Genworth

As one of the very first companies to offer long-term care insurance, Genworth has come a long way. 

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8.1
Grand Score
8
User Score
8.1
Grand Score
8
User Score
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As you near the age of 60, it is advisable to consider long-term care insurance for the future. You don’t know what the future will bring, and you certainly don’t want to burden your family with paying for your long-term care if you need it. After saving for the past 40 years, you don’t want to whittle down those funds, either. If you begin to have cognitive impairments, or you find you have lost the ability to perform at least two activities of daily living (ADLs) such as dressing, grooming, feeding, bathing, etc., you may be eligible for payments from a long-term care insurance policy. 

There are over 30 companies that offer long-term care insurance, which can pay for non-medical care in your home, an assisted living facility or a nursing home. Genworth offers one of the best policies on the market. Check it out if you are considering a long-term care insurance policy.

Grandfolk Scoring
Cost 10/10
Ease 7/10
Coverage 8/10
Optional benefits 7/10
Limits to coverage 10/10
Years of coverage 9/10
Waiting period 8/10
Customer support 6/10
Accessing benefits 8/10
Cost
What is the monthly fee?
Costs will vary depending on your age and health
Ease
Is it easy to enroll?
You need to enroll through a local Genworth agent
Coverage
What does the policy cover?
Most policies cover nursing home care, assisted living or in-home care
Optional benefits
Are additional benefits available?
Live Well, home assistance benefits and shared benefit rider
Limits to coverage
Are there any limits to coverage?
Monthly maximum is $10,000
Years of coverage
How many years can be covered?
You can choose either two, three, four or five years
Waiting period
Is there a waiting period?
This varies between 30, 90, 180 and 365 days
Customer support
How easy is it to reach the company?
Call 8:30 AM-6 PM EST Mon-Thurs, or 9 AM-6 PM Fri
Accessing benefits
How do I access coverage?
Your eligibility will need to be determined first; call for details
Age Score:
8
50-65 Years
8
65-75 Years
9
75-85 Years
10
85-Above

Knowing that you have some funds available if you need long-term care can relieve you of concerns about the future. Long-term care insurance is a good idea for any senior. If you are young and still have an active lifestyle, you may not need long-term care. but if you happen to have an accident that requires a long recuperation period, long-term care insurance will certainly help. As you age and begin to lose the ability to do at least two activities of daily living (ADLs), you will become eligible to receive benefits. Or, if you begin to have cognitive impairment, a home care companion could be helpful. 

These costs are not covered by Medicare, so you should not assume that there are other ways to pay. At any age you are not able to perform daily activities, a long-term care insurance plan is a good idea.

Health Score:
5
Great Health
5
Good Health
9
Fair Health
10
Poor Health

If you are a younger senior who is in great health, you will not need the benefits of long-term care insurance. However, if you were to have an accident that required a long recovery, you could still need long-term care. The policy does not have an age requirement. As you age, you will most likely need assistance if you become unable to care for yourself or begin to have cognitive impairment. 

Most people want to stay in their homes, where they have more control and feel more comfortable. Long-term care insurance will pay for this kind of care. For those who are in fair or poor health, a long-term care policy is extremely valuable. The policy can provide independence for you, and protection for your retirement savings.

Pros:

  • Genworth is one of the largest long-term care insurance providers.
  • The company regularly produces a state-by-state analysis of long-term care costs.
  • The company has a 40-year track record for long-term care insurance.
  • Over one million people have purchased policies through Genworth.
  • An increase in benefit amount may be required within 60 days of purchasing the policy. The benefit amount can be reduced at any time.

Cons:

  • If the person covered by a policy dies, his or her beneficiaries are not entitled to any remaining benefits in the plan.
  • The company is rated by industry rating agencies as marginal or questionable. 
  • Genworth is currently in financial difficulty due to past missteps.

Bottom Line:

Genworth was one of the very first companies to offer long-term care insurance. It has suffered some financial problems, as the policies were not priced right from the start. As a result, its ratings with industry review companies have been low. It is in the process of being acquired by China Oceanwide Holdings, which may help the company get back on its financial feet. Since insurance is a highly regulated industry, it isn’t likely that Genworth will disappear any time soon. It will have struggles along the way for sure. Does that mean itisn’t worthy of a look? No. 

