State Life Insurance Company has upgraded an annuity offering long term care insurance benefits to take advantage of tax rule changes under the Pension Protection Act of 2006.
The company, an affiliate of OneAmerica Financial Partners Inc., Indianapolis, says that its Annuity Care product, which includes LTC coverage, will grant a tax advantage for customers who file LTC claims after Jan. 1, 2010, when the PPA’s tax provisions take effect
Under the PPA, withdrawals from certain annuities intended to pay for specific, tax-qualified LTC expenses or LTC insurance will no longer be considered taxable income as of Jan. 1, 2010.
Annuity Care, a deferred annuity, allows owners to gain access to its cash value for qualifying LTC expenses, with a higher credited interest rate for these funds. Annuity Care also offers a lifetime LTC coverage option.