SPIA (Single Premium Immediate Annuity)
You can transfer money with a 1035 exchange tax free or simply write a check to fund a traditional LTC policy for the life of the policyholder.
IF a policyholder lives past their life expectancy, there is a tremendous savings. If they do not, then there is a full cash refund to their beneficiaries on the balance of the annuity that was not used.
Many people like to fund this way for a surviving spouse or as a way to reduce annual premium payments every year.
You can use partial payments from a 1035 exchange and add more of you own money so that it covers the full cost of the annual premium for the rest of the policyholder’s life. It is very cost efficient and makes clients more comfortable as they age that premiums will be paid.
Karp Loshak can make the process seamless to coincide with standalone LTC Insurance premium payments.
