022: How Annuity Confinement Care Riders & Enhanced Benefit Payouts Work

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welcome to

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fun with annuities with your host me

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stan

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the annuity man america's annuity agent

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can annuities be fun

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can contractual guarantees be fun

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absolutely they can find out the brutal

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facts about annuities

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with no sales pitches or high pressure

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nonsense

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just the brutal and factual annuity

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truth which is all you need to hear

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let's have some fun with annuities and

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let's have that fun start

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right now

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hey this is stan the annuity man

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america's annuity agent licensed in all

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50 states

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that's including yours and would love to

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have you as a client if you're a client

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out there listening thanks for joining

0:48
me once again on the annuity man podcast

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today's topic is a really really

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important one

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they all are important but this one's

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very important because i get a lot of

0:56
calls

0:57
concerning confinement care writers and

0:59
income doublers and long-term care and

1:01
things like that long-term care is kind

1:03
of the gorilla in the room

1:04
for a lot of people but we're going to

1:06
cover a lot of the sales pitches

1:08
that are out there most of them are

1:12
not good not detailed enough for you to

1:14
make a really good decision

1:16
first of all long-term care let's talk

1:18
about long-term care what is long-term

1:19
care long-term care is a health

1:21
insurance product you have to have a

1:23
health insurance license to sell it

1:27
and fixed index annuities with income

1:29
riders which is what most people are

1:30
buying for these long-term care

1:32
doublers writers whatever that's a life

1:34
insurance product

1:35
so the best coverage on the planet for

1:37
long-term care is still

1:38
traditional long-term care i don't sell

1:41
traditional long-term care

1:43
but it's still the best coverage on the

1:45
planet my mom has it my dad had it i

1:48
didn't sell it to them but they had it

1:50
and i thought it was great because it's

1:51
a pure transfer of risk to cover for

1:53
long-term care

1:55
now the argument is you know stan the

1:58
annuity man i keep

1:59
you know putting money in i'm not sure

2:01
i'm going to use it well

2:02
that's the same as fire insurance and

2:05
car insurance and homeowners insurance i

2:07
mean

2:08
insurance is a transfer risk so

2:10
long-term care is as well now if you

2:12
really want to see a

2:13
pure long-term care product a health

2:15
insurance product the best ones out

2:17
there i do refer that out to

2:19
one person who's the best person on the

2:21
planet for pure and traditional

2:23
long-term care

2:24
so if that's the case then i have no

2:26
problem you know shooting you to him

2:29
and he can help you but if you are

2:32
trying to make a decision if you need to

2:35
attach an income rider to a fixed index

2:37
annuity for

2:38
long-term care or confinement care or

2:40
enhanced benefit payouts

2:42
then this is your podcast because i'm

2:44
going to go over the details in english

2:46
not lawyer speak on how to understand

2:51
you know what you're hearing now the

2:52
sales pitch that's out there is pretty

2:54
sounds pretty good free long-term care

2:57
you don't have to go through any type of

2:58
medical testing it's guaranteed issue

3:00
etc etc the only problem with that it's

3:02
not true it's not long-term care

3:04
it's confinement care writers or

3:07
enhanced benefit payouts now

3:08
what does that mean when you buy an

3:11
income rider let's talk about an income

3:13
rider what's an income writers attach

3:14
benefit to a policy that you can use

3:18
only for lifetime income so typically

3:21
these income riders will have a high

3:22
percentage growth amount during the

3:24
deferral years before you turn on the

3:26
income stream

3:28
and and some people think it's yield but

3:29
it's not jimmy carter's not in office

3:32
you're not getting those type of yields

3:33
anymore

3:34
but it'll grow by that percentage and

3:36
then that amount within that income

