LTC Annuities - Whats Available or Coming?

[yankee466]

It appears that there is a lot of buzz about LTC annuities for 2010 with the new tax laws permitting withdrawals with no tax consequence, but very few carriers have come up with products so far. Mutual of Omaha and One America are the only ones I know of, with GALIC and GNW no longer offering.

I am looking for a true LTC annuity ($ X 3) with relaxed UW guidelines...such as insulin diabetes ok. Anyone know of any options at this time?

 

[Mr_Ed]

It appears that there is a lot of buzz about LTC annuities for 2010 with the new tax laws permitting withdrawals with no tax consequence, but very few carriers have come up with products so far. Mutual of Omaha and One America are the only ones I know of, with GALIC and GNW no longer offering.

I am looking for a true LTC annuity ($ X 3) with relaxed UW guidelines...such as insulin diabetes ok. Anyone know of any options at this time?

Yankee,
The handful of LTC/Annuity combo products I've seen don't have particularly relaxed underwriting.

As far as insulin-dependent diabetics, there are at least a half dozen long term care insurers that can insure insulin dependent diabetics. Which of them will insure each client will depend upon the client's height/weight, amount of insulin, a1c, history of heart disease, type of heart disease, and history of tobacco use.

 

[annuityseller]

legacy insurance offers FIA"s with LTC riders

 

[yankee466]

Yankee,
The handful of LTC/Annuity combo products I've seen don't have particularly relaxed underwriting.

As far as insulin-dependent diabetics, there are at least a half dozen long term care insurers that can insure insulin dependent diabetics. Which of them will insure each client will depend upon the client's height/weight, amount of insulin, a1c, history of heart disease, type of heart disease, and history of tobacco use.

Scott? I am well aware of many LTC carriers who will take insulin dependent...even up to 100 units with MetLife when I last checked...even though their rates really are crappy for younger people looking for inflation clauses. My client is a decline AND has asked me to ONLY look into LTC annuities since he read there was no underwriting on some of them.......hence my request to see if they really exist at this time. He is also the classic LTCi "what if I die and never use it" person"...so he wants to write me a check for $100K+ and I am just trying to figure out a way to get it from him. I will look into the product the other poster mentioned.
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legacy insurance offers FIA"s with LTC riders

Is Legacy a company, agency, ??? can you provide a link or contact info. I have found lots of Legacy options to choose from. Thanks

 

[Mr_Ed]

My client is a decline AND has asked me to ONLY look into LTC annuities since he read there was no underwriting on some of them.......hence my request to see if they really exist at this time.
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Yankee,
There's no such thing as an Annuity with an LTC rider with no underwriting.

The Annuities with LTC riders just have different underwriting--just like every LTCi product has different underwriting.

 

[CALTCAgent]

Hello,

All the annuities with LTC riders that do underwriting are not "relaxed" from my experiences and some are marketed as "relaxed". I have found them to be about the same as LTC insurance. Possibly harder in some instances. There may be some "sweet spots" but I am not aware of them yet.


Thanks!

 

[yankee466]

Understand completely...so I am back to the original question of trying to find out who the players are (or will be) in the annuity market besides MoO and OneAmerica. My understanding is that 2010 will be the year of new annuity product introductions due to the tax law changes taking effect for LTC distributions.

If I can get a traditional LTC plan issued for an insulin dependent diabetic, you would wonder why MoO LTC annuity would decline ANYONE on insulin or who has been turned down for ANY reason for LTCi. When I last checked, MoO will accept an insulin diabetic under 50 units on their traditional LTCi, so it makes you wonder why they won't issue a LTC annuity to someone who can even spell insulin.

 

[Mr_Ed]

Understand completely...so I am back to the original question of trying to find out who the players are (or will be) in the annuity market besides MoO and OneAmerica. My understanding is that 2010 will be the year of new annuity product introductions due to the tax law changes taking effect for LTC distributions.

If I can get a traditional LTC plan issued for an insulin dependent diabetic, you would wonder why MoO LTC annuity would decline ANYONE on insulin or who has been turned down for ANY reason for LTCi. When I last checked, MoO will accept an insulin diabetic under 50 units on their traditional LTCi, so it makes you wonder why they won't issue a LTC annuity to someone who can even spell insulin.

That's what I meant when I said that the underwriting is different. In the case of MoO the underwriting on the LTC/Annuity product can be more restrictive than their stand-alone product.

 

[CALTCAgent]

Hello Yankee,

Did you try one america with that particular case?


Thanks!

 

[BNTRS]

What kind of money is available to fund this? There's an annuity company that will give him the ability to pay the premium on a regular LTCi prodcut and so long as there's $1 in the account when he dies it'll pay a beneficiary the entire original premium as a death benefit. It's a variable product though, so you'll need a securities license, and there's only so much money that can come out of the annuity to pay the premiums. If he has the assets it's a nice strategy.