Originally Posted by brewer12345
merlin, the 10-pay option would mean that any premium increases they try to stick you with would have limited amounts of time to make any material difference to your total cost. I am astounded that you have found an insurer willing to write coverage for a lifetime (forever) coverage duration. Last I heard a couple years ago those policies were pretty much unobtainable.
If you do a deal like this, you will want an insurer with a very solid balance sheet. I would look for a minimum AA-/Aa3 claims paying rating, preferably from a mutual. Do you mind telling us who the insurer is?
The price sounds pretty darned steep to me. Before you sign on the dotted line, it might be worth doing a simple calculation. Assume you invest the premiums yourself over 10 years and earn a return of X%. How many months of coverage could you pay for out of pocket with the lump sum you would have accumulated?
If we've learned anything from the last couple decades of long-term care insurance claims, it's that insurers are evil or incompetent.
In Genworth's case, I'd say both.
BTW, Merlin, note that Brewer has not yet chimed in on Genworth's financial ability to pay claims. I think his silence tells you all you need to know, but when he gets back to this thread there will be no doubt of his opinion of their ability to pay.
Originally Posted by merlin3942
btw, I can't thank you enough for pointing me to the thread that Nords started about his experiences, and that so many others contributed to. The information there is invaluable!
You're welcome. It's educational group therapy...
The reality is that you want an insurance company to make money from selling you a long-term care policy. (Otherwise they'd never be able to pay your claim.) However recent research indicates that much of the need for long-term care is already covered under Medicare limits, and end-of-life care is generally less expensive than the cost of long-term care insurance policy premiums.
In other words you're spending thousands of dollars to cover part of a very very small risk. Take a look at these two posts:
June 2015: Long-Term Care Insurance: Why We Aren't Buying It - Can I Retire Yet?
Dec 2014: Why I Won't Buy Long-Term Care Insurance - Military Guide