Ask Terry Questions Long Term Care — Genworth?

Long Term Care — Genworth?

By Terry Savage on September 07, 2015 | Insurance & Annuities

With Genworth trading at around $4 is there a high probability that current LTC policy holders will out live Genworth? As a +70 policy holder do I have any viable options? Thanks. e

Terry Says:  An insurance company’s stock price does not directly reflect its solvency or ability to pay claims.  The company has reserves, but since those are set aside to pay claims of the insured, they do not count as a corporate asset.  Here is a link from Genworth’s own website to its current ratings — not great, but certainly not frightening.

As a policyholder you should continue to pay your premiums, and expect that if you have a claim it will be paid in full.  Even when an insurer fails — and Genworth is not on track for that outcome — there are state guarantee pools activated to pay claims.  Your risk of needing some form of  custodial care is far, far greater than the possibility that your claim would not be paid!

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