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Pension Protection Act And Long Term Care With Hybrid Annuities
| The Pension Protect Act of 2006 was signed in August 2006 with the purpose of trying to attract people to buy long term care insurance. From the beginning of 2010, people will be allowed to take out money from an annuity without paying taxes as long as they use it to purchase a long term care policy. If you are in the 35 percent tax bracket, you will be benefitted by the tax savings potential this has to offer you. |
Now that baby boomers are reaching retirement age and with the tax benefits provided by the Pension Protection Act, many life insurance companies in the US are hoping that the baby boomers will opt to buy annuities with long term care as part of it. Insurance companies like MetLife Inc, John Hancock Life Insurance and Genworth Financial have a large share of the US market in terms of annuities and long term care insurance.
Many of the insurance companies are now looking to launch a combination of long term care and annuities to boost sales of annuities and long term care insurance in one go. These companies are making an effort to use the Pension Protection Act to target people in the late 50s and early 60s who are in the upper-middle income bracket.
This said, long term care hybrid annuities have been in the market for nearly 5 years now but there are not that popular. But now they are catching on because of the provision made by the Pension Protection Act.
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Pension Protection Act And Long Term Care Hybrid Annuities
