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.
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.
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.