Jack Lenenberg: New LTC Product to Disrupt the Industry

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[Music]

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welcome to fund with annuities where

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every single week I welcome a celebrity

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guest expert that can help you maximize

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chapter 2 of your life listen learn

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laugh and love every minute of the most

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unique Financial podcast on the planet

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let's get to

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[Music]

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it welcome to fun with annuities I'm

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your host Stan the annuity man America's

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annuity agent and yes I am licensed in

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all 50 states we have a repeat guest

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because he is the best and that did

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rhyme um when when the annuity

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man has clients or prospects or people

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that contact us for long-term care

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expertise we send them to one person

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we've sent them to one person for

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decades and that one person is named

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Jack ly ber he runs a company called

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long-term care LTC partner so it's www

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LTC partner that's singular not Partners

1:09
so www LTC

1:12
partner.com and Jack linenberg is a

1:16
unique unicorn of a person not only is a

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good guy and he's a very honorable

1:21
person but you know which is hard to

1:23
find sometimes in the long-term care

1:25
field but he's also has a background he

1:27
has JDS for those in the hint lands and

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where I'm from in North Carolina that

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means he actually has a law degree not

1:34
that he uses it and he's a lawyer but

1:36
but it helps because these contracts can

1:40
be a little cumbersome but um he

1:43
simplifies things just like I do which

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is the reason we get along without

1:47
further Ado welcome back to fund with

1:49
annuities Jack

1:51
linenberg it's great to be here St

1:54
excellent so thank you you know we we've

1:57
gone through a lot you know we don't

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want to mention dates or anything to

2:00
date us on these things but but you know

2:04
because long-term care is a solution

2:06
it's a transfer risk solution just like

2:08
lifetime income or Legacy or or

2:11
principal protection but as people know

2:14
I have an acronym called pill and that's

2:16
what annuities can solve for principal

2:20
protection income for Life Legacy and

2:21
long-term care but the long-term care

2:23
part of it is for that part is for

2:27
people that can't qualify for for the

2:30
products out there for long-term care

2:31
which is where Jack comes in he's not

2:34
affiliated with the annuity man

2:36
whatsoever he just runs his own company

2:38
Jack fill us in on what's new and what

2:40
you're

2:41
seeing um happening in the space right

2:44
now well I guess in the last really last

2:48
three or four years um since

2:53
covid there's been a big push in the

2:55
space to try to make long-term care

2:59
insurance benefits at claim time uh to

3:03
make the process easier to make the

3:05
benefits flexible to allow family

3:09
members to

3:11
possibly be caregivers you know if

3:14
people want to stay at home and if

3:15
there's a spouse and you know to at

3:18
least be able to draw out benefits

3:20
without necessarily having to pay for

3:23
care with a caregiver coming into the

3:26
home so there was a big move in the past

3:29
few years

3:30
um for what we call Cash Indemnity

3:32
benefits which eliminates the need to

3:35
submit

3:36
receipts so explain the word Indemnity

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Mr lawyer well Indemnity means I mean

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you're being given being indemnified you

3:47
know for the benefit that that you paid

3:49
for right there's and it's cash so

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there's no questions asked okay and

3:55
you're you know so you're not being

3:57
reimbursed you receive the benefit in

3:59
cash you don't have to prove that you

4:01
paid out of pocket good you're getting

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what you paid for yeah right I just like

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breaking it down because we do we would

