It’s imperative that we continue to look for alternate ways to manage the long-term care (LTC) risk, and that’s how I’ve been spending much of my time.
For example, I’m looking at a number of annuities that provide long-term care benefits. Why annuities? Because underwriting for traditional LTC insurance has become rather challenging. For those of you who don’t know, “underwriting” is the process an insurance company uses to determine if a person’s health is good enough to allow that person to have a policy.
With long-term care insurance, it is especially challenging to insure people with progressive conditions like diabetes with complications, multiple joint replacements, stroke survivors, or people who are weight-challenged. So I am looking at annuities with limited or no health questions with some exciting results. Some in particular allow the annuitant to enjoy extraordinary market growth with no risk of loss. After I’ve sold a few more of these, I’ll share that information with you.
In the meantime, here is an example of how the OneAmerica Annuity Care II product works, a product that requires limited health questions to qualify. This example is for a person who is able to self-fund about half of her LTC needs.
In a nutshell, this 70 year old lady leveraged her $100,000 3 to 1 immediately and 6 to 1 in 15 years.
Now, as good as this sounds, she would want to look at her other resources and make sure she can truly afford to self-insure the difference between the benefit and the cost of care in 15 years, which in most parts of the country will be about $13,500 a month.
This product is available for applicants up to age 80 but once you have it you can keep it forever, just like long-term care insurance. Since there are limited health questions on this product, it is a little easier to get than a traditional long-term care insurance policy. Unlike traditional long-term care insurance however, the annuity account value can be passed on to a beneficiary if the policyholder doesn’t need long-term care. Click here for a product brochure. Annuity Care 2 – Client Brochure