Does Their Annuity Have These Options?

Some existing Non-Qualified Annuities do not have a Post-Death 1035 Option that allows for 1035 Exchanges upon the death of the annuitant or a Stretch Option allowing a beneficiary to stretch distributions beyond five years.

 
Why does this matter?
Without these options, beneficiaries are forced to take the money in a lump sum or over five years. This includes having to pay all of the required taxes in the distribution year(s). 

If you have these Non-Qualified Annuities in your current book of business, approach those clients to consider moving their money to an annuity that does have the Post-Death 1035 and/or Stretch Options. 

You don't want to start a relationship with heirs by having to tell them that their only option is to take the money and pay the tax. Wouldn’t it be better to tell them they also have the option of rolling it over or stretching it out?

Life Insurance Can Help Pay for Long-Term Care Needs

Medicare, Medicaid and other retiree health plans typically will not cover the expense of long-term care (LTC). It’s important to talk to your clients and assess their LTC needs, so that together you can create a financial plan to help prepare them for the costs they may face. For clients with a life insurance need, consider a life insurance policy with an LTC Rider.

Take advantage of Long-Term Care Awareness month to talk to your clients about their plans for handling an LTC event. Many people wait too long before discussing their LTC preferences and options and risk having to make decisions quickly and under the duress of an immediate need. Show them how an LTC rider can help them alleviate the potential financial, emotional, and physical burden that they and their loved ones could face if such need arises.

The subject of  LTC can make many people uncomfortable because it is equated with a nursing home. However, having the LTC conversation allows families to get on the same page regarding who will provide care, where care will be provided and how it will be paid for. Waiting until an LTC event occurs to force the issue often results in limited options.

Asking “What if?” questions is a great way to get the conversation started and encourages them to think ahead about what LTC actually involves. For most, LTC will begin at home with the help provided by family members and friends. At some point, care can progress to options outside of the home.

In a recent study by the AARP Policy Institute, half of caregivers reported they had no choice in taking on their care giving responsibilities. Proper planning can help ensure that your client's retain the power of choice in an LTC scenario. It’s especially important for couples to anticipate the cost of care for an ailing partner and preserve options for the surviving spouse’s continued living expenses and LTC needs.

LTC planning shares similarities with many other client needs you already address. Starting the conversation early allows for better options to your clients, which leads to more satisfaction and referrals.