Whats an annuity?
An annuity is a contract you make with an insurer, and the insured. Where the insurer agrees to repay your money, plus the interest it earns, either in a lump sum or over a period of time you select. Deferred annuities offer tax-deferred growth and annuities can help provide a predictable source of income intended for retirement.
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What is an Immediate Annuity?
An immediate annuity provides either a fixed or variable income payments for the time period you choose. Immediate annuities are purchased with a single premium and income payments usually begin right away.
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What is a Deferred Fixed Annuity?
A deferred fixed annuity pays interest at a fixed rate, which is usually established when you purchase your annuity. It is either purchased with a single or multiple premiums, and taxes are deferred until you withdraw your money, usually at retirement.
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What is a Deferred Variable Annuity?
A deferred variable annuity has accumulated values that fluctuate over time according to the performance of the investment options and fixed accounts selected. Similar to deferred fixed annuities, it is either purchased with a single or multiple premiums, and taxes are deferred until you withdraw your money, usually at retirement.
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Why should one purchase Longer-Term Insurance?
Few financial products are as misunderstood as long-term care insurance. These policies are complicated and expensive and cover a risk that most of us would rather not think about: the need for help with personal assistance in frail old age or if you become disabled as a younger adult. But they can be a critical piece of your retirement planning, and if you are in your 50s or 60s, long-term care (LTC) insurance is a product you should at least consider.
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Will the government pay ?
There is lots of confusion about government coverage of long-term care. Medicare may pay for limited nursing assistance after you have been hospitalized. But neither traditional Medicare nor Medicare Advantage managed care nor Medicare Supplemental (Medigap) will pay for long-term services for someone with chronic disease.
Medicaid does pay for this assistance. But to qualify you need to have very limited financial assets (less than $2,000 in most states) and limited income (this varies widely among the states but is rarely more than a few thousand dollars per month). In addition, while all states have Medicaid home-care programs, they often are severely underfunded, have long waiting lists or provide limited services. Thus, if you can’t pay or don’t have insurance, your only government-funded option may be Medicaid in a nursing home.
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