Update: Genworth has announced that they are no longer offering new life insurance policies for purchase. Please read our Updated Genworth life insurance review in the Notes at the bottom of this post.
Genworth Life Insurance Review
In addition to having various kinds of life insurance policies to choose from, there are also multiple life insurance companies. When you begin your search for a suitable insurance company, your options can be daunting. This can make selecting a company difficult.
Fortunately, we can help you navigate through your options and simplify the process. This article will have a look at Genworth Life Insurance. After reading it, you can decide if you want Genworth to be on your list of carriers before narrowing your life insurance company choices.
Table of Contents
History of Genworth
As an A.M Best A-rated life insurance company, Genworth has a reputation for being a financially secure organization.
Genworth has modified their costs for term life policies, making the company one of three carriers with the best rates 9 out of 10 times. The most practical approach to determining if they are right for your age is to contrast rates against one another, particularly if you’re older than 65 and are in search of life insurance and coverage amounts.
Genworth might be for you if you’re in search of an organization that’s been in the industry for decades and has a reputation for being secure in the insurance market. They’re a stable business and have better rates than their competition.
Genworth Financial Term Life Policy
There are a couple of insurance types offered by Genworth – term life and universal.
Term life will generally be the most economical choice since there are expiration dates attached to each policy. They are typically in 10, 15, 20, and 30-year durations, hence their affordability. Most families opt for term life since it is more cost-friendly to them, and they can purchase extra coverage down the road.
A term policy keeps their income protected should tragedy strike. Term life insurance is always the best way to go if you desire the cheapest insurance coverage for the ones you love. Granted, not all people want to have a policy that will expire at some point, and for those people, universal is the better way to go.
Universal insurance remains in effect as long as the monthly premiums continue to be paid, which is helpful for applicants who don’t want to reapply for coverage later. Universal life insurance is more expensive than term, particularly if you’re a younger applicant capable of obtaining cheap term life insurance.
Genworth Financial Universal-Life
Genworth also provides Universal Life insurance with a couple of life insurance policy types: Guaranteed Universal Life (GUL) and Index Universal Life (IUL).
IUL offers a greater feasibility for the accumulation of cash value by matching an index to cash value – typically the S&P 500. Unfortunately, if the S&P 500 performs poorly, particularly during the policy’s early life, the policy might lapse earlier than anticipated.
With Guaranteed No Lapse Universal Life, the build-up of cash value won’t be as high as an IUL, but this policy will be active throughout your entire life without an increase in premiums. A GUL is a practical alternative to Whole Life since it is more affordable. However, it doesn’t offer as much cash savings inside of the policy.
Finding the Best Rates for Life Insurance
If you’re in search of the most economical life insurance, likely via a term policy, there are multiple methods available to you that can give you lowest possible rate.
Age is a key element in determining your premiums, so it’s important that you begin the search for life insurance as early as you can. There is little you can do about your age.
An alternative approach to reducing your premiums is by bettering your health. Once you chose a company to purchase a policy from, they’ll need to know the state of your health to determine how risky you are to insure.
Once you finish the preliminary paperwork, the organization will have you meet with a paramedic to conduct a medical exam. If you opt for a no-medical exam policy, the exam results will be a factor in the amount you pay for coverage.
The insurance company will need to know your blood pressure, weight, and cholesterol levels, and will take a blood and urine sample. If you want to spend less, improve your health through exercise and diet.
Each approach will aid you in losing weight and will reduce your risk for extreme health issues in the future. Likewise, if you intend to obtain the most economical coverage, you’ll need to quit smoking.
Tobacco use will make your insurance premiums skyrocket. Those who smoke will pay at least twice as much for coverage, as opposed to the amount a nonsmoker will pay. If you want life insurance that’s affordable, stop smoking. If you’re not willing to, there are companies who provide you with affordable life insurance.
To get the best rate you can, make sure that you’re not buying more life insurance than you need. You must determine how much coverage your family needs. Failure to do so will cause you to pay high premiums on a monthly basis.
2016- Genworth had some financial losses the past few years. They made a major announcement in October of 2016.
Genworth stated that they have agreed to move forward in selling itself to a Chinese holding company. They announce that they would be selling for 2.7 billion dollars. This transaction has to get approved not only from regulators, but also from Genworth’s stockholders.
This transaction is scheduled to close around the middle of 2017. Once acquired from China Oceanwide Holdings Group Co, Genworth will standalone as a subsidiary. Tom McInerney, Genworth CEO and President, announced that Genworth doesn’t believe that this sale would affect current policies.
Should You Change Your Genworth Life Insurance Policy?
Switching to a new life insurance company may or may not be a good strategy.
If you’re worried that Genworth will go bankrupt, just know that is very rare for life insurance companies to go belly up.
As a safety net, the Insurance Guaranty Association makes sure that life insurance claims are paid based on each state’s claim limits. So you don’t have to change.
However, if you are uncomfortable with Genworth’s situation and want to shop around, you need to think about the following:
You will be subjected to underwriting and if approved, your rates will be based on your current age. Does it make sense buying life insurance from another insurer?
It will depend on your specific situation. Call us at 888-411-1329 and we can help review your case and see if it makes sense to change insurers.
Genworth Life Insurance Company Review
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