When discussing an Underwritten Annuity, there are some significant differences between these types of annuities and a traditional annuity.
The main difference, of course, is the fact that there is medical underwriting involved in these types, while with traditional annuities there is generally no medical underwriting involved.
You may be asking “Why would there be medical underwriting involved in an annuity?”, and that would be a good question. The answer is, because there are additional benefits in an underwritten annuity that may not be available in other types.
The biggest and most common benefit, and the one we most commonly use, is Long Term Care benefits.
Depending on the product and the carrier, the benefits will vary, but we do have options for LIFETIME LONG TERM CARE BENEFITS. That’s right, one can potentially go on claim for LTC for life.
This is a HUGE benefit and can potentially save families thousands of dollars in the event of a LTC claim that lasts multiple years (cognitive decline can last many years).
Again, it depends on the details of each case, but we can use Qualified or Non Qualified funds on these policies.
The medical underwriting will generally involve a telephone interview, prescription check and MVR, and the conditions the underwriters will be looking for are going to be related to the similar underwriting conditions when applying for traditional Long Term Care policies.
Keep in mind, these policies can be written as a Joint Policy, so both spouses can be included on the policy with potential for Lifetime LTC Benefits for EACH PERSON.
In addition to the Lifetime LTC Benefit, the biggest, and in our opinion best, benefit to these policies, is the insured cannot lose out on their funds. With traditional LTC, if a client never goes on claim, the premiums paid are
retained by the insurance company. With Underwritten Annuities, either the funds are accessed for LTC, left in the policy to grow, or eventually the insured will passes away and the beneficiaries will receive the
funds, passed on as a traditional annuity would be passed.
We are happy to discuss these policies with you and help you determine if they are a good fit for your situation.
Call our office and let’s find out!