Bankers Life Sherry Einhaus

Long-term care (LTC) planning is the process of preparing for future health and support needs that may arise as you age. While it may be uncomfortable to think about potentially getting sick or frail and needing help, taking early steps can help you feel more prepared and reduce stress on loved ones if the time comes. Long-term care planning can help you consider the type of care you may prefer, how it could be funded, and who may be involved in making these decisions. Understanding this can put you in a stronger position to face the future with more confidence and clarity. What Is v? Long-term care is a range of ongoing assistance with daily activities for a person who cant manage them independently. These activities often include bathing, dressing, eating, or moving safely around the home. Support may also include skilled services, such as medication management or physical therapy. This care can be provided in several ways. Many receive care at home from family caregivers or hired aids. Others choose assisted living communities, adult day care centers, or nursing homes that offer round-the-clock support. The right setting depends on health needs, personal preference, and financial resources. According to research by Genworth and CareScout, the monthly median costs for care are: Home health aide: $6,483 Adult day care: $2,167 Assisted living community: $5,900 Semi-private room in a nursing home: $9,277 Private room in a nursing home: $10,646 Compared to LTC insurance, Medicare doesnt cover most long-term care services, such as assisted living or long-term nursing home stays. Coverage is generally limited to short-term skilled care after a hospital stay. If your insurance doesnt cover these expenses or you dont qualify for Medicaid, costs may need to be covered out-of-pocket. Medicaid eligibility is typically based on income and assets, and qualifying can vary by state. A financial professional can help determine if you qualify for Medicaid. The financial impact of long-term care can be substantial, and these expenses often add to regular living costs and medical needs. Why Is Long-Term Care Planning Important? Most people will need some form of support as they age. However, few feel prepared to manage the costs or decisions that come with it. The Department of Health and Human Services estimates the average 65-year-old today will pay about $120,000 in future long-term care services and support, with about a third being shouldered by the family. Research from the Kaiser Family Foundation shows that less than half of adults have spoken with loved ones about who would care for them, if needed, or how the care would be paid. Another 43% arent confident they have the financial resources to cover these expenses. Without a plan for long-term care, families may face difficult decisions during already stressful and emotional times. Care could be hard to find, costly, and confusing. Planning can help families discuss their preferences, research funding, and prepare for the potential future. What Are the Key Components of a Long-Term Care Plan? A long-term care strategy provides a roadmap for your preferences, financial plan, health and legal needs, and family responsibilities. Every plan is unique, but most include the following components: Care Preferences Consider where youd prefer to receive care if it becomes necessary. Some wish to stay at home with support from family or home health aides, while others look to assisted living or skilled nursing facilities. Your preferences on comfort, budget, and proximity to family can help narrow down potential options. Facility Considerations There are different levels of care facilities. Nursing homes offer more extensive medical support, while assisted living may not cover constant medical care but help with daily tasks. Other retirement facilities and communities can provide services that may adjust to your needs over time. Financial Preparation Paying for care can involve a mix of personal savings, retirement accounts, and long-term care insurance. For many, LTC is typically funded out-of-pocket, with Medicaid covering costs for those who qualify based on income and assets. If you are eligible, LTC insurance can help cover expenses for long-term care and support, often up to a set amount. Some life insurance policies offer long-term care riders, which allow the policy owner to access a portion of the policys death benefit to help cover qualifying long-term care expenses (this amount is deducted from the death benefit). Health savings accounts allow for tax-advantaged contributions for future care. Veterans may be eligible for benefits through the Department of Veterans Affairs. Legal Documentation Another way to help ensure your future wishes are respected is to have a will, healthcare proxy, financial power of attorney, and living will. These can help reduce the burden on family members during emotional or uncertain times. A legal professional can help you create these according to your wishes. Open communication with your loved ones is essential during this stage. Discussing expectations now can help reduce confusion and anxiety later, especially if family members need to provide support or make important decisions. When Should Planning Begin? For many, planning for long-term care begins in their 50s and early 60s, when they may have more time and flexibility to choose coverage options and explore financial strategies. Taking planning, steps now can put you in a stronger position and help your loved ones feel more prepared if you need extra care. Consider these key steps: Think about where youd prefer to receive care if you need it. Review your savings, retirement accounts, and insurance options. Explore different care settings, including assisted living facilities, nursing homes, and continuing care communities. Discuss expectations and responsibilities with family members. Put legal documents in place to make sure your wishes are honored. That said, its never too late to think about long-term care. Even if youre already retired, speak with your loved ones, review your savings plan with a financial professional, and update legal documents. The Value of Working with a Retirement Planning Professional A retirement planning professional can help bring together the financial, legal, and personal aspects of long-term care planning. They can review your savings and insurance options, explain how programs like Medicaid work, and coordinate planning with your estate documents. A professional can also offer a neutral sounding board to discuss sensitive family topics. They may help you balance your care preferences with whats realistic for your budget and lifestyle. For many, this type of guidance can make the LTC planning process feel less overwhelming and more manageable. Helpful Next Steps for Long-Term Care Planning Planning for your long-term care needs is a thoughtful way to provide a path forward for you and your loved ones if the time comes when you need help. By understanding what LTC care is and why it matters, you can be more prepared for the financial and emotional side of aging. Generally, a good time to begin planning is often in the decade leading up to retirement, but its never too late to start reviewing your options and taking meaningful steps. Key Takeaways Know the settings where long-term care happens. Consider how to fund care, from savings to insurance and government programs. Put essential legal documents in place. Talk openly with family about preferences and expectations. A retirement planning professional can be a resource for creating a plan that fits your needs. Were Here for You! Bankers Life is here to help you with your financial and insurance needs. Please visit us at BankersLife.com to learn more.

