Effective June 1, Genworth will no longer be the exclusive provider of long-term care insurance at AARP. All Genworth policies sold through AARP will continue to be in full force as long as premiums are paid in full and on time. Genworth will continue to provide full service and stand behind its promise to pay legitimate claims on this block of LTCi business.
No reason was given for exiting the AARP affinity market. Apparently, the departure from AARP was revealed in a phone conference on the profitability of Genworth Financial and specifically the LTCi unit. AARP has indicated that they will continue to advocate financial preparation for the possibility of long-term care occurring in the lives of the elderly. AARP will soon be reviewing LTCi providers to see which one will be a good fit for AARP members.
A recent news release indicated that Genworth’s LTCi division turned a profit in the 4th quarter of 2012.
Currently, Genworth has suspended sales of long-term care insurance in states where its new, higher priced insurance contract has not yet been approved. California is one of those states.