Jump to ContentJump to Main Navigation
Retirement IncomeRisks and Strategies$
Users without a subscription are not able to see the full content.

Mark J. Warshawsky

Print publication date: 2011

Print ISBN-13: 9780262016933

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262016933.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 05 July 2022

Tax Issues and Life Care Annuities

Tax Issues and Life Care Annuities

(p.215) 9 Tax Issues and Life Care Annuities
Retirement Income

David Brazell

Jason Brown

The MIT Press

This chapter discusses life care annuity (LCA), which is defined as an integrated insurance product consisting of life annuity and long-term care insurance (LTCI) segments. In return for the payment of one or more premium charges, an LCA product will pay a stream of fixed periodic income payments for the lifetime of the named annuitant and, for a higher premium charge, any named co-annuitant survivor. The chapter addresses inefficiencies in the separate private markets for its component parts: Adverse selection, which increases the price of life annuities; and strict underwriting, which restricts the availability of LTCI. It argues that an LCA may be more attractive to retirees making critical choices in financing their lifetime retirement spending and insuring against the bankrupting contingency of severe disability if prices are lowered and availability is increased.

Keywords:   life care annuity, LCA, life annuity, LTCI, annuitant, co-annuitant survivor, adverse selection, strict underwriting

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.