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                ANNUITY

                               

        

Pension Protection Act of 2006 (“PPA”)
A tremendous opportunity with AnnuiCare®
 
On August 17, 2006, President Bush signed the Pension Protection Act of 2006 into law. Specific provisions of the Act provide incentives and exciting opportunities for annuities and long-term care (“LTC”) planning. These provisions grant tax advantages for annuities used to fund LTC premiums and LTC claim expenses. Beginning in 1999, Guaranty Income Life was the first company to attach a tax-qualified long-term care rider to a traditional annuity. With over eight years in the marketplace, the AnnuiCare® combo solution is uniquely positioned to help you and your clients benefit from the Pension Protection Act.
 
Pension Protection Act points of interest:
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Cash value withdrawals from non-qualified annuities used to pay for LTC expenses, or HIPAA tax-qualified LTC insurance premiums, will no longer be considered taxable income, regardless of cost basis. (Note: The above provision takes effect January 1,2010 and does not affect claims or withdrawals prior to December 31, 2009.)
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Qualified LTC insurance, under Section 7702B of HIPAA, may be added to annuity contracts. The law even allows for qualified LTC to be offered by adding riders to annuities issued after December 31, 1996.
Benefits to AnnuiCare® policyowners:
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Any LTC claims paid from AnnuiCare®’s base policy will not be taxable effective January 1, 2010.
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AnnuiCare®’s Extension of LTC Benefits Riders will remain tax-qualified and benefits paid from the riders will continue to be tax free to the owner.
What this means for AnnuiCare®:
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All existing and new AnnuiCare® clients will benefit.
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Our three primary competitors–Genworth, Great American and State Life–will be required to file amendments to their combo products to make their existing LTC riders “qualifiein orderto get the PPA’s new tax benefits.
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Guaranty Income Life does not need to file amendments.
The Pension Protection Act’s focus on tax benefits for asset-based LTC solutions verifies their stature in the financial services community. AnnuiCare® offers a tremendous opportunity for you to make a difference in your clients’ financial future.
 

                            

  GO TO: LEARNING CTR  for additional info/MECYR