Should I Be Concerned About LTC W/Genworth

[csalter]

Hello Everyone,

I recently bought a policy for LTC with Genworth. I did review their ratings with A.M. for financial strength and it seemed fine. However, every time I look up they continue to drop in their ratings. I know that they have traditionally been strong with LTC and from what I understand pay their claims as expected.

However, I am now feeling very uncomfortable with their stability? Should I feel that way. Do you think I should get another provider for LTC to be safe or is this the way it is?

 

[Justin Bilyj]

Just to get this started, I will ask rhetorically what are your alternatives?

John Hancock
Mass
Mutual of Omaha
Prudential (I think just gave it up)

Genworth's ltc division is relatively new no? With JH's rate increase and ltc looking more grim as time goes on, I think its reasonable to ask if Genworth will maintain its ltc biz..

 

[Arthur Rudnick]

I recently bought a policy for LTC with Genworth. I did review their ratings with A.M. for financial strength and it seemed fine. However, every time I look up they continue to drop in their ratings. I know that they have traditionally been strong with LTC and from what I understand pay their claims as expected.

However, I am now feeling very uncomfortable with their stability? Should I feel that way. Do you think I should get another provider for LTC to be safe or is this the way it is?

It appears that you've made a total of 23 posts on this forum, about 20 of which are asking questions about LTCi. You have been advised many times that the best way to address your concerns was to sit with a LTC Specialist. If your agent couldn't fully address your questions, you were advised to find an another agent. If for some reason you're uncomfortable with Genworth, why did you purchase a policy from them? The time to do your due diligence is before you purchase, not after.

Genworth's AMBest ratings have been at 'A-' (excellent) for quite a while. Don't confuse Genworth with GE, who I beleive has had some downgrades recently. GE & Genworth are two different companies.

You would look at a company's Reserves to determine how financially sound their business is. Genworth's Reserves are more than adequate to cover claims of present & future policyholders. They have been selling LTCi for over 30 years and are the #1 carrier in the market today.

Unless you're just looking for problems where none exist, IMO, you should stick with your present policy.

 

[Mr_Ed]

Just to get this started, I will ask rhetorically what are your alternatives?

John Hancock
Mass
Mutual of Omaha
Prudential (I think just gave it up)

Genworth's ltc division is relatively new no? With JH's rate increase and ltc looking more grim as time goes on, I think its reasonable to ask if Genworth will maintain its ltc biz..

Genworth has been selling LTC insurance longer than anyone else in the market now. They started selling LTCi in 1974. 38 years of experience in the LTCi market is not relatively new--they are the oldest kid on the block.

mred

 

[billberry12]

Arthur, and Mr_Ed,

Do you ever get tired of explaining the same question over and over. Sometimes I feel like Bill Murray in Groundhog Day. My opinion in simple. I don't believe there is any risk or comfort level difference between any of the top 5 carriers in this business now days. Who knows what's next? Bottom line. All these companies have to abide by the contracts they have with insureds.

The only alternative for the consumer is to not buy long term care insurance. That is the worse of the evils.

I still believe that at claim time, something is always better than nothing.

My 2 cents...I feel better now.....thank you for listening.

 

[Arthur Rudnick]

My 2 cents...I feel better now.....thank you for listening

I'm happy that you feel better. Stop by any time.

 

[billberry12]

Thanks Arthur. Send Mr_Ed my bill for therapy today.

 

[ltcadviser]

Hello Everyone,

I recently bought a policy for LTC with Genworth. I did review their ratings with A.M. for financial strength and it seemed fine. However, every time I look up they continue to drop in their ratings. I know that they have traditionally been strong with LTC and from what I understand pay their claims as expected.

However, I am now feeling very uncomfortable with their stability? Should I feel that way. Do you think I should get another provider for LTC to be safe or is this the way it is?

Based upon the benefits you bought, Genworth would have been my recomendation for a California couple ages 52/38. Keep in mind, you purchased a 10 pay. It is very likely you have insulated yourself from a rate increase. Genworth will pay your claim. Your premium is $19000 on a 10 pay basis. Omaha would have been $21000; Transamerica $26000. Genworth is a very good company at claim time. Relax.
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Genworth's AMBest ratings have been at 'A-' (excellent) for quite a while. Don't confuse Genworth with GE, who I beleive has had some downgrades recently. GE & Genworth are two different companies.
.

Arthur, I believe the OP was referring to the downgrades Genworth received last week not from insurance company rating agencies but from stock analysts that "downgraded" the outlook of Genworth Stock (GNW) as the stock plummeted 25% last week due to exposure in Australian real estate.

 

[csalter]

Based upon the benefits you bought, Genworth would have been my recomendation for a California couple ages 52/38. Keep in mind, you purchased a 10 pay. It is very likely you have insulated yourself from a rate increase. Genworth will pay your claim. Your premium is $19000 on a 10 pay basis. Omaha would have been $21000; Transamerica $26000. Genworth is a very good company at claim time. Relax.
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Arthur, I believe the OP was referring to the downgrades Genworth received last week not from insurance company rating agencies but from stock analysts that "downgraded" the outlook of Genworth Stock (GNW) as the stock plummeted 25% last week due to exposure in Australian real estate.

This is correct. It naturally brings concern and since I just joined and am still younger and fit, I could still make a jump as necessary. Am I not normal for feeling a bit concerned? I would think it is difficult to not be when you have many people who feel long term care insurance is a waste. It makes one think if they are wasting their money if a company seems to be struggling consistently. I know there are ups and downs in business and Genworth has been having quite a few. I have read they are gambling by putting a lot of emphasis on their long term business.

I have sat down with an advisor prior to buying my policies. I felt good about the decision, but I am human and doubt can come to my mind like anyone else. I am no robot.

I'll try my best to relax.

 

[supersupps]

WHy the concern about the carrier? Aren't all carriers funded, like FDIC, etc.. I know when I get flood, etc I dont care how low the carrier rating is bec the fed or state ALWAYS steps in. Am I missing something?