3:38
rider account which is a separate

3:39
calculation from the accumulation value

3:42
you can use that to determine your

3:44
lifetime income stream

3:46
now some not all income riders

3:49
offer what's called an enhanced benefit

3:51
payout that's what they're calling and

3:53
most carriers

3:55
are calling these doublers whatever

3:58
they're calling them enhanced

4:00
withdrawals or enhanced benefit payouts

4:03
and you have to be aware of what type

4:05
and typically there are two

4:07
types one is called confinement care and

4:11
confinement care

4:12
is what it sounds like you have to be in

4:15
a nursing home

4:16
for a specific period of time typically

4:19
30 or 60 or 90 days depending on the

4:21
contract you're not all the same so you

4:22
have to read the details

4:24
and if you're really interested in those

4:26
you need to ask the agent for a

4:28
specimen policy to actually read what's

4:30
in the policy don't just believe the

4:32
agent

4:33
okay but confinement care you have to be

4:35
in the nursing home for that specific

4:37
period of time

4:38
that's listed in the contract and then

4:41
once you're there

4:42
in that confinement care setting nursing

4:44
home

4:45
then the carrier will take that income

4:47
stream amount and typically they double

4:49
it enhance it most of them are doubling

4:51
them right now

4:52
okay so if you're getting five thousand

4:55
dollars a month

4:56
just as an example and you go into a

4:59
nursing home and you stay there for the

5:00
allotted period of time that triggers

5:02
the enhanced payout

5:04
then you will get ten thousand dollars a

5:06
month

5:07
for typically five years that's the

5:10
maximum

5:11
that most carriers are i'm not this

5:13
isn't all-encompassing they're all

5:14
different

5:15
but i'm giving you a 30 000 foot view of

5:17
how they work so most

5:19
double that income stream for five years

5:22
now you're sitting there going that

5:23
sounds great i mean they're doubling the

5:25
income right

5:26
well yes okay but

5:29
just remember this little southern

5:31
saying that i came up most of you that

5:32
follow me

5:33
i'm always coming up with sayings like

5:35
will do not might do and all this stuff

5:37
for these enhanced benefit riders just

5:40
remember this

5:41
when you get sicker you get your money

5:44
back quicker

5:45
i'll repeat it again when you get sicker

5:48
you get your money back quicker

5:50
all income streams from annuities

5:52
regardless of type of annuity

5:54
is a combination return of principal

5:56
plus interest

5:57
so if you are in a confinement care

6:00
setting

6:01
and you qualify for the doubling effect

6:03
or the enhanced payout whatever that is

6:05
it might not be

6:06
a doubler it might be a you know a

6:07
percentage payout increase

6:10
but the bottom line is you're getting

6:11
more money back you're getting more

6:13
money back quicker because you're sicker

6:15
you're actually

6:16
proving to the annuity company that your

6:19
life expectancy is less

6:21
which means they're going to give your

6:22
money back quicker does that make sense

6:25
now the other way that you can

6:29
qualify for these enhanced benefit

6:32
payouts and you have to make sure you

6:33
know which one you're getting

6:35
obviously if you deal with me stan the

6:37
annuity man at the annuityman.com or all

6:39
of my experts there

6:41
will tell you the other is called adls

6:44
which that's the daily living if you

6:47
can't do two of the six daily functions

6:49
of life

6:50
which is stuff like feed yourself clothe

6:53
yourself

6:54
bathe yourself those type of things

6:56
there's six of them

6:58
bottom line is when you can't do two of

6:59
the six life stinks

7:02
i'm serious i mean clocks ticking

7:06
and a lot of the stats that i read is

7:08
when you can't do two of the six daily

7:10
functions of life

7:12
then you're gonna live an average of

7:14
three years and a maximum of

7:16
seven which interestingly enough

7:18
coincides with the doubler right because

7:20
most of the carriers

7:22
only double that payment for five years

7:25
so

7:25
if if the enhanced benefit payout writer

7:27
attached to the index annuity that

7:29
you're looking at is an adl

7:31
qualification so you can't do two of the

7:33
six daily functions

7:35
and a doctor signs off on that and you

7:37
go through the proper steps

7:38
then they're going to enhance that

7:39
payout and typically it's it's doubled

7:42
for five years now let's let's

7:46
cover a couple caveats to that when the

7:49
accumulation value remember that's that

7:51
index option value that we really don't

7:52
care about we only look at the

7:54
guarantees but when that

7:56
accumulation value goes to zero then

7:59
the income stream doesn't double anymore

8:01
it goes back to the original lifetime

8:03
income stream amount

8:07
we'll let that sink in a little bit so

8:08
in other words

8:10
remember when i talk about indexed

8:12
annuities with

8:13
income writers i draw a line down the

8:15
middle of a blank sheet of paper

8:16
left-hand side is the accumulation value

8:18
side which is the

8:18
the income option the call option on the

8:21
embassy typically the s p

8:22
or something like that right hand side

