Have clients over 70 sitting on nonqualified assets but can’t qualify — or don’t want to pay — for traditional LTC insurance? You’ve got a powerful option: Hybrid Long-Term Care Annuities.
The LTC Catch-22
The fastest-growing population segment is adults 85+, yet most aren’t financially prepared for a long-term care event. Traditional LTC insurance is often too expensive, too hard to qualify for, or simply rejected by clients who assume they’ll never need it.
But here’s the win: many of these same clients do have nonqualified assets they don’t plan to touch. That’s where you come in.
Turn Idle Assets into Tax-Free LTC Benefits
Nonqualified annuities offer tax-deferred growth—great for retirement, but painful if liquidated for care expenses due to taxes and fees.
Thanks to the Pension Protection Act, hybrid LTC annuities funded with nonqualified dollars allow clients to access LTC benefits tax-free. No penalties. No income tax hit. And if LTC isn’t needed? The remaining value goes to their beneficiaries.
Why Agents Should Act Now
- Simplified underwriting – ideal for clients who can’t qualify for traditional LTC.
- No “use it or lose it” – funds not used for care pass to heirs.
- Urgency matters – the older the client, the more difficult approval becomes.
Don’t let these opportunities sit idle. Contact your LTC Specialists today to help your clients turn dormant assets into living benefits.