Genworth Financial Inc (NYSE:GNW) has introduced a new insurance cover called IncomeAssurance Immediate Need Annuity that seeks to cater to Americans who require care currently or in the future by providing income payments on a monthly basis for a lifetime.

The insurance package is mainly designed to assist those beyond 70 years to ease their cost care burden especially in cases where they suffer from extreme health conditions. The monthly income will thus provide regular finances every month, thus allowing more manageability as well as preventing them from burning quickly through their savings. It can therefore also serve as an income management alternative to those willing to spend their income wisely.

Genworth’s decision to launch the new product was part of the company’s target to shift its focus to solutions that will help tackle the problems that arise as old age sets in. Tom McInerney, the president and CEO of Genworth pointed out that older American don’t often have as many income options to fund their future compared to their younger counterparts. The old people, therefore, end up with insecurity and worry about running out of finances at some point in time.

Mr. Mclnerney also said the IncomeAssurance Immediate Need Annuity was also designed to provide an avenue that will pay for care. He also believes that the area is currently underserved. The product is medically underwritten which means the company will analyze the distinctive health conditions of applicants through medical records and examination by nurses. The product is thus one of the best alternatives that care patients can use to avoid or overcome financial strain.

Since the package is a Single Premium Immediate Annuity (SPIA), it can offer higher monthly payouts than SPIAs that have not been underwritten medically. Therefore, both healthy and non-healthy people can exist in one investor pool. Thus, a person with a short life span due to health implications can receive the same payout as a healthy person with a possibly longer lifespan.