4:09
have you know if I was buying you know

4:12
as much as I've been in the business I

4:14
would say okay you know give me the

4:15
English version of

4:18
indemnification and I think you did a

4:20
pretty good job there so so continue

4:22
yeah so so we've seen a big move in the

4:25
industry you know for cash Indemnity

4:29
benefit

4:30
and there's been a few Underwriters that

4:32
have still kind of held back on on

4:34
wanting to move in that direction

4:36
because it's more costly for the

4:38
insurance company of course if they have

4:40
to pay in cash without someone actually

4:42
having to pay for care um and they also

4:47
they'll they'll tell us that they think

4:48
there could be fraud as well you know I

4:51
don't buy that per se um so we've seen a

4:55
move um

4:57
but you know one of the more popular

5:01
products that's been in the marketplace

5:03
which gives lifetime unlimited benefits

5:07
no end where you can have coverage for

5:09
your entire life they've always resisted

5:13
giving any cash Indemnity benefits in

5:16
its plan whatsoever they just feel we're

5:18
giving you unlimited coverage we can't

5:21
give cash as well way too much risk

5:24
right I get it um two weeks from now

5:29
they're ucing a new policy they're

5:32
actually going to be having a cash

5:34
Indemnity component with the lifetime

5:38
benefit period so let's stop here um

5:42
because I don't I don't know where my

5:44
marketing people you know I give them

5:46
this recording and then magically

5:49
appears on the internet so let's talk

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it's it's what he's the date he's really

