Genworth options for policy holders are not good

[stlgasman]

I just received the letter from Genworth, pursuant to the Hanley class action settlement. There are a choice of six options. As it is, my current premium is 50% higher than my original premium and that was after I reduced coverage to 6 years. It’s a partnership policy. If one spouse dies it immediately converts to a paid up policy which has some value. One of the options is an enhanced reduced paid up benefit of 1.5x premiums paid. I am considering this. Also considering reducing monthly benefit by 25% but that only gives me 200k in lifetime benefit increase over the enhanced reduced paid up benefit. That’s not considering the inflation rider.

 

[stlgasman]

I’m slated for a 51% increase.

 

[lchuang5]

I just got off the phone with their rep who explained to me my options and the rate increase per each option. If we were to keep our current max lifetime benefit (a 5% increase yearly since we took out the policy) then the premium rate increase will be 426% meaning we will be paying $32,156 instead of $6113 for the yearly premium. Such an exorbitant amount that no one will go for it I'm sure. If we choose the original benefit of $657,000 and forfeiting the yearly cost of living adjustment of 5%, then our yearly premium will still go up from $6113 to $6957.