Guaranteed Lifetime Income
+ LTC Rider After 2 Years
One contract. Two guarantees. Lifetime income you can’t outlive โ plus enhanced long-term care benefits that activate after just two years. No use-it-or-lose-it. No market risk.
on FIA Products
Multiplier
Carrier Partners
Benefits Activation
One Contract.
Two Guarantees.
Guaranteed Lifetime Income
- A paycheck you can’t outlive โ guaranteed for life
- Protected from market crashes (0% floor)
- Tax-deferred growth until you take income
- Joint options protect your spouse
Long-Term Care Rider (After 2 Years)
- Enhanced benefits activate after year 2
- 2รโ3ร multiplier on your income when you need care
- No use-it-or-lose-it โ you keep the income for life
- No separate premium โ the rider is built in
The Bottom Line
“A hybrid annuity with an LTC rider turns your savings into guaranteed income and protects you from the #1 retirement risk: long-term care costs.”
See If This Strategy Fits Your Plan โHow the LTC Rider Works โ The “Two Accounts” Explained
Account Value (Your Real Cash)
- The actual money you invested โ grows with interest credits
- Never loses value due to market drops (0% floor on FIAs)
- Reduced by rider fees and withdrawals
- May go to zero if you take income for many years
๐ก Key Insight: Even if Account Value drops to zero, your income continues for life.
Income Base (Your Guarantee)
- A “virtual” account used only to calculate your income
- Grows independently with a guaranteed roll-up rate (e.g., 7.20%)
- Never decreases due to market downturns
- This is what the LTC rider multiplies when you need care
๐ก Key Insight: The Income Base is what guarantees your income for life โ the LTC rider multiplies it when you need care.
The “After 2 Years” Feature
LTC rider benefits activate after the second contract anniversary. This means:
- Year 1-2: Your money grows tax-deferred โ LTC rider not yet available
- After Year 2: If you qualify, you can access enhanced income for care
- Qualification: Unable to perform 2 of 6 Activities of Daily Living
๐ Example: $100,000 annuity at 3% interest โ $106,090 after 2 years โ 3ร multiplier โ $318,270 in available LTC benefits
Meet Margaret โ How This Works in Real Life
Margaret
Age 68 ยท Retired Teacher ยท Annapolis, MD
Her Annuity:
- Premium: $200,000
- Product: Fixed Indexed Annuity with LTC Rider
- LTC Waiting Period: 2 years
- Benefit Multiplier: 3ร
โ Year 1โ2: Tax-Deferred Growth
Margaret’s $200,000 grows to ~$212,180 (assuming 3% interest). The LTC rider is now active.
โ ๏ธ Year 3: Health Event
Margaret has a stroke and cannot bathe or dress herself (2 of 6 ADLs). She qualifies for LTC benefits.
โ Benefit Activated: 3ร Income
Her guaranteed monthly income triples during the care period โ from ~$1,200/mo to $3,600/mo โ covering her assisted living costs. After care ends, her income reverts to the original $1,200/mo for life.
Without the annuity: Margaret would be paying $6,000โ$9,000/month out of pocket for care, draining her savings.
With it: She has enhanced income to cover care costs plus guaranteed income for the rest of her life.
Who Benefits Most from This Hybrid Strategy?
The “Will My Money Last?” Couple
You’re 60โ72, have $400Kโ$1.5M saved, and worry a bad health event could wipe out everything you built.
โ Get your hybrid quoteThe CD Rollover Client
Your CD is maturing at 3.8%. Hybrid annuities offer guaranteed growth and LTC protection in one contract.
โ Compare hybrid optionsThe “Protect My Spouse” Planner
You want income to continue for your surviving spouse automatically, and protection against LTC costs that could drain the estate.
โ Plan for both of youThe IRA-Heavy Pre-Retiree
Most of your wealth is in a traditional IRA. A QLAC-compatible hybrid can reduce RMDs and provide LTC coverage.
โ IRA + LTC annuity strategiesCompare: Hybrid Annuity vs. Traditional LTC Insurance
| Feature | Hybrid Annuity + LTC Rider | Traditional LTC Insurance |
|---|---|---|
| Guaranteed Lifetime Income | โ Built-in | No |
| LTC Benefit (if needed) | โ 2รโ3ร income | โ Yes |
| Use-It-or-Lose-It | No (keep income for life) | Yes (premiums lost if not used) |
| Premium | Single premium (lump sum) | Annual premiums (can increase) |
| Tax Treatment of Benefits | Taxable income | Tax-free benefits |
| Principal Protection | โ 0% floor | N/A |
| Market Growth Potential | โ Index-linked (FIA) | No |
Important Caveats to Understand
LTC Benefits Are Taxable
The enhanced income you receive is taxable income, not tax-free LTC benefits. Traditional LTC insurance pays tax-free, but you lose the premium if you don’t use it.
Benefit May Not Be There
If your Account Value drops to zero before you need care, the enhanced benefit may not be available. The additional income is essentially an accelerated repayment of your own money.
Average LTC Need Is 2โ3 Years
Most people who need long-term care stay in facilities for less than two years โ 78.3% stay under 2 years, and 54.2% stay 11 months or less. The 5-year enhanced benefit period in many policies is often more than enough.
Not Available in All States
Some products with LTC riders are not available in California or Maryland. Always check availability with your advisor. We’re licensed in all 50 states and can tell you what’s available where you live.
Get Guaranteed Income and LTC Protection โ
In One Contract.
Answer 7 short questions. We’ll show you exactly how much guaranteed monthly income your savings can create โ plus what the LTC rider would provide if you need care. Real quotes from A-rated carriers, no pressure, no obligation.
๐งฎ GET MY FREE HYBRID ANNUITY QUOTE โMD Life Insurance ยท Brookeville, MD 20833 ยท 301-569-2224 ยท info@mdlifeins.com ยท Licensed in MD, VA, DC and nationwide. Annuity income estimates are illustrative only. Actual quotes depend on age, premium, carrier, state, product type, and prevailing interest rates. All annuity products are subject to carrier claims-paying ability. Early withdrawals before age 59ยฝ may be subject to a 10% IRS penalty. This page is for educational purposes only and does not constitute financial, tax, legal, or investment advice. We do not sell variable annuities. Legal ยท Privacy Policy