Annuity is actually considered
as a sound retirement plan if you prefer to receive a steady flow of income in
the latter part of your life. Since long term care is becoming a pressing need
for older adults, this can be used to pay for your long term care expenses.
There are different types of annuities
that you can use to pay for care and they are Immediate Annuity and Deferred
Long Term Care Annuity.
Immediate annuity works this
way, the insurance company converts your single premium payment to a certain
amount of money every month for a period of time or for the rest of your life.
The money you will receive is based on your age, gender and initial premium.
Long term care annuity is
usually offered to people who are below 85 years old. This type of annuity
gives a stream of monthly income for a specific period of time. You are
entitled to two funds. You can use the first one to pay for your long-term care
expenses while you can use the other fund for your other expenses. You can
access your long term care fund right away but you need to wait for a specific
day before you can receive the other fund.
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