Remember, the ideal funding source for any Annuity Care solution comes from an existing nonqualified deferred annuity with gain. Also remember, this is simply a repositioning strategy which does not impact your client’s current income or taxes.
A problem that occasionally arises is that the amount of money in the existing annuity is large and the “ceding company” will not allow for a partial exchange or the money is coming from a life insurance policy where a partial exchange cannot occur.
When this situation occurs, in almost every case, the advisor fears that the deal is dead.
In the event that you don’t wish to view the episode, let me recap the solution. A 1035 exchange of the full proceeds into a OneAmerica Transfer Annuity can make the funding of an Annuity Care policy possible.
Effectively, what we are doing is moving 100% of the existing annuity (or life insurance cash surrender value) into the OneAmerica Transfer then portioning out a Care Solutions product before moving the balance into ANY deferred annuity with ANY carrier.
Remember – the objective of this transaction is to transform tax-deferred accumulation into a tax-free long term care benefit. And, the obstacle was the 1035 limitation imposed by the ceding carrier.
Using the Transfer Annuity, the objective was accomplished.
As a reminder, join Michael Florio and me for a Coffee Break. We broadcast live every Tuesday at 10 am and have our recorded library open 24/7.
One other reminder. “The Great Retirement Income Gap” consumer webcast takes place every Tuesday evening at 7 pm (eastern) is running until August 25.
Please, drop me an email at firstname.lastname@example.org for more information abou tour virtual consumer seminar or to get a customized consumer seminar and campaign!