5:53
talking about if you're listening to

5:55
this later in life or right now is

5:59
really October of 2024 November 2024

6:03
correct October 21st 204 2024 so if

6:08
you're hearing this you know hold on to

6:11
that date because that's what he's

6:13
talking about and correct me if I'm

6:16
wrong but the long-term care space

6:18
doesn't always have a lot of new stuff

6:20
coming down the pike right it's not

6:23
pricing

6:25
changes but the policies tend to be the

6:29
same old same old right so this so let's

6:32
go over before you go to the new let's

6:33
tease them a little bit once again I'm

6:35
talking to Jack linenberg he is the

6:37
owner CEO of ltcp partner.com

6:42
he National he has the same business

6:45
model as we do at the annuity man which

6:47
is he doesn't have any favorite carriers

6:49
he just quotes all carriers to get the

6:51
best deal for your specific situation

6:54
and then gives you enough information on

6:56
your terms and your time frame with no

6:57
pressure to make an informed decision

7:00
sounds familiar yes because that's

7:02
exactly how we do it that's exactly how

7:04
it should be done so go over the before

7:07
we get to the new one uh the new the new

7:10
U strategy explain the three primary

7:14
types of longterm care coverage that's

7:16
offered and that has been offered for

7:20
ever um first and foremost the old

7:25
school traditional long-term care

7:27
insurance policy right which most people

7:30
have heard about um you buy a benefit

7:34
amount to pay for caregiving whether

7:36
you're in your own home or whether

7:38
you're in a assist of living or a

7:39
nursing home you pay a premium each

7:41
month or annually for your entire life

7:44
if you need care you receive benefits

7:47
and this is the hardest one to get right

7:50
Jackie you have to go through some

7:51
serious underwriting am my right serious

7:53
underwriting uh usually takes about four

7:56
to six weeks and um yeah yes and you pay

8:01
a premium forever the rates are not

8:03
guaranteed which is what consumers don't

8:06
like about Standalone long-term care

8:08
insurance the company can actually

8:10
change your rates um and you pay a

8:13
premium for and they have the other

8:15
thing that um I want to point out is

8:19
that a lot of people think that this is

8:22
the only type money goes poof I'd never

8:24
buy that because money goes poof kind of

8:26
like when people think there's only one

8:27
annuity and you know money goes poof

8:29
when you die this is one of of many

8:33
types so that's the traditional old

8:36
school this is the kind my mom has but

8:39
talk about the other types as well right

8:42
so in the last 10 15 years the market

8:45
really shifted away from the Standalone

8:48
policies

8:50
into asset-based long-term care

8:53
insurance so asset-based long-term care

8:56
insurance you you still have your

8:58
long-term term care benefits which can

9:01
be used in all settings Home Care

9:03
assisted living room and board in the

9:05
nursing home but underlying your

9:09
long-term care benefits is a cash value

9:12
a policy that if you don't need care you

9:16
receive all your money back to your

9:19
estate at your death so it's a

9:22
essentially it's a return of

9:24
Premium fixed cost long-term care plan

9:29
your rates can't change if you don't

9:32
need long-term care all your money comes

9:35
back to your

9:36
beneficiaries if you do need long-term

9:39
care you have the benefits that you that

9:42
you purchase so and I love that you can

9:45
transfer the risk understand that you

9:47
transfer the risk but you know if you

9:50
die before using it you know you're the

9:53
money is not repeat is not that's

9:57
noot going to go poof with these asset

10:01
backed policies right which I love so

10:06
and now in the asset based space St we

10:08
have two types as well we have what's

10:11
that other type well we have the life

10:13
insurance asset based policy and we have

10:16
the long-term care annuity asset based

10:20
policy so there's two Avenues in the in

10:24
the asset-based arena where we can get

10:27
long-term care benefits and let me me

10:29
interject right here a long-term care

10:32
annuity is a health insurance product it

10:36
is not a life insurance product in most

10:38
cases which is the reason we refer to

10:42
Jack because a he's an expert but

10:45
there's only one life insurance type and

10:49
let me let me just talk about it right

10:50
here because at the bad chicken dinner

10:52
expensive Ruth Chris Love Ruth Chris

10:55
Steakhouse dinner you're going to go to

10:57
they're going to talk about an index

10:58
annuity with an alleged supposed

11:01
long-term care benefit which it is not

11:04
um I call those policies when you get

11:06
sicker you get your money back quicker

11:09
um they're guaranteed issue but never

11:10
ever ever

11:13
replace long-term care real long-term

11:16
care the type Jack's talking about with

11:18
an index annuity with some riter on it

11:20
just please don't do that and if

11:22
someone's asking you to do that it's

11:25
Financial malpractice so keep going okay

11:28
so

11:30
yeah so within the asset based space

11:32