The Centers for Medicare & Medicaid Services (CMS) recommends that all Medicare recipients review their coverage annually during open enrollment. Yet, a recent Kaiser Family Foundation survey revealed that over 70% of beneficiaries skip this step. While you may feel satisfied with your current plan, taking time to review your options can save money and ensure you have the coverage you need.Open Enrollment: Key DatesOpen enrollment runs October 15December 7 each year. Any changes you make during this period will take effect January 1 of the following year. Mark your calendarthis is your window to make adjustments.Your Toolkit: ANOC and EOCBefore open enrollment begins, your plan will send two important documents: Annual Notice of Change (ANOC): Outlines any changes for the upcoming year. Evidence of Coverage (EOC): Details what your plan covers, including deductibles, co-pays, and premiums. If you dont receive these by the end of September, contact your plan immediately.Smart Steps for Reviewing Your CoverageWhen evaluating your Medicare options, keep these tips in mind: Check Your Providers and Prescriptions: Confirm your doctors and medications are still included. If your prescriptions changed this year, another plan might offer better coverage. Look Beyond the Monthly Premium: A lower premium doesnt always mean lower overall costs. Review deductibles, co-pays, and out-of-pocket expenses. Explore Extra Benefits: Medicare Advantage plans may include perks like vision, dental, or fitness programs that help reduce out-of-pocket costs. Consider  Medicare Supplement insurance: If youre switching to Original Medicare, consider supplementing your coverage with Medicare Supplement insurancealso known as Medigap. Helpful ResourcesUse Medicares Plan Finder tool to compare options and find a plan that fits your needs.Need Financial Help?If costs feel overwhelming, youre not alone. Programs exist to help: Extra Help Program: Assists with Part D premiums, co-pays, and deductibles for those with limited income and resources. Medicare Savings Programs: State-based programs that help cover Medicare costs for eligible individuals. Related: Saving Money With Medicare Extra Help Prescription ProgramBottom line: Reviewing your Medicare plan each year ensures youre getting the best coverage for your health and your budget. A little time now can save you moneyand stresslater.Keep reading: Why Working With a Licensed Insurance Agent Can Make All the Difference in Your Medicare JourneyWere Here for You!Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.Bankers Life is not affiliated with or endorsed by the U.S. government or the federal Medicare program.

