Deferred Annuity Opportunities

Every year about this time, I start talking about nonqualified deferred annuities and transforming their tax deferred accumulation into tax-free long term care benefits.

You may be sick of hearing about Annuity Care, but this represents a tremendous long term care funding solution.  Why?

Consider this – according to Gallup’s 2013 Survey of Individual Annuity Contracts

  • the median and average current age of annuity owners is 70
  • 90% of people surveyed considered annuities a “safe purchase”
  • 9 of 10 said that the tax treatment was important in their decision to purchase
  • 87% said that guarantees are important aspects of annuities

This should be no surprise – 84% cited the use for their annuity as retirement.  45% of retired annuity owners have made ad hoc withdrawals while 33% have begun to receive regular periodic payments.

Almost 90% have targeted their annuities as a financial cushion in case they live well beyond their life expectancy (87%).

Here is where the info gets good.

Along with financial cushion and retirement income, owners also cite using their annuities as a financial resource to avoid being a burden on their children financially (79%), as a financial protection for investments (73%), and as an emergency fund in case of catastrophic illness or nursing home care (73%).

Reread that last sentence.  That’s right, 7 out of 10 annuity owners plan to use their deferred annuity to address their extended healthcare issues!  They said it – their annuity is part of their long term care funding strategy.

And, what happens when an annuity is liquidated?  The gain is taxed!

Let me share with you the way to transform those taxable gains into a tax-free long term care benefit … Register for my webinar scheduled for Thursday, April 9 at 11 a.m. (eastern).

Think about this for a moment – a taxable distribution doesn’t just impact the income taxes paid – it could impact social security (it might be taxed) or Medicare premiums (they may increase) or any benefits derived from means-tested programs (they may not be available or the cost could increase).

And, not all deferred annuities can qualify for this special tax treatment.

Register for my webinar scheduled for Thursday, April 9 at 11 a.m. (eastern) to learn more about transforming taxable gain into tax-free LTC.

In the interim, should you have questions – please contact my internal Justin Fox via email at or at (844) 658-3725.

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