what my clients like about it is they

11:35
get their money back if they don't need

11:37
it but if they do need it you know

11:39
inflation adjusted long-term care

11:41
benefits and you know available for an

11:45
entire lifetime if that's the way you

11:47
want to design your plan so you know

11:49
it's up to our clients how we design the

11:51
plan how much per month they want to buy

11:54
and for how long how many years they

11:58
want the coverage for

11:59
so the policies are customized it's not

12:02
cookie cutter it's not you only get

12:05
three years or you only get 5,000 a

12:08
month I mean you have your pencil you

12:10
have your piece of paper can write

12:13
anything you want for your benefits dial

12:16
it up dial it down whatever you feel you

12:20
need to suit your objectives for your

12:23
plan of care and then you go objectively

12:26
shop for the best specific deal for the

12:30
customized plan that your clients want

12:33
it's really that simple um not

12:37
complicated it it isn't because you're

12:39
doing it and you're the best but but if

12:43
you go if you talk with if you go to

12:45
ltcp partner.com and you can schedule a

12:47
call with Jack he's going to ask you

12:50
questions he's not trying to sell you

12:53
and he's going to ask you questions on

12:55
exactly what type of coverage you or you

12:58
and your spouse or part

12:59
need and then he's going to fill that

13:01
blank and he's also going to tell you if

13:03
you're

13:04
dreaming and and what if the policy or

13:08
whatever you're thinking doesn't exist

13:10
but he'll get as close to it as he can

13:12
so with those f with that

13:15
foundational product knowledge in place

13:18
with those three types of long-term care

13:21
let's let's do a swan dive into the new

13:24
one you know what I'm excited about with

13:27
the new one is I mean I mean so for

13:29
years I've had

13:32
clients kind of like two different

13:35
options and they can't decide have

13:38
clients that well they want lifetime

13:41
unlimited benefits you know that's what

13:43
they want they don't want three four

13:45
five six years of coverage they want

13:47
forever and I agree with that um

13:50
Alzheimer's dementia we can care for a

13:53
long time we don't

13:55
know but a lot of my clients also like

13:58
the idea of a cash Indemnity option they

14:01
like that too they like the fact that

14:03
well maybe I don't want to have to

14:05
submit receipts uh you know what if we

14:07
can stay at home and my daughter can

14:09
take care of me or my wife can take care

14:12
of me I mean we'd like to have the best

14:14
of both worlds so yeah you know what's

14:18
coming out next

14:20
week The Best of Both Worlds now they're

14:23
not going to make the entire lifetime

14:25
benefit cash Indemnity as I understand

14:28
it might be

14:30
for 33 months close to 3 years of cash

14:34
benefits but it's pretty good if you

14:38
then still have the

14:40
Unlimited

14:42
Model you know with that where a lot of

14:45
my clients they start off at home but

14:47
eventually they transition right you

14:50
know you start off at home you might

14:51
need a little bit of care um eventually

14:55
it becomes too difficult for the family

14:58
and and we transition into assist of

15:00
living God forbid the nursing home so

15:03
the policy can be a perfect fit for

15:06
Lifetime coverage but you know three

15:08
years of benefits at home to

15:11
start you know really really really good

15:15
mix of of of a plan so I'm excited for

15:18
it that this underwriter is finally

15:21
making its policy more flexible with the

15:24
lifetime benefit period and again just

15:27
the date if you're watching this

15:29
depending on when you're watching this

15:30
podcast it's it's third week of October

15:33
2024 is what he's talking about so if

15:36
this comes out in November it's already

15:38
out you need to you need to get on the

15:41
phone with Jack and check it out but

15:43
he's still going to listen to you and

15:45
match you up with the policy or type of

15:48
strategy now there's four primary ones

15:52
that best fit your

15:53
needs in your opinion Jack having been

15:56
doing this and really the top person out

15:58
here in my opinion for long-term care

16:00
strategies and

16:02
insights other than pure capitalism and

16:05
them trying to Corner the market what

16:07
was the impetus for this to happen and

16:10
how long did it take for them to figure

16:12
it out this new strategy well I mean

16:16
it's just the marketplace it took this

16:18
company four years it I mean they've

16:20
always had unlimited benefits they just

16:22
didn't want to go the cash Indemnity

16:24
route they just you know they just think

16:27
wait that's just too much risk

16:30
so they're moving into the cash

16:33
Indemnity space just to make their

16:34
policy more flexible to compete with

16:37
other

16:38
Underwriters who have moved in in this

16:41
direction so the you know the arena is

16:44
getting stronger better more

16:47
flexible which you know helps all

16:50
companies I mean other companies will

16:51
then pivot in what I'm hoping for is

16:54
maybe another underwriter comes out with

16:57
lifetime coverage because a lot of

