Genworth 10 Pay/Survivorship Question

Today I wrote a Genworth policy. Initially, we were looking at including the 10 year survivorship benefit, however my client decided upon a 10 Pay. Well, I figured we don't need the survivorship benefit if we do the 10 Pay. I was sortve surprised that Genworth will allow you to include survivorship on the 10 Pay and charge about 10 percent premium. Now, I can only think of a snowball chance in hell situation where it might benefit a policyholder. I was actually surprised the system allows one to include survivorship on a 10 pay.

Thoughts anyone?
 
Today I wrote a Genworth policy. Initially, we were looking at including the 10 year survivorship benefit, however my client decided upon a 10 Pay. Well, I figured we don't need the survivorship benefit if we do the 10 Pay. I was sortve surprised that Genworth will allow you to include survivorship on the 10 Pay and charge about 10 percent premium. Now, I can only think of a snowball chance in hell situation where it might benefit a policyholder. I was actually surprised the system allows one to include survivorship on a 10 pay.

Thoughts anyone?


that's why only LTCi specialists should sell LTC insurance.
do not try this at home.

:biggrin:
 
Today I wrote a Genworth policy. Initially, we were looking at including the 10 year survivorship benefit, however my client decided upon a 10 Pay. Well, I figured we don't need the survivorship benefit if we do the 10 Pay. I was sortve surprised that Genworth will allow you to include survivorship on the 10 Pay and charge about 10 percent premium. Now, I can only think of a snowball chance in hell situation where it might benefit a policyholder. I was actually surprised the system allows one to include survivorship on a 10 pay.

Thoughts anyone?

Company would get more money for essentially no risk... why wouldn't they allow it. If someone would actually do it is a completely different argument.
 
The only way it could ever benefit a policyholder is for a death of one spouse to occur and the surviving spouse remarries and the new spouse either owns an old Privileged Choice policy that had Survivorship included; or the new spouse then purchases a Genworth policy and includes Survivorship in the new purchase; thus the new spouse would benefit if the survivng spouse dies at some point.

Like I said...just so remote.
 
Although I agree it would be remote, I would say it would help for the couple that starts with the 10 pay, is into it for a few years and realizes that can not afford a 10-pay any more but wants to keep the coverage intact. So, they call GNW to switch to lifetime pay, thereby forfeiting all the extra money that overspent in the previous years (no credits allowed for poor planning), but can now keep the benefit they originally purchased for lots less money. Then the wife bumps off the husband in year 11, and she makes out like a bandit.

Thats my take. :D

Else, you can call it a coding error if you prefer.
 
Jack,
I'm not sure if a policyholder can change from a 10-pay to a
life-pay, but I may be wrong.

Broker support says if the client does not mind giving up the extra funds that they paid in those years....it is not a problem. People can get into financial trouble and make the change....hence the reason they allow the survivorship.

Why would they not allow it?...as it is pure profit for GNW.

Just an opinion.
 
Why would they not allow it?...as it is pure profit for GNW.

For some reason, I think it's a DOI thing and it may not be the same in all states.

I have someone 7 years into a 10-pay and he wants to cut one check for the final 3 years.
Not allowed.

Different than what you're talking about but it does involve changing the payment mode in mid-stream.
 
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"I have someone 7 years into a 10-pay and he wants to cut a cut one check for the final 3 years.
Not allowed."

Wow. Why on earth would Genworth not want to take the money ahead of time and run??? I guess the policy owner might let it lapse under financial pressure, and then it would be all profit to Genworth. Surely not!!
 
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