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Anyone Worried About Genworth's AM Best "A-" Rating??
- Thread starter term2u
- Start date
- 1,405
Patronizing insult; sent and received.
I don't have to hire someone. No one has every lost their term life insurance coverage as a result of a life insurance company failure. If they had, you'd already know about it. There is no need for any research.
No life company has had to be bailed out for underpricing life insurance. Regulations on pricing are quite tight, have lots of fat built in, and mortality is very predictable. We all realize several well placed nukes on a significant number of U.S. cities would mess up the assumptions, but then no one believes it is particularly important to reserve for that contingency.
In truth I was merely making the point that your statement was false, and I suspect knowingly false. This is so you can feel good about telling people to pay more for policies because the companies you want them to buy from are more secure. As if you'd know.
Ratings are NOT a guarantee of anything. They are a current and past look at a life insurance company by someone who knows more than you. But those same people giving the ratings have "your mileage may vary" all over their documents. I realize you don't read the fine print, you just make up your own (given how highly intelligent and experienced you are).
The reason policies stay in force and that other companies pick them up, is because books of business like term and whole life insurance are VERY profitable. I suspect some no lapse UL products may prove much less profitable, but people are not dropping dead as much as the assumptions used.
Life companies typically screw up with risky investments and on products where experience is not well known. I understand Genworth's troubles are all related to Long Term Care. I also see American General has been put on watch, does anyone know their problems? And lets not forget how unprofitable health insurance has become now that companies have jumped into bed with Obama, who thinks companies should be able to collect thousands in premiums and pay millions in benefits. You'd think an *** like that worked in government.
None of which applies to term life insurance, which was the point I made at the beginning. Would I pay a couple of bucks to buy an A+ versus and A? Sure, but only a couple. On the other hand, I would be very careful before laying out a half million for an annuity.
If you don't want to "argue" with me, feel free not to. But I see you can't help yourself.
Question: What is an "expert"?
Hint: Serious question.
I doubt you really know the answer.
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Simple: An "expert" is someone who knows no more than you know but is 200 miles away from home.
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And expert is someone who is properly licensed and educated to give advice on a given subject. That would exclude you when it comes to life insurance.
If you were an expert, you would know that I never said that a term policyholder lost their coverage. The the liquidation phase of receivership does not mean that policyholders lose coverage.
As for everything else you said, instead of asking me to prove myself then why dont you prove your statements.
And the fact that you think agents are greedy and only care about price (as you insinuated in your comments) only shows how little you know about proper life insurance coverage. There is more to term insurance than price for the majority of people's needs, and ratings are not usually the deciding factor.
What is funny is that for the most part I agreed with your position. I even made a point to say that. Yet you cant help but to argue because of your disgust of life insurance agents (that you constantly show in your comments).
And even if I was wrong that a term policy has never needed SGA funds (if I am then I would be more than happy to be corrected). I am 1000% correct that the policyholder is in no way guaranteed that the policy will be bought by another carrier, which you said "always will happen".
- 1,405
Congratulations on getting that wrong.
You might have had a chance had you taken the time to use this new thing called a dictionary:
http://www.merriam-webster.com/dictionary/expert
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- 10,328
Go see if your local DOI or Attorney General use that definition when it relates to insurance products.
- 1,405
I'm curious. Do you know why the government has been unable to shut down folks like Dave Ramsey? The nerve of people like Ramsey offering advice to the public without a license. That should be against the law.
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Dave Ramsey is an entertainer... much like yourself... except that he comes with a disclaimer...
And now it's a moot point:
http://www.bloomberg.com/news/artic...fe-insurance-annuity-sales-after-posting-loss
http://www.bloomberg.com/news/artic...fe-insurance-annuity-sales-after-posting-loss
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Man, talk about a prime prospect for an activist shareholder to go after. How can anyone actually still own stock in that company??
They purposefully underpriced their LTCI product to buy up business.
They started to get crushed because of that sales tactic.
They decide to keep LTCI even though the life and annuity biz was the most profitable margins.
Now they are getting crushed even more because of LTCI.
And because of that they are spinning off the only 2 profitable things that they do... perhaps to allow GW LTCI to die a slow death all by itself??
What a fustercluck
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Oh, and what a great conversation to have with clients. Carriers like that just breath "safe and secure" .... certainly worth the $5 per month in term premiums that GW term owners saved ... I know that this is exactly what I want to have happen to my term carrier
They purposefully underpriced their LTCI product to buy up business.
They started to get crushed because of that sales tactic.
They decide to keep LTCI even though the life and annuity biz was the most profitable margins.
Now they are getting crushed even more because of LTCI.
And because of that they are spinning off the only 2 profitable things that they do... perhaps to allow GW LTCI to die a slow death all by itself??
What a fustercluck
----------
Oh, and what a great conversation to have with clients. Carriers like that just breath "safe and secure" .... certainly worth the $5 per month in term premiums that GW term owners saved ... I know that this is exactly what I want to have happen to my term carrier