16:59
Underwriters only will sell you five six

17:01
years of benefits and that's it so got

17:04
it so we kind of need the underwriters

17:08
that only want to sell six years we need

17:10
them to go

17:11
longer and I again the company that

17:13
sells unlimited benefits we need them to

17:17
give cash right we need everybody to

17:19
kind of become better uh and there's

17:22
great products out there now so it's a

17:25
good Marketplace well and I have no

17:27
political party I'm am the lead party uh

17:30
spokesman for capitalism and this is a

17:34
great example of that I mean with with

17:35
13 to 14,000 Baby Boomers hitting 65

17:38
every day there is an appetite and a

17:41
demographic tial wave I always talk

17:43
about that's that's driving these types

17:45
of policies and as people go into

17:48
chapter two of their lives this is one

17:49
of the boxes they want to

17:51
check um going forward so I I think you

17:55
know I think it's exciting and I'm glad

17:57
that um we're seeing some movement and I

18:00
think I think after um Obamacare I think

18:04
there was a little bit of a frozen

18:06
nature within the business to see how

18:08
that all played out my opinion and now I

18:12
think the dust has settled a little bit

18:13
to where companies feel com comfortable

18:15
to to you know introducing these types

18:18
of new products for the person out there

18:21
Jack that always says well that sounds

18:23
too good to be true there's not a

18:25
product you can have your cake and eat

18:26
it too what's your AR argument against

18:29
that statement with this Pro new

18:32
product I would say they're

18:36
correct you can't have your cake and eat

18:39
it to it is Insurance there's a cost to

18:42
it it's called opportunity cost you know

18:46
so if I have a client let's say a 55y

18:48
old couple and you know they write a

18:51
check for

18:53
$200,000 and they may have a death

18:55
benefit of

18:57
$270,000 if they don't need care if they

19:00
need Care at age 885 they're going to

19:02
have $2 million of coverage so 200,000

19:05
turns into 2 million right if you don't

19:09
use it you get 270

19:11
back but that doesn't mean that it's a

19:13
free lunch there's still a cost because

19:17
if I take

19:18
$200,000 and I try to invest it for 30

19:21
years I think I'm going to have more

19:23
than 270 right I might have 550 or 600

19:27
sure like so there's a cost if you want

19:31
2 million

19:32
taxfree there's going to be an

19:34
opportunity cost on your money to

19:36
reposition so I mean people like to say

19:41
that it's too good to be true and I get

19:43
it I mean I like it it's a great idea

19:45
it's a great it's great leverage to get

19:47
10 to one leverage right it's great

19:50
leverage but there is a cost it's just

19:53
it's opportunity cost on our Capital so

19:56
we we have to accept that with insurance

19:59
right you want to turn 200 into 2

20:03
million well of insurance you know but

20:06
we're we both have old crusty kudin in

20:09
the business we both try to head that

20:12
feeling off at the past with facts which

20:14
is what you just did um it's not too

20:17
good to be true you can have your cake

20:18
and eat it too there is not a catch

20:21
there's just facts which he just laid

20:23
out so this new product is the chassis

20:25
underlying the product life insurance it

20:28
is it's life insurance so there's

20:32
underwriting there's

20:34
underwriting

20:36
um but you know it's it's fair

20:39
underwriting you don't have to be

20:41
Superman and Superwoman to to get the

20:43
policy you just have to be in reasonably

20:45
good health to get a long-term care plan

20:49
you know so we do have to go through

20:50
underwriting SC and and Jack will you

20:54
know what I the the feedback I've gotten

20:56
from the people I've referred to them

20:58
him which is tons the people called me

21:02
back and said he was so honest about the

21:04
underwriting whether that's good or bad

21:06
I mean you're going to have to tell him

21:08
exactly what's going on with you but

21:10
he is going to be super straightforward

21:13
and transparent during that process

21:15
because he doesn't want to waste your

21:16
time or his to be very

21:18
honest um and I think people that are

21:21
looking for the these transfer Risk

21:24
Solutions like long-term care you know

21:27
and when they come to us they just want

21:29
the truth they want the brutal facts

21:32
here's the good here's the bad here's

21:33
the limitations here's the benefits

21:36
here's how long the process is going to

21:38
take Etc but the great part about Jack

21:41
yeah they take care of they take the

21:44
lead on all of that he has great

21:47
relationships with these companies and

21:49
the internal people that do the

21:50
underwriting so the

21:53
process goes smoother than anything I've

21:56
ever seen for for that type of business

21:59
where you have to go through

22:01
underwriting give us some insight Jack

22:03
on your decades in the business on just

22:06
your relationships without mentioning

22:08
any names or carriers on how you work

22:11
through that with clients and the

22:13
communication you provide during that

