Do you have Genworth Long Term Care Insurance?

Just a quick warning to anyone that may have purchased a Genworth Long Term Care product. Genworths 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 wont go up on an individual basis, but they can increase premiums across all policies of the same class. Based on what Ive read, expect rates to go up very significantly. 

For more information give us a call and we can review your coverage.

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bill@401advisor.com • 937.434.1790

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Charles H. Dow Award Winner 2008. The papers honored with this award have represented the richness and depth of technical analysis.

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