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term2u
Super Genius
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Just had my upline call me about this today and give me the news.. They're not even going to process applications that are currently in-house.. Unbelievable..
Anyone Worried About Genworth's AM Best "A-" Rating??
- Thread starter term2u
- Start date
Just had my upline call me about this today and give me the news.. They're not even going to process applications that are currently in-house.. Unbelievable..
- 1,405
In 1999 Genworth, then First Colony Life, had an A.M. Best rating of A++ and was considered a very strong company.
The A++ rating lasted until June 20, 2003.
On October 20, 2003 the rating was downgraded to A+.
The rating remained A+ until February 19, 2009 when it was downgraded to A.
The company rating is currently:
A.M. Best's Consumer Insurance Information Center
The process should teach any of you who like "sell quality" a little humility. Today's A++ company can move from big and strong to in trouble, and there are NO GUARANTEES with any company. If you plan to be in the business for a long time, you might want to think how loudly you proclaim one company better than another.
I doubt that Genworth's problems are fatal. They still have an A- rating, and while that is "under review" I suspect there is lots of money in the reserves, which companies must maintain as a rule of law.
Incidentally, 1999 was pre-triple-X and I purchased a couple of 40 year term products on my two oldest children from First Colony. Those term plans have 24 years of coverage left. I'll let you know if they get stiffed on their term insurance.
In the early 1980's I bought two permanent policies from Canadian Life companies, neither of which is in business today. The blocks of life insurance business for those two companies were purchased by two other companies, both bigger and stronger than the original companies that issued them.
I am still looking for the names of any life companies that have failed and whose traditional life insurance contracts (term) ended up leaving a consumer without the contract and coverage.
On another note, I wrote my contact at Genworth to ask if their term products should be pulled because they are not for sale, and was told to leave them in our system, they would be finalizing their plans in the next couple of weeks.
The A++ rating lasted until June 20, 2003.
On October 20, 2003 the rating was downgraded to A+.
The rating remained A+ until February 19, 2009 when it was downgraded to A.
The company rating is currently:
A.M. Best's Consumer Insurance Information Center
The process should teach any of you who like "sell quality" a little humility. Today's A++ company can move from big and strong to in trouble, and there are NO GUARANTEES with any company. If you plan to be in the business for a long time, you might want to think how loudly you proclaim one company better than another.
I doubt that Genworth's problems are fatal. They still have an A- rating, and while that is "under review" I suspect there is lots of money in the reserves, which companies must maintain as a rule of law.
Incidentally, 1999 was pre-triple-X and I purchased a couple of 40 year term products on my two oldest children from First Colony. Those term plans have 24 years of coverage left. I'll let you know if they get stiffed on their term insurance.
In the early 1980's I bought two permanent policies from Canadian Life companies, neither of which is in business today. The blocks of life insurance business for those two companies were purchased by two other companies, both bigger and stronger than the original companies that issued them.
I am still looking for the names of any life companies that have failed and whose traditional life insurance contracts (term) ended up leaving a consumer without the contract and coverage.
On another note, I wrote my contact at Genworth to ask if their term products should be pulled because they are not for sale, and was told to leave them in our system, they would be finalizing their plans in the next couple of weeks.
Last edited:
- 656
Now Fitch has chimed in with a BB+, Negative Outlook
Fitch Downgrades Genworth Life's IFS Ratings to 'BB+'; Outlook Negative | Reuters
Fitch Downgrades Genworth Life's IFS Ratings to 'BB+'; Outlook Negative | Reuters
- 1,405
I'm curious, anyone worried about this one:
A.M. Best's Consumer Insurance Information Center
Financial Strength Rating: A u
Implication: Negative
Effective Date: January 27, 2016 (Under Review)
A.M. Best's Consumer Insurance Information Center
Financial Strength Rating: A u
Implication: Negative
Effective Date: January 27, 2016 (Under Review)
- 11,273
I'm still okay with up to an A- rating, as long as it doesn't have a negative outlook at that point.
Assurity has an A- rating, but a stable outlook.
