ACLI Supports Flexible Retirement Security for Life Act of 2005

The "Flexible Retirement Security Act of 2005", which is House Bill # 3923, was submitted to the U.S. House of Representatives on Sept. 27, 2005. This bill addresses America's retirement security concerns by encouraging Americans to use private long-term care insurance to protect their savings from the high cost of LTC services and use an annuity to manage their savings to last throughout retirement.

This bill will greatly benefit Americans in the purchase of Combo LTC products such as AnnuiCare and also encourage use of annuities with lifetime payout options to guarantee an income for life!

HR 3923 will make acquiring private LTC insurance easier by allowing a long-term care insurance rider to be added to an Annuity contract and clarifying the tax treatment of LTC riders attached to Life Insurance policies.

The American Council of Life Insurance, which fully supports this bill, said in a press release : "The need for innovative approaches to retirement security is clear. An estimated 77 million baby boomers are facing new challenges to their retirement security. Americans need to protect their savings from being depleted by the high cost of LTC services. By the year 2030, the cost of a one year stay in a nursing home is expected to skyrocket from $70,000 today to $241,000. Private LTC insurance can alleviate the potential strain on personal savings by helping pay for LTC services.

"Just as daunting of a challenge to retirement security is the danger of outliving retirement income. Americans are living longer than ever before, and many can expect to live 20 or even 30 years or more in retirement. The lifetime income option in an annuity can help retirees maintain a quality standard of living by guaranteeing an income that they won't outlive."

GILICO's agents have been presenting these undisputable facts to their clients for years! It is great to know that our trade organizations and the U.S. Congress are committed to providing tax incentives to help us sell more AnnuiCare and Lifetime payout options on annuities. Please continue to assist your clients to "Guarantee their income for life with Guaranty Income Life."

Read the full article at ACLI's Web site.

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