My husband's mother was contacted by a representive of Banker's Life trying to sell her an annuity that would preserve her assets "for the kids" in case she would need nursing home care.
She is 84 and is nearing the time when she will no longer be able to live on her own. She is not a wealthy woman and I believe any money she does have should go for her care.
Does anyone know anything about this type of annuity?
Costs, penalties for early surrender, is it even legal?
2006-06-17 04:42:31 · 5 answers · asked by columbuslady 1 in Business & Finance ➔ Insurance
If you want to give all your grandmother's $ to Banker's Life, then put it in an annuity. You used to be able to protect $ that way, but not any more. It might make her money last a little longer, but in the end the insurance company will get it all. You're better off, at this point, keeping her money and then IF she goes into a nursing home, use her money to private pay. This way you'll have more say in where she goes, what type of room she gets and the care she receives. Of course, if you keep her money, you may be able to keep her at home, and that might be the best and cheapest option.
2006-06-17 04:51:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are many issues involved in paying for elder care - the position you mother-in-law is in. Putting money into an annuity may or may not save it "for the kids." If she does need care, does she have the funds to pay for the care she needs in the place she wished to receive it (her own home versus Assisted living versus nursing home)? Which nursing home? If she does not have the funds, does she have a long term care insurance policy? (If she does not have a policy it is probably too late and too expensive to get one)
If she wants Medicaid to pay for her nursing home costs (they don't pay for home care), Medicaid will want an inventory of her assets (bank accounts, annuity statements, IRAs etc) for the last 5 years. If she owns an annuity, she may have to cash it in and pay the insurance company's surrender charges to get the money. The Medicaid rules changed recently.
You should talk to an elder care attorney who has experience in these issues as well as a financial advisor.
I'm wary of what the Banker's Life Agent is really offering. Ask him/her "What exactly happens to the money in this annuity when Mom goes into a nursing home?" Ask him/her to put it in writing, on company letterhead and sign it.
You and your husband should look into long term care insurance now.
2006-06-17 04:58:22 · answer #2 · answered by insuranceguytx 5 · 0⤊ 0⤋
Every state has different laws so it is difficult to say. Annuities can be set up as to avoid being counted as an asset (providing your state allows for it). Many insurance companies have products (annuities), that can assist. What matters is that even though a company has this to offer, it may not be the best out there. I hope this helps.
2006-06-17 06:50:56 · answer #3 · answered by tigertiggerii 3 · 0⤊ 0⤋
Compare rates free
2015-02-05 03:06:57 · answer #4 · answered by Sharia 1 · 0⤊ 0⤋
no way
2006-06-17 09:08:09 · answer #5 · answered by lynn g 2 · 0⤊ 0⤋