Client

Hello LTC Tree,

I did receive your books and have studied it.  I wanted to let you know I have taken an educated guess and did apply for a small policy with Genworth Group Policy for myself and my husband Dr. Smith for about 3000 with 3 percent inflation and premiums very affordable say 36 for each person.   I am waiting to hear on that at this point in time.  My understanding is that they have a first in policy which means that I cannot apply at this time because I already am pending a decision on my applications and my husband’s application.

I looked carefully at the applications and found that that it was unlikely my husband nor I would get in with a health discount based on the questions. I feel that we will get accepted through the group plan with myself as a guaranteed acceptance and his with streamlined underwriting. Questions that I had: difference between shared policy versus individual policies and pros and cons, How many policies can one have (some-one said maximum was three). Also, I do not think I can apply for another Genworth policy at this point in time, but can I apply for other companies given the first in policy at Genworth I didn’t know about. When I get my policy I have 30 days free look period. I guess that it is not likely applying for college with LTC where one can apply for as many colleges as one can, and then accepted one to attend, with this system the power and money making is clearly in the company’s hands.  Thanks for your many considerations.

LTC Tree:

Hi, thanks for your email.  You can apply with as many policies as you like.  You can even have multiple policies so don’t feel like you are locked into anything at all.  You obviously want to get the best deal and when compared apple to apply the individual plans will save you money and more importantly give you more benefits.

Group plans are notorious for penalizing people for using the most popular benefit home health care.  You group plan probably pays just 50% home care or maybe 75% home care.  Also, you are being group into a less healthy group because some people you work have worse health than you do so when healthy people join in they will pay more money.

Group plans have as well increased rates at a much higher clip than individual going up 25%+.  CalPERS just raise their group rates 100% on people who bought it 10 years ago.  The devil is in the details for sure.  Things like you husband’s streamlined underwriting will let in less healthy people.  You husband sounds like he’s in great shape so he will have no problem qualifying on the individual side who will screen out the unhealthy people and give you and him a more stable premium in the future.  If you were not in good shape I say go with the group, but since you are I’d use than to my advantage and save some money.