Earlier this week on LTC Coffee Break, we talked about Annuity Care. Yes, I am beating the drum for Annuity Care as it is a great product solution and you need to pay attention to what it can offer you and your clients!
Check out this week’s episode and more at LTCcoffeebreak.com.
And, remember to join us on June 28 when we share our summer six pack of ideas – only on LTCcoffeebreak.com
But, before I say more about a specific product solution, I want to remind you – a product is not a plan. It is merely a way to provide money for the execution of a plan.
And, our Annuity Care products are often an overlooked solution. One reason that Annuity Care is not given its due lies in how annuities are viewed. Simply, most advisors look at performance during accumulation as a measure for a deferred annuity product (Annuity Care is that).
But, what the true measure of the value of Annuity Care is not through the lens of accumulation but when a long term care event triggers distributions. Remember, Annuity Care allows the gains to be “washed away” when the monies are utilized for long term care expenses (at home or in a facility) .
Said another way – Annuity Care produces tax-free long term care benefits.
Your traditional fixed, fixed-indexed, or variable annuity cannot provide these benefits. AND, don’t confuse what a “nursing home” or “chronic illness” rider does with the value of Annuity Care. Those do not provide tax-free long term care benefits.
Remember, another value of Annuity Care is that our continuation of benefit rider can be added to the policy. That can either double the pool of money or provide those tax-free benefits for an unlimited duration of time.
Also, we can include the spouse on the Annuity Care policy allowing Mrs. A’s Annuity Care policy to provide benefits for both her and her husband.
And, finally, we can provide this solution up to the age of 85.
Take a minute and think about your clients who are over the age of 70 and own nonqualified deferred annuities. Then, ask the question – what is their plan to pay for an extended healthcare event? More importantly, do they own long term care insurance.
I ‘m willing to wager that a bulk of your clients do not have a LTC policy in place but do own a deferred annuity that they will liquidate when that occurs. In fact, a Gallup poll from a few years ago found that over 70% of annuity owners had those monies earmarked as their emergency healthcare fund.
And remember, those distributions will likely be taxable events which could impact more than your client’s income tax rate. Means tested benefits such as Medicare premiums could be impacted or more.
Learn more about Annuity Care or any of our Care Solutions products and strategies by contacting me via email at firstname.lastname@example.org, call me at (678) 512-9627, or schedule a meeting with me using this link.
And remember to join Michael Florio and me next week on June 28 when we share our six pack of ideas at LTC Coffee Break … ltccoffeebreak.com