Annuity Care
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Q & A – Annuity Care II
Question: How does Annuity Care II differ from Annuity Care? Answer: I will be brief, Annuity Care II is the only product in the Care Solutions portfolio where the Continuation of Benefit rider is not optional, does not offer a lifetime benefit, and is funded from the underlying annuity cash value. Continue reading
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Annuity Care – tax free LTC for life
When most people think about annuities, they do not think of long term care. Think think of either what Ken Fisher (no relation) is shouting about how bad annuities are or the income feature that they have been sold as part of a VA or indexed product. This is shallow thinking on both parts if… Continue reading
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Duration of Protection
It frustrates me to no end when “an expert” declares that anything more than a few years is overkill and a waste of money. Really? Are those folks able to look in a crystal ball and read the future for their client and with 100% certainty say that an extended healthcare event will not exceed… Continue reading
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Q&A – underwriting inquiry
Question: What tools do you have to provide guidance from an underwriting perspective? Answer: I highly recommend first consulting the Asset-Care Ineligible Impairment list, the Annuity Care Ineligible Impairment List, or Underwriting Guide for some quick guidance then complete and submit the Pre-Underwriting Inquiry Survey to underwriting who will review the information and within 24 hours offer… Continue reading
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Eligible Person
As you have read in previous installments of Fridays with Fisher, the Pension Protection Act created an opportunity for your clients to fund any of our Annuity Care products via IRC section 1035 exchange from cash value life insurance or deferred annuity proceeds (cash can also be used as a funding source). With our Annuity Care products, a single annuitant can… Continue reading
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Underwriting Opportunities
It’s well known that OneAmerica’s asset-based LTC solutions have the most reasonable underwriting guidelines in the industry today. Here are just a few of the medical conditions that can be considered for Asset Care and Annuity Care (many are automatic declines with other carriers): Bipolar Disorder Kidney transplant or mild kidney failure Mild to moderate… Continue reading
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“Older Client” Annuity Solution
I have said this before and I will say it until I am blue in the face, no other carrier can provide a long term care funding solution for an older client like OneAmerica. Look at the industry. Look at the trends in the industry. Every carrier is pressing to acquire the young and healthy… Continue reading
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Best Way to Leverage
First off – thank you for your ideas, feedback, suggestions and questions. The whole purpose of this weekly distribution is to share ideas with you. One question that I am asked often is “why do you talk about Annuity Care so much when you have the whole Care Solutions portfolio to talk about?” It’s a fair… Continue reading
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Q&A – Tax Treatment of Benefits
Question: What is the tax treatment of LTC Benefits paid from Asset-Care or Annuity Care? Answer: Our Care Solutions portfolio functions on a reimbursement basis. Since Reimbursement Benefits for qualified LTC services are not taxed, benefits are tax-free. As a side note, Per Diem or Indemnity Benefits are not taxed except those benefits that exceed the greater of Total Qualified… Continue reading
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Summary of Individual Tax Deductions
Individual taxpayer who does not itemize No deduction IRC Sec 63(b) Individual taxpayer who itemizes deductions Treated as medical insurance premiums.6 Limited to the lesser of the actual premium paid or the amount per person from an age-related table that caps maximum deductible premiums. IRC Sec 7702B(a)(1) Premium deduction is effective to the extent that the deductible premium above… Continue reading
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Premium Deductibility
It’s that time of year where those of us who have less than favorable results from our income tax filing get our backsides in gear and get ready to file. Did you know, that premiums paid to fund the Continuation of Benefit Rider of a Care Solutions product may be deductible? The Health Insurance Portability… Continue reading
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Q&A – COB tax deductibility
Question: I am correct that the Continuation of Benefit Rider premium may be deductible? Answer: That is correct. Depending upon a who the premium payer is and how they file their taxes – premiums may be deductible. Our Tax Guide can address this from an individual plan to one paid for by a C-corp – it is a very useful tool for… Continue reading
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