The Power Of The Pension Protection Act

 

For people who realize that if they want both quality care and financial security as they age, they need to do something now. The following example is taken from an actual client case file.

Client and their planning concern:   Couple; wife’s age 65 & husband’s age 70. They are rightfully concerned with the emotional and financial impact an ongoing care need would have on their family.  They are financially secure and have a comfortable retirement nest egg.

Problem:  Although they are active and relatively healthy, due to common medical issues for their age group, neither can medically qualify to purchase a traditional long term care insurance policy.  In addition, he has a strong aversion to the insurance company’s right to increase premiums in the future on these types of plans.  This aversion has caused them to not secure this insurance in the past when they could have qualified at a much lower premium.

Solution:  Leveraging their available funds. Our clients transferred $150,000 into a special LTC program called: A Pension Protection Act Qualified LTC Annuity (PPAQLTCA).  The medical underwriting is far more relaxed and accepts a significantly broader range of medical conditions and histories.

As A Result:  This new program provides them a minimum guaranteed benefit to pay for their Long Term Care expenses of $336,000 payable at the rate of $5,076 per month as care is needed.  Benefits may increase over time as interest is credited to the annuity.  Benefits are payable for Home Care, Assisted Living Facilities and Nursing Home.  The benefits are NOT considered income for income tax purposes.

There are many variations to this type of solution that can help people in a variety of unique circumstances.

Remember…

Do something now
So as you grow older
You will not overburden
The one you love’s shoulder…

For additional information please feel free to contact me:

Michael Teller, 561 272-0720, mteller@avaplans.com

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