FAQ Category: Consumer

What do you suggest if my husband does not qualify for LTC insurance due to previous health conditions?

In certain states,  we can look at either a short-term care plan with fewer health questions or an annuity with only one health question that most people can answer favorably. All you have to do is go to this link on my website and complete the short questionnaire for him. That gives us some additional information …

Continue reading

We have an opportunity to purchase LTC insurance, but it is combined with a life insurance policy. The LTC portion available is 4% of whatever the value of the life insurance amount you choose is. Is this a good option to have them combined? We already have life insurance through my husband’s employer that is both voluntary as well as provided by the company. Thank you!

All that policy will do is advance the death benefit at 4% for 25 months if you need care. There is a much better version that will add another 2-4 years of benefits or even unlimited. If you would like to know more about that version, please complete the short questionnaire at https://www.gotltci.com/contact-us/ and you will …

Continue reading

How are an individual’s weight/height viewed by the various LTCI insurers? Are there any that are more lenient?

Yes there are a couple of companies (OneAmerica and Brighthouse) that may be more lenient. There are also fixed index annuities with LTC benefits that ask no medical questions except if you can do your Activities of Daily Living today (bathing, dressing, transferring, toileting, continence, eating). We are happy to provide a free consultation to …

Continue reading

If Genworth were to file bankruptcy, what would happen to the $20 billion in reserve to pay claims?

It’s fairly complex, but here is a short answer of what happens: If the carrier’s capital ratio (RBC) drops below the regulator’s requirements, then the regulator (the insurance department) can require the carrier to take action, put the carrier into rehabilitation, or liquidate the company. All of this goes through a legal process like Penn …

Continue reading

I have been offered a policy by One America (The State Life Insurance Company) for one single payment of $ 175000 with death benefit of 166000. It has $5000 monthly benefit per individual with 3% inflation protection. It has lifetime benefit period and unlimited benefit balance. Is this a good policy?

OneAmerica is an excellent company, but it is difficult to answer your question without knowing more about you. Your age? Longevity in your family? How much you have in other assets to supplement this policy? My guess is the 3% compound inflation does not apply to the time it will take you to exhaust the …

Continue reading

I took care of my Mother for 4 years in my home. She went into an Assisted Living for 3 years and then a Nursing Facility for 7 years. Seeing 1st hand the devastating cost, I took a LTC policy on myself in 1996 with Penn Treaty. The original annual premium was $806. The current annual premium is $3,716. In 1996 I thought I was being responsible. I thought the Guaranty Association would protect me when they took over but they raised my premium. My only source of income is Social Security. My policy has a $200. Per day Maximum Daily Benefit, a 0 day Elimination Period and a Lifetime Maximum Benefit Period. The policy has an Inflation Rider. I have considered an Assised Living Facility since I have had a Stroke history. My concern is from 1st hand experience, the Virginia Guaranty Association Limit will never be enough. Why is this industry permitted to create financial hardship for my wife and myself? Do I have any legal recourse and whom would I seek damages from? Phyllis, please give me some direction.

I’m going to send you to a link that explains the Penn Treaty Rehabilitation. Notice that question #6 states that more money can be available if your claim exceeds the guaranty association limits. https://www.penntreaty.com/Liquidation/LiquidationQuestions.aspx You do have great benefits, so that could happen. And yes, you were being responsible by planning ahead with LTC insurance. …

Continue reading

Would you please provide your thoughts on LTCi vs a hybrid life insurance policy that allows you to withdraw funds for medical care as needed, can be left to survivors, and is tax free? I’m getting financial advice from different directions on this and feel like there’s something I’m not seeing. Appreciate any guidance. I think the premiums would be more affordable too.

The hybrid plans are very popular now as they guarantee your premium and can be paid up at some point. And, as you pointed out, there is money to leave to heirs if you don’t need much care or any care. The benefits are tax-free, just like with traditional LTCi. However, they can cost more …

Continue reading

I was an advocate for my father with his LTC policy. I feel it is so important to have someone that can speak for you and advocate. My husband and I have a LTC policy. If we were to move into an assisted living community do they have advocates for you to support you with your policy? We do not have children or anyone that could do this for us in our family. I know how important it is as I really had to be that advocate for my father.

It really varies by assisted living facility, but I have great news. A wonderful colleague of mine SPECIALIZES in LTCi claims advocacy. Here is her name and contact info: Linda A. Jahnke B.C.P.A, Board Certified Patient Advocate, Linda.Jahnke@JCLTCA.com, WWW.JCLTCA.com, Office: 858-513-8351 I just spoke with her. She has been an agent for years but is …

Continue reading

What is the difference between LTCi and LIRP? Why have one vs. the other?

LTC insurance gives you immediate benefits. You could have a stroke or an accident two weeks after you get your policy and have hundreds of thousands of dollars to pay your claim. A Life Insurance Retirement Plan (LIRP) needs many years to grow to give you a significant amount of benefits. Well, you could put …

Continue reading

I just received a letter from Genworth that we have to pay a CA Penn Treaty Surcharge. The letter also says that payment or non-payment of the surcharge will not affect the status of my policy with Genworth. Also that it is not connected to any premium rate change. Am I forced to pay, and/or what can Genworth do if I don’t pay the surcharge of $47.10???? Is this something they can collect on?

Per Genworth’s home office, your policy won’t be affected if you don’t pay it. It is a surcharge that we’ve never seen before. The purpose is for a bailout of a failed company (Penn Treaty) which is headquartered in PA. The state of California passed a resolution that allows carriers to collect money from policyholders …

Continue reading