8:24
is the income rider side

8:26
which is two there are two separate

8:27
calculations but when you take

8:29
income from an annuity

8:32
that income stream is subtracted that

8:34
amount dollar for dollar

8:35
from both sides of that ledger so what

8:38
i'm saying is when the accumulation

8:40
value is at zero

8:42
on the left-hand side of the ledger

8:44
there's no more doubling

8:45
and if the accumulation value is at zero

8:48
when you qualify for the two of the six

8:50
adls or if you're in a nursing home

8:52
there is no doubling give you an example

8:55
let's just say

8:56
you qualify for the doubling and you go

8:58
two years with that doubling of income

9:01
and then the accumulation value hits

9:03
zero

9:04
you automatically go back to that

9:06
lifetime income stream amount not the

9:07
doubling amount

9:09
so zero is going to trigger you back to

9:12
the lifetime income stream guarantee

9:14
that you originally purchased

9:16
and you're not going to get the enhanced

9:17
payout if that makes sense

9:22
i know this is confusing that's the

9:23
reason you need me

9:25
and my people at the annuityman.com to

9:27
walk you through this

9:28
but for the people that are out there

9:30
that cannot qualify for long-term care

9:32
and you know

9:33
annuity companies and life insurance

9:34
companies and and health insurance

9:36
companies they want to ensure healthy

9:38
people and young people right

9:39
they don't want to insure people that

9:41
have issues

9:42
you know that that's just the bottom

9:44
line so if you can't qualify for

9:46
traditional long-term care which still

9:48
is the best coverage out there

9:50
then maybe these enhanced benefit riders

9:53
are your only option or if you're the

9:55
person out there that's uh smoking a a

9:58
carton of lucky strikes every week and

9:59
drinking a bottle of jack daniels every

10:01
other day

10:02
first of all god bless you you're you're

10:05
killing it right or you're killing

10:06
yourself

10:07
then this is your only shot this is your

10:10
only coverage

10:12
in a perfect world these these

10:14
confinement care writers enhanced

10:15
benefit payout

10:16
writers whatever you want to call them

10:18
they should be used as secondary

10:20
coverage not

10:21
primary coverage never ever ever ever

10:24
allow some yahoo agent or advisor

10:28
to tell you to cash in your traditional

10:30
long-term care that you've been paying

10:32
on the health insurance product that's

10:34
the best coverage

10:35
never have them tell you to cash that in

10:38
and buy their indexed annuity of choice

10:40
with this confinement care rider

10:41
don't do it this only applies for

10:44
secondary coverage

10:46
or if you can't get coverage at all nod

10:48
your head out there that you agree with

10:50
me

10:50
you understand what i'm saying

10:53
traditional long-term care

10:54
is still the best coverage my mom who

10:57
lives in saint augustine florida i live

10:59
in florida and nevada

11:01
depending on the weather right my father

11:04
passed and they had long-term care and

11:06
he didn't get to use a lot of the

11:07
benefits so when my mom

11:08
who's 80 her comment was you know should

11:11
i keep my long-term care

11:12
yes it's still the best coverage

11:16
period because of course she went to one

11:18
of the bad chicken dinner seminars and

11:19
some yahoo's up there talking about free

11:21
long-term care riders

11:22
which as i said earlier in the podcast

11:26
that doesn't exist remember annuities

11:30
are commodity products

11:31
you don't know what they will do not

11:33
what they might do which is the

11:34
contractual guarantees only their

11:35
transfer of risk products

11:38
and they really saw for four things the

11:40
acronym spill principal protection

11:41
income for life legacy and long-term

11:43
care

11:44
confined confinement care i'll do that

11:47
again the acronym is pill p

11:48
stands for principal protection i stands

11:50
for income for life l stands for legacy

11:52
and then the other l

11:53
stands for long-term care

11:57
slash confinement care now if you really

12:00
want long-term care then i'm going to

12:02
refer you to my friend who's the number

12:03
one expert in the country i'm the number

12:05
one expert in the country with annuities

12:07
he's the number one expert in the

12:08
country when it comes to long-term care

12:10
i don't go there i don't do that i mean

12:12
i'm a specialist of what i do he's a

12:14
specialist what he does

12:16
but if you know that you can't qualify

12:17
or if he comes back

12:19
and we can't get you qualified over

12:21
there with his products for long-term

12:23
care health side

12:24
then maybe these confinement care

12:26
enhanced benefit

12:27
you know products are are for you now

12:30
if you said hey let's look at that then

12:33
we're going to quote all carriers like

12:34
we do with everything because even these

12:36
products

12:37
are commodity products at the time of

12:39
this

12:40
recording of this podcast there's less

12:44
than 20 companies

12:45
that actually offer these these riders

12:48
these enhanced benefit payouts now

12:50
if you come to us and say i'm interested

12:52
in that for me or me and the spouse

