Most people aren’t aware that the government has been begging us to plan for our extended healthcare needs for decades. One of the many pieces of legislation passed is the Pension Protection Act or PPA of 2006. The Pension Protection Act allows a 1035 exchange of an existing annuity or life insurance contract for a new one that includes tax-advantaged LTC benefits. The exchange must be made according to specific Internal Revenue Code and IRS regulations.
This is a way to use money you already have in an annuity or life insurance policy which can be leveraged to pay for your long-term care…while maintaining control of your assets! Read more in this Guide to Long-Term Care Planning Using 1035 Exchanges published by the American Association of Long-Term Care Insurance.
