Genworth Life Insurance Company Launches Total Living Coverage(R) Annuity
March 30, 2010 by N/A
March 29, 2010 | PR Newswire US
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RICHMOND, Va., March 29 /PRNewswire-FirstCall/ — Genworth Financial, Inc., (NYSE: GNW) announced today a new product addition to help consumers move toward financial security and independence. Total Living Coverage® Annuity (TLCA) is a linked-benefit product that links the safety and tax-deferred growth of a single premium non-qualified deferred annuity with a long term care (LTC) insurance rider to provide LTC benefits. The product will be underwritten by Genworth Life Insurance Company.
“The financial challenges facing Main Street consumers today have never been greater,” said Buck Stinson, President of Genworth’s U.S. Life Insurance Products. “With Total Living Coverage Annuity, consumers use their annuity value to purchase long term care insurance coverage up to three times the amount of their single premium, creating a pool of benefit dollars for long term care expenses paid first from the annuity value and then from the remaining pool.”
In addition, claim payments for covered long term care expenses are tax-free, allowing consumers to keep more of their own money – thanks, in part, to tax benefit provisions in the Pension Protection Act of 2006 (PPA). Consumers may be able to fund TLCA with a tax-free 1035 exchange from an annuity or life insurance policy.(1) “With TLCA, consumers who want to purchase long term care insurance can now utilize additional sources of funding to help them gain this protection,” said Stinson.
TLCA advantages include:
- Dependable and stable growth
- Protection in the event of a long term care need with guaranteed renewable long term care insurance
- Simplified underwriting process
- Optional inflation protection
- Waiver of monthly long term care charge provision
Consumers who would benefit from this product include those who:
- Are nearing or in retirement with assets to protect
- Recognize the potential need for long term care and the negative impact it could have on their financial security
- Are currently self-insuring against the risks of a future long term care event
- Have investable assets of $200,000 or more (excluding home or qualified assets)
Total Living Coverage Annuity joins an innovative portfolio of new and enhanced products introduced by the Genworth Financial companies in recent months. Early last fall the Genworth Financial companies launched the GenGuard(SM) suite of universal life insurance products that help consumers match financial security needs to appropriate death-benefit guarantees at competitive premiums; and this past November the companies introduced Colony(SM) Term UL, a new breed of universal life insurance that competes with term life insurance and is designed to address the same financial security needs of the term life buyer.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 global financial security company. Genworth 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 and Protection, U.S. 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.
Total Living Coverage Annuity single premium deferred annuity with long term care benefits is subject to Policy Form No. SPDAPLTC 1108 et al. or SPDAPLTC 806 et al. and Rider Form No. SPDARLTC 1108 et al. or SPDARLTC 806. et al.
All products and their riders and benefits are subject to their policy forms and to state availability and issue limitations.
All guarantees are based on the claims-paying ability of the issuing insurance company.
The tax information in this material was written to support the promotion and marketing of the contract. The Genworth Financial companies and their representatives and distributors do not provide tax or legal advice. We did not write this material for use by any taxpayer to avoid any Internal Revenue Service penalty. You should ask your independent tax and legal advisers for advice based on your particular situation.
(1) Prior to engaging in a1035 exchange, consumers should carefully consider a number of factors including the features and crediting rate(s) of their current product, applicable surrender charges, any new surrender charge period on the purchase of a new product, as well as the various features and crediting rate(s) of the new product. Consumers should carefully consider whether a replacement is in their best interest before making a decision to replace their existing product.
SOURCE Genworth Financial, Inc.
