Genworth Life Insurance Company Review

In this review today, we’ll take a look at what Genworth has to offer, focusing mainly on their long term care insurance and determine if it is the life insurance company for you. To help you understand, we’ll take an in-depth look at what long term care insurance is all about and what makes it different from other types of insurance. Lastly, we’ll share our thoughts on the company as a whole and if what they offer is still worth getting nowadays.

Genworth Financial has been selling insurance, annuity, and long term care products for more than 150 years. 

As of March 2016, however, the company stopped offering life insurance and annuities products as a part of their restructuring campaign. The company has shifted its focus on long term care insurance which they currently offer to individuals and employer-sponsored plans. 

History of Genworth

Established in 1871, Genworth was initially named The Life Insurance Company of Virginia. In 1928, the company started to expand its offerings to include mortgage insurance, long-term care and lifestyle protection, selling it alongside their term, whole life, and endowment policies.

A few decades later, the company was bought by Combined Insurance which then changed its name to AON Corporation a year after. After 10 years in operation, GE Electric’s financial services unit (GE Capital) announced its plans to buy AON’s life insurance business, including The Life of Virginia. 

The company was incorporated in 2003 as Genworth Financial Inc and became a publicly traded company in 2004. Fast forward to 2016, Genworth Financial Inc. was bought by China Oceanwide Holdings Group for $2.7 billion.

Genworth Financial Strength

Financial Agency Rating
A.M Best B-
S&P B-
Moody’s B3

Genworth Insurance Products

In 2016, Genworth stopped selling life insurance and annuities, leaving only their Long Term Care (LTC) and Mortgage Insurance. 

In this article, we’ll focus on their Long Term Care life insurance offering and give a review of the Genworth company.

Before we discuss the details of Genworth’s offering, however, let’s take a closer look first at what long term care insurance is all about and how it differs from the usual term and permanent life insurance.

What is Long Term Care Insurance?

Long term care insurance is a type of insurance that helps pay costs associated with long term care that are not covered by Medicaid, Medicare, or health insurance. It’s specifically made to provide coverage to expenses for nursing homes, home-health care, and adult day care. People aged 65 and higher and those who need constant supervision (after sustaining a disabling condition) are the ones who benefits from Long Term Care coverage.

Long Term Care can be quite expensive and that’s where LTC insurance comes in. Instead of paying for these services out of the policyholder’s pocket, the benefit will cover these expenses. 

According to the American Association for Long Term Care Insurance (AALTCI), the lifetime probability of not being able to perform at least two basic activities of daily living for people aged 65 years old above is 68 percent. Looking at those numbers, you can say that you’ll either need long term care or you don’t. If care and assistance are needed beyond a few months (4-5), then that person needs LTC.

Most families encounter this type of situation as the parents reach the age of 65 and above. And while it’s true that family members are the first ones who should assume the responsibilities of taking care of their aging relatives, doing so is not an easy task. 

Genworth Life Insurance Company Review

Potential Impact of Long Term Care to Caregivers

Caregiving for your loved one can be an extremely rewarding experience. However, it does come with its own set of hardships that affects the person taking care of their loved ones. Here are some of the most critical areas that should be considered when providing long term care.

Finances

Based on the results from a 2011 Metlife study on Market Survey of Long-Term Care Costs, the average price of a semi-private room in a nursing home is $214 per day or $78,110 per year. Moving up to a private room will cost you $239 per day which translates to $87,235 per annum. If you prefer to hire a home health care aide, it could cost you up to $21,840 per year. And even if a family member volunteers to do it, it will take up some precious hours at work and result in a decrease in income.

Health and well-being

Taking care of someone especially if that person requires special needs can bring high-levels of stress that negatively affects the health and well-being of the caretaker.  

Per the research conducted by The National Women’s Health Information Center entitled, Caregiver Stress, it revealed that family caregivers are more likely to show symptoms of depression and anxiety, more likely to acquire a long-term health problem, and even have higher chances of getting obese and weaker immune system. Another study showed that time spent and the level of intensity of caregiving determines the amount and rate of health decline among caregivers. The more effort and time is spent caregiving, the faster the caregiver’s health declines. 

Career

Opting to take care of a family member full time will require you to take less hours at work or have to quit permanently. So while you might have been able to dodge the expenses of professional long term care, it could end up costing you more if the task requires that you quit your job. Moreover, you never know exactly how long you will be providing care and if it takes a couple of years, you’ll likely find difficulty going to the workforce due to decline in skills and market value.

Source: Genworth Beyond Dollars 2018

Benefits of Long Term Care Insurance

As revealed in the previous section, long term care is expensive. And even if someone in the family decides to do it, that person should realize the consequences both in health and career. While the task itself can be rewarding, setting proper expectations and preparing for it will go a long way towards keeping things easier for everyone.

