FAQ Category: Consumer

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 …

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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. …

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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 …

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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 …

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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 …

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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 …

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I am 75 and a Navy retiree. What options do I have for getting a LTC policy?

Hi Bev – you are eligible for the Federal LTC Insurance plan if you are taking a pension from the Navy. Better premium than the open market. Plus the home care benefit will pay family and friends – very unusual with LTC insurance.The website is www.LTCFEDS.com

How can Medicaid be the biggest threat to our economy when we are literally spending $700 billion per year on defense, most of it privatized? That’s more than half our national budget. Isn’t the US military boondoggle a bigger threat? S.C. 06-10-17

Great question! I’m glad someone is reading my website!! Actually the U.S. Federal budget is $3.65 TRILLION in 2017.  Defense is the 2nd largest item after Social Security…headed for $800+ billion in 2018. https://www.thebalance.com/u-s-military-budget-components-challenges-growth-3306320 Notice I didn’t say Medicaid is the biggest budget item. I said it’s the biggest “threat” to our economy. Here’s why: The Medicaid …

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Is it better to take the cash benefit every month from my long term care policy and invest the unused portion, or is it better to leave that portion “in the policy” knowing I may never get most of it?

I think it is better to take it, but I would save it in something that is no risk. You may need a lot more care than your monthly benefit will pay at the end of your life. If you save it safely, then you will have additional money to put with your monthly benefit …

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We have had Genworth LTC for 14 years and the rate increased 3 years ago 40%. The renewal is due for this year but it has increased another 70%. When we purchased the LTC it was with GE and we have lifetime coverage, 5% compounded, home care, and spousal stop of payments. It was a good policy. Our concern is the increase is enormous and the statement included a letter that stated future increases are possible. With the credit rating down and the sale to a China company we are not sure if to continue. Your suggestion? Thanks

None of us in the industry expect Genworth to fail. The management is working very hard to ensure that every obligation is met. Also, Genworth has a great track record with claims payments. On the rate increases, yes, there will be more. The first thing I advise is comparing the premium you have already paid …

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