Evidence continues to accumulate in favor of including the right kinds of annuities in your portfolio. Annuities have a bad rap in much of the financial media. Some of that’s deserved, because there are annuities that are complicated, charge high fees and have a lot of restrictions. There also are annuities that are sold to the wrong people. The right annuity, however, will increase your financial security and portfolio returns.
Traditional long-term care insurance might be dying, but there are other, and probably better, ways to protect your family and assets from the potentially onerous costs of long-term care.
In 2017, only 66,000 traditional longterm care (LTC policies) were sold. That’s 10% of the number sold 20 years earlier. Steep premium increases on existing policies are the main reason traditional LTC insurance is in decline. In August, regulators in 22 states approved another 58% increase in premiums on some existing Genworth policies. That follows 28% increases in each of the last two years. Other insurers have had significant increases approved in recent years.
No one can predict a long-term-care medical event. But if it does happen, here is something to consider: An IRS-approved investment vehicle that lets you pre-pay (tax-free) for long-term care expenses… and can reduce your long-term-care expenses by up to a whopping 90%.