Last week, I mentioned a concern that I have regarding deferred annuities and the perception that an income doubler or waiver of charges equates to a long-term care strategy.  As you should be aware – they clearly are not long-term care and all literature has that footnoted somewhere.

Let’s be real.  How many people read the footnotes of a marketing brochure?

More concerning is how many agents & advisors portray these as a solution for LTC funding.  They are not …

Here is language for one annuity with an income solution.  It says that the annuitant after the first contract year, may access the withdrawal value without a surrender charge or market value adjustment if they are confined to a hospital or nursing home for at least 90 days AND the contract must have been purchased before their 76^th birthday.

Another says – after the first contract year, the annuitant can access the “death benefit acceleration” via withdrawal or surrender if they are certified by a licensed healthcare practitioner as one of the following permanent conditions – chronic illness (unable to perform 2 of 6 ADLs or a cognitive impairment) or a terminal illness with a life expectancy of 12 months or less.

A third offers a “booster benefit” when the covered person cannot perform 2 of 6 ADLs and the rider “must have been in force for at least 2 years and be in the withdrawal phase before booster benefits can be triggered.”  And, that booster can only be used once.

That is how three different companies approach their income doubler.  AND, all three of them state that the annuity needs to be in force a minimum of one year!  AND, none of them provide benefits that are tax-free!

AND, all of them clearly state that the rider is NOT LTC insurance!

None of that is the case with Annuity Care or Indexed Annuity Care!

A quick comparison with and Annuity Care / Indexed Annuity Care (I will call the solutions ANC going forward) shows the following:

With ANC, once the policy is in force, there is no minimum holding period before benefits are available (other than the elimination period).

With ANC, the condition does not need to be a permanent condition.  It could be something that is recoverable – like a fall or stroke or heart attack.

With ANC, care is not limited to confinement in a hospital or a nursing home. It will pay for care at home or in a facility.

With ANC, benefits are available as long as there is an account value available.  (With a lifetime continuation of benefits rider, they can have an endless stream of money.  They will need to undergo underwriting and pay an additional charge.)

And, Annuity Care & Indexed Annuity Care can be issued up to the age of 87!

To learn more, give me a shout.