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Fixed Index Annuities with Long Term Care Protection

Figuring out the best time to buy LTC insurance is a tricky question. It really comes down to your preferences and finances. Like any kind of life insurance or health insurance, LTC insurance premiums increase with age. So buying LTC coverage when you're younger would yield the best rates, but one has to consider how much money is going towards premium for all of those years before the insurance is even needed.

The annual premium for long term care insurance has increased almost 50% over the last 5 years. So, a great way to reduce your LTC premium costs is to purchase a Fixed Index Annuity with Long Term Care Protection.

One product that we work with includes a valuable feature that guarantees a higher guaranteed income stream while impaired and the account value is more than zero. If you are a single annuitant, the guaranteed withdrawal payment will be 2 times the standard guaranteed withdrawal payment. If you are joint annuitants, the guaranteed withdrawal payment will be 1.5 times the guaranteed withdrawal payment.

In order to receive the enhanced guaranteed withdrawal payments you must be certified by a physician as impaired and expected to be permanently unable to perform at least two out of six activities of daily living (ADLs). ADLs include eating, bathing, dressing, transferring, toileting, and continence. Care for the related impairment must be received by a licensed caregiver and cannot be an immediate member of your family.

To qualify for this benefit all of the following conditions must apply:

● The contract must be in force for a minimum of five years with no premiums paid for at least three years. (This benefit will not be available until the completion of five contract years.)

● the annuitant is age 60 or older,

● the annuitant must be a U.S. resident on the approval date and;

● must meet ADL guidelines listed above.

If impairment conditions cease, the owner can continue GMWB payments at the original level of 100%, even if the account value has been reduced to $0.

For more information on Fixed Index Annuities that provide LTC options, call the Iron City Insurance at 941-256-3900 or email us at We are happy to help answer any questions you may have.