In April 2013, Genworth will launch Privileged Choice® Flex 2, a new product designed to reduce risk and better align pricing to risk. Privileged Choice Flex 2 will include several transformational concepts, including gender distinct pricing for single applicants and expanded underwriting requirements. Below are the key changes. Click here for the original communication from Genworth on these changes.
Benefit Changes
· Add 4% Compound Inflation Protection
· Eliminate 7-Year Survivorship option
Other Important Changes
· Reduce Maximum Issue Age from 79 to 75
· Lifetime Benefit Multiplier is not available
· Redefine “Couples”, eliminating relatives and restricting to two people
· Apply Claims Offset on all Compound Benefit Increase Options
· Require Paramed Exam for Underwriting
· Require Family History for Underwriting
· Apply Gender Based Rates
· Informal Care (untrained/uncertified caregivers) available for Homemaker and Chore Care Services only
Implement Four Underwriting Categories
· Preferred Best
· Preferred (10% higher premium than Preferred Best)
· Select
· Standard (20% higher premium than Select)
New Rates and Pricing Structure
· Gender specific rates for single applicants
· Couples Discount built into the rate structure
Additional details, including a complete list of launch states and transition rules, will be communicated in advance of the launch. Please see the Frequently Asked Questions for additional information.
Genworth to return to previous compensation on new product in approved states
In the states where Genworth will launch Privileged Choice® Flex 2, we will return to paying a higher first year gross commission for the new product. Commissions for the sale of all other long term care insurance products will continue with the commission schedule dated July 30, 2012 until the new product is rolled out in those states.