Turn an Old, Taxable Annuity into Meaningful LTC Protection Without Creating a New Tax Bill

If you own an obsolete annuity facing adverse income taxation, there may be a smarter way to reposition those dollars—one that helps protect your family, your assets, and your retirement.

Many people purchased annuities years ago when rates were higher or their financial goals were different. Today, those annuities often:

1. Earn below-market interest
2. Create taxable income when accessed
3. Sit idle while long-term care costs continue to rise

At the same time, the cost of long-term care has become one of the largest financial risks in retirement—often impacting not just savings, but personal independence and that of family members.

Opportunity For Individuals Who:

1. Own older annuities with taxable gains at income tax rates
2. Are dissatisfied with current annuity performance
3. Want to address long-term care without paying ongoing premiums
4. May even have health issues that may even have previously precluded being able to apply for LTC coverage
5. Prefer LTC solutions with tax efficiency and guarantees
6. Want to protect retirement assets and reduce family burdens 

Typical Benefits (subject to formal application) Include:

1. Tax-free long-term care benefits 
2. Little to no underwriting
3. Ability to reposition an existing annuity tax-free via a 1035 exchange
4. Guaranteed leverage—your long-term care benefit may be significantly greater than your surrender value
5. Flexibility in how and when benefits are used
6. If care is never needed, cash surrender value could be available and a death benefit may be paid to beneficiaries

A brief conversation can determine whether or not this approach makes sense for you.

If you’re curious whether your existing annuity could be repositioned into a tax-free long-term care solution, we invite you to schedule a complimentary, no-obligation review.

Please call or email:   Kristy Gordon at kristy@cedarpointfinancial.com or 203.222.4951