Can You Use an Annuity to Pay for Long-Term Care?

Shawn Plummer

CEO, The Annuity Expert

Can You Use an Annuity to Pay for Long-Term Care?

Yes, an annuity can be a viable option to pay for long-term care, and there are three primary ways to do this:

1. Long-Term Care Waiver in a Deferred Annuity

  • What It Is: This option is often included in deferred annuities.
  • How It Works: The waiver allows you to access your annuity funds without penalty if you need long-term care.
  • Benefit: Provides flexibility to use your annuity savings for care if required.

2. Lifetime Income Rider with Enhanced Long-Term Care Benefit

  • What It Is: An additional feature you can purchase with your annuity.
  • How It Works: It provides a higher income stream if you require long-term care.
  • Benefit: Offers increased financial support during long-term care needs.

3. Long-Term Care Annuity

Our annuity payout calculator helps you understand the long-term care benefits of your investment.

Comparing The Options

FeatureLong-Term Care WaiverLifetime Income RiderLong-Term Care Annuity
PurposeFlexibility for Care NeedsEnhanced Benefits for CareDedicated Long-Term Care Funding
BenefitAccess funds without penaltyHigher income for care needsSpecific to long-term care expenses
Ideal ForThose seeking flexibilityThose wanting added securityThose focusing solely on long-term care


Choosing the right annuity option to fund long-term care depends on your specific needs and financial situation. Each of these three methods offers unique benefits and caters to different requirements. Carefully consider which option aligns best with your long-term care planning strategy.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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