Today, AARP announced a new relationship with Genworth Financial to provide unique long-term care planning solutions designed to meet the needs of the organization’s 38 million members. AARP also renewed its relationship with MetLife to continue to provide coverage and service to AARP members who are current long-term care insurance policy holders.
“Long-term care is a growing issue for our aging population. America needs to prepare now for the challenges that face us tomorrow. Planning for long-term care is an important and necessary step that virtually everyone needs to take,” said Bill Novelli, CEO of AARP.
Approximately 60 percent of individuals over age 65 will require at least some type of long-term care services during their lifetime. Despite the need for long-term care planning, most Americans still do not carry any form of coverage and fewer than two in five (37%) adults report that they have developed a plan to pay for their long-term care needs.
AARP’s new relationship with Genworth will provide a broad portfolio of AARP endorsed long-term care coverage with flexible features and benefits. Among the wide range of affordable options will be the introduction of a product with a price roughly half that of today's mainstream products. Some of the endorsed products will include a special 5-year rate guarantee, 60-day opt out clause, and inflation protection features that are unprecedented in the industry.
The new products are scheduled to become available beginning in October 2007. AARP members will be able to purchase products in the new long-term care portfolio through the convenience of the phone and web, and also through personalized consultation through a nationwide network of long-term care specialists.
“We have negotiated special terms for AARP members and have simplified a traditionally complicated but important purchase for AARP members who choose to buy long-term care insurance,” said Dawn Sweeney, President and CEO of AARP Services.
"We are excited about the combined strength of AARP's membership affinity and Genworth's experience and reputation in long-term care insurance," said Buck Stinson, President of Genworth Financial's Long-Term Care Insurance business. "This relationship offers a unique opportunity to dramatically expand long-term care coverage in America through a broad portfolio of products and services designed for AARP members. Our mutual commitment to education and social responsibility is further supported by Genworth's agreement to dedicate $7.5 million towards research and educational efforts about the importance of planning for long-term care."
AARP selected Genworth Financial for its experience and credibility in the long-term care insurance market. As a pioneer and the largest underwriter of long-term care insurance, Genworth brings a reputation for service, product innovation and a strong commitment to solving our nation's long-term care challenge.