Long-term care insurance (LTC) is equally important – a 65-year old couple today has a significant chance that one of them will live until age 90. Naturally, with advanced age comes a greater chance that a person will become disabled and unable to complete their daily activities, making LTC one of today’s most important financial planning tools. Like life insurance, however, some clients may not realize this until it is too late to get an affordable policy.
Many annuities offer a stop-gap measure that can assist in this scenario. The income options available on a wide variety of indexed annuity products often feature a “doubler” that will trigger in the event that the client needs extended medical care and increase the available income stream to help cope with the cost. Unlike a dedicated long term care policy, this option involves no underwriting, and in most cases only requires a statement from a physician certifying that the client is unable to perform a certain number of activities on their own. Like the death benefit option, this has some limitations as compared to a dedicated long term care policy, but can be a lifesaver for the client who has realized too late the need to plan for this eventuality.
Naturally, the primary use for annuities should be the one they are designed for: guaranteed income. However, part of being a skilled insurance professional is knowing when a tool can be effectively used for something other than its stated purpose. Check out these and some of the other options available in annuity contracts the next time you have a need you can’t seem to meet.
Coming into the business almost straight out of school gives him a unique perspective on annuities and the benefits they can offer to clients, without some of the existing biases that tend to be prevalent in the industry. He aims to bring that perspective to as many as possible in order to help more people secure the income they need later in life.
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