Meet Bob.

Bob is a recently widowed, retired business owner.

  • Adult children live out-of-town
  • Cares deeply about remaining in his own home
  • Never wants to go in to a Nursing Home
  • Wants to remain in control of his Assets
  • Health concerns – diabetes with history of heart disease (turned down by traditional LTC insurance companies)

Bob’s Assets.

Monthly Income ………….. $2,300
Monthly Expenses ………….. $2,000
Money Market (proceeds from sale of his business) …… $300,000
Checking …………………….. $37,000
Tax Deferred Annuity ………………. $200,000
Original Deposit …………………. $100,000
Taxable Gain ………….. $100,000

By transitioning their money…

$8,313/month benefit are paid TAX-FREE for:

Home Health Care

Assisted Living

Skilled Care


Sale of Business




Original Investment


Fixed Annuity




Fixed Annuity

Tax-Free Exchange


Annuity (Pension Protection Act)

The Benefits

  • All benefits come out of this contract tax free for long term care via the Pension Protection Act.*
  • The PPA allows the cash value of annuity contracts to be used to pay premiums for long term care contracts. The payment of premiums in this manner will reduce the cost basis of the annuity contract. In addition, the Act allows the purchase of an annuity contract with such a rider to utilize a tax-free transfer under Section 1035 of the Internal Revenue Code of 1986.
  • This works well for individuals that have annuities with a low cost basis or who are not in the best of health. Max issue age 80 years and 11 months (attained age no back-dating).
  • Minimum Single Premium: $10,000 (may vary by state)
  • LTC Withdrawals: Inability to perform 2 out of 6 ADLs or cognitive impairment 90-day elimination
  • LTC withdrawal Method: Can choose reimbursement or indemnity. Must be chosen at contract issue.
  • Underwriting – about 10 health questions, followed by MIB, script check and a telephone interview which primarily consists of a cognitive screening. Underwritten for morbidity.
  • Can do joint insureds, must be legal spouses, both insureds need to be insurable as stated above.
  • Product Features – Internal charges support the LTC leveraging effect in this policy. With current low interest rates account value does decline slowly over time in some cases. This is a protection play not an accumulation play.

*The Pension Protection Act permits tax free distribution or fixed insurance products to fund qualified long-term care plans. Please call (800)-800-6004 o request a copy. We are not endorsed by any government agency.

Schedule an appointment today!