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Just got first Genworth LTC increase
Old 05-20-2014, 01:04 PM   #1
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Just got first Genworth LTC increase

Been waiting for it to happen, 12.8%,134 per quarter combined for the both of us, 536/year.
I guess will grin an bear it,but not thrilled to see it.
Old Mike
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Old 05-20-2014, 01:29 PM   #2
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Well they DO have to pay somebody to give claimants a hard time you know...
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Old 05-20-2014, 01:42 PM   #3
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Cheap at half the price. An approximately 13% increase is a lot less than what I have heard other people are paying.
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Old 05-20-2014, 02:14 PM   #4
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Our increase, also just received, is 15% this year, 15% next year and 9.6% the following year. So nice of them to spread it out.
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Old 05-20-2014, 02:18 PM   #5
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I'll trade you your graduated 15/15/9.6% increases for the 50% 'bump' I got this year.
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Old 05-20-2014, 03:32 PM   #6
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Think we have been paying for about 10 years now, so it may depend on how long
you have had it. Also I guess the amount of coverage and if have inflation clause.
This was our first increase,more to come I am sure.
There excuse was something like it cost more than they thought.
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Old 05-20-2014, 07:46 PM   #7
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The LTC system is broken at this time, IMHO. Hopefully they will figure out ways to get it to a sustainable norm.


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Old 05-21-2014, 04:53 AM   #8
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I'm scared to open mine. I've only had it three years, and no rate hike during that time.
I'm deeply conflicted on owning this insurance, anyway. . .
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Old 05-21-2014, 05:41 AM   #9
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The fact that the carriers can increase premiums at will is one of the reasons I have not yet purchased LTC. It seems that once you're under contract you are pretty much stuck with either paying up or walking away from what you have paid previously. Not a place that I care to be.
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Old 05-21-2014, 05:50 AM   #10
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Quote:
Originally Posted by pb4uski View Post
It seems that once you're under contract you are pretty much stuck with either paying up or walking away from what you have paid previously. Not a place that I care to be.
Actually it isn't always an either/or choice. In our situation we were given the option of retaining our original premium payment (unchanged for the first 14 years we had the policies) in return for reduced coverage. Others who have been hit with big increases have reported they were offered similar options.

Note that the above is in no way intended to be a defense of the lousy job insurers did in establishing initial premium rates when they first began offering LTC coverage.
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Old 05-21-2014, 06:38 AM   #11
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Quote:
Originally Posted by pb4uski View Post
The fact that the carriers can increase premiums at will is one of the reasons I have not yet purchased LTC. It seems that once you're under contract you are pretty much stuck with either paying up or walking away from what you have paid previously. Not a place that I care to be.
I'm a retired actuary and will not be buying LTC. DH has chronic health problems that make it extremely unlikely he'd linger for a decade in LTC. People in my family live into their early 90s, but I'm planning on self-funding.

It's just tricky to price LTC insurance. First, it's bought only by people who anticipate needing it (because their family members developed Alzheimer's early or their grandparents lived to be 100, etc.) I would also guess that people who are cared for in decent nursing homes live longer than people of the same age who can't afford them and live in a house they can't maintain and can't get the medical care they need. You build in an assumption on lapse rates, since people who stop paying premiums are, in effect, subsidizing the continuing policyholders. This may not help much; when the insurer increases premiums, the only ones who stick around and pay them are the ones most likely to enter LTC soon.

I worked for the insurance sub of a mega-corp and when they sold us off, the one piece the acquiring company did NOT want to buy was LTC.
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Old 05-21-2014, 07:10 AM   #12
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DW and I bought the Genworth 10 pay - 7 payments down - 3 to go - I keep waiting for a price increase - but so far so good

Genworth stopped selling 10 pays in 2012 - but I'm not positive of the date

Anyone else with a 10 pay that received a price increase?

BTW LTC was a tough decision that took a while to figure out
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Old 05-21-2014, 07:34 AM   #13
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We are keeping our policies as is and are not particularly anticipating using them and certainly not soon. We could self insure but I would worry about impoverishment of the surviving spouse. Plus I like the feature of being able to use the policy for 'in home' support.
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Old 05-21-2014, 09:36 AM   #14
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Quote:
Originally Posted by LastOfTheBoomers View Post
DW and I bought the Genworth 10 pay - 7 payments down - 3 to go - I keep waiting for a price increase - but so far so good

Genworth stopped selling 10 pays in 2012 - but I'm not positive of the date

Anyone else with a 10 pay that received a price increase?

BTW LTC was a tough decision that took a while to figure out
Yu should be in good shape. Were your premiums guaranteed not to rise when you bought the policy? Some "short pay" policies did not allow the insurer to raise premiums. In any case, at this point there is limited damage they could do to you since you only have 3 payments left. Short pays and single pays were always a very small percentage of the total market because of the high premiums, so it is unlikely they will go to the trouble of raising your rates considering the limited benefit they would get from doing so. There is a lot of work to be done by their actuaries and it takes time to get approvals from the state insurance regulators LTCI rate increases, so you will probably escape a nastygram bill.

Just out of curiosity, when you bought the policy do you recall how much higher the 10 pay premium was than the annual pay?
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Old 05-21-2014, 04:27 PM   #15
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I remember asking the agent if the premiums could rise - and he said yes

I don't recall the price difference - but since we were young - in our 40s - it would make the most sense to pay it off while we were working
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Prices without References mean squat.
Old 05-22-2014, 02:16 PM   #16
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Prices without References mean squat.

Original purchase was combined for 2 of us, 2001, 51yo and 54yo; ~$120/mn premium, $100/day, 1095 days (3 years), 21 day exclusion/deductible, 5% compounding inflation rider.

Current premium =$175/mn. Approved for 2 rate hikes of 40% to be divided over 2 or more years. Current benefit is $200/day. Cheap.

Currently paying relief help $165 for 2 days/wk-15 hours.. No diapers, no house keeping. I am please to have the help.
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Old 05-26-2014, 07:46 AM   #17
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Finally opened my renewal. No increase this year, and no letter talking about future increases. Whew!
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Old 05-26-2014, 08:38 AM   #18
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Started LTC in 2007, just got notice of first price increase. Not sure what I will do. Will look into federal employee sponsored LTC.
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