Genworth unveils universal life policy

Genworth Financial Inc. has introduced a universal life insurance policy, the Lifetime FlexPlus II. The product is an update of its flagship Lifetime FlexPlus insurance policy. It features premiums that are 3% to 5% lower than those of the original version and carries a long-term secondary guarantee. A set of premiums will go toward this guarantee, which is independent of the cash value and keeps the death benefit in force regardless of the cash value, said Troy Thompson, chief actuary and assistant vice president of Richmond, Va.-based Genworth. “Largely, this is about a more efficient design from a consumer perspective that allows us to better match the funding of the policy to create a better profile on a mutually beneficial basis,” he said. The secondary guarantee is also more resilient against the negative effects of loans and withdrawals from the policy. Withdrawals can shorten guarantee periods by 15 years; under the new guarantee this impact has been reduced to just five years.