Continuation of Benefit Rider
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Q&A – small cash value 1035
Question: My client has a small life insurance policy, can I use the cash value from that policy to fund the Continuation of Benefit Rider (COB) of an Asset-Care policy? Answer: Heck yeah! The Pension Protection Act allows for 10335 exchanges from life insurance and annuities into “qualified” LTC products like Asset-Care & Annuity Care. If your… Continue reading
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Funding the COB using an HSA
As a reminder, our Care Solutions Continuation of Benefit Rider (COB) is qualified LTCI. Tax-qualified LTCI are qualified medical expenses under IRC Section 213(d), and so are eligible for payment or reimbursement using tax-free Health Savings Account (HSA) distributions. Eligible premiums are the lesser of the actual premiums paid or “age-based” premiums. For a married couple, add the age-based… Continue reading
Fridays with Fisher 