Genworth’s latest product has some nice perks, including a wellness program. Once your policy is in force, you can use the program. The main office has an excellent rating with the Better Business Bureau, but be sure to check the rating for your local office before finalizing any business. The bottom line is that you need to be an educated consumer. Don’t go in blind expecting the agent to be completely candid if they are only selling one product. 

The company has a questionable status right now, but it is doing its best to get on a better financial footing, and may be worth a look.

Frequently Asked Questions:

What elimination periods are offered? 

Elimination periods for Genworth are 30, 90, 180 or 365 days. The company also offers two types of elimination options, either calendar or service days. The calendar day option counts the days that pass, while the service option counts only days of service. Calendar days is a better option, but will cost more.

Please explain the optional benefits that are available. 

Genworth offers several additional benefits. These include “Live Well,” which is a collaboration with the Mayo Clinic to create a wellness program available to Genworth clients. The Home Assistance Benefit provides a maximum lifetime reimbursement up to three times the monthly maximum or 90 times the daily maximum for caregiver training, installation and ongoing monitoring of emergency medical response systems and home modifications. Finally, the company also offers a Shared Benefit Rider, which allows your pool of money to be shared with your spouse.

What happens if I need to cancel the policy?

If you want to cancel the policy, you can stop paying the premium, which will cause the policy to lapse. However, you may want to consider revising the total benefit amount, so that you can continue to pay a more affordable version of the policy.

More Information:

Product Details

Overview: Genworth Financial provides comprehensive coverage for non-medical long-term care. Each policy is flexibly developed to cover each person’s particular needs. 

Package Details: The policy offers a home and community care benefit that covers home health or personal care services, nurse or therapy services, adult day care or homemaker and chore care. The policy also offers benefits for home assistance, including caregiver training, emergency medical response system and home modification. The policy can also cover a nursing facility or assisted living facility. In addition, the policy includes care coordination. This is completed by a local health care professional who can help coordinate care and arrange for assistance as needed.

Other Services: Private mortgage insurance, immediate annuities

Additional Company Details

Contract Details: The contract for long-term care will outline the total benefit payment, which is calculated based on a monthly maximum benefit times the number of months of care. Most states will require insurance companies to offer a 30-day review period for the policy holder. If you find that you do not want to keep the policy within this timeframe, you should receive a full refund. 

Warranty:  If you want to cancel the policy, you can stop paying the premium, which will cause the policy to lapse. You may want to adjust the amount of the total benefit amount, which is also acceptable.

Accreditations: Genworth Financial’s main office rating with the Better Business Bureau is A+, but is not accredited with the organization. Generally, financial institutions are rated by the industry for financial health. A.M. Best gives Genworth a B++ (good), and Standard & Poor's gives it a BB- (marginal). 

Company Details: Genworth began in 1871 as The Life Insurance Company of Virginia. Over a few decades in the late 20th century, the company went through several acquisitions. At the same time, it has expanded its portfolio to include term life policies, long-term care products and annuities. The headquarters of Genworth are in Richmond Virgina. Genworth became a publicly traded company in 2004. In 2013, Genworth completed a legal reorganization and created a new holding company. The company no longer sells life insurance as of Feb. 2016. In October 2016, Genworth agreed to be purchased by China Oceanwide Holdings Group, but that sale has not yet gone through. 

Genworth products can be purchased in all 50 states. The company has various avenues of outreach, including the Genworth Foundation, which provides grants to global non-profits that are addressing key social issues that make a long-term impact, such as affordable housing, homelessness, healthy aging and supporting caregivers. It is also environmentally aware and makes environmentally responsible decisions as often as possible. 

Genworth is now a Fortune 500 company. However, a class action lawsuit was brought against the company in 2014 for “disseminating false and misleading statements to the investing public.” Another suit was brought in 2016 alleging false and misleading statements. The two parties came to an agreement to recover $219 million for the parties in the case.

Contact:

Genworth Financial
6620 West Broad St.
Richmond, VA 23230
Tel: 888-436-9678
Website: https://www.genworth.com/

Donna McDurfee - Senior Advisor

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