22:17
process well I mean so you know I work

22:20
with about 10 to 12 companies right so

22:24
which is pretty much the universe right

22:27
yeah I that's the whole universe ver of

22:28
long-term care I have a personal

22:30
underwriter due to the volume that I do

22:33
with each company so you know I work

22:37
hand inand with personal Underwriters

22:39
where they're on my speed dial so if a

22:42
client calls me up and we review their

22:45
health history I will call each

22:47
underwriter that will be of interest to

22:50
my client and within 30 minutes I should

22:55
know yes or no from every company

22:59
can we submit can we not submit you know

23:02
most agents it could take them a week to

23:05
10 days to get back to right to get back

23:08
to you know clients with the answers

23:11
I'll know in 30 minutes so um and not

23:15
many

23:16
people for the people watching and

23:19
listening to us thank you again this is

23:21
um Jack

23:23
linenberg he's at www LTC partner p a r

23:28
t n r LTC partner NOP spaces.com he is

23:33
the best and he and the reason I wanted

23:35
to point that out what we just talked

23:37
about is there's not many

23:39
people I probably could count them on my

23:42
hand and I'm guessing that have these

23:45
type of redphone connections internally

23:48
with these carriers in essence what Jack

23:50
says with every one of his carriers he

23:53
does so much business there's a specific

23:55
person that actually is assigned to him

23:58
and I call it a red phone to where he he

24:00
calls them and they answer um and I

24:03
that's

24:05
unmatched um and this is his specialty

24:07
what I love about what Jack does is you

24:10
know what we do we're annuities I'm

24:11
stand the annuity man is the annuity man

24:14
he's LTC partner they he does long-term

24:17
care and he does it at a very high level

24:19
and he does it very well and he knows it

24:21
inside and out um and there's a lot of

24:25
agents and advisers that try to sell you

24:28
mutual funds sell you stocks sell you a

24:29
little bit of long-term care sell you a

24:31
little bit of annuities and they're

24:32
they're they're not a master of anything

24:35
they know a little bit about everything

24:37
but don't know a lot about the one

24:39
product I like the fact that he he is in

24:41
his Lane and he's based outside of

24:44
Atlanta

24:45
Georgia um even though he States though

24:48
but all 50 he's just like us licensed in

24:51
all 50 states which is the reason we

24:53
love working with him what else about

24:56
that product that or have you fully

24:58
covered it um what else you see coming

25:01
down the pipe that you can make a

25:04
calculated guesstimate on other than

25:08
competition coming and adding to

25:11
this well there's there's another and

25:14
this might be an option

25:16
for maybe some of your clients then

25:20
there's um so for people who

25:23
own non

25:26
non-qualified defer annuities so let's

25:29
stop right there so a non-qualified

25:32
deferred annuity just going to go

25:34
through the major ones okay that would

25:37
be a multi-year guarantee annuity

25:39
non-qualified non Ira a fixed index

25:43
annuity non-qualified non Ira a variable

25:46
annuity

25:47
non-qualified uh non Ira those would be

25:50
the primary ones that he's talking about

25:54
go

25:56
so I'm sure there's a lot of consumers

26:01
out there that own annuities they've

26:04
been sitting on for 10 15 20 25 30 years

26:10
with significant

26:12
gains inside the annuities right you

26:15
know not open they're not opening the

26:17
statements that's why they just thr the

26:20
statements in the file cabinet yes those

26:22
deposited 75,000 you know 25 30 years

26:25
ago they have 400 500,000 that just

26:28
grown so they're they pay taxes on it

26:31
it's just right sitting on this huge

26:34
gain of taxes and they just don't know

26:36
what to do so what do we do Jack

26:38
linenberg well so pension protection act

26:42
right of 2006 which was signed into law

26:46
in

26:47
2010 um introduced changes to the tax

26:51
treatment of annuities with long-term

26:53
care benefits so annuities

26:55
can pay for long-term care tax free MH

27:01
so tax planning strategy I have an

27:05
underwriter that

27:07
will instant approval no

27:12
underwrite if people want to

27:15
transfer a non-qualified annuity into an

27:19
long-term care

27:22
annuity you know for the tax play right

27:26
so no really there's three Health a non

27:30
taxable event it's a non- taxable event

27:33
yes but if you need care it all all the

27:36
gains come out taxfree okay for people

27:40
sitting on gains yeah let's stop and

27:43
let's dissect this slowly so you have a

27:46
non Ira we call it non-qualified but

27:49
it's it's it's non Ira money you have a

27:52
a deferred annuity a variable an index

27:54
or a multi-year guarantee annuity in

27:57
that non-qualified account you have

28:00
massive

28:01
gains you can you can transfer that and

28:05
I believe that falls Jack under the 1035

28:08
transfer rule which is a non-t taxable

28:10
event or it is a non-t taxable event

28:13
meaning that it's going to go from one

28:15
carrier to another it's not going to

