriers funded, like FDIC, etc.. I know when I get flood, etc I dont care how low the carrier rating is bec the fed or state ALWAYS steps in. Am I missing something?

No they are not funded like the FDIC. I doubt any state DOI would look at their limited resources and be open to funding a meltdown. They have and will do just about anything to avoid that liability.