If it turns out you actually need long-term care (which 70% of those over 65 eventually will) a traditional long-term care insurance policy is a good value. These policies are less expensive that hybrid policies, which combine long-term care and life insurance. If you don’t need life insurance, you could consider a traditional long-term care insurance policy. The only drawback is that if you don’t need long-term care, you wasted all the money you spent on premiums. The odds are you will need care, though, and if so, Genworth offers a traditional policy. Actually, they were one of the first companies to offer this insurance over 40 years ago.
Hybrid long-term care insurance addresses this issue effectively. If you don’t need long-term care after paying all premiums, your beneficiary will receive a tax-free death benefit from the policy when you pass away, just like in a permanent life insurance policy.
Quotes of Genworth Long-Term Care Insurance
To get a quote with Genworth, you have to call for a consultation. They used to sell through agents only, but now they sell coverage through an internal sales group. However, you still have to call. They also sell policies through employers.
There is very little information on the website.
Consumer Satisfaction Rating of Genworth Long-Term Care Insurance
The NAIC has calculated the complaint ratio for Genworth Life Insurance as .35, which means they have about a third as many complaints as you would expect.
However, the BBB gives Genworth a B-. This is actually lower than most insurance companies. There are 31 complaints listed in the last three years and 7 one-star reviews. One of the complaints detail that premiums had increased and that Genworth planned to increase premiums “at least 150% over the next 5-7 years.” That’s not unusual, as health care costs have risen exponentially over the last ten years or so, but it’s something to keep in mind if you’re considering Genworth. Several others also complain of rate hikes, by as much as 90%.
There are a few class-action lawsuits against Genworth for rate hikes, one in Virginia and one in Pennsylvania.
Financial Strength Rating of Genworth Long-Term Care Insurance
Genworth was sold to a Chinese holding company for $2.7 billion dollars in 2016. Since then, there have been delays on top of delays, and the sale has still not gone through as of this writing. At first, Genworth needed to get approval from state and federal insurance regulators, but now it seems that China Oceanwide is dealing with some limits imposed by the Chinese government. They’re hoping to close by September 30, 2020, but that remains to be seen.
The reason for the sale is probably that Genworth has a $1 billion dollar debt due in 2021 as part of a settlement agreement with AXA.
In any case, A.M. Best rated Genworth Financial with a C++ as listed on Genworth’s own website. In light of this and the Chinese deal which may or may not go through, we would hesitate before getting a policy with Genworth.
While researching their long-term care insurance policy, we fell into a rabbit hole about Genworth’s financial status, lawsuits, and possibly being sold to Chinese Oceanwide. In light of all of this information, we would not recommend Genworth at this time. It’s possible their financial outlook will improve if the sale to Chinese Oceanwide goes through, but it also seems they are stepping back from the long-term care market.
In general, we’d recommend hybrid long-term care insurance over traditional long-term care insurance thanks to its death benefit feature if you don’t need long-term care after paying all premiums. If you want to consider a hybrid long-term care insurance policy, here are our reviews of the top 5 hybrid policies:
- Lincoln Financial’s MoneyGuard III
- Securian’s SecureCare
- Nationwide’s YourLife CareMatters
- OneAmerica’s Asset-Care
- Pacific Life’s PremierCare Choice