SPIA/LTC Hybrid Still Just a Concept

In this product, the adverse selection factors that plague both LTC insurance and immediate annuities would partially cancel each other out.

None of the LTC/annuity hybrid products that have been introduced so far this year reflect Mark Warshawsky's vision for a product called the “Life Care Annuity,” which combined a single premium immediate annuity, disability insurance, and LTC insurance.

Back in 2006, in several presentations as Retirement Research director at Watson Wyatt (now Towers Watson & Co.), Warshawsky described a product for which a 65-year-old individual would pay roughly $169,000 (or about $250,000 if he wanted automatic inflation adjustment)...

Retirement Income Journal: SPIA/LTC Hybrid Still Just a Concept