12:53
being the partner

12:54
as a secondary coverage or as a primary

12:56
coverage because you can't get the other

12:58
coverage

12:59
you're out there you know smoking the

13:00
cigarettes right then we're going to

13:02
quote

13:03
all of those companies i don't have

13:05
agendas going into a quote

13:07
i'm not steering you to a specific

13:08
company i don't go on incentive trips

13:11
you know i don't do that i'm going to

13:13
point you to the highest contractual

13:15
guarantee

13:16
for your specific situation and remember

13:19
that most of these

13:20
confinement care writers enhanced

13:21
benefit payouts they require

13:23
a doctor or a health care practitioner

13:26
that they approve

13:27
to certify that you're either in a

13:29
nursing home

13:31
or you know you're disabled you can't do

13:33
two of the six

13:34
adls so

13:37
you know it's just not something that's

13:39
automatic there's some steps that you

13:40
have to go through

13:42
my staff my team handles that if we get

13:45
to that point that's a sad point

13:47
but some of our clients are at that

13:49
point and we get that call and we handle

13:51
it for you

13:52
period so just understand if this is the

13:56
direction you want to go

13:58
we're going to go very slow with you

14:00
during the process we're going to

14:01
educate

14:02
you in the process part of the reason

14:04
i'm doing this podcast is just people

14:05
are just

14:06
yelling at me saying hey we need more

14:08
specific details

14:10
it's one thing to read about it it's

14:11
hard to read about it

14:13
and i've written articles about it as

14:14
well but

14:16
to talk about it like me and you are

14:18
having a conversation right now

14:20
is a lot easier so the bottom line with

14:22
all annuities that are sold at the bad

14:24
chicken dinner seminars or whatever

14:26
wherever you're at if you're in

14:27
someone's office they're only showing

14:28
you one product that's garbage

14:30
as i said at the time of this podcast

14:33
there are less than 20

14:34
companies that are offering it

14:37
currently but we're going to quote them

14:39
all so let's go backwards and talk about

14:42
that

14:42
just a little bit more let me go through

14:43
it again there's two types of these

14:46
confinement care enhanced benefit pails

14:48
there's the ones that when you're in a

14:51
nursing home i.e confinement care you're

14:53
confined

14:53
to a nursing home and then there's ones

14:56
where you can't do the adls the two of

14:59
the six adls

15:00
close clothe yourself feed yourself baby

15:02
yourself those type of things

15:03
basic things so it's either one of the

15:06
two so you've got to be aware of which

15:07
one it is

15:09
which one you want both of them require

15:12
you to kind of jump through a

15:13
really bad health care hoop right you

15:15
know you either can't do two to six

15:16
daily functions

15:18
or you're in a nursing home those are

15:20
both tough qualifications right

15:22
when you're at that stage that's tough

15:25
but you got

15:26
to be aware of the rules in place so

15:29
that the

15:29
income stream can double or increase

15:32
however the formula is for that specific

15:34
carrier

15:35
or the highest contractual guarantee

15:37
that we can find you you got to be aware

15:38
of those rules now we'll follow those

15:40
rules to the t we have a system in place

15:42
where we're very very automated computer

15:45
wise

15:45
and you know we we will not miss the day

15:47
let's just put it like that

15:49
you don't have to keep up with anything

15:50
if you're a client of the annuity man

15:51
we're going to take care of that we're

15:54
going to be in touch with your family

15:55
we're going to be in touch with your

15:56
spouse or kids whoever that is

15:58
and we're going to make sure that we're

16:01
going to hit the day

16:02
on the head period but also remember too

16:06
that if if the account reaches zero the

16:10
accumulation value

16:11
then the doubling stops and it goes back

16:13
to the original

16:14
lifetime income stream and you can't

16:16
even start the doubler if you're at zero

16:18
already

16:18
because remember when you're taking

16:19
income from an annuity it's a

16:21
combination return of principal plus

16:22
interest

16:23
so you're drawing down in english that

16:26
means subtraction

16:27
you're drawing down from the account

16:28
both sides of the ledger the

16:30
accumulation value part

16:31
in the income rider part and so it could

16:34
be at zero and that's fine

16:36
you know that's the transfer of risk the

16:38
annuity companies on the hook to pay

16:40
even if the account's at zero right

16:42
that's the transfer risk that's the

16:44
reason i always say

16:45
there's no roi until you die so i know

16:48
i've covered a lot today

16:50
just remember with these confinement

16:52
care riders and enhanced benefit payouts

16:54
when you get sicker you get your money

16:56
back quicker that's okay

16:58
also remember they're guaranteed issue

17:00
you don't have to take any

17:02
tests no nurses show up no blood tests

17:04
no medical tests no medical records

17:06
it's guaranteed issue which is good if

17:08
you cannot qualify for traditional

17:10
