The two parts to the health assessment of an applicant include a face-to-face evaluation with a nurse and a review of the applicant’s medical records. The minimum single premium is $50,000.

“If the person is expected to live longer, their stream of income will be lower or their single premium will be higher,” Mitra said. “If their longevity is assessed to be shorter, the applicant will pay a lower single premium or receive a higher stream of income.”

For example, a candidate who purchases the product with a single $180,000 premium and chooses a 3-year protection option, if their benefit amount is $40,000 per year, they are guaranteed to receive $120,000 in benefits.  If the annuitant died after year 2 after receiving $80,000 in benefits, his other beneficiaries would receive a lump sum payment of $40,000.  

“Based on the health picture from the nurse visit and medical records, we determine the premium required to generate a targeted income or how much income could be created from a specified premium amount,” Mitra said.

Sheryl Moore, president and CEO of financial services consultant Moore Market Intelligence, says it’s unique that Genworth has addressed this need through the use of a SPIA, and particularly a medically-underwritten SPIA.

“Other carriers have used deferred annuities, which can be annuitized to provide the same benefits as a SPIA,” Moore said. “This product offering just solidifies Genworth’s commitment to the long-term care market.”

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