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September 23, 2011 at 08:00 PM
Forethought Financial Group Inc. thinks U.S. residents are looking for annuities that can do more to help them prepare for the risk of needing long term care.
A hybrid annuity provides features that can help holders pay for LTC expenses.
Provisions in the federal Pension Protection Act of 2010 and Internal Revenue Service rulings have encouraged use of hybrid annuities by clarifying the annuities’ tax status.
Some financial professionals think LTC insurance is still better for consumers who end up needing long term care, but professionals who sell the hybrid products say they are more flexible and have more appeal for consumers who may not be willing to consider a traditional LTC policy.
Many consumers already have been buying annuities with LTC expenses in mind, according to Paula Nelson, a Forethought distribution executive.
In other ideas news:
- AXA Equitable Life Insurance Company, New York, a unit of AXA S.A., Paris, has been using an online game to give players a chance to use expense control and life insurance decisions to guide virtual families to a better financial future.
Players have a chance to win $25,000 or $15,000 cash prizes through a related sweepstakes.
Players also can vote on allocating real money to three different charities.
David O’Leary, an AXA Equitable executive vice president, says the company sees the game as a low-stress way to help consumers to think about an inherently uncomfortable topic.
