DesertDiver
New Member
- 3
Hello Insurance Forums!
My wife and I are working to get all of our finances straight, and are 2 months in to our Colony Term UL 30 policies with Genworth Life. I did a ton of research, and the premiums with Genworth were by far the cheapest for our age group/health/death benefit. Though it's a UL policy, we plan on paying only the monthly premium and canceling after 30 years (so basically a 30 year term policy). I am a 26 y/o male in the Preferred Best No Nicotine Use health class and got a $250k policy for $19.18/month, way cheaper than any 30 year term out there.
I was talking over my policy with a buddy who was really surprised/concerned at how low our premiums were. He looked into it more and found that on June 4th Genworth will no longer be offering the policies we bought. Link to pdf announcement here: tinyurl.com/genworthPR I see that this also made news on the forms here. In addition, he's concerned that since this is a lapse-supported product (i.e. people canceling is how payouts are made) that the assumptions might be wrong and Genworth might have trouble making payouts. His advice is to switch to a more stable company/policy. It should also be noted that he would be the one selling us this new policy.
So, I'm hoping for a second opinion. Since the cost of insurance is not guaranteed, and it's looking like Genworth already cannot support the pricing of this product, should we bail out now and switch to a more expensive but more trustworthy term policy?
Thanks!
My wife and I are working to get all of our finances straight, and are 2 months in to our Colony Term UL 30 policies with Genworth Life. I did a ton of research, and the premiums with Genworth were by far the cheapest for our age group/health/death benefit. Though it's a UL policy, we plan on paying only the monthly premium and canceling after 30 years (so basically a 30 year term policy). I am a 26 y/o male in the Preferred Best No Nicotine Use health class and got a $250k policy for $19.18/month, way cheaper than any 30 year term out there.
I was talking over my policy with a buddy who was really surprised/concerned at how low our premiums were. He looked into it more and found that on June 4th Genworth will no longer be offering the policies we bought. Link to pdf announcement here: tinyurl.com/genworthPR I see that this also made news on the forms here. In addition, he's concerned that since this is a lapse-supported product (i.e. people canceling is how payouts are made) that the assumptions might be wrong and Genworth might have trouble making payouts. His advice is to switch to a more stable company/policy. It should also be noted that he would be the one selling us this new policy.
So, I'm hoping for a second opinion. Since the cost of insurance is not guaranteed, and it's looking like Genworth already cannot support the pricing of this product, should we bail out now and switch to a more expensive but more trustworthy term policy?
Thanks!