Combining Annuities and Long-Term Care Coverage

Moon, Bruce
April 2010
Journal of Financial Planning;Apr2010 Annuities Supplement, p18
Academic Journal
The article focuses on the provision of the Pension Protection Act (PPA) which deals with annuities, tax advantages and long-term care in the U.S. The author explains that the Congress utilized the PPA as a tool to expand long-term care coverage in annuities. He states that the law offers policyholders with specially designed annuities the chance to take cash value withdrawals for qualifying long-term care expenses free of income taxes. Meanwhile, he mentions that if long-term care expenses are never incurred, the remaining cash values pass to named beneficiaries.


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