Beginning in 2010 (thanks to the Pension Protection Act), income payments from a SPIA can fund, federal income tax free, a long term care insurance policy (see IRC section 1035).
Thus, using a SPIA to fund long term care insurance premiums creates not only a tax-efficient funding solution, but also a convenient way to help protect their lifestyle and portfolio from the high costs of long term care.
The long term care insurance policy is health underwritten.
EXAMPLE:
Amounts vary depending on company, funding source, age and premium.
