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Yes, as others have stated, at the time we bought our shared long term care, one selling point was how great GE's track record was at pricing policies so there had been no price increases. There have been price increases every year since Genworth took over. But the increase this year is over 60%. We are very unhappy and disappointed.
We have spent over $30k in the past 15 years. We were told the price would never increase. This is blatant fraud. Has anyone looked into a class action lawsuit?
If people in these various classes of Genworth Long Term Care insurance think 20% or 32% is hard to swallow, they should have to deal with the 95% increase my husband and I just got...effective 5/27/14. They say that there will not be another increase for five years. In the mean time they will have gotten an additional $19,000 from us. We have had no claims and hope to never have any but this is ridiculous.
I have had a LTHC policy since 2002 and have always made my annual premium payments not only on time, but usually one year in advance (2 years per policy terms). I recently noted on checking my policy (in order to make another annual in-advance payment) that my policy amount had increased from $1604 per annum to $2131 per annum or a 32 % increase. This is without any claims ever made against the policy. I called Genworth and they stated that according to the policy, they had the right to increase premiums if they increased the premiums for all the same class of policy owners without specific rating issues.
I did see this on page one of the final policy they sent me but never saw this in the original application. The customer service rep stated that it was in the application on the last page which was attached to my policy. I reviewed the original policy (which was heat sealed with tamper proof condition) and found that that page was not included in my policy. The rep then stated that the Texas Insurance Commission approved the premium increase (which I find hard to believe if the commission knew it would mean 32% increases in premiums for my class). I was asking a couple of other questions in a calm but inquisitive voice and the rep hung up on me!!
This is the same complaint noted by an earlier reporter to this web site. I intend to file a formal fraud complaint against Genworth on the issue. Not due to the hang up, but I have found three different newspaper and magazine articles where the CEO of Genworth, Mr. Michael Frazier (as of 2009) over the last two years has stated that the LTHCI business is not a good one (even though they are the market leader in policy coverage) and that they intend to raise premiums under this "small print" and misrepresented ability to increase the "Lapse Rate" of long term policy holders.
This "Lapse Rate" is defined as raising the premium to a level that the policy holder cannot afford to own the policy any longer and they cease coverage. This results in the policy holder losing all of the premium value they paid over the time they held the policy (in my case over $19,000)!!! The benefit to Genworth is that those of us who are close to retirement that planned on the level premiums (yes the agents said the premiums would not change!!!) cannot pay the increased amounts and loose the coverage... and Genworth would never have to pay out any benefits under the policy.
I feel like I have been cheated out of my $19,000 (!!!) under the guise of improving shareholder equity! The Obama Healthcare program specifically works to avoid this kind of general mistreatment of citizens, yet Genworth feels like it cannot be approached. Avoid Genworth products unless you are clear on the fine print and make sure your Policy contains all pages of the application (unlike mine). No wonder Genworth customer service reps hang up on clients... They are too embarrassed to stay on the line.
When I phoned Genworth to discuss our twelve year old policy and my options for a recent 20% rate hike, I was astonished that two of their customer service representatives hung up on me. The conduct of my phone inquiry was entirely civil. One of the representatives did mail me information on rate options. However, the conduct of their customer service representatives and the litany of other complaints shown on this message board do not contribute to a very favorable impression of Genworth. I am currently undecided like many others if my LTC policy is worth keeping.
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We've had our policies for over 20 years. Always made an annual premium payment. I remember the salesman saying that when one of us died, the survivor would still have the insurance, but not have to pay any more premiums.... Did anyone else hear about that or did we look particularly gullible? We can't really afford the premium increase, but if we cut down the benefits, will the policy be worth keeping? How's Obamacare doing on long-term disability... or is it?