28:17
trigger any taxes let me say it one more

28:19
time it is not going to trigger any

28:22
taxes when you do this transfer but when

28:24
you transfer it to the long-term care

28:28
strategy that Jack you and Jack would

28:30
have talked about then the money coming

28:34
out it's going to come out tax-free

28:36
those gains that you're so worried about

28:40
is going to come out taxfree and you get

28:42
the long-term care coverage Jack fill in

28:44
the blanks what I whatever I missed

28:46
there it's that's it so for for

28:50
individuals sitting on gains you can

28:52
turn it into taxfree money for long-term

28:56
care and there's aen no underwriting for

29:00
if this is all you want to do as a tax

29:02
play and have taxfree long-term care

29:05
benefits and eliminate your gains the

29:09
only questions this underwriter is

29:11
asking is have you been diagnosed with

29:14
Alzheimer's

29:16
dementia Parkinson's or do you use

29:19
Mechanical Devices that's it Mechanical

29:23
Devices meaning wheelchair Walker

29:28
hospital bed dialysis machine basically

29:32
outside of that you could have current

29:36
cancer you could have heart disease you

29:38
can have obesity

29:41
fibromyalgia type two diabetes with

29:43
insulin all of this other stuff and be

29:46
approved so you could even be on

29:49
disability and be approved so they're

29:52
doing no underwriting if all you want to

29:55
do is move your money now if you want to

29:59
do a little bit more than moving your

30:01
money so let's say you let's say you're

30:04
sitting on a half a million dollar with

30:07
a 100,000 basis and all you want to do

30:09
is make this 400,000

30:11
taxfree basically instant

30:13
approval if you want to move the 500,000

30:16
and turn it into 1.5 million get a

30:19
tripling your money with an extension of

30:22
benefits writer for long-term care now

30:24
we got to go through underwriting make

30:26
sense yeah it does

30:28
um so let's take that example you have

30:30
A1 $100,000 cost basis it's grown to

30:35
500,000 you like the sound of this you

30:37
go to Jack Jack explains it to you you

30:40
transfer

30:41
it two years later you die now what what

30:45
happens to that those gains and the and

30:48
you haven't utilized you haven't used

30:51
care I mean then of

30:53
course the gains are taxed at ordinary

30:56
income I mean it's taxfree if you use

30:59
care got it and that's so so what you're

31:02
doing

31:04
is you're saying we really need care we

31:07
have this asset that has all this all

31:10
these gains in it let's utilize that and

31:13
if we draw it all down we're not going

31:14
to pay any taxes on those gains and if

31:16
we die whatever we didn't use from those

31:19
gains would be taxable um but if you

31:23
want to make it totally tax-free then

31:25
you go to the life insurance chassis

31:28
Etc correct you can go you can go to the

31:31
secondary you can transfer because you

31:33
can

31:34
transfer an Anu can you transfer this to

31:38
a life insurance chassis or not no well

31:41
you would have to distribute the annuity

31:43
into a life insurance policy and the

31:45
distribution is going to be taxable so

31:47
the insurance companies would tax you

31:49
over 10 years you know so that's and you

31:53
walk people through that but you know I

31:55
just think it's for a lot of people out

31:57
there that watch this um podcast and

32:00
listen to my my videos and stuff it's

32:03
just one more thing that you need to put

32:05
in the back of your head knowing that

32:07
you have a fantastic resource in Jack

32:10
again ltcp partner.com that you can run

32:14
the idea by and see if it makes sense to

32:17
you um to to do this type of of transfer

32:22
and do this type of what I call

32:24
transferring risk so you know annuities

32:28
are transfer of risk products so is

32:30
long-term care but this is just one more

32:33
way of doing something legal that

32:37
doesn't trigger any taxes on the

32:39
transfer it's it's a perfect in my

32:42
opinion Food For Thought moment for

32:45
those people that have those type of

32:47
annuities with gains sure and again

32:52
migas multi-year guarantee annuities

32:54
which are the annuity version of a CD

32:57
fixed index annuities which is a CD

33:00
product and variable annuities those are

33:02
the three primary deferred annuities and

33:05
they have to be in a non IRA account if

33:08
you fall into that category and have

33:10
those gains then that's when you need to

33:13
reach out to Jack I did want to point

33:15
out one thing Jack that I I told

33:17
everybody your your base right outside

33:19
of Atlanta but there's a lot of people

33:21
out there Jack that scratching their

33:22
heads with all of the Steeler and

33:24
Pittsburgh thing behind there that's

33:25
where Jack's from So You Know

33:28
he's an Iron City Beer guy he's a

33:30
Pittsburgh Steelers guy he's a

33:32
Pittsburgh penguin's guy he's a pit

33:34
Panthers guy he's that guy he's a he's a

33:38
Pittsburgh Pirates guy even though

33:40
somehow he took a wrong turn to end up

33:42
in Atlanta or outside of Atlanta the

33:45
Russ belt moved South Dan I mean he's

33:49
bronze he's you know he's he's in

