Common Ground Insurance and Consulting
Plan for Long-Term Care Costs Without Giving Up Control of Your Savings
Common Ground Insurance and Consulting helps Texas families compare hybrid life and annuity policies with long-term care benefits, traditional long-term care insurance, and other ways to pay for care. We explain how each option works, including how it interacts with Texas Medicaid, in plain English, with no pressure. Serving Texas virtually and in your home.
Saving Texas families' homes and dignity is my ikigai — my reason for being.
— Founder, Common Ground Insurance
🛡️ Long-Term Care Planning🧾 Medicaid Spend-Down Education🔄 Dual-Purpose Flexibility
Depending on your age, health, and the product, a single premium may buy long-term care benefits larger than the premium itself. Ask for a carrier illustration with your exact numbers. Benefits, tax treatment, and guarantees depend on the policy you buy and the claims-paying ability of the issuing insurer. Benefits vary by product and carrier.
Licensed independent Texas agent
LICENSED · VIRTUAL OR IN-HOME · NO OBLIGATION
Why Choose Hybrid LTC Annuities?
This approach is often a good fit for retirees concerned about long-term care costs and Medicaid spend-down. It offers a proactive way to plan for care, maintain dignity, and keep more choices open.
Long-Term Care Benefits That Can Exceed Your Premium
Hybrid LTC annuities and hybrid life policies can turn a premium into a pool of long-term care benefits that may be larger than the premium itself. Benefits pay for qualified LTC expenses, which can reduce the need to liquidate other savings. Your carrier illustration shows the actual amount.
- Long-term care benefits that can be larger than your premium (see illustration)
- Death benefit or remaining value if care is never needed (per contract terms)
- Ask about Texas Partnership-qualified options
Tax Treatment of LTC Benefits
Under federal law, qualified long-term care benefits from a properly structured contract are generally received income-tax-free under federal law. Consult your tax advisor.
- Favorable federal tax treatment for qualified LTC benefits
- Pension Protection Act rules apply to certain annuity contracts
- Ask your tax advisor about your situation
Dual-Purpose Flexibility
If you never need long-term care, many of these policies pay a death benefit to your beneficiaries or keep a contract value you can access, according to the policy's terms. Contract guarantees are backed by the claims-paying ability of the issuing insurance company.
- Income or death benefit options if care is never needed (per contract)
- Death benefit to beneficiaries
- Value may remain for you or your heirs, depending on the contract
Simplified Underwriting & Eligibility
Hybrid LTC annuities often feature streamlined underwriting, making them accessible to individuals with mild health issues who may not qualify for standalone LTC insurance.
- Streamlined underwriting process
- May be accessible with mild health issues
- Often easier qualification than traditional LTC
Preserves Independence and Legacy
By planning for care costs privately, you can reduce the burden on family members and keep more control over care decisions. Remaining policy value may pass to beneficiaries, per contract terms.
- Maintains family independence
- Control over care decisions
- Legacy planning for your heirs
Compare Your Options
See how hybrid LTC annuities stack up against traditional long-term care insurance and self-insurance strategies.
| Compare Your Options | Hybrid LTC Annuity |
|---|---|
| Premium Structure | Single premium or flexible |
| LTC Benefit vs. Premium | May exceed premium (see illustration) |
| Death Benefit | Often included (per contract) |
| Tax Treatment | Qualified LTC benefits generally received income-tax-free under federal law. Consult your tax advisor. |
| Underwriting | Often simplified health questions |
| Premium Increases | Single-premium designs: no future premiums |
| Cash Value | Contract value per policy terms |
| Medicaid Interaction | Generally not Partnership-qualified |
Ready to explore hybrid LTC annuities?
Benefits vary by product and carrier.
Educational Resources
Learn everything you need to know about hybrid LTC annuities and long-term care planning.
Long-Term Care Planning
Compare ways to pay for care before you need it
Medicaid Spend-Down Education
Understand how Texas Medicaid spend-down works
Flexibility
Value may remain whether you need care or not (per contract)
How does a hybrid LTC annuity fit with Medicaid spend-down planning?
A hybrid LTC annuity creates a pool of long-term care benefits — often larger than the premium, depending on the product — that pays for qualified care. Paying for care with policy benefits can reduce how much of your other savings is used up before you'd ever consider Medicaid. Texas Medicaid generally requires most countable assets to be spent down before it pays for long-term care, and most hybrid products are not Partnership-qualified, so they don't create a Medicaid asset disregard. This is general education, not Medicaid-eligibility advice. Not affiliated with Medicaid or any government agency.
How are long-term care benefits taxed under the Pension Protection Act?
Under the Pension Protection Act, qualified long-term care benefits paid from a properly structured annuity or life contract are generally received income-tax-free under federal law. Your situation depends on the contract and your taxes — consult your tax advisor.
What happens if I never need long-term care?
Unlike traditional LTC insurance where you 'use it or lose it,' many hybrid policies pay a death benefit to your beneficiaries or keep a contract value you can access, according to the policy's terms. Contract guarantees are backed by the claims-paying ability of the issuing insurer.
How does underwriting differ from traditional LTC insurance?
Hybrid LTC annuities often feature streamlined underwriting with simplified health questions rather than extensive medical exams. This makes them accessible to individuals with mild health issues who may not qualify for standalone LTC insurance. The process is typically faster and less invasive than traditional LTC insurance underwriting.
Can I access my money if I change my mind?
Most hybrid LTC annuities offer surrender options, though there may be surrender charges in the early years. Many products also offer free withdrawal amounts (typically 10% annually) and may waive surrender charges for certain qualifying events like terminal illness or nursing home confinement.
Helpful Resources
LTC Planning Guide
Comprehensive guide to long-term care planning, costs, and ways to pay for care.
Learn More →Cost Calculator
Estimate long-term care costs in Texas and see how costs may grow.
Learn More →Planning Examples
Hypothetical examples of how Texas families compare long-term care options.
Learn More →Still Have Questions?
Schedule a free consultation with Jason, a licensed Texas agent.
Schedule Consultation70%
of people over 65 will need some form of long-term care
$108K
national average annual cost of nursing home care
100 days
the most Medicare covers for skilled nursing per benefit period (custodial care isn't covered)
How We Work With Texas Families
- 1
Listen first.
A free call about your health, savings, family, and what you want if you ever need care.
- 2
Compare side by side.
Hybrid life/LTC, annuities with LTC benefits, traditional LTC insurance, and self-funding, with real carrier illustrations.
- 3
Explain the trade-offs.
Costs, surrender charges, underwriting, and what each option does and doesn't cover.
- 4
You decide.
No pressure, and no obligation.
Client stories will be added here only with clients' written permission.
Get Your Free ConsultationWatch and Learn
Why You Should Get An Annuity With Long Term Care
Educational videos. Benefits vary by product and carrier.
Plan Ahead for Long-Term Care
The best time to look at long-term care options is while you're healthy. Health changes can make coverage cost more or become unavailable.
Care Benefits
Long-term care benefits that can be larger than your premium (see your illustration)
Tax Treatment
Qualified long-term care benefits from a properly structured contract are generally received income-tax-free under federal law. Consult your tax advisor.
Legacy
Death benefit or remaining value if care is never needed (per contract terms)
LICENSED TEXAS AGENT · VIRTUAL OR IN-HOME · NO-OBLIGATION REVIEW
⚠️ Health conditions may affect eligibility.