[RBS] Info: Major changes to Siudi - Long term (Nursing) care Insurance

[Danny]

Over the past couple of months and the coming weeks, major changes have
and are taking place within the world of long term (nursing) care
insurance known as Siudi - both in Israel and in the  insurance world in
general.



Towards the end of 2010, Met Life (the largest US life insurer)
announced that as of January 2011, they stopped selling long term care
insurance.



The following is an extract of an article that appeared in Bloomberg
Businessweek:
MetLife Halts Sale of New Long-Term Care Insurance

November 11, 2010
By Margaret Collins and Natalie Doss

Nov. 11 (Bloomberg) -- MetLife Inc., the largest U.S. life insurer, will
halt the sale of new long-term care coverage after citing "financial
challenges" in the business
..



.Insurers including CNO Financial Group Inc. have been burned by
policies sold in the past when they underestimated the number of claims,
the cost of care and life expectancies of their clients.

"The financial challenges facing the long-term care industry in the
current environment are well known," Jodi Anatole, a vice president
for MetLife, said today in a statement
.


In Israel, two of the major insurance companies (Harel and Menorah),
have recently increased their premiums by up to 30%.



The expectation is that the remaining major insurance companies (Migdal,
Clal and Phoenix) will follow suit within the coming weeks.



The cheapest method of obtaining cover is via the Kupat cholim. The
recommendation is that everyone eligible should take this cover.



However, the long term (nursing) care cover provided by those signed up
to the Siudi plans provided by the Kupot cholim have limited cover, both
with regards to sums insured and also to the length of cover provided.
Most people who tend to have the Kupat cholim plans are unfamiliar with
the extent or limitations of their cover, and are unaware that these
plans will not cover the full expense of the care requried for a Siudi
patient.



In Israel, it is a criminal offense, for a relative not to take care of
a family member who is a long term (nursing) care patient.

According to Clause 368a of the Israeli Penal Code:
"The responsibility of caring for a long term patient, as defined by the
law as "helpless" - whom due to age, sickness or physical and mental
limitations is unable to care for his/her sustenance, health or welfare
- falls on his/her family."


The correct method of not only ensuring one has the cover in place to
pay for long term (nursing) care, but also protecting one's spouse or
children from having to pay the thousands of NIS per month should G
forbid one become a long term (nursing) care patient, is to supplement
the shortfalls in the Kupot Cholim Siudi policies, with personal
insurance plans.



One advantage of the private long term (nursing) care plans offered by
all the major providers, is that the premiums are locked in at the age
you enter the plan.



In light of the above, as an agent at Goldfus Insurance - the oldest and
largest (none tied) Anglo Insurance agency in the greater Jerusalem
area, we recommend that if you have not yet taken out a Siudi plan, or
are unfamiliar with the plans you may have via your Kupat Cholim, that
you arrange a free non commital consulation to look into your options,
before the prices increase across the board.



For further details please contact Danny Newman - RBS resident (contact
details below), or see our ad on page 23 of the Shemesh phone or visit
our website (www.goldfus- ins.co.il <http://www.goldfus- ins.co.il
<http://www.goldfus-ins.co.il/> > ).

************ ********* ***

Danny Newman

Goldfus Insurance & Investments

Tel: 1700-706660, 02-5612223 or 08-9704002/3

Fax: 02-5612225

Mob: 052-5660827

E-mail: dannyn at goldfus- ins.co.il <mailto:dannyn at goldfus-%20ins.co.il>

www.goldfus-ins.co.il <http://www.goldfus-ins.co.il/>


************ ********* ***

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