Is Your Annuity Cash Value Guaranteed?

The Best Kept Secret is Out of the Bag – Your cash value is guaranteed in the unlikely event that your annuity company can’t pay the claim.

OK, here’s an observational quiz: What’s the one most visible sign posted in banks everywhere? And no, I don’t mean the “We Think Your Money is Our Money” sign, or the one that says, “If You Don’t Need Money, We’ll Loan It to You”.

Answer: “FDIC Insured”. It’s everywhere. On the doors, on the table where you make out your deposit ticket, next to the Tellers. I heard that one bank even staples it to the Tellers’ foreheads. You think?

So, did you know that the Insurance/Annuity Industry also has guarantees on its cash values? You didn’t? Why not?

Because we were not allowed to tell you about the Florida Life and Health Insurance Guaranty Association (FLHIGA) until July 1, 2010. Since it is now after July 1, 2010, I can tell you, sort of. Actually, I still can’t tell you this unless you ask me. All I am doing today is telling you that a law was just passed that allows us to tell you this – if you ask.

If you wonder why we had to keep this secret, maybe you should look at the lobbying power of our beloved and trusted banking industry. Now they can’t hide behind the idea that they are the only “safe” place to put your money, as they offer you their absurdly low rates.

This foolishness is kind of the banking lobby forcing a “Don’t Ask; Don’t Tell Policy” on their competitors.

But, if you do ask, I can tell you that, with new rules that are also part of this law, the FLHIGA will guarantee cash values on Annuity Contracts up to $250,000. But, remember, I can only tell you if you are curious as to the safety of your Nest Egg. If you don’t care, if you don’t ask, you’ll just have to wonder. I can’t tell you.

Now the cat is out of the bag. I tell you about it. If you ask me.

 Blog Courtesey of:
Tom Willoughby, JD
The Retirement Rescuer
tmw@retirementrescuer.com
407.977.9171

Oakmonte Village is a new 25-acre luxury senior living community in the heart of prestigious Lake Mary, Florida. Ideally located for ease and convenience, Oakmonte Village is within easy reach of many local Orlando amenities such as parks, walking trails, lakes, and more.

Oakmonte Village offers resort style living and freedom from home maintenance.  Residents at Oakmonte enjoy amenities such as card and game rooms, fitness center, movie theatre, on-site banking, gift shop, pharmacy, outdoor swimming pool, full-service concierge and a diverse array of culturally rich programming.  Oakmonte’s active lifestyle is supported by concierge physician services, rehabilitative and home care services as well as a continuum of care through our soon-to-open assisted living and memory care community.  All without any entrance fees.

 To schedule your tour and five-star dining experience please contact us at 407-732-5800

Some Dates of Effective Timing of Health Reform Act

The Health “Reform” Act is a take-over of 15% of our economy. It can’t be done overnight. It phases in over the next 4 years, with most of the “budget buster” provisions in latter years. That’s to make the numbers “work”, as if an extra $1 trillion in our budget “works”. But here are some dates for parts of the Act to kick in.

In 2010
1. The $250 Medicare Part D Donut Hole Rebate is paid to some, which is to help them to cover some of the $4,000+ “hole” in coverage.

2. No more lifetime coverage restrictions, where only a certain amount will be paid by the insurance company over a lifetime for claims.

3. A national High Risk Pool is to be set up to cover those who could not otherwise get coverage.

4. You can cover your kid up to age 26.

5. Tax credits available to businesses with fewer than 25 employees that will pay for their health insurance.

In 2011
1. The “CLASS Act” is to begin taking in Long Term Care premiums. Maybe.

2. A surcharge will kick in for Medicare Part B, costing us more.

3. Medicare will pay for some preventive care services.

4. A 50% discount starts for some drugs under Part B coverage.

5. Health Savings Accounts and Advantage to lose key benefits.

In 2013
1. Part D Donut Hole begins to close.

2. Tax increase in the form of increasing from 7.5% to 10% of AGI, the limit over which we can deduct unreimbursed medical expense.

3. Higher income taxpayers pay 2.35% (up from 1.45%) Medicare tax and a 3.8% Medicare tax on unearned income.

In 2014
1. Coverage required for everyone, or face a fine (Hello, IRS)

2. Insurers must accept ALL applicants, dispite disability, illness & medical history.Will this put insurers out of the business?

3. A 15-member Independent Payment Advisory Board starts recommending ways to reduce Medicare spending. Rationing?

4. Goodbye Medicare Advantage Plans, as the law demands that companies must use 85% of premiums to pay claims. This is a not-so-subtle form of price controls, which only succeed in putting businesses out of business.

As Bette Davis once said, “Put on your seat belt, boys, it’s going to be a rough ride.”

Blog Courtesey of:
Tom Willoughby, JD
The Retirement Rescuer
tmw@retirementrescuer.com
407.977.9171

Oakmonte Village is a new 25-acre luxury senior living community in the heart of prestigious Lake Mary, Florida. Ideally located for ease and convenience, Oakmonte Village is within easy reach of many local Orlando amenities such as parks, walking trails, lakes, and more.

 Oakmonte Village offers resort style living and freedom from home maintenance.  Residents at Oakmonte enjoy amenities such as card and game rooms, fitness center, movie theatre, on-site banking, gift shop, pharmacy, outdoor swimming pool, full-service concierge and a diverse array of culturally rich programming.  Oakmonte’s active lifestyle is supported by concierge physician services, rehabilitative and home care services as well as a continuum of care through our soon-to-open assisted living and memory care community.  All without any entrance fees.

 To schedule your tour and five-star dining experience please contact us at 407-732-5800