Effective March 17, 2014, Genworth Life Insurance Company will launch the new Total Living Coverage® (TLC) product in Indiana and New Jersey. TLC is a linked benefits life insurance product that combines the features and benefits of both universal life and long term care (LTC) insurance.
Product Updates
• Lifetime Return of Premium Rider (ROP) benefit available after policy year two*
• Issue age based on age last birthday rather than age nearest birthday
• Uncapped Residual Death Benefit (RDB)
• ROP and Guaranteed Minimum Benefit Rider (GMBR) do not terminate on policy loan or withdrawal
• Caregiver Support Services for immediate family members
• International Benefits include out of the country home care to align with
Privileged Choice® Flex
• Current/Guaranteed interest rates: 3.85% and 3.00%. See Leverage section of this bulletin for a competitive comparison.
• Simplified WinFlex agent illustration
*To receive this benefit, the client must select the optional Return of Premium Rider (ROP), which requires a higher initial premium and is available only when the client is applying for TLC. Lifetime money back guarantee applies after year two. Because TLC rider charges reduce cost basis (not below zero) it is possible for a portion of the Return of Premium Rider benefits to be taxable.
The new TLC product is now available in all states except CA, CT, FL, HI and NY.
Marketing Materials Available in Advance of Launch
Updated marketing materials and simplified consumer brochure will be available for download and order through the normal fulfillment channels March 3, 2014.
WinFlex Quoting Software
• WinFlex will be updated on Monday, March 3rd, 2014.
• You can continue to illustrate the current product through Friday, March 14, 2014.
Hypothetical Example
| Leverage: Leverage for Total Living Coverage remains competitive: Female | TLC | Product A |
| Specified Amount | $194,376 | $136,478 |
| LTC Pool | $583,128 | $409,434 |
| LTC Monthly Maximum | $8,099 | $5,686 |
| Male | TLC | Product A |
| Specified Amount | $181,537 | $129,728 |
| LTC Pool | $544,611 | $389,184 |
| LTC Monthly Maximum | $7,564 | $5,405 |
Age 65, leverage factors are calculated based on the interest rate of 3.85%, $100,000 initial premium, preferred life insurance rates, preferred long term care (LTC) rates, 20% Couples Discount, 2-year Accelerated Benefit Rider (ABR), 4-year Extension of Benefits Rider (EBR), Return of Premium Rider (ROP) which grades to 100% over time. The interest rate may change but will never be below 3.00%. For most current values, please run an illustration. The chart shown is based on research conducted by Genworth. The Genworth companies are not affiliated with the other company used in the comparison. To the best of our knowledge, the competitive information is current and believed to be accurate as of 2/15/14.
Transition Rules
3/3/14 WinFlex was updated with state approved changes.
3/14/14 Last day to illustrate the current product. Illustrations of old product no longer available.
3/16/14 Last day the existing application form packet or a TLC ExpressAppSM ticket plus existing point of sale forms (IGO- In Good Order) will be/was accepted by the home office in those states where the updated product is now available.
3/17/14 Effective date of product, underwriting changes, and TLC Quick Request in the states where the updated product is available (IN, NJ). First day to accept applications for the updated product.
State Availability and Differences
Please see the attached State Differences Matrix for a detailed view of the product adjustments by state.
Click here for Frequently Asked Questions
Learn More
Sales and Features Guide (133883)
Quick Reference Guide (133982)
Underwriting Guidelines (137983)
Refer to the policy for definitions and more details regarding coverage and its features. This bulletin provides a summary of coverage. Policy terms and provisions will prevail.
Total Living Coverage® is underwritten by Genworth Life Insurance Company, Richmond, VA. Total Living Coverage universal life insurance with long term care benefits is subject to state availability and the terms, issue limitations and conditions of Policy Form No. ICC12-GL5000 and Rider Form Nos. ICC12-GL500R, ICC12-GL501R, ICC12-GL502R, and ICC12-GL503R or Policy Form No. GL5000 0212 et al. and Rider Form Nos. GL500R 0212 et al., GL501R 0212 et al., GL502R 0212 et al., and GL503R 0212 et al. Policy, benefits and riders may not be available in all states. Terms and conditions may vary by state.
All applications are subject to the underwriting requirements of Genworth Life Insurance Company.
All guarantees are based on the claims-paying ability of Genworth Life Insurance Company.