Genworth Life of NY Rating Drop! What to Do?

[WinoBlues]

Guys, like I mentioned before, Im not insurance expert and maybr it was mistake not to do more research when I was shoping for one. I just looked into my paper work and my policy is called l:
Flexible Premium Adjustable Life Insurance, Term UL 30 Year.

So what that really means? Im sure that when I was purchasing it insurance rep told me that premiums are guaranteed for entire 30 years ...

Will this policy cover you in the amount and time period you need? If yes, I would keep it. If not I would start shopping it out. I would wager, the agent trying to talk you into replacing the Genworth policy has not covered the two year contestable period with you.

Am I understanding you correctly that these guys wrote the Genworth policy originally?

 

[rousemark]

I'm not sure it's scare tactics or just being prudent, my E&O insurance won't even cover me if I write a B rated company. I don't think I would be to worried about their B rating for term but I would never convert to a whole life or UL policy with a B rated company. That is the reason I would change companies because a lot could change with your needs in 25-30 years.

Exactly.. and it could be in 20 years the company he changes to is no longer in business and Genworth is thriving. It is definitely scare tactics. After all, just a few years ago the people trying to replace were touting Genworth being an A rated company. BTW, it is not like it was a severe downgrade.. They were dropped from A- to B++. (For the record, I do not represent any Genworth affiliated company)

 

[Golfnut2112]

Exactly.. and it could be in 20 years the company he changes to is no longer in business and Genworth is thriving. It is definitely scare tactics. After all, just a few years ago the people trying to replace were touting Genworth being an A rated company. BTW, it is not like it was a severe downgrade.. They were dropped from A- to B++. (For the record, I do not represent any Genworth affiliated company)

It may be a scare tactic maybe not, I thought they went to a B rating from the original post. I think I would stay with them with a B++ but any lower I would bail.

 

[Robert Barney]

They are down to a B.

A.M. Best Downgrades Issuer Credit Ratings of Genworth Financial, Inc. and Its Subsidiaries; Places Credit Ratings Under Review With Negative Implications

Concurrently, A.M. Best has downgraded the FSR to B (Fair) from B++ (Good) and the Long-Term ICRs to “bb+” from “bbb” of Genworth Life Insurance Company (GLIC) (Wilmington, DE) and Genworth Life Insurance Company of New York (GLICNY) (New York, NY).​

From the A.M. Best site:

Genworth Life Insurance Company of NY
Financial Strength Rating: B u
Implication: Negative
Effective Date: October 25, 2016 (Under Review)
Financial Size Category: XV ($2 Billion or greater)
u Denotes Under Review Best's Ratings


If I owned a Genworth policy (and I bought one term policy from them years ago on each of my 2 oldest kids) I would not dump it. If it gets so bad that regulators have to step in, the life insurance book will be sold to another insurer and things will not be a problem.

Products without guarantees, are likely to suffer the worst.