Genworth Financial AnnuitiesBeware of Genworth and Annuities!

This review was posted by
a verified customer
Verified customer

I was recently informed that the Renewal Interest Rate on my fixed annuity will be 3.75% for 2006. I began this annuity last year (2005), aware that we were and remain in a period of rising interest rates. The introductory rate was 4.75%, a very good rate, although not excessive. Now Genworth seems to be low-balling the interest rate for 2006, perhaps to make up for the introductory rate. As far as I can see, this is an inferior rate that is not a market rate and not a competitive rate for the term and the substantial amount of money I have invested. I am frankly disappointed and feel taken advantage of by Genworth.

While I understand that the 4.75% was an introductory rate and thereby slightly higher than it might otherwise have been. And, I realize there are tax advantages to the annuity—advantages I gain but I believe at no cost to Genworth—it would seem that the return should more closely reflect the market value of the investment. I didn’t expect to do worse with Genworth than I would do with a savings account or a money market fund. Many of these instruments are now offering 4 and 4.25 percent. CD’s are 4.7-4.9%. Is Genworth taking advantage of me because I have already made a commitment and have lost some of my options? Is that how Genworth does business? This company does not deserve the trust of those interested in annuity income and it also raises questions about using annuities. Beware of Genworth and annuities.

Genworth Life Insurance Company (aka Genworth Financial), 6620 West Broad St., Richmond, VA 23230


  • Sk
    SKWEWER Apr 12, 2010
    This comment was posted by
    a verified customer
    Verified customer

    We also got screwed with Genworth Annuities. My husband had been paying into the Guaranteed Monthly Income program for 8 years. The minimum guarantee was supposed to be approx. $883.00 upon retirement. A few months ago, without our knowledge or consent, Genworth removed us from our regular financial advisor of 8 years, and placed us with someone unfamiliar with our account. He was also non responsive and incompetent at answering our questions. We fought to have our old representative reinstated. That took 3 months. All the while our concern was finding out how my husbands Guaranteed Monthly income Annuity would be reduced if we were unable to meet the March deadline for payment of premium. Since we were in limbo with advisors, and NO ONE ELSE at Genworth would speak to us about the matter, since they are just a name and the advisors are all independent reps with NO OFFICE at Genworth, we had no answers. The income for making the contribution was delayed. By the time we got our old advisor back on the case, the deadline passed. It took them another 2 months of us asking 3 times per week--- how much will the GMIP be reduced? From $883 per month to $140 per month. All because we were denied access to a qualified advisor who could have guided us through our temporary short fall. We tried going with another product to make up for the short change, but our advisor insists Genworth still will have the better return. My new name for them is GenworthLESS.

    0 Votes
  • Wa
    Walter Cohen Feb 20, 2009

    You obviously failed to read the fine print or had a incompetent or devious salesman, or both. While annuities have long-term defered tax advantages, that CDs don't have, you may have had less than desired results for a few reasons. One reason is that Genworth has average ratings from the major rating companies like Moodys, Fitch or Standard & Poors. AAA (triple A) ratings are the best and we may be misleading ourselves if we think "an A is an A." In the case of the Insurance and Annuities industry, an "A rating, " is probably equivalent to a "C+" in High School, while a "AAA rating, " is the best possible, an "A+" or a "4.0" in Grade school or college. A Second reason is that you probably are comparing apples to oranges. While they are both fruit, one may not meet your likes or needs.

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