Annuities for Long Term Care Alternative

Recent studies show that over 70% of Americans will need some form of LTC in their lifetime, so it is understandable why many Americans seek this coverage. It is also important to understand that an annuity is NOT long term care insurance, but they can offer LTC alternatives that may solve the problem.  Many Americans find out that long term care insurance is too expensive or too difficult to be approved on by the time they are looking to retire. As an alternative to long term care insurance, some annuities are designed to produce income that will increase by a certain percentage, usually ranging from 25% up to 100% for a period of time if the annuitant needs long term care.  Think of it as an income annuity with additional long term care enhancements added to it. Qualification for the higher payments can range from a doctor’s note stating the annuitant can’t perform 2 of 6 Activities of Daily Living (ADLs) to a licensed long term care facility submitting admittance documentation. Also, some long term care alternative annuities will allow for the spouse of the annuitant to trigger the increased payout.