Genworth's TLC Product

FindaWay

New Member
15
Even though it's a single premium product, I've recently learned that they can have rate increases (unlike Lincoln Moneyguard). Do they just lower the benefits or actually ask for more premium? Does anyone know how this works?
 
AALTCI conference. And I got it confirmed.
- - - - - - - - - - - - - - - - - -
The impact might be minimal. That's what I'm trying to find out.
 
Last edited:
Even though it's a single premium product, I've recently learned that they can have rate increases (unlike Lincoln Moneyguard). Do they just lower the benefits or actually ask for more premium? Does anyone know how this works?



that's ridiculous..................
 
I was told it has to do with the "internal charges".
- - - - - - - - - - - - - - - - - -
From an illustration:

Monthly Deductions: Monthly deductions cover the cost of death and long term care benefits. These charges are not guaranteed. They are automatically deducted from the policy value.

For the quote that was run for me the monthly charges currently total about $120.
 
Last edited:
I was told it has to do with the "internal charges".
- - - - - - - - - - - - - - - - - -
From an illustration:

Monthly Deductions: Monthly deductions cover the cost of death and long term care benefits. These charges are not guaranteed. They are automatically deducted from the policy value.

For the quote that was run for me the monthly charges currently total about $120.


Look at the part of the illustration that shows GUARANTEED values. If the values are GUARANTEED then it is showing the highest possible "internal charges" and the policy cannot have higher "internal charges".
 
Mr_Ed said:
Look at the part of the illustration that shows GUARANTEED values. If the values are GUARANTEED then it is showing the highest possible "internal charges" and the policy cannot have higher "internal charges".

Maybe the OP is talking about the no lapse trigger that can cause a drop in abr/ebr in later years...

Of course as you point out, that is on the illustration as well so I still don't understand the original concern.
 
Even though it's a single premium product, I've recently learned that they can have rate increases (unlike Lincoln Moneyguard). Do they just lower the benefits or actually ask for more premium? Does anyone know how this works?

Genworth's TLC product illustrates benefits with current cost of insurance/interest rates and with guaranteed COI and interest rates. The Guaranteed ledger does not always perform as well as guaranteed benefits within other combo products. The risk is minimal or really impossible that Genworth raises rates up to the maximum level allowed under the contract on DAY 1. In fact, Genworth has sold TLC for 7 years and have never raised long term care charges a penny. In fact in some of their contracts like NY and FL rates are guaranteed for 5 years.

So the doom and gloom guaranteed ledger just will never happen. But, it is required to be disclosed this way. Provides an opportunity I suppose for an agent to try to be critical against the Genworth contract when the risk is minimal if any at all. The contract is likely to perform at or very near current scale. Consumers are likely to misinterpret the risk somewhat. I suppose if a Lincoln Moneyguard rep or a Pacific Life Premier Care rep has a chance to paint a negative picture the rep will probably try to do so. But this would be misplaced concern. Personally I am just happy being an independent agent able to write any contract and not having to worry about having an agenda or painting an incorrect picture.
- - - - - - - - - - - - - - - - - -
 
Last edited:
It's UL, not being issued at guarantees, so there is always going to a chance it can decrease in value (or require more premiums). Once the economy gets better and other carriers issue at higher than minimums, they will all be the same.
 
TriciaS said:
It's UL, not being issued at guarantees, so there is always going to a chance it can decrease in value (or require more premiums). Once the economy gets better and other carriers issue at higher than minimums, they will all be the same.

TLC is a single pay policy (no additional premiums) with a no lapse guarantee.....if the no lapse is triggered it can cause a drop in benefits but this is shown on the illustration so the client (and the agent) still know the floor.
 
Back
Top