For Ohioans preparing for retirement, one of the key considerations is planning for potential long-term care needs. Long-term care can include a variety of services designed to meet a person’s health or personal care needs during a short or extended period of time. These services help people live as independently and safely as possible when they can no longer perform everyday activities on their own. However, funding these services can be financially challenging without proper planning. One financial product that might help in this regard is the Versa Choice Index Annuity offered by North American Life. This article explores how this annuity can be incorporated into a long-term care planning strategy.
Understanding Index Annuities
Index annuities are financial products that provide potential growth based on the performance of a stock market index, like the S&P 500. Unlike direct investments in the stock market, index annuities typically offer a level of principal protection against market downturns. This means if the index performs poorly, the principal amount is generally protected.
Features of the Versa Choice Index Annuity
North American Life’s Versa Choice Index Annuity is designed to offer not only retirement income but also flexibility and control over how assets grow and are distributed. Key features of this annuity include:
- Multiple Indexing Options: Versa Choice offers a range of indexing strategies, which allows policyholders to diversify their growth potential based on their individual risk tolerance and financial goals.
- Built-In Flexibility: Policyholders can switch between different indexing options annually, providing adaptability in response to changing market conditions or personal circumstances.
- Withdrawal Benefits: The annuity includes options for withdrawals that can be tailored to meet specific financial needs, including health-related expenses, without substantial penalties.
- Enhanced Death Benefit Options: These options ensure that beneficiaries can receive a benefit from the annuity even if the annuitant passes away.
- Enhanced Liquidity Benefit: This rider will add 25% to your account’s value after the fifth year if you need help with 2 of 6 Activities of Daily Living.
Planning for Long-Term Care with Versa Choice
When planning for long-term care, Ohioans can consider the Versa Choice Index Annuity as part of their broader financial strategy for several reasons:
- Income for Long-Term Care: Annuities can provide a steady stream of income that may be used to cover long-term care costs. The ability to receive regular payments helps manage the high costs associated with ongoing care.
- Flexibility to Cover Care Costs: Given the withdrawal benefits, if an unexpected need for long-term care arises, individuals may access funds from their annuity under certain conditions, which can be crucial when immediate care is needed.
- Lump-Sum Withdrawals: In situations where large sums are required immediately, such as for the initial costs of entering an assisted living facility, the annuity may allow for lump-sum withdrawals. It’s important to review the specific terms and conditions regarding penalties or charges that may apply.
- Tax Advantages: Annuities like Versa Choice can offer tax-deferred growth, meaning taxes on any interest or earnings are not due until money is withdrawn. This can be beneficial in maximizing the amount accumulated by the time it’s needed for care.
Consulting with Professionals
While the Versa Choice Index Annuity offers many appealing features, determining its suitability for long-term care planning depends on individual circumstances, including other assets, income sources, and specific health care needs. Ohioans should consult with financial advisors who specialize in retirement and long-term care planning to understand how this annuity can fit into their overall financial strategy. These professionals can provide guidance tailored to individual financial situations and long-term goals.
Conclusion
For Ohio residents planning for retirement and the potential need for long-term care, North American Life’s Versa Choice Index Annuity presents a compelling option. With its combination of growth potential, income generation, and financial flexibility, it can play a pivotal role in ensuring that long-term care needs are met without compromising financial security. By incorporating this annuity into their financial plans, Ohioans can approach retirement with greater confidence and peace of mind, knowing they are prepared for whatever lies ahead.