RICHMOND, Va., Feb. 22, 2016 /PRNewswire/ -- Genworth (NYSE: GNW) today launched the IncomeAssuranceSM Immediate Need Annuity, a medically underwritten single premium immediate annuity that provides a lifetime of monthly income payments for older, less healthy Americans needing care now or in the near future.
Although the income can be used for any purpose, this new product is designed to help people age 70 or older with adverse health conditions offset the potentially significant costs of care with a guaranteed source of monthly income they cannot outlive.
Genworth is introducing this new product as part of its renewed focus on solutions that help address the financial challenges of aging.
"While healthy people have many options to help fund their future long term care expenses, that's not the case for older Americans who need care now and are afraid of running out of money," said Tom McInerney, president and CEO of Genworth. "Our new IncomeAssurance Immediate Need Annuity provides another way to help pay for care, one that addresses a very real need that is significantly underserved today."
A guaranteed income stream can also help alleviate the potential financial strain on care recipients' family caregivers. According to Genworth's Beyond Dollars Survey,1 62 percent of family caregivers surveyed used their own savings and retirement funds to pay for their loved ones' care and 38 percent of family caregivers said they reduced their contributions to their savings and retirement to pay for care, jeopardizing their own retirement plans.
This product converts assets into a guaranteed, monthly income that is paid for the life of the care recipient (the annuitant under the contract). The monthly income payment is determined using a number of factors that may include age, gender and the health of the care recipient along with the income plan chosen and any optional benefits selected. The monthly payment is generally larger than traditional immediate annuities if the care recipient is less healthy and/or needs care. The income begins immediately and can be used for any purpose such as care, medical or living expenses.
The product is different than long term care insurance; unlike traditional long term care insurance, there are no claims to file and no on-going health evaluations required.
For additional details about the product, click here.
IncomeAssuranceSM Immediate Need Annuity single premium immediate annuities are issued by Genworth Life Insurance Company, Richmond, VA, subject to policy form series ICC15GL3100, GL3100-0615, et al. Features and benefits may vary by state or market.
All guarantees are based on the claims-paying ability of Genworth Life Insurance Company.
You should carefully read your contract. This is a brief product description. Consult the annuity contract for a detailed description of benefits, limitations and restrictions. The contract terms and provisions will prevail.
Genworth does not make any representations or warranties regarding the impact this annuity may have on Medicaid benefit eligibility or other requirements for Medicaid benefits or any other state or federal government assistance.
Optional features are available at issue and require additional premium to provide the same guaranteed initial monthly income payment.
Life income provides guaranteed monthly payments during the lifetime of the annuitant, no matter how long he or she lives. Monthly income payments will stop upon the death of the annuitant and, therefore, the total amount of payments may be significantly less than the premium paid for the annuity. There is no minimum amount of guaranteed income payments. The contract provides an early death benefit if the annuitant dies within the first six months of contract issue. The contract may also provide an enhanced death benefit if, at contract issue, the owner selects life income with an optional protected period.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
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1 Genworth Beyond Dollars Survey, July 2015