Just a quick warning to anyone that may have purchased a Genworth Long Term Care product. Genworth’s stock dropped over 30% on Thursday after they reported earnings. Apparently the restated their financials after recalculating the reserves required for their outstanding Long Term Care Insurance contracts. Simply put, they admitted that they grossly underestimated how long clients would live and thus how long they would utilize their long term care insurance.
What does this mean to an insured? Likely premium increases. LTC products guarantee premiums won’t go up on an individual basis, but they can increase premiums across all policies of the same class. Based on what I’ve read, expect rates to go up very significantly.
For more information give us a call and we can review your coverage.