Skip to content
  • Contracting
  • Quotes
  • New Business
    • Case Status
    • iGO-e-app
    • Drop Ticket
    • Medicare Supplement New Business Submission
    • Forms
    • Secure File Sharing Service
    • Underwriting
      • Accelerated Underwriting Guide
      • Nailba Field Underwriting Guide
      • Underwriting Requirements
      • XRAE
  • Incentives
    • 2022 Trips
    • 2021 Trips
    • Carrier Trips
      • Columbus Life – 2022 Palm Beach St Thomas
    • Account Summary
    • Shared Success
    • Cash In on Your Success
    • Standings – See Where You Rank
    • Agent Referral Bonus
  • Social Media
  • Services
    • Advanced Life Case-Design Specialist
    • Blog
    • Branding
    • Email Marketing & Newsletters
    • Website Hosting
  • Login
Presented by David Corwin The Need: Let’s say you have evaluated the possibility that you will need long-term care at some point in the future and concluded that purchasing long-term care insurance to cover at least a portion of long-term care costs might make sense in your situation. You are, however, concerned about paying premiums for insurance coverage that you may never need. Alternatively, you may have several needs competing for the dollars you have available to invest.  A Possible Solution: You may be interested in a newer generation of long-term care insurance that blends several types of insurance coverage in a single contract. These “hybrid LTC” policies, also known as asset-based plans, combine the benefits of an annuity with the availability of long-term care benefits should you need them in the future.  Annuity/LTC Hybrid Plan: With an annuity/long-term care plan, you purchase a single premium deferred annuity, usually with a lump sum deposit. You choose the amount of long-term care coverage you want (generally 200% or 300% of the amount of your lump sum deposit) and how long you want the coverage to last (usually two to six years). You must also decide if you want to include inflation coverage for the long-term care benefit. If you never need long-term care services, the annuity can be redeemed for its accumulated value at its maturity date, or it can be left to accumulate at interest and the long-term care benefits will remain available. When you die, your beneficiaries may inherit all or some of the accumulated annuity value, depending on any long term care benefits paid during your lifetime.  Assuming you have the liquid assets available to purchase a single premium deferred annuity, your financial advisor can assist you in designing an annuity/LTC hybrid plan that fully funds at least a portion of future long-term care expenses through an annuity that  has the potential to increase in value for the future benefit of you or your heirs.  Taxation of LTC Hybrid Plans: New tax rules that went into effect on January 1, 2010 clarified the taxation of LTC hybrid plans, including:
  • Tax-Free Payment of Long-Term Care Benefits: The cost of any long-term care benefits charged against the cash value of an annuity contract will not be includible in gross income, but will reduce your investment in the contract.
  • Tax-Free Exchanges of Existing Annuity Contracts: If you have an existing annuity contract that you do not need for other purposes, you can exchange it on a tax-free basis for an LTC hybrid plan. Tax-free Section 1035 exchange requirements can be complex. In order to avoid unforeseen and/or negative tax consequences, you should seek professional tax advice before implementing a Section 1035 exchange.
Beating a Sales Slump
Waiver of Premium for Unemployment

Recent Posts

  • Increase to Face Amount Limit for PL Promise GUL as of September 21, 2020
  • Sales Idea – Prospecting in a Pandemic
  • COVID-19 Underwriting Opportunities
  • Sales Idea – What if healthcare was built into your retirement plan?
  • 20% More Coverage For The Same Price?

Archives

  • September 2020
  • August 2020
  • December 2019
  • November 2019
  • October 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012

Categories

  • Advertisement
  • Announcement
  • Annuities
  • Annuity
  • AUM
  • Brookstone Capital Management
  • Bulletins
  • DI
  • Disability
  • General
  • Incentive
  • Key Person Life Insurance
  • Life
  • Life Insurance
  • Long Term Care
  • Long Term Care and Disability Insurance
  • LTC
  • Medicare
  • Newsletter
  • Pension Planning
  • Product Change
  • Rate Change
  • RIA
  • Sales & Marketing
  • Sales Ideas
  • Technology
  • Training
  • Uncategorized
  • Webinar

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
Financial Brokerage logo
  • 402-697-9998
  • 800-397-9999
  • 17110 Marcy Street, Suite 100
  • Omaha, NE 68118
  • About Us
  • Privacy Policy
  • Blog
  • Change Password
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • All rights reserved ©2020 Financial Brokerage, Inc.
  • For agent use only. Not for public distribution.
Theme by Colorlib Powered by WordPress