For those that do not want to own life insurance, there are still options available. Some insurance companies offer fixed index annuities with guaranteed income riders that double should you need long term care in a nursing home.
In a fixed index annuity, you agree to a contract with an insurance company that you will pay a premium payment in exchange for a certain income. Generally, you pay in and allow the policy to earn interest before the policy will pay out. Also, you will defer paying taxes on the contract’s interest until the policy pays out, allowing you to grow your money quicker.
With fixed index annuities, if you pass away before your policy begins paying out; your beneficiary will receive a death benefit. Sometimes, if you’ve begun received income from the plan, the insurance company will still pay out a death benefit. It would be up to your beneficiary if they receive a one time payment or payments over an agreed upon amount of time.
Make sure when looking into a fixed index annuity that you take into account the ratings for the company you are shopping. This rating will make sure the company has a high likelihood of meeting their contract obligations. Also look into the company’s track record. You want to make sure they have been successful during extreme market events.
