There are a few niche annuity products that are built specifically for long term care (LTC), and really nothing else.
The base contract is essentially a fixed annuity so don’t expect much growth.
There is some but minimal underwriting involved so not everyone can purchase an LTC annuity.
Basically, these niche annuities double or triple your initial premium (based on minimal underwriting) to generate a tax-free long term care benefit.
Yes, tax free.
So let’s give you an example so we are clear on what I’m talking about.
Let’s take $100,000, and purchase the Global Atlantic ForeCare LTC annuity.
You qualify for a Standard rating, you’re $100K will now be worth $200,000 in tax-free long term care benefit instantly.
Now let’s say you qualify for a Premier (Preferred) rating, you’re $100,000 investment is now $300,000 in tax-free long term care benefits.
Now let me just state, the enhanced tax-free LTC benefit is not money you can walk away with.
That would be just too good to be true.
When you’re ready to exercise this enhanced benefit, you will pick out your facility (Nursing Home or Assisted Living) or your service (Home Health Care or Homemaker Services).
You will pay for the facility or service upfront, and submit receipts to the insurance company to be reimbursed.
Whatever your benefit equates to will be divided out over a fixed number of months.
In the previous example of $100K = $300K LTC Benefit, if your policy covers 60 months, you will receive an allowance up to $5,000 monthly for 60 months.
It’s that simple.
Getting back to the process for applying for Long Term Care Annuities.
Like Life Insurance, if you exaggerate, provide inaccurate info, or flat out lie on the health questionnaire, the annuity company will find out.
You will be declined. No other life or LTC annuity company will touch you for at least 2 years.
Just a warning.
And as always.
If you have questions, or like additional help, ask me.
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