Over their careers, the Johnsons have frugally saved and meticulously invested to achieve their ideal monthly retirement income. After downsizing their home, they have a sizable nest egg and plan to travel in their RV, spoil their grandkids, and leave a legacy for their children. However, Mr. Johnson was recently diagnosed with dementia and now requires memory care that exceeds $7,000 a month, which would drain their savings significantly faster than expected. While unfortunate, scenarios like the Johnsons are not uncommon. According to the U.S. Department of Health and Human Services, over one in four Americans age 65 and older will face long-term care (LTC) expenses of more than $100,000 during their lifetime. About 15 percent will need more than $250,000 worth of care. These costs can overwhelm even financially stable families, prompting them to wonder: Is long-term care tax-deductible? The answer is yes, but only under certain circumstances. Thanks to the Health Insurance Portability and Accountability Act of 1996 (HIPAA), certain long-term care costs and long-term care insurance premiums may be tax-deductible. While these deductions will not erase the emotional and financial challenges of long-term care, they can provide some relief. Who Is Eligible for Long-Term Care Tax Deductions? To claim long-term care tax deductions, the IRS requires that the services be deemed medically necessary by a licensed healthcare practitioner for an individual who is: Chronically ill. The individual cant perform at least two Activities of Daily Living (ADLs), such as eating, bathing, dressing, toileting, or transferring, for at least 90 days without help. Severely cognitively impaired. Conditions like Alzheimers disease or dementia often require supervision to protect the persons health and safety. You must itemize eligible long-term care expenses on your tax return to receive the deduction. What Expenses Are Deductible? Long-term care isnt limited to a single service. If medically necessary, deductible expenses include: Preventive, diagnostic, therapeutic, treating, and rehabilitative services based on a care plan. Maintenance and personal care services, such as help with dressing, bathing, or eating. Nursing home costs and in-home nursing services, such as wages and employment taxes for attendants, even if they are not licensed nurses. Qualified long-term care insurance premiums, up to IRS age-based annual limits, may be deductible as long as the policy meets IRS rules. How Does the Deduction Work? The deduction only applies to eligible long-term care expenses and LTC premiums over 7.5% of your Adjusted Gross Income (AGI). For example, Mr. Johnsons memory care facility costs $7,292 monthly or $87,504 annually. Because the Johnsons AGI was $200,000, they could deduct eligible long-term care expenses that exceeded $15,000 (7.5% of their AGI of $200,000). How Does the Deduction Work for Long-Term Care Insurance Premiums? The amount you can deduct for long-term care insurance premiums depends on the individuals age at the end of the year. According to 2025s data from the IRS, the maximum deductible amounts are: Age 40 or younger: up to $480 Ages 41 to 50: up to $900 Ages 51 to 60: up to $1,800 Ages 61 to 70: up to $4,810 Age 71 and older: up to $6,020 Based on the previous hypothetical example, Mrs. Johnson could deduct up to $6,020 in LTC insurance premiums since Mr. Johnson is 73. Are Medicare Costs Tax Deductible? Medicare plays a key role in your holistic retirement healthcare. This federal insurance program is often limited to costs like short-term skilled nursing or rehab after a hospital stay, not necessarily long-term costs. Even so, Medicare premiums may be deductible and included in your total medical expenses, helping you meet the threshold more quickly. Key Takeaways Caring for a loved one with disabilities or special needs often comes with overwhelming emotional and financial challenges. However, knowing certain expenses may qualify for a tax deduction can provide a measure of financial relief. While it doesnt completely remove the financial burden, it can ease some pressure. Here are some key points to remember about whether long-term care expenses are tax-deductible: A licensed healthcare provider must prescribe care; the individual must be either chronically ill or cognitively impaired. Deductible expenses include nursing home care, in-home care, personal assistance with daily activities, and qualified long-term care insurance premiums within IRS limits. Deductions apply only to expenses that exceed 7.5% of your Adjusted Gross Income (AGI). Medicare premiums are medical expenses that may be deductible, even though Medicare doesnt cover extended long-term care. Planning for the Future Understanding these rules can help clarify how to manage one of the biggest expenses in retirement. While tax deductions can provide some relief, they are only part of the solution. Planning for the future with tools like long-term care insurance can help protect your savings, safeguard your familys peace of mind, and ensure you or a loved one receives care with dignity when its needed most. Were here for you! Bankers Life is here to help customers with their financial and insurance needs, so please visit us at BankersLife.com to learn more.

