Age 75 to 85; has $150,000 from a large build up in a Non-Qualified Annuity not subject to surrender charges or money from a CD; views proceeds as lazy or emergency money.
The situation
Client is concerned about efficiently funding an extended health care or Long-Term Care (LTC) event. Has already identified assets to use but wants preservation of their capital, a reasonable rate of return and access and control over their money if they need it. The agent’s current BD doesn’t allow sale of Indexed Annuities.
A solution
To address the specific concerns of the client, a 1035 transfer to Annuity Care, base policy only, may be a possible solution.
This solution offers the client on $150,000:
• The ability to access gains tax-free for extended care or LTC events
• A 34.8% tax-free income stream for 36 months ($4,348 a month) for qualifying LTC expenses
• Can add a spouse or other insured giving both access to the full monthly benefit
• Retain access and control over the assets just like in their current annuity
• No medical underwriting or cognitive phone interview for base policy only
• Ability to add a rider doubling pool of assets or lifetime coverage (requires cognitive phone interview)