Most people agree that a paid off a home is a cornerstone of retirement security.
But what if you pay off your home for retirement and a new bill lands in your lap in the form of unending long-term care insurance premiums?
With traditional long-term care insurance, not only are the premiums high, they are expected to be paid for life.
Click here for a FREE Guide to Hybrid Long-Term Care Insurance!
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- Long-term care insurance without the lifetime bill.
- Heirs receive money back if you don’t need care.
- Over 59-1/2 buy with your IRA.
- Simple, easy solution!
What’s more, if you don’t end up using the insurance, the money you put into the policy – often decades of costly premiums – will be lost.
But there is good news!
There is a way to solve for both the lifetime bill and the risk of losing all your premiums should you never end up needing long-term care.
If you are over the age of 59-1/2, it may even be possible for you to buy and “pay off” your long-term care insurance using funds from your IRA.
How it works…
This strategy requires the use of a hybrid long-term care insurance policy.
Hybrid long-term care insurance is an alternative to traditional long-term care insurance that combines an underlying life insurance policy or annuity with riders to cover long-term care expenses.
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- Hybrid long-term care insurance protects against long-term care expenses while simultaneously protecting insureds from the burden of a lifetime of premiums.
- If long-term care benefits are never needed, either the death benefit of the life insurance policy or the accumulated funds of the annuity can be left to heirs.
5 Easy Steps to Pay Off Your Long-Term Care Insurance.
At least one insurer has a program where annual premium withdrawals for hybrid long-term care insurance are coordinated through an IRA account.
Step 1. An individual or both spouses are covered by one policy.
Step 2. A portion of IRA account funds are “rolled over” tax-free into a qualified ten-year-certain deferred annuity.
Step 3. Each year for ten years, funds are dispersed from the annuity to pay the annual premium on a 10-year-pay hybrid long-term care policy.
Step 4. Annually, the policyholder receives notification of the reportable income amount for taxes.
Step 5. Once the ten years are up, the deferred annuity will be depleted, and no additional hybrid long-term care premiums will be due.
Simple. Easy. Problem solved.
No nagging premiums to pay until you are in your nineties or older. Plus, if you never need care, heirs get money back instead of getting nothing.
When I explained how hybrid policies work to my wife – who saw her father pay costly long-term care premiums for years before passing away without ever receiving a dime in benefits, she said,
“Why would anyone do this any other way?”
Want to see what hybrid long-term care might look like for you?
If so, there is no cost or obligation to find out.
Click here for a FREE guide to Hybrid Long-term Care Insurance.
Questions or comments?
Contact me at this link, and I will reply to you via email.
Thanks for reading and best wishes for your retirement!