Life Insurance Riders Explained: What They Are and Which Ones May Be Worth It  When you buy a life insurance policy, youre not just choosing a death benefit. You may also have the option to add life insurance ridersoptional features that can expand or customize your coverage. Some riders add flexibility, others offer financial protection during illness or disability, and a few help cover loved ones. Understanding how life insurance riders workand which ones truly fit your needscan help you build coverage that feels both practical and personal. Heres what to know about the most common life insurance riders. How Do Life Insurance Riders Work? A life insurance policy outlines your coverage amount, premium, and how benefits are paid. Riders are optional add-ons that modify or enhance those terms. You typically choose riders when you apply for coverage, though some may be available later depending on the policy and insurer. Some riders are included automatically at no cost, while others increase your premium. Common reasons people add riders include: Protecting coverage during disability or illness. Planning for future insurance needs. Extending limited coverage to family members. Availability, cost, and eligibility vary by policy type and insurer. Related: How Does Life Insurance Work? Popular Life Insurance Riders to Know Waiver of Premium (Disability Rider) If you become seriously disabled and cant work, this rider may pause your premium payments while keeping your policy in force. Definitions of disability vary by insurer and may require that youre unable to work in any occupation, not just your current job. Why it matters: Helps preserve coverage during a major financial disruption. Guaranteed Insurability Rider This rider allows you to purchase additional life insurance later without a medical exam, even if your health changes. Policies usually limit how much extra coverage you can buy and specify when increases are allowedoften at set ages or after major life events like marriage or having a child. Why it matters: Locks in future insurability while youre healthy. Accidental Death Benefit Rider If death occurs due to a covered accident, this rider pays an additional death benefit on top of the base policy amount. Coverage definitions and exclusions vary. Why it matters: Provides extra protection for unexpected eventsbut may not be essential for everyone. Accelerated Death Benefit Rider Often included at no additional cost, this rider allows you to access a portion of your death benefit early if youre diagnosed with a qualifying terminal illness. Some policies also offer accelerated benefits for certain chronic or critical conditions. Why it matters: Can help cover medical or living expenses when they matter most. Any amount paid early reduces the benefit paid to beneficiaries. Long-Term Care (LTC) or Chronic Illness Rider This rider allows you to use part of your life insurance benefit to help pay for long-term care needs, such as assisted living, nursing home care, or in-home services. Benefits typically reduce the policys remaining death benefit. Why it matters: Combines life insurance and long-term care support in one policy, though benefits may be more limited than a standalone LTC policy. Related: Preserving Wealth and Dignity: Long-Term Care Planning for Seniors Return of Premium Rider (Term Life) Available only on certain term life policies, this rider refunds some or all premiums paid if you outlive the policy term and havent received a death benefit. Premiums are higher than standard term coverage. Why it matters: Appeals to those who want protection plus the potential to recoup premiumsbut comes at a cost. Term Conversion Rider A conversion rider allows you to convert term life insurance to permanent coverage without medical underwriting, usually before a certain age or policy anniversary. Why it matters: Offers flexibility if your needs change or permanent insurance becomes a better fit later. Child and Spouse Riders These riders provide limited life insurance coverage for family members under your policy. Child riders typically cover all eligible children until adulthood, with an option to convert later. Spouse riders provide a smaller amount of coverage for a spouse without a separate application. Why it matters: Conveniencebut coverage amounts are usually modest, and coverage ends if your policy ends. Related: 4 Reasons To  Consider Juvenile Life Insurance How and When Can You Add Life Insurance Riders? Many riders must be selected when you apply for coverage. Some riders are included automatically. Others may be added later, depending on policy rules. Riders often require underwriting approval and may be declined based on health or other factors. Your premium illustration should clearly show the cost of each rider so you can evaluate value versus budget. Pros and Cons of Life Insurance Riders Pros Customize coverage for disability, illness, or family needs. Add flexibility for future insurance decisions. Bundle multiple protections into one policy. Cons Increase overall policy cost. May have strict eligibility rules or limitations. Often provide less coverage than standalone policies. For example, insuring a spouse through a rider may be simplerbut an individual policy could offer more flexibility and benefits. Are Life Insurance Riders Worth It? The right riders depend on your goals, budget, and stage of life. Start by ensuring your base death benefit meets your needs. Then evaluate which riders provide meaningful protection versus nice-to-have extras. If long-term care planning or future insurability is a concern, those riders may offer peace of mind. Others may add cost without clear value. Final Thought Life insurance riders can enhance your policybut only when they align with your priorities. Reviewing your options with a knowledgeable insurance professional can help you understand costs, limitations, and how riders fit into your broader financial picture. A thoughtful mix of coverage today can help protect what matters mostnow and in the future. Want more? Check out this blog from Colonial Penn, part of CNO Financial Groups family of brands: Do You Need Life Insurance Riders? Heres What to Know Were Here for You! Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.

