One way this occurs is by learning about additional benefits available through annuity contracts, especially ones that protect customers from the potential risk of a long term care event that alters retirement strategies, such as asset-based Long Term Care insurance (LTCi) or linked benefit annuities.
This specific deferred annuity is a fixed interest rate product that provides leverage for up to three times the annuity value for the purpose of long term care protection. The charges come from the gross rate of return on the annuity and are very competitive when compared to the expense of traditional long term care insurance.
The nice thing about linked benefit annuities is they provide a single premium solution with both living and death benefits, avoiding the two most common objections of buying traditional long term care. A person can utilize a 1035 exchange and move their money into a linked benefit product. Another plus is the benefits for long term care, if needed, are tax-free.
What happens if someone doesn’t qualify for LTCi? The annuity industry has created alternative solutions to help these particular individuals. When a financial professional is aware of their client’s situation, they can point them in the right direction and show them that an LTCi or another option is a possibility for their future.
To read more about linked benefits, request the full article here.
This is not a comprehensive overview of all the relevant features and benefits. Be sure to review all of the material details about these products before making specific recommendations to consumers.
This document is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney.