The passage of the Pension Protection Act of 2006 (PPA) opened the door for "hybrid" annuity/long-term care insurance products.
Under a hybrid annuity, the two sources of cash used to pay long-term care costs are the annuity cash value and an independent long-term care insurance benefit. Although both sources of cash are available to the contract owner requiring covered long-term care, the point at which the independent long-term care insurance benefit commences depends upon the hybrid product's design.
These products deliver long-term care benefits and/or tax-deferred accumulations of cash value for retirement income, if long-term care is not needed.
Contact us today to explore your options to plan for long-term care utilizing a "hybrid" annuity/long-term care strategy.