Let’s dive into your client base an dissect it a bit. Find those client’s who elect to “self-fund” their LTC protection and have monies set aside for liquidation in deferred annuities, or a money market account, or certificates or deposit, or simply cash.
Let’s dig a little deeper – in this case, we are looking for annuity holders under the age of 75 in reasonable health. Ideally, they will own a non-qualified deferred annuity with gain and will no need it for income. Simply, they are the typical annuity client.
In a perfect world, the client(s) will understand the risk that an extended healthcare event presents to their income (and income producing capital). Our strategy here is simply leverage and magnification.
A straightforward approach to a funding solution with few moving parts AND no income tax impact is always a good discussion. That is where Annuity Care II steps in.
Simply, Annuity Care II creates leverage of 2.5%, 4%, or 5.5% on any single premium or 1035 exchange once Care Solutions underwriting approves the application. Moreover, using the “eligible person” provision, both Mr. and Mrs. Client can receive benefit from the policy even though Mrs. Client may be the annuity owner and annuitant.
With a phone interview, $150,000 can be transformed into $600,000 pool of tax-free LTC benefit (assuming a 4 times leverage scenario).