- 24,978
I am going to continue to provide my clients with options and information to decide on the options.
2 Months in . . . is Our Genworth Colony Term UL 30 Too Risky to Keep?
- Thread starter DesertDiver
- Start date
I am going to continue to provide my clients with options and information to decide on the options.
- 15,319
- 11,277
That's the key right there. I focus on the policy structure design and current financial objectives... not 'financial viability'.
Even a bad policy... will still pay a death benefit.
I think it makes sense to tell them, especially if their policy limits are above the stated guarantee in the policy which for Genworth's colony ul term it was around $400k.
Ami
Expert
First thing that comes to mind is to suggest that you read the policy. it's a contract between you and the insurance company. That specific company will be pulling some of its products, incl. "Colony Term" off the market shortly. Insurance companies do that from time to time. However, unlike the likes of Microsoft that can decide to terminate support for older products, insurance companies remain bound to their contracts (subject to the contract wording).
Having said that, however, one needs to read contracts carefully and with special attention to potential legal-financial booby-traps.
If in doubt, ask the question in writing from both the agent and the insurance company and request a written response. Ditto for the agent who suggested the replacement and to the company that (s)he suggested replacement with.
Having said that, however, one needs to read contracts carefully and with special attention to potential legal-financial booby-traps.
If in doubt, ask the question in writing from both the agent and the insurance company and request a written response. Ditto for the agent who suggested the replacement and to the company that (s)he suggested replacement with.
- 1,405
Just a note for everyone.
This thread began 4 years ago, and it seems to me that anyone who bought a 30 year term policy 4 years ago, reading this today, would need to be very careful just dropping a 4 year old 30 year policy because they think they can find a better company.
First, while Genworth might be having trouble today, it is quite likely their problems are not fatal, and certainly would not lead to the policy not paying in the event of a claim.
Second, the company you might switch to today, might be in worse shape further down the line.
Third, if the product was competitive when you bought it, then it will be darn hard to get a better deal.
Fourth, starting a new policy means starting over on suicide and contestability, and if you don't need to, that's a bad idea. I don't think it's a huge risk, and normally if you can save money by getting a better deal, it would not stop me from doing so.
Once again, I think you would be hard pressed to save money on a 4 year old 30 year term policy if it was competitive when it was sold.
I have two permanent policies. Each of those were purchased from life companies that are no longer in business. Each of those companies had their books of business purchased and taken over by other companies, and so the insurance policies I bought are still in force and still motoring along at the fully guaranteed premiums set out in those policies. The companies have changed, but the contract is the same.
This thread began 4 years ago, and it seems to me that anyone who bought a 30 year term policy 4 years ago, reading this today, would need to be very careful just dropping a 4 year old 30 year policy because they think they can find a better company.
First, while Genworth might be having trouble today, it is quite likely their problems are not fatal, and certainly would not lead to the policy not paying in the event of a claim.
Second, the company you might switch to today, might be in worse shape further down the line.
Third, if the product was competitive when you bought it, then it will be darn hard to get a better deal.
Fourth, starting a new policy means starting over on suicide and contestability, and if you don't need to, that's a bad idea. I don't think it's a huge risk, and normally if you can save money by getting a better deal, it would not stop me from doing so.
Once again, I think you would be hard pressed to save money on a 4 year old 30 year term policy if it was competitive when it was sold.
I have two permanent policies. Each of those were purchased from life companies that are no longer in business. Each of those companies had their books of business purchased and taken over by other companies, and so the insurance policies I bought are still in force and still motoring along at the fully guaranteed premiums set out in those policies. The companies have changed, but the contract is the same.
- 11,277
Agreed. There's no reason to incite a panic with current policyholders.
Although as an agent, while I would think twice about selling new policies, I'm not worried about the in-force business they have.
Although as an agent, while I would think twice about selling new policies, I'm not worried about the in-force business they have.
Similar threads
