Here’s an example of a fixed indexed annuity with a confinement care rider attached to the policy as an added benefit:
A male age 65 places $100,000 in this type of annuity with a long-term care/lifetime income rider (attached benefit) that contractually grows at 7.2% annually during the deferral years, and that amount can be used for income/long term care.
He defers for ten years, and then turns on the lifetime income stream. The initial $100,000 has contractually grown to $200,000, and at age 75 produces a lifetime income stream of $13,000 per year.
This payment is based on the age you start taking income and your life expectancy. In this case, that actuarial payout was 6.5% of $200,000…or $13,000 per year for life.
The long-term care/confinement care benefit attached would double the income stream for life. So instead of receiving $13,000 per year, you would receive $26,000 per year.
Another good feature of this product is that it is “guaranteed issue” and doesn’t require any medical tests or doctor visits.
If you are planning your retirement and need advice about strategies like the one above, or need to reduce your health care plan cost, contact us at
New York 716-565-1300