I bought two long term care insurance policies, one for me and one for my wife, back when the company was GE. I have been paying the premiums for about 14 years with no claims and we do not need to use their services now. However, since the company has shifted to Genworth, I have had several premium raises for each policy and I just received another letter stating that they will raise both premiums again in May 2014 and that more future raises are on the way. Needless to say, I am not happy. I would like to know if there is any way to recover most of the money I have paid in premiums, if I cancel both policies. If the information from other policy holders that have commented on this site is accurate, It looks like this is a long term scam and I want to get out before I pay more money or need the service. If anyone is organizing a class action suit, I would like to know about it.
My mom has paid Genworth for 20 years. She was rushed to the hospital on Dec 19, 2013. She had pneumonia and went into respiratory arrest. She has a lot of health problems and has battled back to a state where she needs assisted living. Genworth interviewed me about her condition and told me she did not meet the criteria for them to pay. I am very upset of course, but I am not a qualified physician so why would they even ask me or take my word for anything.
She is on oxygen. She is a fall risk. She cannot give her own meds which include insulin. Because she is a co2 retainer, she is very likely to have periods of confusion. They are just putting us off and trying to get out of paying. In the mean time, we received a letter saying over the next year they would be going up 60% on her premiums! Yes I am angry and perplexed. We are fighting this so I will let you know the outcome.
My wife and I bought a long term policy in 2000 and the company was GEAssurance I believe. The agent made a big deal out of GE standing behind it and that they viewed this as a societal responsibility and did not consider it a major profit center. That rates had NEVER been raised and he did not anticipate they ever would but could be raised a reasonable amount based upon claim experience. The company was spun off into Genworth some years later. We did not consent to this. As far as we were concerned we had GE's firm backing.
Several years later our premiums were raised eleven percent. Recently we received a letter advising of a twenty nine percent increase and warning of future increases. Basically my reading of the letter was that they were encouraging us to cancel our insurance leaving thirty thousand of premiums we had paid on the table, or to pay the increase, or to agree to revision of the inflation protection option, or to something called a non forfeiture option which would reduce their exposure from currently about $550,000 to about $30,000.
I am outraged about the huge salaries I have read about and paying the ex CEO over two million to leave. I would also be glad to join a class action against both Genworth and GE who are agent assured us was with whom we were dealing. This company has not treated us fairly.
My Mother had coverage with Genworth for 9+ years, premiums increased each year. In November, she needed assistance with daily living and a sitter was hired from an agency. In January, we increased the days the sitter came and decided it was time to contact the company to help with payments to the agency. Mother died the Sunday before I was going to call on Monday. Because she died and she had not had assistance for 90 days, Genworth will not help with the payments. Their no service department said they could have waived the 90-day requirement if she were alive. GREAT.
I don't know what to do. I'm 65 and now coming into the years when I need it. Google Genworth Long Term Care profit margins. I'm just sick. Am I throwing good money after bad?
Our Long Term Care Premiums have gone up 40% in one year. Their letter basically promises us that future increases are coming. If you call their customer service number, you will be on hold for a long time. They won't even take credit cards for payments. Worst Company to deal with.
My rates are increasing by 130%. If you all could contact me maybe we can get some action started against this company. No, I am not a lawyer, just another 80 year old who has had it with this company. Here is what I found out about Genworth Life: My long term care insurance company is increasing my rates a total of 130% over 4 years, and the State of Nevada has approved this increase. Genworth Life of Lynchburg, VA has/is increasing my rates as follows: 2013 - from $212.87 to $251.18 (18% increase). 2014 - rate increased to $334.08 (33% increase). 2015 - rated increased to $ 414.45 (24% increase). 2016 - rate increased to $494.83 (19% increase). Why the increases? Greed and mismanagement.
Long term care is not paid for by Medicare. It is an insurance policy that people pay for years in advance of needing benefits. People take these insurance policies in order to provide for their own nursing home care if they should ever need it. But when you're on a fixed income and 80 years old, how are you suddenly going to pay $500 a month for long term care insurance? Especially when the contract you signed was for about $200 a month AND you were working at the time?
Genworth miscalculated how long people were going to live, how many would drop out of their insurance policy (die), how much health care costs would increase, and how little their own investments would bring in. But they are determined to keep up their profits. So they are sticking it to retirees in their 70's, 80's and 90's to keep up the fat salaries for their executives.
