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.
AARP selected MetLife to continue to provide coverage to current policy holders because MetLife has consistently provided AARP members with excellent service, especially at the time of claim &emdash; supported by MetLife's financial strength. More than 95 percent of AARP long-term care insurance policy holders who become benefit-eligible rate their overall experience with MetLife's benefits process as either excellent or very good, according to recent customer satisfaction surveys.
For more information on AARP-endorsed health insurance products, please visit AARP's website at www.aarp.org.
1/ Information according to the National Clearinghouse for Long-Term Care Information
2/ Statistic according to a poll commissioned by the National Academy of Social Insurance
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP produces AARP The Magazine, published bimonthly; AARP Bulletin, its monthly newspaper; AARP Segunda Juventud, its bimonthly magazine in Spanish and English; NRTA Live & Learn, its quarterly newsletter for 50+ educators; and the website, www.aarp.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
About AARP Services
AARP Services, Inc., founded in 1999, is a wholly owned subsidiary of AARP. AARP Services manages the wide range of products and services that are offered as benefits to AARP's 38 million members. The offers span health products, travel and leisure products, and life event services. Specific products include Medicare supplemental insurance; member discounts on rental cars, cruises, vacation packages and lodging; special offers on technology and gifts; pharmacy services; legal services; and long-term care insurance. AARP Services founded AARP Financial Incorporated, a subsidiary that manages AARP-endorsed financial products including AARP Funds; AARP Services develops new products, manages and markets products and services, creates and maintains partnership and sponsorship relationships, and develops and manages AARP's award-winning Web site, www.aarp.org.