Genworth Financial Life Insurance Company

Just so you know before reading this entire article, Genworth Financial life insurance no longer offers life insurance.  They have stated that their focus will now be on Long-Term Care insurance.

Yes, we can help you with your Genworth policy.

Genworth Life stopped offering life insurance in 2016.  Yes, we have many customers whom are insured with Genworth.  We can still service your policy or convert your policy to a universal life policy.  We can also compare your current Genworth rates with other policies that are available for sale today.

For most individuals, having the appropriate life insurance coverage is a component of an effective, sound overall financial strategy. Without having insurance protection, your assets that have taken numerous years to conserve could rapidly become exhausted, in turn, placing individuals and families in potential financial peril.

This is exactly why we offer term life insurance from over 40 life insurance companies.

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There are various factors to consider when shopping for insurance coverage, one of those is your financial well being. One insurance company that has had some financial troubles of late – yet continues to have a good reputation in the insurance industry – is Genworth Financial.  You will not see Genworth Financial on our best insurance company list.

About Genworth Financial

Genworth Financial is a major life insurance and financial services organization that was originally founded in 1871. The company was initially established as The Life Insurance Company of Virginia, and then more than ten decades after its founding, Life of Virginia was acquired by Combined Insurance – which just a year later became Aon plc.

Today, Genworth Financial is remains committed to assisting its customers achieve and protect their financial goals, and safeguard their financial well being. Genworth currently operates in all 50 of the United States, and the insurance company is headquartered in Richmond, Virginia.

Many of you will be familiar with First Colony.  First Colony Life Insurance Company merged with Genworth Life and Annuity Insurance Company back in November of 2007.  This move was sure to have put Genworth at the top when ranking for cheap term life insurance.  For a while Genworth was one of the major players in cheap brokerage term life insurance.  As an agent working with Genworth’s back office, I could see that the company was failing.  Underwriting times increased for new policies and new business was hard to communicate with.  As an insurance agents, I found better companies to work with.

Genworth’s Financial Ratings

Insurers are rated each year by the national rating services and these ratings indicate the company’ financial stability to be able to pay claims and operating obligations of the company:

Genworth’s ratings for 2018 are as follows:

A.M. Best CompanyB-
Standard and Poor’sB+
Moody’sB3

AMBest - Genworth

As for the Better Business Bureau, even the Genworth Financial is not a BBB accredited company, they do have a rating of B+ with the company. BBB reports that over the last few years, Genworth received 16 complaints and had resolved a third of them. The claims listed had to do with products and or service, however, none of the listed complaints appeared to be claim related.

Genworth Financial’s Insurance Products

So if you have a policy with Genworth now, you probably have one or more of the following:

Term Life Insurance – Genworth’s Term Products were offered as solutions for individuals and families who needed to make certain that the household’s primary income stream could be replaced in the event of the unexpected death of the primary breadwinner.

Because of the very low rates for term life insurance, an individual or family could easily purchase enough life insurance to cover current and future needs of the family:

  • Provide enough cash to cover living expenses of the surviving family members
  • Payoff the home mortgage so the family could remain in mortgage-free home
  • Replace funds that would have been used to pay for college tuition and other expenses
  • Replace funds that would have been invested in a retirement plan
  • Reduce or eliminate outstanding personal debt like credit cards and personal loans
  • Convert your term to permanent life insurance

Although term insurance is considered temporary, policies were offered with 10, 15, 20, and 30-year terms.

Universal Life Insurance

As a permanent life insurance solution, Universal Life offers flexibility that whole life insurance does not. Like whole life insurance, universal life has a cash component that allows the policyholder to accrued significant cash value over time because a portion of every paid premium is diverted into the cash account and that money earns interest that is tax-deferred.

The policy is considered flexible because the policyholder can increase, decrease, or even skip a periodic premium as long as there are sufficient funds in the cash account.

Policyholders can also decrease or increase the death benefit allowing them to adjust their insurance coverage because of life events that either reduce or increase their need for life insurance. Typically, requests to increase the death benefit will require medical underwriting.

Indexed Universal Life Insurance (IUL)

Similar to whole life insurance, the IUL will provide a death benefit for the life of the insured. Just like universal life insurance, the IUL has the flexibility to increase or decrease premiums and the death benefit to accommodate life events of the policyholder.

With an IUL policy, the interest earned is based on the markets rather than the investment performance of the insurance company. The IUL also comes with a “cap” – the maximum amount of interest that can be earned, and a “floor” – the minimum amount of interest that can be earned. Certainly, the floor is one of the better benefits because it will prevent the policyholder from losing money as a result of a down market.

Whole Life Insurance

Whole Life Insurance remains popular with certain consumers because of the guarantees and benefits that come with the policy:

  • The insurance policy is guaranteed for the lifetime of the policyholder as long a the periodic premiums are paid. The insurer cannot cancel your whole life insurance for any reason other than non-payment.
  • Once the policy is issued, the periodic premium can never be increased by the insurer even if you are diagnosed with a terminal illness or forced to move into a nursing facility.
  • Your insurance policy will build cash value over time that you can access through policy loans, withdrawals, or policy surrender.

Now I’m Worried – Should I Keep My Genworth Life Insurance?

Although Genworth is not the most financially sound life insurance company, don’t just go and drop your policy until you have another one in place.  We can help with that.

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Although Genworth has been dealing with some financial turmoil over the last few years, there is no indication that company cannot fulfill any insurance contracts already in force.

If you feel uncertain about your policy and its benefits, now would be the appropriate time to call us and speak to one of your life insurance agents to discuss your coverage and determine if you would be better off making a change or staying right where you are.

Finally, if you haven’t spoken to your agent in several years to review your policy and coverage that you have with Genworth or any other company, now is the time.  We can walk you through a questionnaire that will help you understand just how much and what kind of life insurance you should buy.

We are here to help, call us at 1-800-712-8519.  You can also get an instant quote here:

Genworth Financial

 

About Doug Mitchell
About Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent over 20 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance, home and auto insurance.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table.  He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award.  Later in his career with New York Life he was an Executive Council Member.  Doug currently serves as President of Ogletree Financial, a life insurance marketing organization with over 1000 life insurance agents.  Today, Doug’s main focus is servicing 1000s of policyholders and growing his agency through the reach of www.insurancequotes2day.com.

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