33:51
Atlanta he's get getting the no I have

33:55
to kid Jack about that because he is a

33:57
he is a Pittsburgh person for sure so

33:59
what else is new Jack to fill all these

34:02
people in about long-term care I mean

34:06
pricing is great right now um couple of

34:09
Underwriters reduce rates by about 20 to

34:14
25% so rates the cost of Insurance is as

34:17
good as we've ever seen it and it's

34:21
really due to the rising interest rate

34:24
environment which I'm sure in your

34:25
business has you know created a queue

34:30
all the way you

34:32
know our business Europe you know people

34:36
always ask um did interest rates affect

34:39
your business and all that stuff um if

34:43
we look B if I look back and I my

34:45
Consultants still do this all the time

34:47
they'll show me the 10e and the fiveyear

34:49
and the seven-year numbers like like I

34:51
really don't I care but it doesn't drive

34:54
the train for

34:55
me I just think just just like you with

34:59
so many

35:01
people hitting age 65 13 14,000 a day

35:05
and so many people that are needing to

35:09
transfer risk and set up these these

35:12
types of

35:13
um policies for them or their spouse or

35:16
their partner I don't think rates drive

35:19
a lot if if if you are doing what we do

35:22
and what you do which is licens in all

35:24
50 states represent pretty much every

35:26
carrier out there always busy we're

35:28
always busy always busy regardless of

35:31
the environment I don't care I'm like

35:32
we're like you the FED announces and

35:34
we're like

35:36
H whatever I mean people still need

35:39
income people still need Legacy people

35:41
still need long-term care regardless of

35:43
who's who's President regardless of the

35:46
fed and I tell people all the time you

35:48
know forget parties prepare for both you

35:52
know take care of the boxes you need to

35:54
check for you and your family and go

35:56
live your life

35:58
that's live it you know someone told me

36:00
the other day you got to manage your

36:03
stress and I said no no let not manage

36:06
it let's eliminate it okay let's try to

36:09
eliminate stress the products that Jack

36:11
and I do are stress elimination products

36:15
they're transfer of risk products you

36:18
know what you're going to get there's no

36:21
floating variable out there you know we

36:25
both sell guarantees with that being

36:27
said what's some closing comments if you

36:29
have any for the fine

36:31
people watching this and listening to

36:33
this podcast I mean I I would just say

36:36
Stan regardless of insurance and

36:40
products you know when it comes to

36:43
long-term care

36:45
planning the most important thing for

36:48
our clients have the

36:52
conversations with your family with your

36:55
loved ones with your children bring your

36:57
children

36:59
in and just

37:02
discuss what the what your plan is

37:04
whether it rols around insurance or not

37:07
how you want to be taken care of make

37:10
sure that your directives are up to date

37:15
make sure that you've you know updated

37:18
your will your power of of

37:20
attorneys documents are are completed I

37:24
I if you end up needing care

37:28
these documents and your directives are

37:30
so important and a lot of people don't

37:33
really think about what needs to be done

37:35
ahead of time and it's tough to try to

37:38
do everything at the last second so you

37:42
know just the conversations with the

37:45
children let them know what you have

37:48
what your plan is if you own a policy

37:51
let your kids know that you own a policy

37:54
you know what your benefits are don't

37:56
keep it don't keep it secret right you

37:59
know bring everybody in everybody's on

38:01
the same team in the family and you know

38:05
it's the discussions and the

38:09
conversations that's really the most

38:12
important um and I I agree with that

38:15
totally yeah and I always tell people

38:18
think about putting a team together as

38:20
you go into chapter two of your life you

38:23
know Jack's part of your team I'm part

38:25
of your team your CPA your state

38:28
planning lawyer your tax lawyer is

38:30
they're part of your team Financial team

38:32
and of course you have medical team but

38:34
you have a team and you have a team of

38:36
experts that you know is going to shoot

38:38
it straight and that you can run things

38:41
by and have open conversations I think

38:43
that is that is key once again every

38:47
time I talk to jack it is fantastic and

38:50
you know I fully sign off and stamp you

38:54
working with him and and you know

38:57
kicking the tires is a great site once

38:59
again it's www

39:02
LTC

39:04
partner.com

39:06
ltcp partner.com go there schedule call

39:10
he is not a hammer looking for a nail

39:12
he's like us he's listening he uses his

39:15
ears and his mouth in proportion and

39:17
he's going if if he can find a fit then

39:20
he's going to shop all carriers for the

39:22
for the best contractual guarantee I'd

39:26
like to thank everybody for Jo us for

39:27
this this um episode of fun with

39:31
annuities thank you Jack linenberg and

39:33
we'll see everybody again next time

39:41
[Music]