A.M. Best's Consumer Insurance Information Center
Assurity has an A- rating, but a stable outlook.
A.M. Best's Consumer Insurance Information Center
- 1,405
When did you first become concerned about Genworth?
- 11,273
I hadn't have been until this whole thing came out. Genworth is a key player in the LTC market. In California, carriers have been leaving that market in droves.
Look at the approved CA Partnership LTC carriers:
CPLTC Partner Contact Info
Bankers is A- with a Stable Outlook...
Genworth (we already know)
John Hancock is A+ with a Stable Outlook...
New York Life no longer sells LTC
CalPERS isn't available through agents.
I'm down to John Hancock and Bankers. I'd rather not deal with Bankers, just for their reputation of their agents. That leaves John Hancock. If anything, I'm more concerned about stand alone LTC insurance being viable for people in California.
So it hasn't been as much about Genworth as it has about LTC insurance in general.
Look at the approved CA Partnership LTC carriers:
CPLTC Partner Contact Info
Bankers is A- with a Stable Outlook...
Genworth (we already know)
John Hancock is A+ with a Stable Outlook...
New York Life no longer sells LTC
CalPERS isn't available through agents.
I'm down to John Hancock and Bankers. I'd rather not deal with Bankers, just for their reputation of their agents. That leaves John Hancock. If anything, I'm more concerned about stand alone LTC insurance being viable for people in California.
So it hasn't been as much about Genworth as it has about LTC insurance in general.
- 1,405
As a 61 year old, you would think I would be a prospect for LTC.
I wouldn't buy one.
I wouldn't buy one.
- 11,273
There's two parts to the LTC sale (not that I sell much of it):
1) Family experience
2) Retirement & Wealth preservation
My grandmother was bed-ridden for over 20 years. As such, my aunt (who is 10 years older than I am) took care of her custodial needs until her passing 20 years ago at the age of 60. In her case, an LTC policy would've helped to transfer the care burden to someone other than a family member.
The other reason is more 'logical'. In essence, what would a LTC event cost you in retirement? If you pay it all out of pocket - approximately $6,000/month for 3 years = $225,000. How would that affect one's retirement savings? Of course, that's assuming that they have adequately funded their retirement in the first place.
So yeah, I'd like to sell more of it... but overall, I don't really have much 'faith' right now in the long-term viability of LTC insurance. Too many carriers leaving that market. From my understanding, it's because LTC insurance started off being based on disability claims experience, and with regulated increases, and benefit decreases, I'm not sure about offering it in the future.
I think I'll be just fine offering life insurance solutions with a Chronic illness rider... even though it won't have the same tax or asset protection benefits... at least it can pay out cash in the event it is needed.
1) Family experience
2) Retirement & Wealth preservation
My grandmother was bed-ridden for over 20 years. As such, my aunt (who is 10 years older than I am) took care of her custodial needs until her passing 20 years ago at the age of 60. In her case, an LTC policy would've helped to transfer the care burden to someone other than a family member.
The other reason is more 'logical'. In essence, what would a LTC event cost you in retirement? If you pay it all out of pocket - approximately $6,000/month for 3 years = $225,000. How would that affect one's retirement savings? Of course, that's assuming that they have adequately funded their retirement in the first place.
So yeah, I'd like to sell more of it... but overall, I don't really have much 'faith' right now in the long-term viability of LTC insurance. Too many carriers leaving that market. From my understanding, it's because LTC insurance started off being based on disability claims experience, and with regulated increases, and benefit decreases, I'm not sure about offering it in the future.
I think I'll be just fine offering life insurance solutions with a Chronic illness rider... even though it won't have the same tax or asset protection benefits... at least it can pay out cash in the event it is needed.
- 4,132
And I would agree with you Bob. I wouldn't try to sell you LTC.
You either believe in it and want it or you don't.
I've never had to sell LTC, I have many times had to find the right plan for those who wanted it. So and not because it's you bob, if you weren't interested in getting LTC, I wouldn't be either.
Much like Disability the hardest person to convince in the transaction is the underwriter.
