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We understand that premium increases may create significant challenges for our policyholders and we are committed to helping you figure out what option may best meet your wants and needs. If you are NOT currently receiving benefits* , you have several options from which to choose in order to maintain a premium pricing level that may better suit your needs and budget.
Generally speaking, our long term care insurance policyholders who receive a premium increase notification may select one of the following options:
1. Keep Your Current Coverage
If you are able to pay the increased premium, you will keep your current level of coverage. No other action is required.
2. Adjust your Coverage
If you are comfortable having less coverage there may be ways to reduce your benefits and premium. (See below for more details).
3. Pay Nothing More
If you'd like to stop paying premiums altogether, in most situations you'll receive a paid-up policy with benefits approximately equal to the total of premium paid. There may be adjustments made for any claims that were previously paid on your policy. (See your premium increase letter or call us regarding your options).
Please note: Not all features and benefits are available in every state or to every policyholder. Your particular policy may have additional options that can be adjusted or applied as well.
When making this decision, please carefully review your policy and consider how changes to your policy will affect the long term care coverage you may need. You may want to talk through the options with your loved ones, financial advisor, or insurance agent.
Additionally, it may be helpful to consider the current cost of care in your area. Genworth's Cost of Care Survey is a source for this information that is updated annually.
* If you are currently receiving benefits and you have a Waiver of Premium feature on your policy, you are not required to pay the increased premium at this time. If you recover and stop receiving benefits, you will be responsible for the increased future premium payments as they become due. For details, please review your policy.
Ways to adjust your coverage
If you want to maximize the value of your coverage while keeping premiums down, you may have a few options. You may be able to choose one option or a combination of options to balance your coverage needs with your budget.
Lower Your Benefit Amount
Referred to as Daily or Monthly Maximums on your policy schedule page, this is the maximum amount that can be reimbursed for long term care expenses on a daily or monthly basis. It is also used to determine the maximum lifetime benefit amount on your policy. Lowering your benefit amount will reduce your premium. (Example: $300 per day daily benefit can be reduced to $250 per day).
Shorten Your Benefit Coverage Period
The benefit coverage period is the period of time used in calculating the lifetime payment maximum. The policyholder’s total available benefit payments are based on their lifetime payment maximum, not a certain period of time. Shortening your benefit coverage period will reduce your premium. (Example: Shortening a lifetime benefit period to a four year benefit period).
Example: If the current benefit amount is $230 per day and the benefit coverage period is three years (1095 days), then the lifetime payment maximum is $251,850 ($230 per day X 1095 days). If your covered expenses are less than $230 per day, your lifetime payment maximum can last longer. The lifetime payment maximum is reduced as claims are paid, or if the benefit amount and/or benefit period are reduced.
Lengthen Your Elimination Period
The Elimination Period is similar to a deductible. It is the number of days of covered care that you must pay for before your coverage begins to pay benefits. Lengthening your elimination period will reduce your premium. (Example: Changing the elimination period from 30 days to 100 days).
Decrease Your Inflation Protection
This option helps your coverage keep up with the rising cost of care by growing your Daily or Monthly Maximum and Coverage Maximum over time. Compound and simple increases are applied to your Daily or Monthly Maximum and remaining Coverage Maximum on each anniversary of your coverage effective date until you make a claim. Decreasing your inflation protection percentage will reduce your premium. (Example: Reducing your inflation protection from 5% to 3% or from compound increases to simple increases).
Cancel Riders
A rider is an optional policy benefit that you may have purchased when you purchased your policy. Generally, if you cancel a rider, you will reduce your premium. Examples include First Day Home Care, Restoration of Benefits, and Survivorship.
If you adjust your policy benefits and later change your mind, you will need to notify us in writing within 60 days of our written confirmation of your benefit reduction. After that 60 days, they cannot be changed back to the benefits that were originally selected.