Here are a few facts about Genworth and its management and its compensation: Martin P. Klein, CFO - $3.1 million; Kevin D. Schneider, Exec. VP - $2.5 million. Patrick D. Kelleher, Exec. VP - $2.3 million; Leon E. Roday, Sr. VP - $1.6 million; Total executive compensation in 2012 - $16.63 million, up 53.28% in a year. (Source: Morningstar Financial). In addition, M.D. Frazer, C.E.O., was removed from his position because of incompetence and heavy losses in the mortgage division. He received $2.25 million as a parting gift. His total compensation was $6.69 million, including the separation payment. Frazer was rated the WORST CEO in American business (Source: Bloomberg Financial).
Now the small insurance holders such as I are left holding the bag for greedy management people. The company was subject of a class action suit in California for removing $226 million from the reserve fund as an excuse to raise premiums. The plaintiff stated that "had Genworth simply not reduced its aggregate reserves by $226.2 million to increase its own profitability, it would have had aggregate reserves far more than the projected $555 million it seeks to collect in premium increases over the next 40 years." The suit was dismissed because of a jurisdictional technicality.
I am sending this out because it is another outrageous act by a big company that is determined to make its obscene profits, and pay its obscene management salaries, at the expense of retirees. That the State of Nevada has approved these rate increases is also outrageous, but Genworth has been raising these rates all over the country. I just want people to know.
After reading all of others premium increases forced by Genworth, I can only say me too. Since 2000 my rates were pretty solid until 3 years ago and then I was hit with two back to back 11 percent hikes, and now in 2013, I got a 47 percent hit. After reading all complaints, it seems options are not all that thrilling. Am beginning to look for a class action suit somewhere...
We bought our policy in 1999. I was 53 and my wife was 52. It is their best policy and in their info packet it states that they do have the right to increase rates with a long drawn out procedure. It states their goal has been to price the long term care policies so that premiums will remain at original levels for the duration of the policies. It goes on to explain what would cause an increase. In my mind it would have to be catastrophic loss of many lives to cause the increase. I am 67 now and my health isn't the best so buying this insurance is cost prohibitive if it were even available to me. We just received a notice that our premium would be increasing by 78% and no explanation.
Missouri has not had untold deaths above the norm and it states health nor age would cause an increase. They have provided different coverage of much lesser and shorter time periods so we can still afford it. My wife's annual premium was and has remained $546 but mine started out at $1160.00 annually and has gone up every year. Last year it was $1549.76. That's 34% over the years and now they want another 78%. It's their business and they know older people can't afford or even find policies so you are at their mercy. I would advise anyone to run from this company.
The premiums continue to increase but the 63% increase we just received is the last straw. I regret the many years we have paid into this policy and am now going to have to let it lapse. I thought last year's increase was bad but this one is more than we will continue to pay. Genworth states that they won't seek an additional rate increase for at least 5 years from 5/13. I shudder to think how much the premium will increase in 4 years. I believe many policy holders will discontinue their policy which will make larger increases necessary in the future.
My husband and I signed up for premium long term care insurance through GE Financial Insurance in 2001. At that time, he was 55 and I was 49. We bought a premium policy which had an unlimited benefit period. The brochure which we received stated, and I quote "Careful and thorough underwriting enables us to provide clients like you, who qualify, with the best coverage possible at a stable premium rate." We were told if we began our policy while we were still relatively young, it would minimize the premiums.
Now Genworth Financial (formerly GE) is raising our premiums again. They are implementing a staged premium increase over the next three years which will bring our premiums to almost three times our initial premium from 2001. I did an analysis which would trend our projected yearly cost to approximately $9000/year by the time my husband reaches 80. Since we are both retired and living on a fairly small income, it would be impossible for us to maintain those premiums. We feel we were sold our policies with a specific set of benefits and told that the premiums would be stable. In my mind, 3 times the base rate is hardly stable.
