Preparing for long-term care is one of the biggest concerns retirees face. Traditional savings and even high net worth don’t always guarantee you’ll have enough to cover care when you need it. That’s why many people ask me: “Can annuities help with long-term care planning?”
The answer is yes—but it depends on the strategy you use. Let’s go over the three main ways annuities can provide protection, income, and peace of mind when it comes to long-term care.
Need help choosing the best annuity for your unique situation? Have questions about getting an annuity? If so, it’s best to speak with an annuity specialist. Watch this short video to see how I can help you do this (at no cost to you!)
Tip: See how much an annuity could pay you using our annuity calculator.
1. Long-Term Care Policies Through Life Insurance Companies
One of the more traditional approaches is using a life insurance policy with a long-term care (LTC) rider.
- These policies are offered by companies like Brighthouse and Securian.
- They provide long-term care benefits if you qualify, but require full underwriting (medical exams, health questions).
- If you’re in good health, this can be a powerful way to secure LTC coverage for you and possibly your spouse.
👉 Want help comparing which carriers offer the best long-term care riders? Schedule a call with me here.
2. Income Rider Annuities with Long-Term Care Benefits
This is one of the most popular strategies I show clients. Certain annuities offer “doublers” or “enhanced withdrawals” for long-term care.
Here’s how they work:
- You purchase an annuity with an income rider.
- The income rider guarantees you lifetime income—say $56,000 per year.
- If you need long-term care (and can’t do 2 out of 6 daily living activities), the annuity can double that payout to $112,000 for a period of time.
💡 Pro Tip: Companies like Midland stand out because they allow LTC benefits for in-home care, not just nursing home confinement. That flexibility is a huge advantage.
👉 Curious how much guaranteed income you could receive? Check out my annuity calculators.
3. Annuities Designed Strictly for Long-Term Care
Some annuities don’t focus on lifetime income at all—they’re built solely for LTC benefits.
For example, companies like EquiTrust offer annuities that:
- Provide tax-free income for up to five years if you need long-term care.
- Don’t require full underwriting (only simple health checks, often via a quick Zoom call).
- Can be funded with non-qualified money.
Imagine depositing $317,000 into one of these contracts. You could lock in $300,000 per year tax-free for five years to cover long-term care expenses. Even if you’re in less-than-perfect health, you can still qualify.
👉 Want to see if this type of plan makes sense for your retirement? Click here to schedule a call.
Combining Strategies for Maximum Protection
The most effective long-term care plan may involve combining two annuities:
- Income Rider Annuity → Provides lifetime guaranteed income plus early LTC benefits.
- Dedicated LTC Annuity → Covers potential high costs in your 80s or 90s, when long-term care is most likely.
This way, you protect your retirement income while also preparing for future healthcare costs.
Conclusion
Annuities can play a powerful role in long-term care planning, but not all contracts are created equal. Some offer enhanced withdrawals, others focus only on lifetime income, and some are built specifically for long-term care needs.
Need help with finding the best annuity for your retirement?
Click here to schedule a call with me.
On the call, I can help you:
- Determine what type of annuity is best for you
- Find the highest paying annuities for your unique situation
- Answer any other questions you may have