New Genworth Product Announced

[yankee466]

On July 21, 2014, Genworth Life Insurance Company will be launching Privileged Choice® Flex 3 (Flex 3). Launch states will be announced in the next bulletin on June 23.

Flex 3 vs. Privileged Choice® Flex 2 (Flex 2)
• Maximum Daily Benefit amount changed from $400 to $300
• Maximum Monthly Benefit amount changed from $12,000 to $9,000
• Benefit multiplier options no longer include 6, 8 or 10 years
• 2% compound inflation protection option added
• Future Purchase Option changed from 5% to 3%
• All home care services require an Agency (see the Q&A section for more information)
• The following riders are no longer available: Transition Benefit, Restoration Benefit and Refund of Premium Benefit
Changes in Flex 3, Flex 2 and Privileged Choice® Flex 1 (Flex 1)
• Minimum issue age raised from 18 to 40
• Genworth will no longer allow clients to purchase multiple individual long term care policies (see the Q&A section for more information)


No idea of course what the rates will be...but I will bet that all women will pay higher rates even when applying with spouse. Therefore, we can have another "fire sale"...resulting in UW delays like the last time. Oh boy!!

 

[ltcadviser]

On July 21, 2014, Genworth Life Insurance Company will be launching Privileged Choice® Flex 3 (Flex 3). Launch states will be announced in the next bulletin on June 23.

Flex 3 vs. Privileged Choice® Flex 2 (Flex 2)
• Maximum Daily Benefit amount changed from $400 to $300
• Maximum Monthly Benefit amount changed from $12,000 to $9,000
• Benefit multiplier options no longer include 6, 8 or 10 years
• 2% compound inflation protection option added
• Future Purchase Option changed from 5% to 3%
• All home care services require an Agency (see the Q&A section for more information)
• The following riders are no longer available: Transition Benefit, Restoration Benefit and Refund of Premium Benefit
Changes in Flex 3, Flex 2 and Privileged Choice® Flex 1 (Flex 1)
• Minimum issue age raised from 18 to 40
• Genworth will no longer allow clients to purchase multiple individual long term care policies (see the Q&A section for more information)


No idea of course what the rates will be...but I will bet that all women will pay higher rates even when applying with spouse. Therefore, we can have another "fire sale"...resulting in UW delays like the last time. Oh boy!!

Having to use an agency? Well, that stinks. But Transamerica already does this.

There is never a reason to have a "fire sale" with LTC insurance policies that do not have guaranteed rates. What is the point? Create urgency for clients to buy coverage now, only to have the insurance company request a 35% rate increase in 18 months? Clients will just be upset.

If you happen to be working with clients now, you can let them know there are pending changes developing. But I would advise going out of your way to create urgency on a non-guaranteed premium product.

Sure hope Genworth's pricing stays in same range.

Just another reason to start moving to hybrids, I suppose.

 

[Mr_Ed]

There is never a reason to have a "fire sale" with LTC insurance policies that do not have guaranteed rates. What is the point? Create urgency for clients to buy coverage now, only to have the insurance company request a 35% rate increase in 18 months? Clients will just be upset.

...But I would advise going out of your way to create urgency on a non-guaranteed premium product.

Your comment contradicts the rate increase regulations that are in place in nearly every state.

 

[Arthur Rudnick]

previously posted by Mr_Ed

Your comment contradicts the rate increase regulations that are in place in nearly every state.

Oh, do you mean the regulations that allow for 50%, 80% & 100% rate increases?
Seems to be working pretty well.......

 

[Mr_Ed]

previously posted by Mr_Ed



Oh, do you mean the regulations that allow for 50%, 80% & 100% rate increases?
Seems to be working pretty well.......

You have no idea what you're talking about, Arthur.

When's the last time you read the rate increase regulations for the states in which you are licensed?

 

[Arthur Rudnick]

Previously posted by Mr_Ed

You have no idea what you're talking about, Arthur.

When's the last time you read the rate increase regulations for the states in which you are licensed?

Haven't read them Scott, but I'll just rely on the results.
They probably say something about increases being limited to no more than 100%.

 

[Mr_Ed]

Previously posted by Mr_Ed



Haven't read them Scott,

Obviously.

Arthur, you need to read the regulations so that you understand that policies that are purchased today have much stricter regulations than the policies that were purchased years ago.

In this case, Arthur, ignorance is not bliss... ignorance is just ignorance.


You have internet access, just go read the regs. You'll be surprised.

 

[Arthur Rudnick]

Previously posted by Mr_Ed

Obviously.

Arthur, you need to read the regulations so that you understand that policies that are purchased today have much stricter regulations than the policies that were purchased years ago.
In this case, Arthur, ignorance is not bliss... ignorance is just ignorance.
You have internet access, just go read the regs. You'll be surprised.

Yup, you said the same thing about the LTC Model Act of 2002, which was also supposed to limit rate increases. How did that work out?

And, at the end of the day, what does it matter? (didn't someone else once say that?).

If the regulations allow for exhorbitant and multiple rate increases, the verbiage is useless, it's the results that count.

 

[Mr_Ed]

Previously posted by Mr_Ed



Yup, you said the same thing about the LTC Model Act of 2002, which was also supposed to limit rate increases. How did that work out?

And, at the end of the day, what does it matter? (didn't someone else once say that?).

If the regulations allow for exhorbitant and multiple rate increases, the verbiage is useless, it's the results that count.

You obviously have not read the current regulations.

 

[scagnt83]

You obviously have not read the current regulations.

Instead of going back and forth with Arthur you could just educate those of us out here who are ignorant.... isn't that what this forum is for?? .... or does the forum exist solely to prove how much smarter we are than everyone else?
It seems you could have at least given us the highlights by now.