Genworth's offer is for them to recast our policy with less benefits in order to "stabilize" our premiums. They are not offering any guarantee that our premiums will not increase again in the future or that we will not be forced to take even fewer benefits in order to maintain any long term care options downstream. They will not refund the premiums we have paid them. Our only option is to take less benefits or continue to pay the premiums at whatever increase they decide to implement. Currently we are waiting for their proposal options in order to make an informed decision but we are furious and frustrated with Genworth financial.
My mother purchased long-term care insurance in 1991 from a company that was subsequently acquired by Genworth Financial. She never missed a payment--she's now 88 years of age. Last week, she decided to move into a licensed assisted living facility that meets the criteria on her contract. When I contacted Genworth to open a claim, I was told to wait until 8 to 10 days before she would enter the facility to get the pre-claim process rolling. Today, when I called to open the "pre-claim," I was told that her policy is for "skilled nursing care" and not assisted living. I told them that I had the policy in front of me, and in 1991, it referred to "Nursing Home" and not skilled or assisted forms of facilities, and anyway, the place that she's moving into meets all the criteria.
I was told that someone would contact me within 4 business days to let me know if her application had been approved. In the meantime, my mother may lose her deposit on the room in the facility. I called the Director of the facility, and she told me she's heard stories like mine all too often. The long-term care insurance providers do anything they can to delay having to pay on policies, including "losing" claims. Furthermore, the facility has residents who are obtaining Genworth payments. I may be "jumping the gun," but if Genworth turns down my mother's request to open the claim, I will take legal action and file a complaint with the State Corporation Commission, Bureau of Insurance of the State of Virginia, where Genworth is headquartered. Stay tuned...
I just received my letter that there will be a 60% increase in premiums because costs are too high. Why won't my letter to Genworth stating my income is now too low for the premiums. Therefore they need to decrease my premiums. Let's face it. We're still in the worst economy since the Great Depression. Our wages have not increased but a percentage point or so each year.
We should Genworth the option to "forfeit" all our premiums as they really haven't kept their end of the agreement. Legally they should be held to their end of the agreement. A 60% increase in premiums is not something I was told when I signed up for this insurance. If I had been told this, I would never have bought it in the first place. I never got a cent from them and from what I've read, even if I was eligible for long term care, it's difficult to get them to pay anything. I guess I will have to go on Medicaid and have the US taxpayer pay for my care instead of the greedy Genworth Insurance Company.
During the sales pitch to sell me long term card, I was repeatedly told, and he circled it in the sales catalog, that GE knew how to price its policies and had not raised the prices of insured persons since its inception in 1974. My policy cost was $4,825.08 per year. This yea,r they raised my policy to $6,442.20 a raise of 33.5%. My maximunm daily payment if I need care is $130.00. That means each year, at the present rate, I am paying for 50 days of care. So far on my policy I have paid $62,726.00 which is equal to 482 days of payout. Inflation does not justify this cost increase. I am going to the state of Texas with this complaint and see if they can resolve it.
I have been fighting for benefits for my mother who is almost 92 years old. She needs daily care, but doesn't qualify according to Genworth. The fact that she can't walk, doesn't matter in her policy. The fact that she needs help to prepare her meals, is not in her policy. Genworth was happy to collect premiums for 18 years, and now makes it impossible to collect anything. And... she must keep paying her premium. I am furious with this company and would tell everyone to cancel their policy. They think they will get help when they need it... forget it. Genworth will do everything not to pay.
Yes, I believe that back in the 1990s when policy was initially offered thru GE, the info was very much slanted to NO FUTURE rate revisions, only periodic increases to keep up with inflation on daily coverage amounts, etc. Enrollment and paying the premiums was supposed to lock us in on the coverage morsel that was offered. Class Action would very much be an option I support. I am not protesting any of the other features of the plans, only the Fall of 2013 determination to apply a whole new rate schedule, "experience based".
