Genworth Ceases AARP Long Term Care Insurance Plans
Sadly, a five year relationship will be coming to an end next month.
This week, Genworth Financial Inc. announced it will stop new sales of AARP-branded long-term care insurance products through Genworth Life Insurance Co. and Genworth Life Insurance Co. of New York. Sales will cease on June 1, 2013.
Since 2007, Genworth has offered certain AARP branded long term care insurance products to AARP members. Existing AARP long term care insurance policyholders will not be affected by the change. Genworth will continue to honor claims and commit to providing exceptional service to AARP members who purchased these policies from Genworth.
AARP has 37 million members.
2016 Update: AARP now "endorses" the most expensive LTC policy ever sold: New York Life Secure Care
Genworth Long Term Care Insurance Underwriting Changes
This move by Genworth to discontinue sales of AARP branded policies comes on the heels of its recent decisions to enact gender based pricing as well as to implement tighter underwriting controls.
With Genworth's move to gender-based pricing , rates to single female applicants are now higher relative to male applicants with Genworth. In the past, Genworth long term care insurance offered Unisex pricing. John Hancock is one underwriter that also followed Genworth's lead with implementing gender-based long term care insurance premiums.
In addition to gender-based rates, Genworth has drastically heightened underwriting requirements. Today, for Genworth Privileged Choice Flex 2 applications available through independent brokerage channels applicants are required to submit a paramed exam, blood sample and urine sample as a condition to being approved for coverage.
Unlimited Benefits and 10 Pay Options are Going Away
Most importantly, with the disappearance of the AARP Genworth contract two long term care insurance options are quickly becoming extinct. AARP Genworth is one of the final long term care insurance contracts that offers Unlimited Lifetime benefit periods. It also offers a very attractive 10 Pay payment mode option that allows premiums to be paid-up after 10 years of funding. The 10 Pay option is very attractive for self-employed business owners that can deduct the premium amounts if premiums are paid by the corporation.
Unfortunately, the sustained low interest rate environment has caused long term care insurance companies to reduce and/or eliminate options.
Should you wish to explore all of your options available, please contact us or complete your quote request form. We can help you compare plans from the leading companies such as OneAmerica, Securian, Lincoln Moneyguard , Pacific Life, Nationwide, Mutual of Omaha, and more.
Please call us at (800) 891-5824 if we can provide you with quotes, or assist you in getting approved for coverage.
Jack Lenenberg, J.D.