*Update 2018 – Genworth no longer sells life insurance policies.They have stopped selling both no medical exams and traditionally underwritten policies.* There are big changes happening with GLIAC Life Insurance.You might be feeling very worried if you have a Genworth life insurance policy.

One key concern you might be thinking about is whether or not the company will be able to honor any future life insurance claims.Or, you might be wondering what would happen if they sold off a chunk of business to another life insurer.Should you jump ship and go to another company now? We’ll answer these and other questions.

The main thing you need to know is that you shouldn’t worry about any of these issues and I’ll explain why.Table of Contents: Is Genworth In Trouble? What Happens if GLIAC Insurance Goes Bankrupt? What Will Happen If GLIAC is Sold? Should I Change Life Insurers?  Is It Possible to Find Low-Cost Insurance If I Leave Genworth The company took a big financial hit over the past few years.This happens occasionally to large corporations.

The usual strategy to address large financial fluctuations is to change the business model and fix things through re-structuring.GLIAC Insurance Co is owned by Genworth Financial Inc.The company took a huge financial hit when the company suffered a $1.24 billion loss related to its long-term coverage, and lower than expected interest rates.

Consequently, part of the restructuring process resulted in the suspension of the sales of both life insurance and annuities.Genworth said it would suspend sales of its traditional life coverage and fixed-annuity products in the first quarter of this year, so the company can focus on fixing a business unit that provides long-term care coverage. Work It Lynchburg What is going to happen to the life insurance company portion of GLIAC Financial itself remains unclear, as the company is still considering its options and strategic approach.Although shares in the company have dropped significantly, keep in mind that this is a huge company that has been around for a long time.

The company is not going to go under any time soon.Life insurance is heavily regulated and protected both Federally and by the State Insurance Commission.It is exceptionally rare for any life insurer to go bankrupt and it’s highly unlikely that this will occur with GLIAC Insurance because of its size and overall assets.

Even if this did happen, the life insurance coverage will be provided through the Insurance Guaranty Association that exists in each state which ensures that claims will be paid subject to the state’s coverage limits.Your life insurance claim with Genworth will be honored regardless of what happens, so you can breathe a sigh of relief.The answer is: Nothing will change regarding the terms of your policy.

The only thing that you will notice is the logo on the letterhead of your policy will be that of the new insurer.All guarantees that you have on your existing Genworth life insurance policy remain the same.You don’t really have to change and should only really consider doing so if you have a very new policy and are uncomfortable with the situation and want peace of mind.

On the other hand, if you have had a policy with GLIAC Life Insurance for a while and think you want life insurance with another insurer, there are several things to consider beforehand including: A new policy with another insurer will be based on your current age and health status, so a new policy is very likely going to cost you more.If your health has deteriorated significantly, you could be declined altogether or the cost of a new policy may be too expensive.GLIAC Insurance was just about the only insurer that offered a 30-year Term UL for those in the age range of 60 – 65 (they have since reduced this to age 59 which is standard for most insurers) Genworth was one of the most lenient insurers when it came to health issues, and for people over the age of 65.

GLIAC Life Insurance was also one of the most affordable companies when it came to Term life insurance and GUL (Guaranteed Universal Life insurance) So, if you fall into any of these categories when you bought a policy, it might not be a good idea to jump ship to another life insurer right now.Just keep in mind, the company will honor its life insurance claims! Even if you don’t change your policy, it’s a good idea to get a quote.Speak to one of our independent agents about your current insurance needs and we will make sure you get the best possible rate available with the remaining companies.

Get a Quote! The answer is yes! However, if you just recently bought a policy from them and are still worried, you might consider getting a quote from an A+ rated carrier, if you feel this would give you more peace of mind.Here at IBBC, we have excellent carriers in all the areas where GLIAC Insurance excelled and access to over 40 Top Life Insurers.We also have carriers that are super fair to seniors and companies who offer Universal Life with a no-lapse guarantee (Guaranteed Universal Life) to various ages from 90 – 121.

We also work with insurers that offer dozens of Term life insurance options.Overall, my opinion is that if you just bought a policy over the past couple of years, you might want to consider switching.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day.

Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice.Please consult your own legal or tax adviser.