Shopping for life insurance can be a bit overwhelming at first. It’s not only difficult to think about your own death, but it’s difficult to know how to plan for it as well. That’s why you need a life insurance agent you can trust to find the best policy that works well for your budget and overall needs.
But, how do you know what you even need? And, what should you expect to pay?
These answers all depend on various factors that are determined by the insurance company you choose to handle your policy. That’s why it’s best to perform good research on any company you may be considering.
You should always make sure you know all of the options that the company you’re researching has to offer. This will help aid you in your decision. Here’s a look at what Genworth has to offer and what they don’t.
Genworth, a very large name within the insurance industry no longer offers life insurance products or fixed annuity products as of March 7th, 2016. This announcement came as a surprise considering the company’s long history providing life insurance coverage dating back to 1871.
Genworth has turned their focus on improving their stance within long term care market and becoming a top choice for this type of coverage.
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History of Genworth Life Insurance Company
Genworth Financial has been in business for over 145 years. The insurance company was first established in 1871 offering life insurance protection to residents of Virginia. It was originally founded as The Life Insurance Company of Virginia.
100 years later in 1986, Combined Insurance bought the company out and it later became Aon plc.
Less than ten years after the company was acquired by Aon, it was sold again and became GE Capital. So it remained for eight years thereafter. In 2004, it then became the Genworth that we know today.
In 2016, China Oceanwide Holdings Group., Ltd agreed to purchase Genworth Financial Inc. for $2.7 billion. As of 2018, the acquisition was not yet completed as it is awaiting regulatory approvals.
Today, Genworth is sold on the New York Stock Exchange as GNW. The Genworth Financial headquarters is found in Richmond, Virginia but they also have offices in Lynchburg, Virginia, Stamford, Connecticut, and Raleigh, North Carolina.
Genworth Life Insurance Products
As mentioned earlier, unfortunately Genworth no longer sells life insurance policies at this time. Prior to March 2016, Genworth offered a wide variety of life insurance options to include both term insurance as well as universal life insurance.
Discontinued Genworth Life Insurance Products as of 2016
Colony Term: This product was Genworth’s term life insurance coverage. Contracts came available in fixed premium lengths of 10, 15 and 20 years. After the level term contract length the policyholder would have the option to continue coverage, but premiums would increase annually. Colony Term also had a conversion option that would allow for the term insurance to be converted into a permanent universal life insurance policy.
Asset Builder Index Universal Life II: This product was Genworth’s IUL coverage that focused on providing both death benefit protection along with the potential to grow high cash value accumulation. For this to work, Asset Builder IUL utilized a crediting strategy method that was based on percentage changes of the S&P 500.
Foundation Builder Index Universal Life: Very similar to Asset Builder IUL, Foundation Builder IUL offered a 30 year no lapse guarantee whereas Asset Builder was only 10 years. This meant that as long as the planned scheduled premium was paid when due, the policy would not lapse regardless of any changes in the cost of insurance or cash values.
Total Living Coverage: This coverage combined both universal life insurance coverage along with long term care benefits. The insurance coverage was ideal for those between the ages of 55-75 that were retired or near retirement that needed an affordable option to a traditional long term care policy.
Genworth also stopped offering single premium deferred and immediate annuities as well as fixed annuities. This collapse in coverage is due to financial restraints within the company causing them to re-position.
What about Current Genworth Life Insurance Policyholders?
With the news of Genworth discontinuing all sales of their life insurance products you may be wondering if you should consider a new life insurance provider?
In Genworth’s official public announcement they state, “Our decision to suspend new sales of these products in no way diminishes our commitment to providing our existing 2.8 million life and annuity policy and contract holders and their beneficiaries.”
Current Genworth policyholders should have nothing to worry about. As stated in the official company announcement, Genworth will still service all life and annuity contracts, just no new policies will be sold.
However, if you purchased a Genworth Life policy in 2016 it could be worth taking a look to see if any of the other top life insurance providers out there can beat your current rates. This could not only save you money, but possibly provide you with a peace of mind in knowing that your coverage is with another carrier that is currently providing life insurance products to their customers.
Current Products Offered Through Genworth
Even while you can no longer obtain a life insurance policy with Genworth Financial, there are other products that the company offers with high-quality service. We’ll discuss their ratings in a moment and you can make your own determination. In the meantime, let’s talk about the products they do offer, so you can see if there is something there for you.
Genworth Long-Term Care Insurance
Genworth has over 40 years experience in long-term care insurance, issuing more than one million long-term care policies during this time. Long-term care policies cover a policyholder for care that is received at home, with a skilled nursing home facility, or assisted care facility. It is stated that over 200,000 policyholders have begun receiving their long-term care benefits in Genworth’s 40-year history.
Immediate Need Annuity
If you’re afraid of running out of money in retirement before you die, then you may be interested in an Immediate Need Annuity. This type of annuity, offered through Genworth Financial, guarantees that you’ll have a steady stream of income until you die, no matter how far in the future that may be.
CareScout is a Genworth service provided to elders and families in providing extensive information to nursing homes, assisted living facilities and home care agencies.
Ready to purchase a new home? Genworth offers an affordable mortgage insurance option that can allow you to take advantage of low interest rates without needing a 20% down payment.
Genworth Company Ratings
It’s always important to understand an insurance company’s rating index, which is based on their financial strength and security, as well as their customer service. The best ratings indicate that a company has no problem paying out claims and likely holds strong assets.
Excellent ratings in customer service prove that a company cares about their customers and handles claims and processing well.
A.M. Best, Standard and Poor’s, and Moody’s are all three financial strength rating companies that offer ratings on life insurance companies throughout the United States. The BBB, or Better Business Bureau, rates customer service for a wide range of industries in America.
Genworth Life and Annuity Insurance Company Ratings:
- A.M. Best = B-
- Standard & Poor’s = B-
- Moody’s = B3
- BBB = B+
What to Look for In a Life Insurance Company
The first thing to know when searching for a life insurance company is whether or not they offer the products that you’re looking for. This could be one or more of the following types of life insurance:
- Term Life Insurance
- Universal Life Insurance
- Whole Life Insurance
- No Exam Life Insurance
- Senior Life Insurance
When choosing a life insurance company you will want to check out their reviews, as well as professional ratings. Most of all this, has been made public with the use of the internet.
When it comes to purchasing life insurance, one of the best ways to do it is with the assistance of an experienced independent life insurance agent or agency. Working with an independent life insurance agency such as Top Quote Life Insurance can provide you with more than one option, as we work with over two dozen highly rated life insurance providers. By having multiple options, we are able to fit you with the best company based on your own individual life insurance needs.
Final Thoughts on Genworth
Genworth was a good option for life insurance before they discontinued sales. At this point in time they are no longer a viable option for life insurance coverage.
They do however offer some competitive long term care options that could be worth looking at, should you be in need of that type of coverage.
On the brightside, there are many excellent life insurance companies offering coverage. There are even newer features such as accelerated no medical exam underwriting and living benefit riders that many companies today offer, that Genworth did not.
Contact us to see what other life insurance companies have to offer, so you have something to compare.