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Q&A – tax guide
Question: Where can I go to get information tax information about the Care Solutions products? Answer: Our Tax Guide Booklet produced by the OneAmerica Advanced Sales team is a great starting point. If your scenario is more complex, we can always speak with our Advanced Sales team. In my opinion, they are outstanding! Continue reading
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1035 Exchange & Deferred Annuities
The Pension Protection Act of 2010 created the opportunity to 1035 exchange life insurance or non-qualified deferred annuity proceeds into “qualified” long term care products like Asset-Care & Annuity Care. A 1035 exchange provides a powerful way to re-purpose an existing policy (with gain) into a long term care solution. Think of it this way… Continue reading
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1035 Exchanges
The current arena of linked benefit/asset based/hybrid LTC has roots going back almost 30 years when the Golden Rule Company (now OneAmerica) introduced Asset Care as a single premium product. Asset-Care offers more funding options than any of our peers including recurring premiums (10 pay, 20 pay, or “whole life”) as well as single premium… Continue reading
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Q&A – tax free annuity for LTC
Question: Can a “regular” deferred annuity have withdrawals made from it for LTC expenses, and have those withdrawals treated as tax-free distributions under the PPA? Answer: Every written interpretation indicates that an annuity policy must include the language which makes it qualifying LTC insurance under IRC Section 7702B to allow for withdrawals used for LTC expenses or… Continue reading
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PPA Adds Value to Annuities
Consider this scenario – an individual holds a traditional deferred annuity (fixed, index, or variable) with an account value of $400,000 and a basis of $200,000. If withdrawals are made from this annuity from this annuity (LTC expenses included), the $200,000 of gain will be taxed first as ordinary income. If, however, the annuity was… Continue reading
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Pension Protection Act Basics
The Pension Protection Act, also known as Public Law 109-280, is a wide-ranging piece of legislation that was signed into law August 17, 2006. While the majority of it deals with changes and reforms to pension governance, Section 844 of the act deals specifically with annuities, long-term care and new tax advantages. Since January 1,… Continue reading
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Q&A – 1035 exchanges
Question: Is there any third party information available about using existing life insurance or annuity policies to fund a Care Solutions policy? Answer: Yes. The piece that I like the most is produced by the American Association for Long Term Care Insurance. The booklet, entitled Guide LTC Planning Using 1035 Exchanges. I encourage you to take a look at… Continue reading
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Great Retirement Income Gap
This is something that I often say, in Fridays with Fisher releases and during meetings, “there are two plans – default and decision. And, every plan is always fully funded by default.” What’s this mean? Simply, that the default plan – which is no really plan but a reaction to an illness or injury that… Continue reading
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Have a Plan
In 1990, I was 25 years old and working as the general manager for the largest independent produce distributor in New Hampshire. It was a decent job that led me to a dead-end. Where could I go in this small family-owned company? The answer was obvious – nowhere. One morning, I was covering a delivery… Continue reading
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Q&A -“older” client
Question: I have a client who is 81 years old and very healthy, is Asset-Care a viable product ? Answer: We can consider Asset-Care for someone over the age of 80 if they are part of a joint policy where the joint equal age falls within the maximum age range and that person can qualify from an… Continue reading
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Asset-Care Overview
For nearly 30 years, the concept of asset-based LTC (aka linked benefit or hybrid LTC/life insurance) has existed. As a matter of fact, Asset-Care is the “grand daddy of them all”. Only one other carrier has that same legacy and commitment to the segment of the LTC market. Typically, most people think of asset-based products as a single premium… Continue reading
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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
Fridays with Fisher 
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