{"id":9921,"date":"2021-11-18T11:17:00","date_gmt":"2021-11-18T16:17:00","guid":{"rendered":"https:\/\/www.figmarketing.com\/blog\/?p=9921"},"modified":"2025-07-31T08:31:07","modified_gmt":"2025-07-31T13:31:07","slug":"what-to-know-about-hybrid-long-term-care-annuity-opportunities","status":"publish","type":"post","link":"https:\/\/www.figmarketing.com\/blog\/what-to-know-about-hybrid-long-term-care-annuity-opportunities\/","title":{"rendered":"What to Know About Hybrid Long-Term Care Annuity Opportunities"},"content":{"rendered":"\n<p><em>Updated July 30, 2025, at 12:47 PM<\/em><\/p>\n\n\n\n<p>Skyrocketing healthcare costs. People living longer lives. And a population that owns annuities, but usually doesn\u2019t turn them into an income stream.<\/p>\n\n\n\n<p>There\u2019s a huge opportunity in our industry right now. And we aren\u2019t really talking about it.<\/p>\n\n\n\n<p>That opportunity? Hybrid <strong><a href=\"https:\/\/www.figmarketing.com\/blog\/tag\/long-term-care\/\" target=\"_blank\" rel=\"noreferrer noopener\">long-term care<\/a><\/strong> (LTC) annuities.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>If you&#8217;re not familiar, a hybrid LTC annuity can stem from an existing, non-qualified annuity that creates an <strong><a href=\"https:\/\/www.figmarketing.com\/blog\/tag\/ltc\/\" target=\"_blank\" rel=\"noreferrer noopener\">LTC<\/a> <\/strong>plan; offering the potential for significant tax advantages, LTC benefits, and even death benefits.<\/p>\n\n\n\n<p>Let&#8217;s explore this opportunity for you and your clients.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Annuity Marketplace<\/h2>\n\n\n\n<p>As you probably know, most clients tend to buy <strong><a href=\"https:\/\/www.figmarketing.com\/blog\/tag\/annuities\/\" target=\"_blank\" rel=\"noreferrer noopener\">annuities<\/a><\/strong> due to the tax-deferral, or because they can become an attractive income rider later on. On the other hand, many clients that own annuities have no intention to turn them into an income stream.<\/p>\n\n\n\n<p>Don\u2019t believe it? According to a <strong><a href=\"https:\/\/www.annuity-insurers.org\/wp-content\/uploads\/2023\/07\/Gallup-Survey-of-Owners-of-Individual-Annuity-Contracts-2022.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Gallup survey<\/a><\/strong> of non-qualified annuity owners:<\/p>\n\n\n\n<ul>\n<li>67% intend to use their annuity as an emergency fund in the case of a catastrophic illness or for nursing home care<\/li>\n\n\n\n<li>79% intend to use their annuity as a financial resource to avoid being a financial burden on their children<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Why Consider Hybrid LTC Annuities?<\/h3>\n\n\n\n\n\n<p>Sounds like a pretty nice setup to turn those annuities in LTC coverage. The Gallup survey results alone argue a case for hybrid LTC annuity policies.<\/p>\n\n\n\n<p>But, factor in these health- and LTC-related statistics, and the hybrid LTC annuity really distinguishes itself:<\/p>\n\n\n\n<ul>\n<li><strong><a href=\"https:\/\/www.alz.org\/alzheimers-dementia\/facts-figures\" target=\"_blank\" rel=\"noreferrer noopener\">33% of seniors die<\/a><\/strong> with Alzheimer\u2019s disease<\/li>\n\n\n\n<li>In less than 15 years, a memory care unit will cost about <strong><a href=\"https:\/\/www.alz.org\/media\/documents\/2015factsandfigures.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">$175,000 each year<\/a><\/strong><\/li>\n\n\n\n<li>More than <strong><a href=\"https:\/\/www.alz.org\/alzheimers-dementia\/facts-figures\" target=\"_blank\" rel=\"noreferrer noopener\">6 million Americans<\/a><\/strong> had Alzheimer\u2019s disease in 2017\u2014and each day <strong><a href=\"https:\/\/legaljobs.io\/blog\/retirement-statistics\/#:~:text=On%20average%2C%2010%2C000%20baby%20boomers%20turn%2065%20every%20day.\" target=\"_blank\" rel=\"noreferrer noopener\">10,000 baby boomers<\/a><\/strong> turn 65<\/li>\n\n\n\n<li><a href=\"https:\/\/cdn2.hubspot.net\/hubfs\/392606\/45u54445u4554.pdf?t=1526916193878\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>90% of Americans<\/strong><\/a> agree that financial advisors should discuss LTC care plans with clients, but only 14% have talked to an advisor about how they\u2019d pay for LTC if they needed it<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Related: <a href=\"https:\/\/www.figmarketing.com\/blog\/turn-stagnant-assets-into-tax-advantaged-care-planning-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">Turn Stagnant Assets into Tax-Advantaged Care Planning Solutions<\/a><\/h4>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Use Hybrid Long-Term Care to Engage Your Book of Business<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"720\" height=\"720\" src=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/11\/BLOG-11.18.21-Hybrid-LTC-Inset1.png\" alt=\"\" class=\"wp-image-9937\" style=\"width:265px;height:265px\" srcset=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/11\/BLOG-11.18.21-Hybrid-LTC-Inset1.png 720w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/11\/BLOG-11.18.21-Hybrid-LTC-Inset1-300x300.png 300w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/11\/BLOG-11.18.21-Hybrid-LTC-Inset1-150x150.png 150w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/11\/BLOG-11.18.21-Hybrid-LTC-Inset1-585x585.png 585w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/figure><\/div>\n\n\n<p>Here comes the best part.