When most people think about annuities, they do not think of long term care. Think think of either what Ken Fisher (no relation) is shouting about how bad annuities are or the income feature that they have been sold as part of a VA or indexed product.
This is shallow thinking on both parts if you ask me.
There is more benefit that can be derived from a deferred annuity than deferred accumulation and an income stream. Tax-free long term care is one!
You have read about our Annuity Care products in past Fridays with Fisher so I am not going to belabor the “tax-deferred to tax-free” issue. (That will be another time.
I am going to simply say this – like an income rider, the Continuation of Benefit Rider can create an unlimited stream of of tax-free income when used for long term care purposes (Annuity Care & Indexed Annuity Care). Think about it.
Not only are we converting tax-deferred growth into tax-free money for LTC which does not impact means tested benefits (again, another conversation), we are extending that tax-free money for as long as the client requires care.
The Annuity Care Continuation of Benefit rider adds some serious punch to an already strong solution.