The value of kids - when parents grow old.

[ExGingi]

Any good ones out there?

As I believe I previously stated. Combination life/LTC is the way to go. I've had retired people allocate a portion of their cash savings into single premium policies. I think some of the annual premium whole life with LTC riders are better.

[ExGingi]

https://www.forbes.com/sites/howardgleckman/2020/08/12/the-trump-administration-thought-about-reforming-long-term-care-insurance-but-decided-not-to/amp/

[ExGingi]

https://www.marketwatch.com/story/genworth-shares-slide-34-premarket-as-china-oceanwide-deal-faces-further-delay-2021-01-04

Whatever writing has been on the wall about Genworth until now, has just been made bold in Neon lettering. I honestly don't see how those LTC policies will be honored a decade from now.

[ExGingi]

And here's another problem with standalone LTC policies (this is at least the 3rd premium increase I've received - still a bargain IMHO, but OTOH I don't anticipate needing any of this for at least another 35 years or more, who knows what will end up happening with it. A combined Life/LTC Whole Life policy has strong guarantees).

Another 15% increase this March. Rate going from $97.69/mo to $112.37/mo (still a bargain - you can't buy anything like the policy I have for any price at this point, and policies with lesser benefits are more expensive)

And a Q&A attachment has the following:

Question: Will the premiums on these policies increase again?
Answer: In addition to the premium rate increase explained in the attached policyholder notification letter, we anticipate that another increase will be necessary in the future, but we currently don't know the date or amount of that future increase.

The good thing is that for a C Corp this can be provided as a tax-free benefit, so it's paid for with pre-tax dollars as a benefit from my business.

[ExGingi]

https://www.marketwatch.com/story/genworth-shares-slide-34-premarket-as-china-oceanwide-deal-faces-further-delay-2021-01-04

Whatever writing has been on the wall about Genworth until now, has just been made bold in Neon lettering. I honestly don't see how those LTC policies will be honored a decade from now.

https://www.thinkadvisor.com/2021/05/03/genworth-plans-for-return-to-long-term-care-insurance-sales/

I wonder if they can pull it off. Paint me skeptical. Though everything is possible with people's short memories.

[ExGingi]

https://www.sequimgazette.com/opinion/guest-opinion-stop-rethink-washington-states-long-term-care-law/

Apparently, there's a rush in WA to get private LTC insurance which allows people to opt-out. Insurers are suspending sales to maintain product viability.

Will any of this be coming to a state near you? Would you rather have a government mandated and run plan, or a private plan?

[ckmk47]

In some respects, the way Medicaid and Medicare pays for some aspects of care for the aged poor is like royalty.  Aides, nurses, equipment is approved, supplied are delivered.


I don't know yet, but I'd assume they draw the line somewhere. But even private insurers have limits.

[aygart]

In some respects, the way Medicaid and Medicare pays for some aspects of care for the aged poor is like royalty.  Aides, nurses, equipment is approved, supplied are delivered.


I don't know yet, but I'd assume they draw the line somewhere. But even private insurers have limits.

Time limits

[ExGingi]

In some respects, the way Medicaid and Medicare pays for some aspects of care for the aged poor is like royalty.  Aides, nurses, equipment is approved, supplied are delivered.


I don't know yet, but I'd assume they draw the line somewhere. But even private insurers have limits.

Can't compare NY Medicaid to outside NY.

[ushdadude]

https://www.sequimgazette.com/opinion/guest-opinion-stop-rethink-washington-states-long-term-care-law/

Apparently, there's a rush in WA to get private LTC insurance which allows people to opt-out. Insurers are suspending sales to maintain product viability.

Will any of this be coming to a state near you? Would you rather have a government mandated and run plan, or a private plan?

