Read the full Genworth Bulletin for more details, but this post is meant to give you a heads-up about some of the big changes (highlighted below):
Genworth PC Flex 3 Announced – Will Launch on July 21. Details to follow on June 23.
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)
States and Transition Rules:
While we do not get the states or deadlines until June 23, it is our understanding from conversations with Genworth wholesalers that the product was filed via the Interstate Compact (click here for a list of those states). We will not be certain of the states impacted until 6/23, but at Newman Long Term Care we are working under the assumption that it will include the Compact States.
With some benefits changing, and the base pricing also changing, clients should act now, particularly:
- Anyone under the age of 40 who is looking at LTCI – since it will no longer be available to those under 40
- Anyone who wants anything more than a 5 year benefit period – since 6, 8 and 10 year benefits are going away