RICHMOND, Va., Nov. 16 Genworth Financial, Inc (NYSE: GNW) today announced a new relationship with the Virginia Retirement System (VRS) to provide long term care insurance under the Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program. The group insurance, underwritten by Genworth Life Insurance Company (Genworth Life) is open to all VRS members, retirees and their families. Other local governments that do not participate in VRS may also offer the programs to their employees and families.
VRS administers benefits and services for more than 600,000 members, retirees and beneficiaries. The active employees include state and local government employees, teachers, judges and law enforcement officers. The retirement system ranks 24(th) among the largest public or private pension fund in the United States. Under this agreement, Genworth Life will become the underwriter of this employee-paid, voluntary group long term care insurance program.
"With 35 years of experience providing long term care coverage and more than one million policyholders, Genworth has shown a deep commitment to the long term care market," said Robert P. Schultze, Director of the Virginia Retirement System. "We selected Genworth because of its strong track record of paying claims and dedication to customer service. In this current economy and with long term care costs on the rise in Virginia, VRS has made providing quality long term care coverage to members and their families a priority."
According to Genworth Financial's 2009 Cost of Care Survey conducted by CareScout(®), the median annual cost for a private nursing home room in Virginia averages $70,301 a year. Since typical stays can average three years, care could cost hundreds of thousands of dollars, particularly if the cost of care continues to rise. Genworth Financial's 2009 Cost of Care Survey, which provides national, state and local long term care cost information, is available online at genworth.com/CostofCare.
"Two-thirds of people over age 65 will need long term care in their lifetimes, but most Americans have not proactively planned for this eventuality," said Buck Stinson, President of U.S. Insurance Products at Genworth Financial, based in Richmond, VA.
A 2007 study from Georgetown University reports approximately 70 percent of individuals over age 65 will require 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 according to a brief from the National Academy of Social Insurance.*
VRS' new relationship with Genworth Life will provide a broad portfolio of long term care planning solutions with flexible features and benefits. The product offering will include a wide range of affordable options.
"This new relationship will provide us with the opportunity to educate VRS members and their families about long term care insurance," said Peter Lucas, vice president of Genworth's Group Long Term Care Insurance Business. "It will help them decide whether long term care insurance should be part of their retirement plan - protecting assets and preserving funding sources for future family needs."
Those insured under the Commonwealth of Virginia Voluntary Group Long Term Care Insurance plan with Aetna Life Insurance Company will be given a one-time opportunity to transfer to a Genworth Life plan during December. The new Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program will be available during the enrollment period beginning in March 2010. Active VRS members will receive an opportunity to obtain coverage with reduced underwriting during the initial enrollment period.
*National Academy of Social Insurance, Health and Income Security Brief, Long-Term Care: The Public's View, November 2005.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 global financial security company. Genworth has more than $100 billion in assets and employs approximately 6,000 people with a presence in more than 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of more than 15 million customers. Genworth operates through three segments: Retirement & Protection, US Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit Genworth.com. From time to time Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of Genworth.com.
SOURCE Genworth Financial, Inc.