Genworth: Underwriting changes help more clients obtain LTCI

On February 29, 2016, Genworth implemented enhancements to their underwriting practices that will help make long term care insurance accessible to more consumers. As a follow up to enhancements made in January (165550BL), they are expanding allowable medical conditions for certain cancers and implementing a counter offer program for qualifying conditions that would have previously been declined.  See below for a summary, or click here for full details in the Genworth Bulletin.

These enhancements will be particularly beneficial for couples applying together and only one of them is issued. More applicants may want a policy because their spouse or partner may now be considered for coverage.

Expansion of Allowable Cancer Conditions
Applicants with the following medical conditions can now be considered for a long term care insurance policy. Applicants with these conditions will be considered for a Standard underwriting category and a minimum of a 180 service day elimination period (calendar day not available).

Medical Conditions:

  • Bladder Cancer – Stage III with treatment completed 5-10 years ago and no nicotine use within the past 12 months
  • Breast Cancer – Stage II with more than 3 positive lymph nodes with treatment completed > 36 months ago
  • Prostate Cancer – ages 60-69 in an active surveillance program with disease limited to the prostate and Gleason score 6 or less
  • Thyroid Cancer – with lymph node involvement with treatment completed 3-5 years ago

Counter Offer Program
Genworth has established a counter offer program to help more consumers qualify for long term care insurance. Applicants with the following conditions could be considered for a policy with a counter offer at the Standard underwriting category.

Qualifying Conditions:

  • Alcohol Dependency – abstinent > 2 years with treated and controlled depression
  • Bipolar Disorder (Manic Depression) – prescribed or taking no more than 2 psychiatric medications, stable for > 2 years, and no associated alcohol abuse
  • Cardiomyopathy – with implantable defibrillator as prevention only and no serious heart rhythm issues
  • Coronary Disease – single vessel disease, treated and with nicotine use within the past 12 months
  • Diabetes Type 2 – with mild cardiovascular disease and no nicotine use within the past 5 years
  • Diabetes Type 2 – no nicotine use within the past 3-5 years and no cardiovascular disease
  • Rheumatoid Arthritis – diagnosed or with a flare within the past 1-2 years
  • Spinal Stenosis – moderate disease with no injections in the past 3 months, no functional limitations and narcotic use no more than twice weekly

Available Benefits Under Counter Offer Program
If an applicant has one of the qualifying conditions above, Genworth may extend a counter offer to them. The benefits available through the counter offer program are:

  • Daily/Monthly Maximum – up to $100 per day or $3,042 per month
  • Benefit Multiplier – no more than 2 years
  • Elimination Period – no less than 180 service days (calendar days not available)  Inflation Protection/Benefit Increase– none

Waiver of Home and Community Care Elimination Period – not available

Underwriting Tools:
These updates have been incorporated to Genworth’s online Field Underwriting tool, eValuateTM.
Updated TrueView UnderwritingSM Guide and materials can be downloaded or ordered on Pro.

See the full Bulletin for more details including Frequently Asked Questions on these changes.