Do you see the need for Long Term Care insurance but due to certain health conditions you cannot qualify for coverage? 

Or,with a 50% - 65% chance that you won’t ever need long-term care services, have you chosen to self-insure rather than pay insurance premiums? 

If you answered yes to either of the above, you may want to look at other choices than a traditional Long-Term Care insurance policy.  A recent new provision in the Pension Protection Act changed the way interest is paid out under certain qualifying accounts, and it made withdrawals tax-free if you use the funds for long-term care expenditures.    

Through a qualifying single-premium deferred annuity (funded with after-tax money), you not only receive tax-deferred growth on your interest earnings, but if you use this fund for long-term care expenses (if unable to perform 2 of 6 Activities of Daily Living), the earned interest becomes tax-free!   

There are two different interest earning rates for this type of annuity; one for your annuity accumulated cash value account and a higher interest rate is applied to funds withdrawn for long-term care purposes. 

Underwriting includes only a phone interview.  If you need to access this money (the stated monthly long-term care percentage amount) for long-term care expenses before the contract ends, no surrender charges apply.  And if you end up never needing to cover long-term care expenses, upon your death your named beneficiary will receive the balance of your cash accumulated fund.    

If you attach a “Rider” to the annuity contract (a premium will apply), the insurance company will continue to pay out a monthly amount for a stated period of time (usually 3 or 4 years, or a lifetime) for long-term care expenses.  Because the initial long-term care benefits are paid from the Insured’s own annuity funds, the premiums are considerably less than traditional long-term care insurance providing the same amount of coverage.  

You can now leverage your assets for an emergency healthcare crisis while allowing your dollars to grow at the same time.  With these dual purpose products, you can receive all the benefits of an annuity and an opportunity to utilize funds for qualifying care at home, in assisted living, or in a facility.