I would think controlling medical costs would be the only way to really maintain product viability

[ExGingi]

I would think controlling medical costs would be the only way to really maintain product viability

For commercial insurers, who are in the risk management business, I believe maintaining product viability is related to keeping actual performance metrics (sales, lapses, claims, etc.) not too far off from assumptions that went into designing the product. When one of the metrics gets heavily skewed, and future lapse ratios expected to change (lapse ratio mispricing was one of the biggest issues with LTC policies of the first few generations of such policies, depressed interest rates have become the other major challenge IINM), insurers must take prudent steps to maintain viability.

I am sure @yos9694 can enlighten us more about this.

[yos9694]

Nah you nailed it already. Expecting lapses was a huge mistake but was the main reason premiums were low enough to be worth paying. With realistic lapse rates premiums are through the roof. Another rough spot is the low interest rates - all the premium you're paying is earning bupkes for the company so the compounding effect is a fraction of what was priced

[ExGingi]

Nah you nailed it already. Expecting lapses was a huge mistake but was the main reason premiums were low enough to be worth paying. With realistic lapse rates premiums are through the roof. Another rough spot is the low interest rates - all the premium you're paying is earning bupkes for the company so the compounding effect is a fraction of what was priced

Was paging you to give more insight about a suspension of sales due to increased demand, as is being experienced in Washington State currently. Supposedly current generation products (including riders on permanent life products) have been priced based on more realistic lapse ratio and interest rate expectations, so what's the story with suspended sales due to increased current demand?

[yos9694]

Was paging you to give more insight about a suspension of sales due to increased demand, as is being experienced in Washington State currently. Supposedly current generation products (including riders on permanent life products) have been priced based on more realistic lapse ratio and interest rate expectations, so what's the story with suspended sales due to increased current demand?

I don't know enough about the LTC business to answer. I could guess that it may have something to do with capital strain (each policy sold has a year 1 loss for the company so they might need to cap it off) or could have something to do with regulators not approving the full rate increases.

[ExGingi]

I don't know enough about the LTC business to answer. I could guess that it may have something to do with capital strain (each policy sold has a year 1 loss for the company so they might need to cap it off) or could have something to do with regulators not approving the full rate increases.

Would this be specific to LTC? The product I am aware of is actually a LTC rider on WL (which gives access to the death benefit in case of a Long Term Care claim).

My question is how does an unexpected spike in demand threaten viability (assuming product was priced correctly based on usual sales volume)?

[yos9694]

Would this be specific to LTC? The product I am aware of is actually a LTC rider on WL (which gives access to the death benefit in case of a Long Term Care claim).

My question is how does an unexpected spike in demand threaten viability (assuming product was priced correctly based on usual sales volume)?

No, that probably doesn't explain what you're describing. I don't deal with LTC or LTC riders, so that was just a guess, but if I can find out anything relevant I'll share it back

[yos9694]

Would this be specific to LTC? The product I am aware of is actually a LTC rider on WL (which gives access to the death benefit in case of a Long Term Care claim).

My question is how does an unexpected spike in demand threaten viability (assuming product was priced correctly based on usual sales volume)?

Do you have their press release? The wording makes it seem like these restrictions have nothing to do with financial concerns, only that they can't process the volume of business coming in before the 11/1 tax change deadline. This seems reasonable and if true it would mean the restrictions are only temporary

[yos9694]

https://www.sequimgazette.com/opinion/guest-opinion-stop-rethink-washington-states-long-term-care-law/

Apparently, there's a rush in WA to get private LTC insurance which allows people to opt-out. Insurers are suspending sales to maintain product viability prevent disappointed customers who are applying too late at this point to be issued before 11/1.

Will any of this be coming to a state near you? Would you rather have a government mandated and run plan, or a private plan?

FTFY

[ExGingi]

https://www.thinkadvisor.com/2021/06/21/insurers-try-to-avoid-collision-with-wash-state-ltci-program/

I guess here is a possible answer.

And some additional insight:

https://insurance-forums.com/community/threads/mutual-of-omaha-announcement-regarding-ltci-in-wa.105786/page-2

[ExGingi]

https://www.bloomberg.com/opinion/articles/2021-09-27/congress-must-decide-who-will-pay-for-the-elderly