SPF
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- Feb 7, 2017
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Genworth certainly has a big problem, which is one reason they've pulled out of the LTC market. Most states (43) have enacted rate stabilization, which means that after the year they enacted them, rate increases become a lot less likely. For example, here in Georgia, 99.7% of rate increases on LTC policies have occurred on policies issues before 2008, which is when GA adopted rate stabilization. I probably review half a dozen rate increase letters per week from advisors with clients who are getting hit with these. It's an unfortunate reality of a time in which LTC policies were severely underpriced.They have Genworth. I read Genworth has asked regulators for another rate increase. My brother chose an expensive skilled nursing home in order to be close enough to visit. Mom cannot feed herself and might lose the ability to open her mouth when queued as her disease progresses. They lift the spoon for her. Dad can find his way to a facility dining hall and back. I took him shopping and to lunch on the weekend. They may have saved enough, self insuring much of the expense. I met another care giver at the facility, the daughter of an 88 year old woman invalid since 81. She is Catholic and may be force feeding, I am not sure. Her mother does not seem to move at all. Not all long term care patients die within two years.
While nobody likes a rate increase, replacing the policies with new coverage would still be more expensive.
And of course not all LTC patients die within 2 years. Statistically, 50% of people who need LTC will pass away within 1 year. Of the 50% that make it past a year, the average need is 4 years. But of course if we are talking about dementia and other cognitive impairments, we could be talking a lot longer. I believe One America has a current LTC claim that has lasted 16 years.
If you have a LTC policy and think you may qualify for the benefits, there's almost no reason to not go ahead and do so. The benefits pay tax free. With traditional LTC policies, it's usually use it or lose it as they don't have a death benefit. So not using it when you could is really just wasting money. You should look into it if you think you qualify for benefits.I have Genworth LTC policies for my wife and myself. They even pay for home care as well as nursing homes. So far I have not tapped into them.
I've always expected to go directly from normal health to death. I never really thought about being incapacitated for years. Even refusal of treatment including food and hydration takes competence and alertness. Dementia could end those possibilities.
I was in Hospice for 3 weeks last fall and am trying to find out why they first thought I was terminal and then changed their mind. I still have sharply reduced mobility due to those two assaults on my feet and the one assault on my eyes.
Good thing about qualifying for LTC benefits is that it is your doctor who determines that, not the insurance company.
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