<\/p>\n\n\n\n<p>Now, you can reach out to re-establish yourself throughout your book of business using this hybrid LTC annuity. In theory, income that your clients won\u2019t outlive is massively important in retirement, right? It\u2019s critical to have contingency plans in place in the event that your clients\u2019 income goes down, or their expenses, up.<\/p>\n\n\n\n<p>The biggest and most concerning retirement cost is extended health care.vi And, without any additional income to counteract these expenses, the consequences put on your clients and their families can potentially be disastrous.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Two Ways to Offset LTC Expenses<\/h3>\n\n\n\n<p>Funding for extended care can be a hefty expense; and one that many of your clients may not be willing to pay. It all depends on the route you take to get that funding. Here are two main ways:<\/p>\n\n\n\n<ol>\n<li><strong>Buy a traditional LTC insurance policy.<\/strong> This route will require your clients to pay hundreds of dollars each month now, only to possibly receive benefits later if they need care.<br><\/li>\n\n\n\n<li><strong>Convert a current, non-qualified annuity to create a tax-advantaged LTC plan. <\/strong>This hybrid LTC annuity is payable for their entire lifetime, and provides a death benefit if needed. Sounds like the more useful offer, don\u2019t you think?<\/li>\n<\/ol>\n\n\n\n<p>The hybrid LTC annuity may sound too good to be true, but thanks to the <strong><a href=\"https:\/\/www.investopedia.com\/articles\/retirement\/06\/ppa2006.asp\" target=\"_blank\" rel=\"noreferrer noopener\">Pension Protection Act (PPA)<\/a><\/strong> that went into effect in 2006, it\u2019s a real option.<\/p>\n\n\n\n<p>The PPA allows any non-qualified annuity to move from tax-deferred to tax-free when used for LTC insurance. Most likely, the annuity being used is your clients\u2019 \u201crainy day fund\u201d and it\u2019s not going anywhere. Essentially, it\u2019s a \u201cdead annuity\u201d. So, why not make it live again?<\/p>\n\n\n\n<p>Now, you have a compelling and suitable reason to move this annuity to a better spot and be compensated for creating this LTC solution.<\/p>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\">Keep Reading: <a href=\"https:\/\/www.figmarketing.com\/blog\/long-term-care-for-younger-clients\/\" target=\"_blank\" rel=\"noreferrer noopener\">Long-Term Care for Younger Clients<\/a><\/h4>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.teambarnette.figmarketing.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" width=\"1024\" height=\"366\" src=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template-1024x366.jpg\" alt=\"\" class=\"wp-image-7216\" style=\"width:512px;height:183px\" srcset=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template-1024x366.jpg 1024w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template-300x107.jpg 300w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template-768x275.jpg 768w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template-1170x418.jpg 1170w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template-585x209.jpg 585w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2019\/11\/CTA-Bus-Devlpmnt-Header-Template.jpg 1398w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.figmarketing.com\/#!\/Landing\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" width=\"150\" height=\"152\" src=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/02\/FIG-Logo-Red-Triangle.png\" alt=\"financial independence group logo\" class=\"wp-image-8736\"\/><\/a><\/figure><\/div>","protected":false},"excerpt":{"rendered":"<p>Updated July 30, 2025, at 12:47 PM Skyrocketing healthcare costs. People living longer lives. And a population that owns annuities, but usually doesn\u2019t turn them into an income stream. There\u2019s a huge&hellip;<\/p>\n","protected":false},"author":4,"featured_media":14431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[362],"tags":[529,228,222,360,174],"acf":[],"_links":{"self":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts\/9921"}],"collection":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/comments?post=9921"}],"version-history":[{"count":22,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts\/9921\/revisions"}],"predecessor-version":[{"id":14762,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts\/9921\/revisions\/14762"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/media\/14431"}],"wp:attachment":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/media?parent=9921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/categories?post=9921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/tags?post=9921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}