A Split Annuity Solution for Doubling an Investment Overnight

For retirees, the fear of outliving their savings is a reality that often faces them. But a strategic approach can offer reassurance. A well-designed solution grows assets and creates a dedicated fund for future care needs, providing a comprehensive safety net. 

The fear of depleting assets during retirement is understandable. While lifestyle adjustments or increased savings can help mitigate the risks, a more holistic strategy offers even greater protection. Retirees often have underutilized assets that aren’t generating sufficient growth to prepare for unexpected income needs. Repositioning those assets into a Fixed Indexed Annuity (FIA) can create the opportunity for growth while protecting from market losses. 

However, if the primary concern is funding future care costs, an FIA alone may not suffice. Annuity-based care planning products are often considered, but these products tend to lack significant growth potential and may not meet the needs of retirees who remain healthy. 

A Dual Strategy for Growth and Long-Term Care Protection 

The answer lies in combining both approaches. For example, a 70-year-old retiree with $300,000 in underutilized assets can use a Split Annuity Strategy to turn that $300K into over $625K. By repositioning funds into a combination of a Fixed Indexed Annuity and an Annuity-Based Long-Term Care Annuity, the client gains a tax-efficient retirement solution that addresses both growth and future care needs. 

In the following example, the strategy utilizes a bonus annuity to replenish some of the funds that might otherwise be used for care planning, boosting the account value to over $321,000 on day one. 

Split Annuity Solution Results 

This strategy not only enhances the growth potential but also offers a clear advantage if the client needs long-term care. The combined value of the asset increases steadily, even if the client remains healthy, providing a steady and reliable source of income. The year-one surrender value is $321,637 and continues to appreciate over time. 

A Comprehensive Solution for Growth and Long-Term Care 

The Split Annuity Solution offers a dual benefit, delivering growth potential while addressing the future cost of care. If long-term care is required, the annuity benefits are generally income-tax-free, making this strategy a desirable option for retirees seeking security in their golden years. This balanced approach ensures peace of mind, offering both growth and protection.

Whether you’re a seasoned life insurance agent with decades of client relationships or a wealth advisor focused on asset growth and tax-efficient retirement strategies, this approach helps you deliver more value, without unnecessary exposure.

You don’t need to master every product detail or legislative update. With LIFE Brokerage as your partner:

• You get access to carefully vetted product pairings.
• You save hours of research and underwriting guesswork.
• You protect your time and your reputation with clear, client-ready recommendations.

If you have a client with idle assets and concerns about future care, reach out today — we’ll help you turn that conversation into a smart, customized solution.