Having extra cash to pay for long-term care insurance premiums has great appeal to many people. And, if a person owns a deferred annuity, they may be in luck. Starting this year, 2011, individuals can use proceeds from some annuities, tax-free, to pay premiums for long-term care insurance.

The new tax break that was included in the Pension Protection Act of 2006, not only is a benefit to current annuity owners, but offers advantages for policies that combine annuities with long-term care “hybrid products”. These hybrid products allow policyholders to use proceeds for long-term care, either for income or for both. Read more