Senior couple laying on couch with feet in air

Do you have assets earmarked for this retirement expense?

Long-term care costs can be unpredictable …

  • Women need care longer than men (3.7 years vs 2.2 years).
  • Nearly 70% of people turning age 65 today will need some form of long-term care services in their lifetime.
  • Costs vary widely by where care is delivered, ranging from $74 per day (on average) for an adult day healthcare center to $290 a day (on average) for a private room in a nursing home.

 

Hybrid long-term care annuities can be part of the solution …

Key Benefits:

  • Leverage your investment by as much as 300% to provide for a larger pool of long-term care assets
  • Tax-free withdrawals for your qualified long-term care expenses
  • Any remaining contract cash value goes to your beneficiaries
  • Ability to repurpose existing annuity assets to provide long-term care coverage

Contact your Stifel Financial Advisor to review your existing annuities as part of your long-term care plan.

Important Information

  • Neither Stifel nor its representatives provide legal or tax advice. For answers to specific questions and before making any decisions, please consult a qualified attorney and tax advisor.
  • Annuities are tax-deferred insurance contracts designed for retirement. They can allow you to create a fixed stream of income through a process called annuitization and also provide a fixed rate of return based on the terms of the contract. Fixed life insurance is not an investment, retirement account, or savings account and should only be purchased by individuals that have a need to provide a death benefit to protect others with insurable interests in their lives against financial loss. Life insurance requires medical underwriting, the cash values of a policy are not considered liquid, and cash value policy loans are taxable if the policy is surrendered or terminates before the insured’s death and the cash value exceeds the policy’s cost basis.
  • Long-term care annuities and insurance policies both have limitations and may not be available in all states. If you own an annuity and decide to take an early withdrawal, or you own a life insurance policy that lapses with loans outstanding, you may face fees called surrender charges, and the loan amount becomes subject immediately to federal income tax. Additionally, if you’re not yet age 59½, you may also be required to pay an additional 10% tax penalty on top of ordinary income taxes. An annuity contract and a life insurance policy’s tax treatment ultimately depend on a variety of factors. You should also be aware that both fixed annuities and life insurance contain guarantees and protections that are subject to the issuing insurance company’s ability to pay for them.
  • Policies, contracts, and long-term care insurance riders are underwritten by the issuing insurance company. This is a solicitation of long-term care insurance. Details about the cost, benefits, limitations, and exclusions of these policies and long-term care insurance riders will be provided to you by an insurance-licensed financial representative. Optional riders will incur additional cost.
  • To be eligible to exercise the benefits on long-term care annuities and insurance policies, the insured must be deemed a chronically ill individual, with qualified long-term care services provided pursuant to a plan of care prescribed by a licensed healthcare practitioner.
  • Funding long-term care costs with annuities or life insurance may not be a suitable strategy for everyone. For example, your assets may not be sufficient to cover all of the costs associated with long-term care. In addition, long-term care insurance may provide certain protections that asset-based long-term care does not. You should consult with your Financial Advisor to determine if any particular product is right for you.

Source: All statistics for this piece sourced from the U.S. Department of Health and Human Services at www.LongTermCare.gov

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