Should I Keep My Genworth Long Term Care Policy?

When It Makes Sense

• Good fit: You are in good health now but have a family history of chronic conditions that could require extended care, and you have enough liquid assets to cover the policy premiums without compromising other financial goals.
• Good fit: Your estate planning strategy relies on preserving wealth for heirs, and the LTC policy’s benefit amount is sufficient to cover projected nursing‑home costs, reducing the risk of depleting your estate.

When You Should Avoid It

• Warning sign: You have recently qualified for Medicaid or another government program that will cover long‑term care, making the private policy potentially redundant.
• Warning sign: Your financial situation has changed dramatically (e.g., loss of income, high debt) and you can no longer comfortably afford the ongoing premiums.

Pros and Cons

Pros

• Provides a dedicated pool of funds that can be used for qualified long‑term care services, helping avoid out‑of‑pocket expenses.
• May protect your assets and preserve wealth for beneficiaries by covering costs that would otherwise be drawn from your estate.

Cons

• Premiums can increase over time, and if you never need the benefits, you could lose the total amount paid.
• Long‑term care policies often have complex eligibility criteria, elimination periods, and coverage limits that may not align with future care needs.

Decision Checklist

• Do I have a realistic estimate of my potential long‑term care costs based on age, health, and family history?
• Can I continue paying the premiums without jeopardizing other essential financial obligations?
• Are there alternative coverage options (e.g., hybrid life‑LTC policies, Medicaid planning) that could provide comparable protection at lower cost or with fewer restrictions?

Alternatives to Consider

If you decide the Genworth policy isn’t the best fit, explore hybrid life insurance policies that bundle death benefit and LTC coverage, or consider setting aside a dedicated savings or investment account earmarked for future care. For those who may qualify, Medicaid planning with the help of an elder‑law attorney can provide a safety net without premium payments. Additionally, some employer‑based or community programs offer LTC benefits that may supplement or replace a private policy.

Final Recommendation

Keep the Genworth long‑term care policy if you have sufficient income to cover premiums, anticipate high future care costs, and want to protect your estate. Cancel or replace it if your financial situation has tightened, you qualify for public assistance, or a more flexible, lower‑cost alternative better matches your needs. In all cases, consult a qualified financial planner or elder‑law attorney to review the specifics of your situation before making a final decision.