Female policyholders typically generate higher expenses, meaning premiums could rise.
A long term care insurance policy has never been an inexpensive product, but as data continues to show that women bring in much greater expenses on their plans, it could mean that premiums are about to change.
This could mean that the coverage may become much more costly for female consumers.
Until now, long term care insurance companies have been charging the same premiums to their clients, regardless of their gender. These plans help policyholders to pay for the cost of assisted living, nursing homes, and home care. However, the largest insurer in this sector in the entire country has just announced that this will change early next year.
Genworth Financial has announced that it will take gender into account for long term care insurance premiums.
This long term care insurance announcement was just released, in addition to information that suggests that women who apply for coverage may find themselves paying up to 40 percent more than men. This effort is intended to help the premiums to better reflect the increased risks that are associated with providing female consumers with coverage.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
Women are currently paid two out of every three LTC benefit dollars. Among the reasons for this is that they simply live longer, on average. Moreover, because they typically outlive their spouses, it usually means that they do not have a caregiver at home. This according to the data from the American Association for Long Term Care Insurance, a Westlake Village, California trade group.
As Genworth is the largest long term care insurance company in the United States, it is believed that it will set the standard for this type of behavior, and that other insurers will likely follow suit, said the executive director of the association, Jesse Slome.
The senior vice president for long term care insurance at Genworth, Steve Zabel, explained that “Historically, the claims experience of single female applicants has been worse.” Insurers are already struggling with more lax underwriting practices and low interest rates. They are now seeking new and more practical ways to recover their profits.