Turning Retirement Income Into Long-Term Care Protection

The Problem:

Most retirees know they need income — but very few are actually planning for what happens if they can’t live independently anymore. Long-term care isn’t just expensive — it’s also a massive planning gap.

🧾 Stat to share:
70% of people turning 65 today will need some form of long-term care, and over half will need it for more than one year.⁺
Average cost for a private room in a nursing home? Over $100,000/year nationally.

The Annuity Angle:

If a client is already considering an annuity for lifetime income, they might as well pick one that also helps cover care. That’s where income riders with LTC doublers come in.

Here’s how it works in plain English:

• The client gets guaranteed lifetime income — just like a pension.

• If they qualify as chronically ill (usually via 2-of-6 ADLs), that income doubles for a period of time (often up to 5 years).

• Joint payouts are available on many contracts — meaning both spouses are covered.

Example Advisor Talking Point:

“You’re already planning for income you can’t outlive. What if we could stretch that income even further if you ever needed care? Think of it as a built-in booster — no separate underwriting or new policy needed.”

When This Strategy Works:

• Clients with mild health issues who may not qualify for standalone LTC

• Couples planning joint income (spousal protection = huge value)

• Clients worried about outliving savings due to care costs

• Pre-retirees who like the idea of insurance but hate paying premiums for something they may never use

"Oh By the Way..." Client Conversation Nuggets:

“Oh by the way… this annuity can double your income if you ever can’t live on your own — no separate policy or approval process needed.”

“Let’s say you’re pulling $2,000 a month. If something happens to your health, it could jump to $4,000 — and you’re still protected for life.”

Quick Advisor Reminder:

When evaluating income annuities with LTC features, compare:

• Doubling period (e.g. 5 years vs. 2 or 3)

• Health triggers (is cognitive impairment covered?)

• Joint vs. single payout structure

• Max age at issue (some cap LTC doublers at age 75–80)

And always use the annuity as part of a layered strategy — this doesn’t replace LTC planning, but it covers a crucial gap.

Bottom Line:

Income annuities with LTC doublers are a smart two-for-one solution. You’re helping the client:
✅ Lock in lifetime income
✅ Add no-cost or low-cost protection for one of retirement’s biggest threats
✅ Simplify planning without underwriting hurdles

💬 “We’re not just planning for income — we’re planning for independence, even if your health changes.”