Non-qualified annuities and life insurance can now be tax-free exchanged for long term care insurance (“LTCI”). This is huge because benefits paid out of a LTCI policy are paid out tax free. Example, Fred has an annuity. Right now he doesn’t need the income, but he expects the after tax stream of annuity payments will not be enough to pay for the in-home support services he might need to stay in his home. He can exchange this annuity for LTCI which might pay out benefits as much as 4 to 5 times his investment, or return all of his investment if not used for his care.