Over the past few weeks, I’ve shared with you some statistics about why people purchase and retain their non-qualified deferred annuities, the opportunities to transfer existing annuities into tax-free LTC benefits, and how adding a continuation of benefit rider can create a larger tax-free LTC funding pool.
As you will recall, the primary advantage of Annuity Care is transforming tax-deferred accumulation from an existing non-qualified deferred annuity into tax free LTC benefits. But, that is one of the opportunities that it offers.
In addition to increasing the long term care benefit pool by including a continuation of benefit rider, Annuity Care …
- can be issued to age 85,
- may include the spouse on one policy, and
- has more forgiving underwriting than life insurance based LTC like Asset Care or traditional LTC policies .
Keep in mind, that Annuity Care is a long term care solution where benefits paid for home care and facility based care are covered. And, the trigger to receive benefits is either a cognitive impairment or an inability to perform 2 of 6 activities of daily living.
Another value, whether the COB is included or not, is that any benefits paid from Annuity Care are tax free. This means that any means tested programs or benefits that the client receives cannot be impacted by distributions from their Annuity Care policy.
As a reminder, you can also join my new webcast “LTC Coffee Break” where my colleague, friend, and co-host Michael Florio share a cup of coffee and talk about how we all can navigate our way through the new business and personal challenges thrust upon us by Covid 19. Every Tuesday at 10 am (Eastern and Pacific), we will broadcast the LTC Coffee Break. We plan to continue every week until at least July 1.
Of course, I can be reached at (678) 512-9627 – phone or text or via email at kevin.fisher @oneamerica.com