Genworth subsidiary launches inaugural long-term care insurance

SUMMARY:

CareScout, a subsidiary of Henrico County-based Fortune 1000 insurance company Genworth Financial, announced Wednesday it has launched its first long-term care insurance product.

Known as CareScout Care Assurance, the insurance covers services at nursing homes, assisted living facilities, home health care, adult day care, hospice care and respite care.

It won't cover services outside the U.S., services from immediate family (with exceptions) or care provided by or in federal government facilities.

The company describes the launch as "a significant milestone" in broadening its services to support families.

Lynn White, CEO of CareScout Insurance Co., said in a statement the product's launch represents the company's commitment "to enabling a better aging journey — one that is thoughtful, dignified and personalized at every step."

The product is available to people ages 40-65. People can purchase coverage from between $50,000 and $250,000, with daily benefit maximums from $50 to $200 (subject to state minimum benefit requirements). They can also buy optional inflation protection, with options of 1%, 3% and 5%.

Policyholders can adjust coverage levels, inflation protection and benefits after purchase, but they may be asked to go through underwriting again.

Long-term care policies have long been challenging throughout the country, with policyholders seeing their premiums continuously raised higher and higher. KFF Health News reported in 2023 that the private insurance market was "wildly inadequate" in providing financial security for older Americans, with the industry for decades underestimating how long policyholders would live and need care, how many would use their coverage and the cost of the care.

CareScout, however, believes that it can use the decades of data, reporting and experience in the market to help avoid the pitfalls of older long-term care policies.

When asked what safeguards are in place to prevent the steep premium increases that affected older long-term care insurance policies, a Genworth spokesperson said in an email the CareScout Care Assurance product uses conservative pricing assumptions and has 50 years of claims experience from its parent company.

Premiums depend on benefit amount, daily max, inflation protection, deductible period and payment frequency. The spokesperson noted future rate increases may happen if claim costs exceed projections, but increases apply broadly, not individually.

One of the features of the new product is the CareScout Quality Network, a nationwide network of aging care providers who CareScout says are vetted for quality standards and offer "preferred pricing." The spokesperson said policyholders are not required to use the network, and that it is "a value add to the policy itself." He said a policyholder can select a provider of their own choosing if they prefer or if one is not available in their area.

"With CareScout Care Assurance, individuals can choose the level of protection they prefer, access helpful resources as they age and leverage a trusted network of providers when care is needed," White said in a statement. "The product was designed to be simple, flexible and to support the needs of policyholders and their families."

There are no pre-existing condition exclusions.

CareScout Care Assurance is currently approved in 35 states, but CareScout intends to seek approval in all states. Based in Glen Allen, CareScout is a wholly owned subsidiary of Genworth Financial. Genworth dropped off the Fortune 500 in 2025, slipping to No. 507. The insurer posted 2024 revenue of about $7.3 billion, down about 2.58% from 2023.

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