Don’t ignore the need to plan for your longevity.
With the costs of long-term care services rising, it is important to consider the financial costs and burdens of aging.
An easy way to fund a plan and protect retirement savings is with old annuities or life insurance policies with cash value. This affordable option can reduce the burdens that are placed on family members.
Matt McCann, a nationally known expert on Long-Term Care Insurance and planning, says these annuities or life insurance policies can be transferred into an affordable LTC Insurance plan without a tax-event occurring in the process.
“People have old annuities which they will not need for retirement income. These policies have grown over the years tax deferred. You can do what is called a 1035 tax-free exchange and roll the money in that plan into a single premium LTC policy which will provide you with tax-free long-term care benefit. The same exchange can be made if you have enough cash value in an old life insurance policy you no longer need,” McCann said.
The Pension Protection Act 2006 allows you to use the money in these plans to pay for LTC Insurance premium without it being considered a taxable event. Generally, you want to use only non-qualified money to transfer into a single premium LTC policy.
According to McCann, the exchange surrender value – principal and tax-deferred gains – of a life insurance or annuity contract for an LTC policy will provide tax-free benefits when you require care services.
“Long-Term Care Insurance is an easy and affordable way to safeguard assets and reduce the burden on family members. With a 1035 tax-free exchange you get a fully paid-up LTC policy with all benefits coming out tax-free. No annual premiums. No tax implications as you take the money out for care,” McCann explained.
McCann says this is just one of many ways people can plan in advance for longevity and its impact on your savings and lifestyle. He assists people nationwide using his unique process where they speak with him on the phone while seeing his computer screen on their computer. He works with all the major companies in Long-Term Care. He recommends these reference websites for research:
LTC News offers articles and resources: www.ltcnews.com
US Department of Health and Human Services: https://longtermcare.acl.gov/
Free Long-Term Care Insurance Quotes: https://mccannltc.net/free-quotes
McCann’s website also features numerous resources, so consumers can learn more about long-term care planning.