long-term care

17:11
which is still the best coverage out

17:13
there

17:14
and also remember there's only two types

17:16
primary types

17:18
that are available with the less than 20

17:21
carriers offering

17:22
there's the confinement care type and

17:25
the

17:25
adl the daily living two of the six

17:28
daily

17:29
functions of life you can't do that so

17:31
there's there's those two

17:33
you got to find out which one we have to

17:35
talk about which one might be better for

17:36
you or better

17:37
for your family neither is better than

17:40
the other

17:41
they both enhance the payout when you

17:43
get sicker they both are guaranteed

17:46
they both are transfer of risk but you

17:48
have to be aware of both them just don't

17:49
accept somebody saying it well

17:51
it's free long-term care it's not

17:53
long-term care it's confinement care

17:55
enhanced benefit payouts

17:57
whether you're in a nursing home or you

17:58
can't do two of the six daily functions

18:01
i'm hoping that this is a lot clearer to

18:04
you

18:05
i'm hoping that you will feel

18:07
comfortable enough to ask us for those

18:08
quotes because we will run them for you

18:11
we will send you specimen policies if

18:13
you request so you can read those

18:15
we will send you the income writer

18:17
addendums to read if you request those

18:20
we will send you applications to read if

18:22
you request those

18:23
because if you're working with the

18:24
annuity men and my clients that are out

18:26
there going on their head when i say

18:27
this

18:28
you're going to make your decision on

18:29
your terms and on your time frame

18:31
there is no pressure the only urgency

18:34
when it comes to annuities with us with

18:36
me and my team

18:38
the urgency is this you need to fully

18:40
understand what you're buying

18:42
you need to fully understand the

18:44
strategy for the limitations

18:45
and the benefits both not just the

18:48
benefits

18:49
as i always say don't buy the sizzle

18:51
because you're going to stay

18:53
don't buy the annuity dream because

18:54
you're going to own the contractual

18:55
reality

18:56
and the contractual reality of these

18:58
enhanced benefit payouts

19:00
are good they're not perfect nothing's

19:02
perfect

19:03
but you have to understand how they work

19:06
so with that i really appreciate you

19:08
joining me in

19:08
in addition to this i've done youtube

19:10
videos on this subject

19:12
all right so you can go to stand the

19:14
annuity man at youtube

19:16
just type it into the search bar and

19:17
you'll see all my videos come up i'm

19:19
doing one a day

19:20
i do one a day monday through friday and

19:22
i've done a lot on this

19:24
you know kind of this issue and i'm

19:26
going to do more

19:27
so you can go there i'm also writing

19:30
every day for a lot of the major

19:31
platforms one i'm doing a lot for right

19:33
now is the street.com great company

19:35
i'm doing something for them i'm writing

19:37
a lot for them so you can always go to

19:39
the annuityman.com

19:40
and reach out to us and one of my team

19:42
or myself

19:44
will work with you one-on-one with this

19:46
situation this isn't something that's

19:47
do-it-yourself

19:49
this is something you need an expert

19:51
this is something that you need an

19:52
absolute

19:54
expertise to tell you the good the bad

19:57
the ugly the truth the limitations and

19:59
the benefits of what you're looking at

20:01
so you can make a decision because this

20:03
is tough

20:04
this is a hard one we're all facing

20:07
getting older

20:08
we're all facing getting sick we all

20:11
have had family members we've seen this

20:13
happen to i recently went through this

20:15
with my father

20:16
it's not pretty the end of life is not

20:18
pretty

20:19
but if you're a planner there are

20:23
options out there for you there are

20:24
guaranteed issue products like this that

20:26
are out there for you

20:28
that could possibly help less than

20:31
financial blow

20:32
for your family a transfer of risk and

20:35
in a lot of cases it makes sense so i

20:37
encourage you to at least get a quote

20:39
and reach out to us at the

20:40
annuityman.com and once again i really

20:42
appreciate you joining

20:43
me stand the annuity man on fun with

20:46
annuities

20:48
thanks for listening to fun with

20:50
annuities please hit the subscribe

20:52
button and make sure to go to my site

20:54
at the annuityman.com where you can run

20:57
your own spea dia

20:58
and q lat quotes and see a live feed of

21:01
the best mica fix rates

21:03
in the country and even get indexed and

21:05
income writer quotes as well

21:07
you can also sign up for my six annuity

21:10
owner's manual books and i'll ship them

21:12
for free and under no

21:13
obligation i also encourage you to

21:16
schedule a one-on-one call with me

21:18
stan the annuity man so we can have a

21:20
full discussion

21:21
of your specific situation it will be

21:24
the best

21:25
brutally factual and truthful advice you

21:28
will ever get and that's one guarantee

21:30
you should definitely take advantage of

21:32
so join me next time for the number one

21:34
annuity podcast

21:35
on the planet fun with annuities

21:52
you