The actuaries were very competent back at time policy was written, check the corporate legal due diligence documents and court filings associated with divestiture, GE spinning this group off, and GE later never identifying that GE Financial was incapable of actuarial accuracy on Insurance. No actuarial schedule is ever perfect. That's where management has to have other strategies reserve decisions, to achieve investment results, reserve adjustments, etc., disappointing claims experience (or forecasts) isn't adequate cause. State Insurance people were given a slanted version. Class action should look at evidence that disproves the actuarial issue. I am pretty sure that if actuaries were inept that data would not only be accessible in court action, but also would have to be evident in the various legal topics that are filed in corporate mergers and reorganizations. So, Yes, class action would be viable.
A representative from Genworth came to my house and explained the different priced plans her company had to offer. A few days after she left, I got a bill from Genworth for $5,080.50! It was my understanding that I had not picked a plan or even signed up for the insurance. Apparently their representative had sat in my house and lied to me. I am so angry at being tricked this way. I wrote a letter to Genworth HQ telling them to cancel any policy she had signed me up for and never contact me again. I believe this company uses dishonest tactics to get people's money.
We took out a LTC plan from GE about 15 years ago. The plan was later sold to GENWORTH. It was then that things started going downhill - premium increases. The last one in 2010 was 13%. I saw the handwriting on the wall when we next received an 18% increase. A letter from GENWORTH said that we could reduce our coverage or terminate and they keep all of our premiums (many thousands of dollars) for future payments for care. You have to be in a nursing home or in homecare for 51 days before payments start. Perhaps you will die in that period and they can keep all of your payments. I called the state insurance department only to learn that if they need a premium increase, they only have to ask. So now GENWORTH has all of my premiums which I will probably never get to use. I think that this is an ingenious plan to make tons of money. Why, oh why, didn't I think of this years ago?
I have had an LTC policy with Genworth since 1997. They raised the rate significantly about 3 years ago and now want a 95% rate increase. Even with that the inflation protection they provided has not kept up with the increase in the daily rate for care. I would be glad to join in a class action suit against them. They are attempting to get everyone to reduce the length of their coverage.
Please contact me if anyone can start a class action suit against this company so I can be included in it. I have been paying my premiums for many years and now, like others, have this tremendous cost increase which is unfair to me, my wife and all the elderly. I can no longer afford it! I was told that I do not have to worry about a premium increase .
After having the LTC insurance for 13 years, and "surprisingly" a year after retirement, I received a letter from Genworth on 9-13-2013 stating in it that the premium would increase 10% and that there will likely be future increases. The letter also stated that "The Massachusetts Department of Insurance has requested that we inform you that your policy would require a 139% premium increase for us to certify that no future rate increase would be anticipated under moderately adverse experience. However, because the approved rate increase is substantially below what is required, it is likely that we will be requesting additional rate increases and your premiums will likely increase again in the future in accordance with the terms of the contract."
And they even have the audacity to state that "Premiums are not increasing due to a change in your age or health".
I am 71 years old. Worked until I was 70. Hope to be 72 on October 15. I have paid into Genworth $48,403.68 over the past 13 years based on $310.28 monthly premium and have had no claim. If Genworth did nothing else but invest the money into an account paying only 4% interest, my money would be worth $61,904.58 today, and if in a 5% account it would be worth $65, 951.58 today. And we all know that Insurers a wise investors. Now multiply that by the hundreds of thousand of policy holders. Just say 100,000 who have made no claims and Genworth has pocketed $6,595,158,000.00. Yes, that is BILLION...
They are exploiting the insured and elderly and using the various State Insurance Departments/Commissions to implement that exploitation. A class action lawsuit is in order.
