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Annuity With Long Term Care Benefits
A popular alternative to standard LTC insurance and refered to as a linked benefit product.
Are you looking for a way to leverage your investments to include protection from the risk of expensive long term care?
Have you been turned down (declined) for long term care insurance or does you health prevent you from applying for long term care insurance?
If you answered yes may want to consider an alternative to spending down your own nest egg to pay for long term care.
There are two types of annuities with long term care benefits. One requires health underwriting and one does not. Both are single premium fixed annuities with a long term care rider designed to cover long term care expenses. There is also a Universal Life insurance policy with long term care benefits (underwriting required), more information here.
The annuity with no underwriting provides access to long term care benefits without depleting your principal, you avoid invasive medical questions, and you can pay for in-home care.
Both annuities will provide you with financial security and long term care peace of mind with extended care protection. The annuity with underwriting will have better leverage (benefits) than the annuity without underwriting, but if you cannot health-qualify your only choice is the annuity without underwriting.
Q: What has changed since the Pension Protection Act?
A: Read about these changes here. (new window)
Q: But aren't annuities risky?
A: Not fixed annuities, they are similar to your bank's CDs, and no one has lost money on a fixed annuity. In fact they may pay a higher rate than your CD and Money Market account.
Q: How does this work?
A: Most clients simply reposition money from an existing CD, Money Market or Savings Account. When you need long term care you will have 36 months of long term care benefits available with the no-underwriting annuity. With the underwritten annuity you have the choice of longer benefits. The long term care money account is separate from your annuity money, your long term care benefits increase as does your annuity.
Q: What happens to the annuity?
A: It just keeps growing. You can take up to 10% out per year without any surrender fee, after the deferral period that you can take as much as you want out, for any reason, you could even pay for long term care expenses if your care extended past the term that the rider covers. If you should die at any time the annuity money (less any withdraws) goes to your beneficiaries.
Q: Can I use my IRA money or one of my old 401k's to fund the annuity?
A: These deferred annuities with LTC are cash accounts so you would have to withdraw the money to fund the annuity from the 401k/IRA, which may have withdraw penalties or tax consequences. Check with your retirement plan manager.
Click for Qualified vs Nonqualified Money (new window)
Q: I have an existing annuity can I do a 1035 exchange
A: Yes, it would be simply a rollover to a secure account that has the long term care rider.
Q: Can the owner of the annuity and the annuitant be a different person?
A: Yes, in fact boomers are buying this for their parents who are either uninsurable or long term care insurance is just too expensive because of their parents age.
Q: How much is the long term care benefit?
A: It depends on the type of annuity, whether it has underwriting, how much you put in the annuity and your age when you start the annuity.
Q: Is this available to anyone, everywhere?
A: The rider is available for those who have not needed or received care service within one year prior to the starting date. Not all products are available in all states.
Check with us about current availablilty.
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Annuity/LTC – Health Underwriting Required – State availablity
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| AL, AK, AZ, AR, CA, CO, DE, DC, GA, ID, IL, IN, IA, KY, LA, ME, MI, MN, MO, MT, NE, NV, NM, NC, ND, OK, RI, SC, SD, TN, TX VA, WV, WI, WY |
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Annuity/LTC – Health Underwriting NOT Required – State availablity*
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| AR, AZ, CO, DC, DE, GA, IA, ID, IL, IN, LA, MD, MI, MS, MT, NC, NE, NM, NV, OH, OK, PA, SC, WV, WY |
(*Available in non participating states by using disclosure letter.)
Q: How do I find out if this is right for me?
A: Thousands of Americans just like you have decided to protect their nest egg and have long term care benefits with our annuity. Call us, email us or fill out our online form and one of our licensed specialists will answer all your questions.
Call Toll Free: 1-888-582-2464
Monday - Saturday 9-6 PST
Click Here To Get An Annuity With LTC Benefits Quote
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