“Older Client” Annuity Solution

I have said this before and I will say it until I am blue in the face, no other carrier can provide a long term care funding solution for an older client like OneAmerica.

Look at the industry.  Look at the trends in the industry.  Every carrier is pressing to acquire the young and healthy clients.  It makes good business sense.  But, the older segment of the buying population is cast aside.

It has been noted that Asset-Care can be written tot he age of 80.  And, some of our Annuity Care products can be written to the age of 85

Let’s talk about this for a moment focusing our attention on the Annuity Care solutions.

The ideal funding solution for that older client comes from a non-qualified deferred annuity.  The bigger the gain in the annuity the better.  Why?  Because we are using the Pension Protection Act to leverage the tax-deferred accumulation into tax-free LTC benefits.

A 1035 exchange from their deferred annuity into an Annuity Care product provides that lift.

When you are working with a client age 80+, insurability can be a challenge,  This is where the Annuity Care  products perform well as the underwriting is a bit more forgiving.

Let’s look at an example of an “older” client and our Indexed Annuity Care solution.  The client is a female age 81 and in reasonably good health with adequate retirement income sources.  She has monies parked in deferred annuities that are earmarked for an emergency.

For the sake of this example, we will reposition via 1035 exchange , $250,000 from her existing nonqualified deferred annuity with a basis of $100,000 and gain of $150,000.  Remember, the exchange is tax-free and accumulation in Indexed Annuity Care continues to be tax deferred.

By virtue of the PPA, Indexed Annuity Care will provide upon policy issue tax free LTC benefits of:

  • $124,800 per year for no less than 2 years
  • $10,400 monthly per month for no fewer than 24 months

Until LTC benefits are utilized, the benefit pool will continue to grow and will never be less than the initial amount.  Talk about leverage!

Want to learn more about Indexed Annuity Care?  This Brainshark can help.

Still want more? Call my internal sales partner Justin Fox at (844) 658-3725.