--- title: Why Every Retiree Needs a Liquid Side Fund for Healthcare description: Discover why every retiree needs a liquid side fund for healthcare and how fixed annuities can offer protected growth and penalty-free access during health emergencies. image: https://synergyannuity.com/hubfs/ChatGPT%20Image%20Jun%209%2c%202025%2c%2001_22_41%20PM.png --- [Skip to content](https://synergyannuity.com/news-you-can-use/why-every-retiree-needs-a-liquid-side-fund-for-healthcare#main-content) ![Synergy Logo-#](https://synergyannuity.com/hs-fs/hubfs/Synergy%20Logo-%23.png?width=150&height=101&name=Synergy%20Logo-%23.png) - [Home](https://synergyannuity.com/) - [About](https://synergyannuity.com/about) - [Contact](https://synergyannuity.com/contact) Open main navigation Close main navigation - [Home](https://synergyannuity.com/) - [About](https://synergyannuity.com/about) - [Contact](https://synergyannuity.com/contact) - [Contact us](https://synergyannuity.com/contact) [Contact us](https://synergyannuity.com/contact) Jun 17, 2025, 10:45:00 AM # Why Every Retiree Needs a Liquid Side Fund for Healthcare ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://synergyannuity.com/news-you-can-use/why-every-retiree-needs-a-liquid-side-fund-for-healthcare) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://synergyannuity.com/news-you-can-use/why-every-retiree-needs-a-liquid-side-fund-for-healthcare) [Twitter icon](https://twitter.com/intent/tweet?url=https://synergyannuity.com/news-you-can-use/why-every-retiree-needs-a-liquid-side-fund-for-healthcare) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://synergyannuity.com/news-you-can-use/why-every-retiree-needs-a-liquid-side-fund-for-healthcare) [envelope icon](mailto:?body=https://synergyannuity.com/news-you-can-use/why-every-retiree-needs-a-liquid-side-fund-for-healthcare) How fixed annuities offer protected growth *and* penalty-free access when unexpected health expenses strike. --- ### The Problem: Healthcare is the #1 wild card in retirement. Even with Medicare, out-of-pocket costs are rising, and long-term care isn’t covered unless you qualify for Medicaid. 🧾 **Stat to share:** Fidelity estimates that a 65-year-old couple retiring today will need **$315,000** for healthcare expenses over the course of retirement (not including LTC).\* So what happens when a client needs extra cash — but the market is down, or their money is tied up in CDs, real estate, or retirement accounts with penalties? --- ### The Annuity Angle: Fixed annuities (especially MYGAs and fixed indexed annuities) aren’t just for retirement income. They can also be set up as a **“protected side fund”** with built-in access to the money in health-related emergencies. Many annuities offer: - **Penalty-free withdrawals** (e.g. 10% annually) - **Nursing home and terminal illness waivers** - **Chronic illness access** in some cases This means the client’s principal is protected, it’s growing safely, and they have access if life throws a curveball — like an injury, a stroke, or a sudden care need. --- ### Example Talking Point for Advisors: > *“You probably have a rainy day fund — but have you considered a rainy day fund that earns 5%+ and lets you access it if you land in the hospital or need care?”* > *That’s what this annuity is designed for. You’re not locking the money away — you’re protecting it and giving yourself another option if life doesn’t go according to plan.”* --- ### When to Use This Strategy: - Clients who **can’t qualify for LTC insurance** due to health - Clients who **refuse to pay LTC premiums** - Clients who want to **keep their savings safe** but accessible - Adult children planning to help parents (multi-generational planning) --- ### Quick Advisor Reminder: Don’t oversell the liquidity — not all carriers are the same. Always verify: - Free withdrawal terms (first year? cumulative?) - Specific health waivers included - Suitability based on the client’s time horizon --- ### Bottom Line: If your clients are nervous about health costs but hate traditional LTC insurance, this strategy gives you a simple entry point: 💬 *“Let’s set aside some money in a way that protects it, grows it, and lets you access it if something happens. If you never need it, great — it’s still growing. But if you do, you’ve got a smart fallback.”* [FIA](https://synergyannuity.com/news-you-can-use/tag/fia) ## Related posts [![](https://synergyannuity.com/hs-fs/hubfs/AI-Generated%20Media/Images/a%20sick%20person%20sitting%20in%20a%20hospital%20bed%20holding%20a%20sack%20of%20money%20and%20not%20worried%20about%20financial%20costs%20because%20they%20are%20protected%20through%20living%20benefi.jpeg?height=200&name=a%20sick%20person%20sitting%20in%20a%20hospital%20bed%20holding%20a%20sack%20of%20money%20and%20not%20worried%20about%20financial%20costs%20because%20they%20are%20protected%20through%20living%20benefi.jpeg)](https://synergyannuity.com/news-you-can-use/what-can-living-benefits-pay-for) [Life](https://synergyannuity.com/news-you-can-use/tag/life) ## [What Can Living Benefits Pay For?](https://synergyannuity.com/news-you-can-use/what-can-living-benefits-pay-for) ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Jan 8, 2025, 7:00:00 AM In today’s fast-changing financial landscape, insurance professionals have an incredible... [Read more](https://synergyannuity.com/news-you-can-use/what-can-living-benefits-pay-for) [![](https://synergyannuity.com/hs-fs/hubfs/Doctor%20taking%20care%20of%20patient%20in%20hospital%20room.jpeg?height=200&name=Doctor%20taking%20care%20of%20patient%20in%20hospital%20room.jpeg)](https://synergyannuity.com/news-you-can-use/enhancing-financial-security-with-living-benefits-in-term-insurance) [Life](https://synergyannuity.com/news-you-can-use/tag/life) ## [Enhancing Financial Security with Living Benefits in Term Insurance](https://synergyannuity.com/news-you-can-use/enhancing-financial-security-with-living-benefits-in-term-insurance) ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Jan 23, 2024, 11:51:21 AM Term insurance is frequently utilized as a cost-effective means to replace income, settle debts,... [Read more](https://synergyannuity.com/news-you-can-use/enhancing-financial-security-with-living-benefits-in-term-insurance) [![](https://synergyannuity.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20features%20a%20serene%20office%20setting%2c%20with%20a%20wooden%20desk%20neatly%20organized.jpeg?height=200&name=The%20image%20features%20a%20serene%20office%20setting%2c%20with%20a%20wooden%20desk%20neatly%20organized.jpeg)](https://synergyannuity.com/news-you-can-use/detective-tips-for-effectively-writing-long-term-care-insurance-policies) [LTC](https://synergyannuity.com/news-you-can-use/tag/ltc), [Marketing](https://synergyannuity.com/news-you-can-use/tag/marketing) ## [Detective Tips for Effectively Writing Long-Term Care Insurance Policies](https://synergyannuity.com/news-you-can-use/detective-tips-for-effectively-writing-long-term-care-insurance-policies) ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Dec 30, 2024, 9:41:57 AM Long-term care (LTC) insurance can be a challenging yet rewarding area of focus for insurance... 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