Dealing With the Rising Price of Health Care?

July 30, 2020
Dealing With the Rising Price of Health Care?

See How Immediate Annuities Can Help With Medicaid Planning

Outliving our savings and income in retirement is a big concern. Many retirees live comfortably only to face a sudden financial burden of how to pay for long-term care. The cost of care in a nursing home for just a few months, for example, can be financially devastating.

As you talk to clients about planning for health care costs in retirement, consider using immediate annuities. They’re often a good tool to use for part of Medicaid planning.

How they can help:

  • Immediate annuities can help an ill spouse qualify for Medicaid eligibility to pay for long-term care. Although regulations vary from state to state, assets placed within a Medicaid-compliant immediate annuity are considered income. This means they no longer count as available assets when qualifying for Medicaid assistance.
  • The annuity funds can provide a healthy spouse with sufficient income and resources to maintain a current lifestyle.
  • Single individuals can also use immediate annuities in their Medicaid planning.

In all Medicaid planning scenarios, work with a qualified elder care attorney. Availability and eligibility vary by state.

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Annuities are not (a) insured by the FDIC or any federal government agency, (b) deposits of or guaranteed by any bank or credit union and (c) a provision or condition of any bank or credit union activity. Some annuities are subject to investment risk and may lose value. A surrender charge may apply during the surrender period, and a 10% penalty may apply to withdrawals prior to age 59½.


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