Leon Mehl

For individuals who do not, for whatever reason, want to own any life insurance, there is an alternative. Since many retirees want to leverage up their assets if long-term care is needed, some insurance companies are now offering fixed indexed annuities with guaranteed* income riders that as much as double the annual income stream should the individual be permanently unable to perform 2 out of 6 Activities of Daily Living (ADL’s). ADL’s include eating, bathing, dressing, transferring, toileting, and continence. Additional eligibility requirements may be required, check carrier and state guidelines for variations.

Of all the contingencies faced in retirement, long-term care is probably the most difficult and perhaps the most costly…financially as well as emotionally. These long-term care strategies allow wise consumers to manage their money and to provide financially for such a possibility without committing to insurance premiums for coverage they hope they will never need. Since the money to do this must reside somewhere, these asset-based long-term care products and fixed annuities with enhanced income features may offer a financially attractive option.