Genworth Financial Inc (NYSE:GNW) launched the IncomeAssuranceSM Immediate Need Annuity, a medically underwritten single premium immediate annuity that provides a lifetime of monthly income payments for older, less healthy Americans needing care now or in the near future.

Although the income can be used for any purpose, this new product is designed to help people age 70 or older with adverse health conditions offset the potentially significant costs of care with a guaranteed source of monthly income they cannot outlive.

Genworth is introducing this new product as part of its renewed focus on solutions that help address the financial challenges of aging.

“While healthy people have many options to help fund their future long term care expenses, that’s not the case for older Americans who need care now and are afraid of running out of money,” said Tom McInerney, president and CEO of Genworth. “Our new IncomeAssurance Immediate Need Annuity provides another way to help pay for care, one that addresses a very real need that is significantly underserved today.”

A guaranteed income stream can also help alleviate the potential financial strain on care recipients’ family caregivers.  According to Genworth’s Beyond Dollars Survey,1 62 percent of family caregivers surveyed used their own savings and retirement funds to pay for their loved ones’ care and 38 percent of family caregivers said they reduced their contributions to their savings and retirement to pay for care, jeopardizing their own retirement plans.

This product converts assets into a guaranteed, monthly income that is paid for the life of the care recipient (the annuitant under the contract).  The monthly income payment is determined using a number of factors that may include age, gender and the health of the care recipient along with the income plan chosen and any optional benefits selected.  The monthly payment is generally larger than traditional immediate annuities if the care recipient is less healthy and/or needs care.  The income begins immediately and can be used for any purpose such as care, medical or living expenses.

The product is different than long term care insurance; unlike traditional long term care insurance, there are no claims to file and no on-going health evaluations required. (Original Source)

Shares of Genworth Financial Inc closed last Friday at $1.93. GNW has a 1-year high of $9.19 and a 1-year low of $1.57. The stock’s 50-day moving average is $2.44 and its 200-day moving average is $4.19.

On the ratings front, Genworth Financial has been the subject of a number of recent research reports. In a report issued on February 9, UBS analyst Suneet Kamath maintained a Sell rating on GNW, with a price target of $1.75, which represents a potential downside of 9.3% from where the stock is currently trading. Separately, on February 5, BTIG’s Mark Palmer maintained a Buy rating on the stock and has a price target of $5.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Suneet Kamath and Mark Palmer have a total average return of 3.1% and -17.1% respectively. Kamath has a success rate of 53.8% and is ranked #1098 out of 3637 analysts, while Palmer has a success rate of 24.2% and is ranked #3624.

Genworth Financial Inc is a financial security company. It provides insurance, wealth management, investment and financial solutions.