Borrowing From Life Insurance: Genworth's Policy Loan Option

Borrowing from your life insurance policy can be a quick and easy way to get cash when you need it. However, it is important to note that you can only borrow against a permanent life insurance policy, such as a whole life insurance or universal life insurance policy. Term life insurance, which is cheaper and more suitable for many, does not have a cash value and is designed to last for a limited period. While Genworth offers a range of life insurance policies, it is unclear whether you can borrow from their life insurance policies. They do, however, provide a range of forms that allow you to make changes to your index universal life, guarantee universal life, term life insurance, and whole life insurance accounts.

Borrowing from a Genworth life insurance policy

Genworth Financial offers life insurance policies that can be borrowed against. The process of borrowing from a Genworth life insurance policy involves completing the necessary forms and understanding the implications of taking out a loan against your policy. Here is a detailed guide to help you navigate the process:

Locating the Appropriate Forms:

Genworth provides a collection of life insurance forms on their website. It is important to download and carefully review the forms related to your specific policy type. The forms can be used to make changes to your index universal life, guaranteed universal life, term life insurance, or whole life insurance accounts.

Managing Your Policy:

Genworth allows policyholders to manage their policies online. This includes making changes to personal information such as address and billing information, as well as automating payments. It is important to keep your policy information up-to-date to ensure smooth processing of any loan requests.

Understanding Borrowing Options:

Before borrowing from your life insurance policy, it is essential to understand the specifics. Borrowing against your life insurance policy can provide quick access to cash when needed. However, it is important to note that you can only borrow against permanent life insurance policies, such as whole life insurance or universal life insurance policies. Term life insurance, which is generally cheaper and more suitable for many individuals, does not have a cash value that can be borrowed against.

Loan Request Process:

To request a loan against your Genworth life insurance policy, you will need to complete the "Loan Authorization for Life Insurance" form. This form can be found on the Genworth website or requested directly from the company. It is important to carefully fill out the form and provide all the required information.

Interest and Repayment:

Life insurance companies, including Genworth, typically charge interest on policy loans. It is important to understand the interest rate and repayment terms before taking out the loan. Interest accrues over time, and if left unpaid, can lead to the policy lapsing. Regular payments should be made to ensure the loan remains current and to avoid any negative impact on the death benefit for your beneficiaries.

Impact on Death Benefit:

When borrowing from your life insurance policy, it is crucial to understand that the loan amount, if not repaid, will reduce the death benefit for your beneficiaries. The loan essentially decreases the available cash value and death benefit. Therefore, timely repayment of the loan, in addition to regular premium payments, is essential to maintain the intended level of financial protection for your loved ones.

In conclusion, borrowing from a Genworth life insurance policy can be a viable option to access cash when needed. However, it is important to carefully review the specific terms and conditions of your policy, understand the implications on the death benefit, and make informed decisions regarding repayment to ensure the continued financial security of your beneficiaries.

How to fill out a Genworth life insurance form

To fill out a Genworth life insurance form, you must first browse Genworth's collection of life insurance forms and locate the appropriate form. Once you have found the correct form, download and complete it in full. Make sure to print it out, sign it, and return it to the address found on the form. If you are unable to view the form, you may need to download Adobe Reader®.

Genworth's life insurance forms cover a range of topics, including:

• Beneficiary changes
• Electronic funds transfers (EFT) for premium renewals
• Address or name changes
• Agent changes
• Allocation and transfer changes for index UL products
• Authorizing a third party to receive information
• Cancellation authorizations
• Certification of trustee powers
• Collateral assignments
• Declaration of attorney-in-fact
• Duplicate contract authorizations
• Index universal life withdrawals, loans, or surrenders
• Loan authorizations
• Ownership and beneficiary designation requests
• Release of collateral assignments
• Surrender authorizations
• Universal life planned premium changes
• Variable life loans, surrenders, trades, or withdrawals
• Withdrawal authorizations

Be sure to carefully review the form and provide all the necessary information. If you have any questions or concerns, you can contact Genworth's customer service or claims department for assistance.

What to do if the original policy is lost

If you've lost your original Genworth life insurance policy, don't panic. Here's what you need to do to get a duplicate copy:

Locate the Appropriate Form

Browse Genworth's collection of life insurance forms online. Find the "Duplicate contract authorization" form, which is used to request a duplicate copy of a lost or destroyed policy. You can also contact Genworth's customer service team for assistance in locating the correct form.

Download and Complete the Form

Once you've located the "Duplicate contract authorization" form, download and complete it in full. Make sure you have Adobe Reader installed on your device to view and fill out the form. Provide all the necessary information accurately and honestly.

Print, Sign, and Return the Form

After completing the form, print it out and sign it. Be sure to include any required supporting documentation with your request. Then, return the signed form to the address provided on the life insurance form. You can also contact Genworth to confirm the correct mailing address.

Follow Up as Needed

If you have any questions or concerns during the process, don't hesitate to contact Genworth's customer service or claims department. They can provide additional guidance and ensure your request is processed smoothly. You can also inquire about the status of your duplicate policy request by contacting them directly.

It's important to act promptly if you've lost your original policy. By following these steps, you can obtain a duplicate copy and ensure that your life insurance coverage remains in place without any disruptions. Remember to keep your policy documents in a safe and secure location to prevent future issues.

Requirements for a beneficiary whose name has changed

If a beneficiary's name has changed since the last designation, Genworth requires proof of the name change to validate the update. The specific documents needed depend on the reason for the name change.

If the name change is due to marriage or divorce, Genworth requires a copy of the marriage certificate or divorce decree. On the other hand, if the beneficiary's name change is due to personal preference, a court document indicating the name change from the birth name to the requested name is necessary.

To make changes to your Genworth life insurance policy, you can browse and download the appropriate form from their website. Once you have completed and signed the form, you can return it to the address provided. Remember to also update your address or name on the policy if those have changed.

How to assign death claim proceeds to a funeral home

To assign death claim proceeds to a funeral home, all designated beneficiaries must complete an appropriate assignment form provided by the funeral home. This form must be submitted to Genworth before the payment of the claim, along with a Claimant's Statement for each beneficiary.

The Claimant's Statement is a form that needs to be completed by each beneficiary, as they are the person or entity claiming the death benefit under a policy. This form can be faxed to Genworth at 434.948.5783, although an original certified death certificate may be required, which will not be accepted by fax.

To prove your legal authority to claim proceeds, you must indicate your capacity as an "individual claimant" on the Claimant's Statement. If you are claiming on behalf of a trust, you will need to indicate the name and date of the trust, as well as a trustee's address for the death proceeds to be delivered.

If there are multiple trustees, each current trustee must sign the Claimant's Statement in their capacity as Co-Trustee, unless the Trust document allows one trustee to act alone.

If you are signing as Power of Attorney for the claimant, you must submit a copy of the executed Power of Attorney papers, which give you the power to collect proceeds. You must sign the Claimant's Statement and indicate your capacity as "Attorney-in-fact" for the beneficiary.

Frequently asked questions