We purchased the Shared Care Benefit LTC insurance from GE Capital Assurance Co. on November 6, 1998 when I was 61 and my wife 58. Later on, GE sold the certificate to Genworth Life Insurance Co. When we purchased the certificate, the annual premium was $2,177 for both of us, with a Daily Maximum Benefit of $150, and a Shared Personal Benefit of $219,000 over 4 years (Benefit Multiplier). In 2008 Genworth increased the premium by 11%, in 2011 by 18%, and will increase it again on 11/6/2013 by 63%. The new increase will be spread over a 3-year period, or 21% annually until 2015. As it can be seen, the total premium increases from 2008 to 2015 would total 93% in just 7 years. Based on the 63% increase, we will have to pay $2,645 on 11/06/13, $3,104 on 11/06/14, and $3,563 on 11/06/15. These premiums are unsustainable for most of elderly people. Genworth stated that additional premium increases may be requested after 1/1/2018.
Since we were unable to pay the higher premiums, we had to reduce the amount of daily benefits in order to keep the premiums at, or about the original level. As a result, our benefits were reduced in 2008 from a Daily Max of $225 and a Shared Maximum Benefit of $328,500 (for 4 years), to $166 and $242,360 today, a reduction of 26.2 %. This benefit reduction was implemented in spite of paying 15 years of premium payments, and the annual addition of the 5% inflation protection included in the certificate.
Genworth stated that the increase of 63% is primarily based upon the fact that the expected claims over the life of this certificate are significantly higher today than what we anticipated when the certificate form was priced, and that the premium increase is in accordance with the laws and regulations of the state in which the master policy for your certificate was issued. If Genworth made a mistake when they determined the original premiums, then they should pay for their mistake - not us. However, since the certificate pays a fixed dollar amount for a claim - regardless of increased charges by care facilities, there is no justification for any premium increase. Furthermore, we feel that Genworth wants to squeeze out the elderly certificate holders by outrageously increasing their premiums.
Today, I am 77 and my wife is 74. Genworth decided to increase the premiums when we are retired and can do nothing except either reduce the benefits up to unrealistically low amounts, cancel the insurance and lose all money we have paid during the last 15 years, or select the non-forfeiture option which in our case is about $32,600, a useless amount for long term care. Thousands of other elderly certificate holders are in the same situation, and today we deeply regret we have purchased this insurance.
Genworth is simply robbing with impunity thousands of elderly. which is unethical and immoral. We can't understand how insurance regulators approved to do this to elderly class group. Why the Division of Insurance has not taken actions to prevent it? Where is the government oversight? Shame on Genworth to prey on elderly customers! Regulators should request Genworth to cancel their decision of continuously increasing the premiums for people of our age who purchased their certificates many years ago believing that they would have help when needed.
My wife and I were most dissatisfied with the large rate increase from Genworth last month. Their reasoning for the increase indicated corporate inexperience and/or gross lack of knowledge in the business of long term health insurance. We have had our policies for approximately 12 years. The choices left to the policy holder regarding this increase is to either pay the full premium including the increase, reduce the premium by reducing the benefits or term of the policy or "walk"!!! My wife has Stage 4 ovarian cancer and we will need home health care immediately. Being 75 years old, I don't look forward to making the initial phone call to Genworth on Monday to begin the process of arranging home health care.
Our rates for my wife and I were just increased a total of 25%. Interestingly her rates went up over 30% and mine by just about 15%. They should not have been raised at all. We were told in "NO UNCERTAIN TERMS" by our former agent of record when we bought the policies that our rates would "NEVER INCREASE". And, here we are 12 years later with rates increasing. Tell me…. why would my wife's rates go up higher than mine? She is younger; is a non-smoker (having quit three years ago) and is not obese like most of America. She had one medical event about 9 years ago; nothing since. I have no issues, am older than her, am not obese and am a non-smoker. I have no health issues. What is the basis for all of this?
THIS IS A CALL TO ACTION. I think there should be a class action (tort action) lawsuit against these people..... The main reasons why we bought 12 years ago or so was because of the great coverage, the fixed premium, and the increasing benefit. It appears to me that this company is targeting the elderly (we are both in our mid 60s) to drive us out of this insurance. I am going to seek out an attorney here in Arizona and present he or she with this information to see if something can be done on our behalf. Feel free to comment or send your experience through this website.
Genworth Long Term Care Company Information
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- 6620 W Broad St
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- United States
- (888) 436-9678
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