A long-term care annuity is a financial product that combines the benefits of an annuity contract with long-term care (LTC) benefits. It is designed to provide a source of income during retirement while also offering coverage for long-term care expenses if needed. This type of annuity offers a unique solution for individuals looking to protect their financial future and ensure they have resources available for potential long-term care needs.

Key features of a long-term care annuity include:

1. Guaranteed Income Stream: Like traditional annuities, a long-term care annuity provides a guaranteed income stream to the policyholder during retirement. This income can help supplement retirement savings and provide financial stability in later years.

2. Long-Term Care Benefits: In addition to the income stream, the annuity includes provisions for long-term care benefits. If the policyholder requires long-term care services due to illness, injury, or aging, a portion of the annuity's value can be used to cover qualifying long-term care expenses.

3. Flexibility: Long-term care annuities offer flexibility in how the benefits are used. Policyholders can choose the level of long-term care coverage and determine how the annuity's value will be allocated between income payments and long-term care benefits.

4. Tax Advantages: Depending on the structure of the annuity and applicable tax laws, policyholders may benefit from tax advantages. For example, income from annuity payments may be taxed at a lower rate than ordinary income, and long-term care benefits may be tax-free under certain circumstances.

5. Asset Protection: By combining income benefits with long-term care coverage, long-term care annuities help protect assets and savings from being depleted by long-term care expenses. This can provide peace of mind and financial security for policyholders and their families.

Typical candidates for a long-term care annuity include:

• Individuals approaching retirement age who want to secure a guaranteed income stream for retirement and protect against long-term care costs.

• Individuals who want to plan for potential long-term care needs while maximizing their retirement savings and assets.

• Individuals who prefer a comprehensive financial solution that combines income benefits with long-term care coverage in a single product.

A long-term care annuity offers a unique blend of financial benefits and long-term care protection, making it a valuable option for individuals seeking a comprehensive solution for their retirement and healthcare needs. It's important to consult with a financial advisor or insurance professional to explore the options available and determine if a long-term care annuity is suitable for your financial goals and circumstances.