Retirees Rick and Sherry’s experience with long-term care.

Life Insurance and Annuities

Rick and Sherry have worked hard their entire lives and raised four children, and at ages 68 and 62, respectively, they are looking forward to enjoying retirement. They have mapped out the first 10 years of their retirement and all of the activities they plan to do. According to their plans, Rick and Sherry think they have enough assets to comfortably retire with $650,000 in total retirement assets:

  • $500,000 of retirement assets 401(k), stocks, bonds, and savings
  • $150,000 fixed annuity
  • No debt

However, five years into retirement, Rick starts forgetting things. After multiple doctor visits, he’s diagnosed with Alzheimer’s Disease. He wishes to avoid being placed in a nursing home. Sherry agrees and with the help of family, friends, and home health aides, Rick lives for another 10 years. Besides the obvious emotional toll on Sherry, the financial toll on her remaining assets was extensive:

  • Sherry spent $580,000 of their retirement assets on in-home health care for Rick.
  • Sherry is left with only $70,000 of their total retirement savings after Rick’s health expenses.
  • If Sherry, now age 77, lives for an additional 20 years, she faces a difficult situation.

Could Rick and Sherry have done more?

Let’s see what would have happened if they had used a ForeCare fixed annuity:

  • If Rick and Sherry had taken $150,000 and placed that money instead in a ForeCare fixed annuity, they would have automatically doubled the long-term care coverage available with their contract value to $300,000 for qualified long-term
    care expenses upon approval.
  • But they might instead be approved to triple the long-term care coverage available with their contract value to $450,000 for qualified long-term care expenses.
  • With $450,000 available for qualified long-term care expenses. Rick and Sherry would not have needed to spend as much of their retirement assets on Rick’s medical care, as the ForeCare coverage would cover much of his qualified
    long-term care expenses.
  • In fact, Rick and Sherry could take as much as $5,000 per month in qualified benefits per insured, for ForeCare Premier with joint life coverage. With one insured receiving benefits, this would last 90 months. If both were receiving care the total amount of benefits would be the same but would pay out more quickly.
  • If Rick and Sherry had a ForeCare Premier benefit of $450,000, and spent $580,000 on Rick’s medical care, she’d have $370,000 of remaining retirement assets.

Source: Global Atlantic Financial Group

http://dfs-marketing.com/insurance/annuity/fixed-annuity-long-term-care-benefits

http://myretirementsaving.com

Do you want More Care?

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Double or triple your amount available for long-term care coverage.

ForeCare helps your assets work harder for you. These unique benefits help maximize the amount available to you for long-term care coverage, providing you with the confidence of knowing you’re covered when you need it. Get more care with ForeCare:

  • Receive double the amount of the contract value for qualified long-term care expenses with standard approval.
  • Receive triple the amount of the contract value for qualified long-term care expenses with premier approval. The long-term care coverage includes the use of your contract value, meaning that you first must exhaust your contract value before you can use the additional ForeCare LTC benefits.

Here’s how you can get more care with ForeCare

On January 1, 2010, the Pension Protection Act’s (PPA) long-term care benefits took effect. Before the PPA, you had to pay taxes on the growth inside of your annuity before paying long-term care expenses. But now, you can use those tax-deferred dollars to pay for qualified long-term care expenses, typically federal income tax-free.
For example, if you invest $150,000 in a ForeCare fixed annuity, you receive $300,000 available for long-term care expenses with standard approval. But you could also triple your amount with premier approval, thereby receiving $450,000 for qualified long-term care expenses. And when you use ForeCare to pay for qualified long-term care expenses, it’s typically federal income tax-free.

 

ForeCare Highlights

  • 2x/3x contract value for qualified long-term care expenses
  • Principal protection
  • Tax-deferred growth
  • Typically federal income tax-free dollars for qualified long-term care expenses
  • Guaranteed minimum interest rate
  • Contract value is passed on to beneficiaries

 

 

 

Call us at 844-585-2157 to talk to one of our financial professionals and book your free consultation

Benefits of a ForeCare fixed annuity

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You may have money set aside in savings or investments to self-fund your long-term care costs, but you may sacrifice growth opportunities or risk exposure to equity market volatility. Many people turn to traditional long term care insurance; however, if you do not use the coverage, you lose the money and it can be quite costly.

What you need is a strategy that:

  • Offers growth potential
  • Maximizes your long-term care dollars
  • Allows you to pass on unused funds to your beneficiaries

You need ForeCare, an innovative fixed annuity with long-term care benefits that provides a multiple of your contract value for qualified long-term care expenses.

Because ForeCare is a fixed annuity you can participate in both protection and accumulation benefits:

  • The interest crediting is guaranteed to never drop below 1%
  • The growth of your contract value is tax-deferred
  • You don’t risk equity exposure

Unlike a traditional long-term care product, with ForeCare any contract value not used for long-term care expenses can be passed to your beneficiaries as a death benefit. However, there is a monthly cost associated with the long-term care benefits rider, which is based on the insured’s issue age.

ForeCare also offers other unique benefits.

 

  • Principal protection – Your contract value at monthend is never reduced below the contract value at the prior month-end (less any applicable withdrawals) due to the cost for the long-term care benefits rider.
  • Tax advantages – Qualified long-term care withdrawals are typically federal income tax-free and your contract growth is tax-deferred.
  • 2x/3x coverage – Provides double or triple the amount of the contract value for qualified long-term care expenses.