Annuities with Long Term Care Benefits
The Money Man answers your questions about annuities with long term care benefits.
What Are Annuities with Long-Term Care Benefits?
An annuity with long-term care benefits is a place where you can keep your money that will earn gains that can be used tax-free for long term care.
Who are Annuities with Long-Term Care Benefits For?
These annuities are really for anyone. Long-term care is important for everyone. Think of it like car insurance or homeowners insurance. You don’t want to have to use it, but it is extremely important should something happen.
Interested in Annuities with Long-Term Care Benefits?
Benefits of Annuities with Lont-Term Care Benefits
Peace of Mind
Watch a Brief Video from The Safe Money Man
Today we are talking about an annuity that has long-term care benefits. Do you own insurance on your car, your, house, your life, or your health? Most of us do because we want to transfer the risk of loss to an insurance company. That’s why we have insurance, we have a problem. About 70% of the people over age 65 will need some form of long term care in their life. The cost of care in Texas at this time for a semi private room in a nursing home is about $50,000 a year. That’s a lot of money! Most people over the age of 65 simply have not purchased long-term care insurance. Why? Most people will tell you it’s because of the cost. They have looked around and priced it and they know it’s very expensive, which is very true. Another reason people don’t have long-term care insurance is they believe if they don’t ever use it, they will lose it. That is true, but the same is true for homeowners insurance or car insurance. For whatever reason, people view long-term care insurance differently. Many husbands think they don’t need long-term care insurance because they think their wives will take care of them, but caring for someone 24/7 can get very physically and emotionally taxing. In effect, you are self insuring if you don’t have long-term care insurance. It is okay to self insure; there just may be a better option.
Do you have money parked somewhere, maybe in a low yielding bank account or brokerage account, even an old annuity? You probably don’t need that money or the interest from that money to live on. What if we move that money, say $100,000, to an annuity with long-term care benefits? That $100,000 now becomes $300,000 for long-term care. Now you have tripled your money for long-term care by moving it to an annuity with long-term care benefits. Any money that comes out of this new annuity comes out tax free. If you die without ever needing long-term care, the account value will go to your beneficiary.
Not everyone is eligible for this kind of annuity. You will need to answer a few health questions to see if you pass the initial underwriting review. There may also be a phone call by a nurse, but that is the extent of the underwriting. If you are interested in annuities with long-term care benefits, be sure to give me a call or send me an email.