Should I ditch my Genworth term life insurance policies?

by hirby

Genworth is in financial trouble.

Their bonds have been downgraded to Baa1 (still investment grade, but I would expect better from an insurance company)

Stocks in the tank.

Losing ludicrous amounts of money.

Their insurance ratings are still decent, but those rating companies give just about everyone an A or higher, so I don’t trust ‘em.

Be careful when considering this change.

First, never cancel an existing life insurance policy until you have applied for, and been approved for, and paid for your new life insurance policy, to replace your existing policies.

Make sure the new life insurance policies are "In Force", before canceling any existing term life insurance policies.

Hopefully you may be able to find more affordable rates for your term life insurance policies.

A study conducted in 2007 by the Insurance Information Institute reported that rates for term life insurance have decreased by 50% over the last dozen years.

However, your health may have changed, as well as being older now, so you may pay more for a new term life insurance policy.

The good thing is, you can compare free term life insurance quotes online and see how much the price would differ without having to meet with an agent.

Although the rating has declined, your life insurance policies should be protected by the Life Insurance Guaranty Fund in your state. In some states, the guaranty fund provides between $100,000 to $500,00 ($300,000 in most cases) of protection per life insurance policy.

I hope that helps. Best of luck to you.

No. First of all it’s term life insurance so you have no money tied up in it, second of all GE is a sound company and has an A+ rating from AM Best. Thirdly if you were correct and they were in financial trouble (which they’re not) somebody else would buy the insurance arm of the company and your policy would continue as is.

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