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According to a February 2021 Barron’s article, there will be 60% more elderly population by 2030. That’s less than a decade away, which means now could be the time to talk about care planning.<\/p>\nAccording to a February 2021 Barron’s article, there will be 60% more elderly population by 2030. That’s less than a decade away, which means now could be the time to talk about care planning.<\/p>\n
If you’re an annuity owner, chances are you’re either part of the 79% that see it as a resource to avoid being a financial burden to your children or part of the 73% that see it as an emergency fund in case of catastrophic illness or nursing home care.<\/p>\n
Whichever way you see it, it’s safe to say that your annuity assets are just sitting around, waiting to be used. Much like a “rainy-day\u201d fund.<\/p>\n
Why not help give new life to these old contracts? With the Pension Protection Act of 2006, individuals can use proceeds from some annuities potentially tax-free to pay long-term care insurance premiums. This option means you may be holding a product that can bring about triple\u00a0tax advantages. Simply repositioning certain non-qualified annuities can provide three efficiencies: tax-free transfer, tax deferrals, and tax-free distributions for qualified long-term care (LTC) expenses.<\/p>\n
These tax efficiencies, which many people love, can do more with your money or even provide lifetime benefits for LTC (depending on the carrier). And in many cases, if you don’t use it, the remaining annuity value goes to your beneficiary. Think about what this could mean for your financial situation!<\/p>\n