Last week, I shared with you the basic concept of how to transform the taxable gains in a non-qualified deferred annuity into tax-free long term care funding resources. To review that article, CLICK HERE.
If you recall, a simple 1035 exchange from an existing non-qualified deferred annuity into a Pension Protection Act eligible annuity like Annuity Care transforms those policy gains into tax-free distributions for long term care services at either home or in a facility.
Like our Asset Care solution, the Annuity Care products can expand those long term care benefits 2 times, 3 times, or up lifetime benefits. Simply, the Continuation of Benefit (COB) rider can be added to bolster the tax-free benefits available.
Think about this, even after the annuity value is exhausted – tax-free long term care benefits will continue as long as the client requires care or until the COB benefit period is exhausted. Apply that to the example above and at issue, their could be a pool of $300,000 or $450,000 or a pool of long term care benefits that can last the lifetime of the policyholder.
If you have any questions, please contact Justin Fox at justinfox.isp@oneamerica.com or at (844) 658-3725.
Fridays with Fisher 
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