Genworth Life Long Term Care Insurance: Does It Include a Nonforfeiture Benefit?

Does Genworth Life Offer a Nonforfeiture Benefit?

Genworth Life's long‑term care (LTC) insurance plans do include a nonforfeiture benefit. This feature guarantees that if a policyholder can no longer pay premiums due to financial hardship, the insurer will still honor the policy's coverage and benefits, rather than canceling the contract outright. The benefit is designed to protect policyholders from losing their investment in LTC coverage when circumstances change.

How the Nonforfeiture Benefit Works

When a policyholder's premium payments fall behind, Genworth Life can either apply a waiver of premiums or a grace period, depending on the plan's terms. If a waiver is granted, the insurer covers the missed payments for a set period—usually up to 12 months—without the policyholder incurring additional costs. During this time, the policy remains active, and the policyholder can continue to use LTC benefits if needed. If the waiver expires and premiums are still unpaid, the policy may be suspended but not terminated. The insurer will then offer the policyholder a chance to reinstate coverage by paying the missed premiums plus a reinstatement fee.

Eligibility and Conditions

Not every Genworth Life LTC plan automatically includes the nonforfeiture benefit; it depends on the specific product and policy wording. Policyholders should review the rider options and the policy declaration page. Typically, the benefit is available on the following conditions:

• Policyholder has paid premiums for a minimum of 12 months.
• Premium arrears do not exceed a specified amount, often capped at 25% of the total premiums due.
• The policyholder is enrolled in a supplemental payment plan or has a designated financial hardship clause.

Limitations and Exceptions

While the nonforfeiture benefit protects against abrupt policy loss, it does not cover all scenarios. For example:

• Policyholders who have voluntarily canceled the policy before the benefit activates lose coverage.
• If a policyholder's health status changes, leading to a claim denial, the benefit does not alter that decision.
• The benefit is not applicable to policies purchased after the company's 2023 product rollout, where the nonforfeiture rider was removed from the standard package.

How to Verify Your Policy's Status

To confirm whether your Genworth Life LTC policy includes the nonforfeiture benefit, follow these steps:

• Check the policy declaration page for a "Nonforfeiture" or "Grace Period" clause.
• Contact Genworth Life's customer service at 1‑800‑GROW‑CARE or log into your online account.
• Ask the agent to provide a copy of the policy's rider schedule and explain the conditions for activating the benefit.