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Quiz question: At-need annuities

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The question was: Which characteristics might signal that the customer would be interested in considering purchase of an at-need impaired risk annuity?

a) Requires, or is starting to require, increasing levels of care
b) Does not have a long life expectancy
c) Meets underwriting standards for standalone long term care insurance
d) Answers a) and b) only
e) Answers a), b) and c)

The answer is: d) In general, those who need care or have a short life expectancy might be interested in at-need, impaired risk annuities. That is because the insurer of such products can guarantee a higher amount of lifetime income to the customer than is available from traditional immediate annuities, says Mathew Greenwald, president of Mathew Greenwald & Associates, Inc., Washington, D.C.. This income can be used to pay for the person’s long term care for the rest of the person’s life, he writes in a November 2, 2009 article for National Underwriter Life & Health. See the article here

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