Let’s say that your client is 90 years old, has a deferred annuity with $190,000 of value that is out of surrender, does not need the money for income, and is faced with the decision of how to take the maturing annuity.
Simply, she doesn’t need the annuity for income and intends to use it only in an emergency. And, whatever value it has when she dies, she wants to pass along as part of her legacy.
Sometimes, this is not possible due to the annuity maturing. In fact, many deferred annuities require the annuitant to liquidate when it matures leaving the choice between:
- taking a lump sum distribution (and pay the taxes on the gain), or
- annuitizing the contract (and pay taxes on the gain).
There is another solution that does not require her to take income from the annuity – Legacy Care! All she has to do is a 1035 exchange and the annuity proceeds will continue to grow tax deferred.
Legacy Care is a single premium deferred annuity that can accommodate 1035 exchanges from non-qualified deferred annuities up to the age of 99. Think about it – it is a win/win.
What’s in it for the client?
- She is not forced to liquidate her existing annuity and pay more taxes.
- Her Legacy Care annuity will continue to grow at a modest crediting rate.
- In the event that she requires LTC benefits, proceeds can be converted into an income stream to fund her extended healthcare expenses..
With trillions of dollars of non-qualified deferred annuities on the books and an aging population, the opportunity exists for you to provide a solution to those long time annuity holders who face the prospect of a maturing annuity contract. Legacy Care is the solution.
To learn more about Legacy Care from OneAmerica, please contact Justin Fox at firstname.lastname@example.org or at (844)658-3725 or reach out to me via email at email@example.com or by voice/text at (678) 512-9627.
Remember. “The Great Retirement Income Gap” consumer webcast is offered every Tuesday evening at 7 pm (eastern) starting on June 30 and running until August 25. For more information or to customize your consumer webcast strategy, contact me directly.