Re:GE Woes Deepen as SEC Investigation Throws Wrench in Turn...
by 1123581321 on Wednesday January 24, 2018 @11:20AM
(#16223876)
Several years ago, I looked this up. The LTC payout ratio for men was ~.8 and for women was 1.05. The average was close to 1.0 since more women had LTC insurance. So, it’s possible that LTC provides too little coverage, but that’d mean it is also underpriced.
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Re:GE Woes Deepen as SEC Investigation Throws Wrench in Turn...
by hickeygareth on Wednesday January 24, 2018 @02:54PM
(#16225735)
Why do you think it may be underpriced? A policy with a payout ratio of 1.0 can still be highly profitable for an insurer.
Re:GE Woes Deepen as SEC Investigation Throws Wrench in Turn...
by 1123581321 on Wednesday January 24, 2018 @03:13PM
(#16225883)
Not highly profitable without assuming too much risk, but yes, 1.0 is profitable.
But let’s say the LTC underwriters can pay out 10% more and stay in business. That would mean that in The OP’s “scam” scenario situation, instead of getting, say, $100,000 in benefits over two years, they could get $110,000. However, the inflamed wording suggests OP wants a lot more than his relative is getting, not a little bit more, like $300,000 over four years. That wouldn’t be possible to do in aggregate without charging a higher premium.
Re:GE Woes Deepen as SEC Investigation Throws Wrench in Turn...
by tzakrajs on Wednesday January 24, 2018 @01:32PM
(#16225048)
Don't women also live an extra 10% on average too?
Re:GE Woes Deepen as SEC Investigation Throws Wrench in Turn...
by 1123581321 on Thursday January 25, 2018 @05:42PM
(#16235411)
Yes, and the propensity for men to die suddenly a little younger explains why the gap in payout ratio is larger than the lifespan difference.