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Old 12-04-2018, 06:16 PM
CuriousGeorge CuriousGeorge is offline
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My life insurance policy is with Genworth, and my agent just sent me a letter about its acquisition, B rating, and that conversion terms are now much worse than they used to be.

At what point do you bail on an existing policy and start looking elsewhere? My 20 year term policy expires a couple years before I'd like, but I'm not sure how insurable I am anymore, after a bout of cancer.
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Old 12-04-2018, 06:29 PM
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depending on cancer type, and how many years you have been cancer free, you may still be insurable for life insurance purposes
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Old 12-04-2018, 07:00 PM
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I would definitely switch to a life insurer with a stronger credit rating. Specially for a long-term contract.
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Old 12-05-2018, 10:46 AM
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depends upon how much face amount

The Guarantee fund association covers up to 300 K (in most states).

Unfortunately most conversion options are deliberately bad like that because it's a highly anti-selective option.
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Old 12-05-2018, 11:00 AM
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Quote:
Originally Posted by campbell View Post
depending on cancer type, and how many years you have been cancer free, you may still be insurable for life insurance purposes
Thanks, I'll have to look into it.
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Old 12-05-2018, 12:28 PM
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Thanks, I'll have to look into it.
In the absence of shopping, you have limited yourself to two or three options. Continue, convert or lapse.
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Old 12-05-2018, 12:35 PM
Steve Grondin Steve Grondin is online now
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B rating
This is likely a claims paying rating as opposed to a company credit rating. Or at least that's what I'd focus on. Also what B means might be different between raters.
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Old 12-05-2018, 12:36 PM
CuriousGeorge CuriousGeorge is offline
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In the absence of shopping, you have limited yourself to two or three options. Continue, convert or lapse.
The question was around whether shopping was important at this point.

I'm in worse health than I was 10 years ago, so shopping is unlikely to come out ahead in terms of premium. But coverage that costs twice as much is preferable to getting a 50% haircut on the death benefit by the guaranty fund. On the other hand, perhaps the rating drop isn't indicative of a pending insolvency and I'd be just fine standing pat. I don't know how much risk is implied by their history.
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Old 12-05-2018, 04:43 PM
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No policyholder has ever lost a dime of their promised benefits. Well, except for some Executive Life group annuity holders who signed up for a 10% crediting rate in the 1980's, and ended up earning less than that. But my point is, hang onto your policy. It still provides the life insurance protection you signed up for. State regulators have the obligation to take over any company once its surplus falls too low, with the intent to pay all policy benefits as they come due. And if they do run low, it would likely be the LTC policyholders who would get the haircuts, not the life insurance policies. Assuming you have 10 years left on your term policy, they certainly won't run out of cash before then.

Your agent may be trying to make a sale.
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Old 12-05-2018, 05:32 PM
CuriousGeorge CuriousGeorge is offline
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No policyholder has ever lost a dime of their promised benefits. Well, except for some Executive Life group annuity holders who signed up for a 10% crediting rate in the 1980's, and ended up earning less than that. But my point is, hang onto your policy. It still provides the life insurance protection you signed up for. State regulators have the obligation to take over any company once its surplus falls too low, with the intent to pay all policy benefits as they come due. And if they do run low, it would likely be the LTC policyholders who would get the haircuts, not the life insurance policies. Assuming you have 10 years left on your term policy, they certainly won't run out of cash before then.

Your agent may be trying to make a sale.
Thanks for the information.
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