Long term care insurance can help with the financial aspect of LTC and help families cope better. Having the resources to pay for nursing homes or hire a health care aide means the patient can get sufficient care without having to put the load on their family member’s backs. 

Having long term care insurance can help with:

  • Significantly reducing out-of-pocket expenses of both the care recipient and caregiver
  • Easing the burden of taking care of the recipient
  • Makes it possible for caregivers (relatives) to take care of the recipient while still being able to work and have some personal time
  • Prevents and reduces caregiver burnout 

Different Types of Care Settings

In-Home Health Aide Service
In Home Care Options Assistance with cooking, cleaning the house, running errands and miscellaneous daily tasks Assistance with eating, bathing, dressing, medication, and other essential living activities

Health Care Facility Assisted Living Facility Nursing Home
Houses elderly and disabled people where professional help is provided for housekeeping, nursing care, and preparation of meals. Provides more extensive assistance versus Assisted living. The elderly and disabled are housed and under the supervision and care of professional health workers. They provide assistance performing daily essential living tasks, including therapy and rehabilitation.

Community Option Adult Day Health Care
Support and social services support operating in a community setting. There are planned activities while under the supervision of caregivers. Examples of assistance given include the following: medication, personal care, meals, and transportation.

Long Term Care Insurance Versus Medicare and Medicaid

“But can’t I just use Medicare or Medicaid? I’m 65 years old, I should qualify for both.”

That’s a valid question, however, both options do not cover long term care expenses. There are specific guidelines that need to be met before you can qualify for these programs.

In order to best review the Genworth company LTC life insurance, let’s take a closer look at what these two have to offer and how they differ.

Medicare

  • A federal health insurance program for people aged 65 or older. Individuals with certain medical conditions or permanent disabilities can apply even if they’re below the minimum age required.
  • Medicare A is health insurance that helps you pay hospital costs, hospice care, or skilled nursing home facility (for a limited time). 
  • Medicare will shoulder the expenses mentioned above provided that the patient meets the following conditions: 
    • Recently stayed at the hospital for at least 3 days
    • Stayed at a Medicare-certified nursing facility for 30 days before getting admitted to a hospital 
    • Your condition requires skilled care like nursing services or physical therapy

Medicaid

  • Joint federal and state public assistance program created to help low-income citizens pay for health care
  • Can be utilized to pay for specific nursing home care and health services for low-income individuals or those with limited assets
  • Available to Americans of all ages, though actual conditions and eligibility terms vary from state to state.

Genworth Long Term Care Life Insurance Company Review

Genworth doesn’t have an online quote option for their LTC insurance. This makes assessing their premiums difficult and makes comparison with other providers simply impossible. To get an actual quote, you have to request for a free consultation with one of their agents. 

However, they do have a handy calculator that can help you estimate the premiums depending on your location. 

For example, the estimated annual premium for a male aged 55 years old and living in Arkansas is $1,793.14 for a daily long term care coverage of $225.

Assuming the same age, gender and daily coverage amount, the annual premium will be $2,436.91 in California.

As you can see, there’s a significant difference between the premiums depending on your location. 

You can pay premiums over the phone by calling their customer service hotline at 888.GENWORTH. You can also set up recurring payments when you sign up for online access on Genworth’s website.

To file a claim for your Genworth Long Term Care policy, you can login to your Genworth account via their website or speak with one of their customer service representatives at 800-876-4582. After the initial claim request, it will be reviewed for eligibility which includes checking all the receipts, invoices, and related documents. They have dedicated email addresses and fax numbers for receiving the paperwork that you will send (you can send them as a PDF attachment). You can check them out here.

Depending on the policy or certificate, you have to complete an Elimination Period before Genworth will begin making the benefit payments. This is the period wherein health and care expenses will not be reimbursed. You will need to submit the necessary invoices that proves you have completed the elimination period.

Genworth Long Term Care Life Insurance: Is it for you?

Genworth Inc. is considered one of the pioneers in the long term care insurance industry. With more than a million policyholders, they remain one of the biggest LTC insurers in the US. And while that distinction should make them an easy recommendation, the events that transpired over the last few years could make potential customers question the future and financial stability of the company. 

The debacle in 2016 that had the company pay $219 million to settle a class action lawsuit for alleged securities law violations plus the current restructuring and merger with China Oceanwide Holdings Group (has been ongoing for years) are important things to consider as it has a significant impact on any life insurance company’s future, more importantly, its financial stability.

However, it’s important to note that life insurance is heavily protected and regulated by the Federal and State Insurance Commission. In this review, we covered the impacts and benefits of long term care life insurance and how it works with the Genworth company.

What to Do Next

Ultimately, it’s up to you, the customer, to decide. Just make sure to do your due diligence and check out all your options so you can make a sound decision.

If you need help with this, I highly recommend you speak with one of our insurance specialists so they can discuss and answer all questions. And while you’re at it, go ahead and get a free life insurance quote here.