There’s nothing like a deadline to spur completion of important overdue action items. If you’ve been procrastinating on securing your or a love one’s Long Term Care insurance (LTCi), two impending changes should serve as critical calls to action – especially for women.
In mid-April, leading LTCi provider Genworth is expected to significantly revise its LTCi offering. Its most notable changes include:
- Increased LTCi premiums for women — Potentially up to 40 percent higher for individual (non-couple) women
- Tougher approval processes — Including time-consuming blood tests and home visits, versus traditional over-the-phone approval
Why the change? According to a bulletin released by our insurance consultant: “The move is designed to better reflect the risks involved in covering women who are paid two out of every three LTCi benefit dollars, often because they live longer and have no caregivers at home, according to the American Association for Long Term Care Insurance, a trade group based in Westlake Village, California.”
If you’re thinking, “No problem, we’ll use another carrier when the time comes,” proceed with caution. Historical precedent indicates that, once the proverbial seal has been broken, other providers may rapidly follow suit.
Genworth also will need to receive state-by-state approval for its changes before they can be implemented. Unofficial reports vary on how many states have granted approval, and Genworth isn’t saying – at least not yet.
Will increased, gender-based rates and tougher approval hurdles become the “new normal” in LTCi coverage? Time will tell. But what goes up for some in mid-April may never come back down. Give us a call today – yesterday, even – to plan whether it may be in your best interests to lock in appropriate LTC coverage at today’s rates, or otherwise consider next best steps to navigate an ever-evolving LTCi landscape.