To help mitigate the impact of current and future planned premium increases, we are providing an additional coverage option for most of our Privileged Choice and Classic Select policyholders to consider when faced with a premium increase.
Beginning on July 1, 2019, the new Stable Premium Option Endorsement will be available in states where it’s allowed.
The Stable Premium Option provides a guarantee that the new premium associated with the Stable Premium Option will not increase until at least 2024, along with the following specific set of benefits1:
- A three-year benefit period for individual policies and a six-year benefit period for shared policies. (Remember, the benefit period is the period of time used in calculating the lifetime payment maximum. The policyholder’s total available benefit payments are based on their lifetime payment maximum, not a certain period of time)
- Retention of any increased maximum daily/monthly benefit
- Automatic compound 1% benefit increases going forward
- The choice of:
- An extended Elimination Period of 180 days for facility care and 90 days for home care, or
- A combination of 10% coinsurance (policyholder pays 10% of covered expenses) and a 90-day facility Elimination Period
- Both choices continue to offer a home care benefit
The Stable Premium Option will initially be available in New Mexico. Individual state availability will be noted on state rate increase bulletins.
The Stable Premium Option will be shown on all eligible Privileged Choice and Classic Select policyholders’ premium increase notification letters as an additional coverage choice. Policyholders may have other ways to reduce their benefits other than those shown on their letter.
Policyholders are encouraged to call Genworth’s Customer Service Team at 800-883-1127. Our team will be able to answer questions and provide policyholders with information regarding the Stable Premium Option and other ways they may be able to reduce premiums.
1. The Stable Premium Option benefits shown here are the baseline structure. State variations may apply.
In-Force Rate Action Announcement:
New Stable Premium Option for Privileged Choice® and Classic Select® Policyholders