How fixed annuities offer protected growth and penalty-free access when unexpected health expenses strike.
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?
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.
“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.”
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)
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
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.”