Care Planning Stories

Harold's Story

Harold has lived in an assisted living facility, which offers memory care services, for two years and is very comfortable there. He is diagnosed with dementia and recently lost his wife of 58 years. He likes his private room and enjoys sharing meals with other residents. Harold has three kids - Robert, Ken, and Tina. There is a growing concern that Harold's assets won't last throughout his lifetime should unexpected cost arise and additional income is needed.

Harold's comfort and ability to maintain his current living arrangement in an assisted living facility with memory care services are important to his adult children. After his recent heart attack, Harold needs help eating regularly and managing his activities each day. He and his children are exploring ways to pay for his continued care.

Harold and his children met with Tom to find solutions to help pay for Harold's continued care. Tom introduced them to the advantages an Income Assurance Immediate Need Annuity could provide. The Income Assurance Immediate Need Annuity is a medically underwritten single premium immediate annuity that can provide a lifetime of monthly income payments.  These payments can be used for any purpose, including paying for unplanned medical issues or care. Even though this is not long term care insurance, the monthly income can be used to pay for long term care expenses. And since the Income Assurance Immediate Need Annuity is underwritten, the monthly payment may actually be larger if you are less healthy and need care.

The Family's Choice

After sitting down together and discussing Harold's situation and goals, Tom went through the plan and options that best suited Harold's needs.

After answering a few questions taking into account his current health and other information, Tom reviewed Harold's personalized initial estimate of the cost and all relevant options.

Tom was able to show the siblings how, based on Harold's answers to those health questions and the options selected, $180,000 of premium is estimated to provide $45856.27 of annualized income in the first year with a 2% annual cost of living adjustment (COLA) to help protect against potential increases in his cost of care.

Tom's initial estimate showed how Harold could receive the increasing lifetime income the family was looking for. Tom also showed them how an optional enhanced death benefit could help protect a portion of the premium paid in case Harold passes away within the two-year protected period selected. This option provides a guaranteed minimum benefit amount of $92,630 to provide a death benefit should Harold pass away during the first two years of the contract. Monthly income payments will end upon the death of the care recipient.

The family worked with Tom to submit an application and an accompanying request for proposal. Having a guaranteed source of income can add a real sense of security.

• Request a consultation with a financial professional who can discuss if an Income Assurance Immediate Need Annuity can help pay for care, or anything else you wish, for the rest of your life.
• Get the facts about how to pay for care, living and other expenses.

This is a hypothetical example. Each Income Assurance Immediate Need Annuity is customized based on the annuitant's age and health underwriting results. Any change in the assumptions or underwriting outcome could result in significantly different results than shown here.