When it comes to preparing for retirement, we often focus on the financial side of things. Do I have enough savings to last my lifetime? What is my spending and income strategy? How will I afford my health care and long-term care expenses?And while finances are indeed a crucial piece of the retirement puzzle, the personal side of retirement planning is just as critical. Many of us picture retirement as a blissful timebut after the feeling of being on a permanent vacation starts to wear off, feelings of isolation and aimlessness might creep in. According to HelpGuide.org, some new retirees even experience mental health issues such as clinical depression or anxiety.The truth is, retiring from work is a major life change that comes with benefitsbut also challenges. Thats why its important to not only plan for the financial side of retirement, but the emotional side as well. Keep reading for four tips to help you emotionally prepare for retirement.1. Create a Retirement Vision BoardAs retirement approaches, take some time to visualize what you want your retirement to look like. What hobbies do you want to pursue? Where do you want to travel? What will self-care look like? What will your relationships look like? How will you find purpose?After spending time pondering your retirement, create a vision board to help focus your vision. A vision board is a collection of images that can help you manifest your goals or vision. You can get crafty and make a collage of magazine pictures that represent your vision, or you can curate a collection of virtual images on Pinterest or Canva. According to BetterUp, Vision boards are effective because they are a visual reminder of your intentions. This reminder can help you stay focused on your goals, even during challenging times.2. Make a Plan for Your Daily Retirement RoutineMany retirees struggle with transitioning from the structure of working to a life with plenty of free time.  Some feel uncertain about how to fill their days, which can lead to feelings of boredom and loss of purpose.To combat this, plan ahead for your daily retirement routine. But dont just think about it; write it down. Consider an invigorating morning routine that includes exercise, a nourishing breakfast and meditation. Schedule a couple hours each afternoon to focus on things that make you happy, such as hobbies or classes. Plan for a purposeful evening routine that includes reading, puzzles or garden work.3. Prepare for an Active Social LifeIt isnt uncommon for retirees to feel isolated and lonely, but you can hopefully avoid this by planning your social routine before retirement. For example, you might plan to get coffee with your friend every Monday, go on a walk with your sister on Wednesdays, and have your adult kids over for dinner on Fridays. You can also meet new people by joining local clubs or groups and attending meetups related to your interests.Read here to learn how good relationships are the key ingredient of happiness.4. Plan for an Exercise RoutineExercise isnt just good for your body; its also known to boost your mood and help you deal with mental health challenges like depression, anxiety, stress and more. The CDC recommends adults aged 65 and older need: At least 150 minutes a week of vigorous-intensity activity, such as hiking, jogging or running At least two days a week of activities that strengthen muscles And activities to improve balance As you prepare for retirement, support your emotional health by planning to include exercise in your routine. Be sure to check out SilverSneakers, a fitness program designed to give seniors no-cost gym access (plus a bevy of other benefits including in-person and online fitness classes, support from trainers, nutrition advice, and social events).There are over 15,000 fitness locations across the United States that participate in SilverSneakers; simply input your ZIP code to find the fitness locations and community classes closest to you!Want more? You might enjoy our blog, 6 Healthy Habits of Super AgersWere Here for You!Bankers Life is here for you every step of the way as you plan for and enter retirement. Please visit us at BankersLife.com to learn more.

Annuities can be a flexible way to create income in retirement. These insurance contracts offer a range of payout options, allowing you to build an income stream that aligns with your goalswhether thats income for life, support for loved ones, or both.Whether you need income now or want to plan for later, understanding your options can help you make a more confident decision.Immediate vs. Deferred AnnuitiesOne of the first decisions to make is when youd like income to begin.Immediate AnnuitiesImmediate annuities typically begin payments within one year of purchase. This option can be helpful if youre ready to start drawing income now.For example, if youre retiring but plan to delay Social Security, an annuity can help fill the gap by providing a steady income stream. Depending on your choices, payments can last for a set period or for the rest of your lifegiving you a level of predictability as you transition into retirement.Related: Averse to Risk? Annuities May be the AnswerDeferred AnnuitiesDeferred annuities are designed for the future. Instead of starting income right away, your money remains in the contract, where it has the potential to grow over time.Later, you can decide if and when to convert those funds into a stream of income. Some deferred annuities offer interest or market-based growth potential, and earnings grow tax-deferred.Keep in mind, however, that certain optionslike variable annuitiescan fluctuate in value, which may impact future income unless backed by guarantees.Choosing Between the TwoIf you dont need income right away, a deferred annuity may help you build a larger base for future income. On the other hand, an immediate annuity can provide steady payments right when you need them.Each option involves trade-offs, so its important to consider both your current needs and your long-term plans.Related: Type of Annuities ExplainedLifetime Income vs. Period Certain OptionsOnce youve decided when to take income, the next step is choosing how long payments will last.Lifetime IncomeA lifetime income option provides payments for as long as you liveand in some cases, for the life of a spouse if you choose a joint option.This can help address one of the biggest concerns in retirement: outliving your savings. While single-life options typically offer higher payments, joint options ensure that income continues for a surviving spouse.Related: Introducing Bankers Life Flexible Premium Bonus Indexed AnnuityPeriod CertainA period certain option guarantees payments for a set number of yearssuch as 10, 20, or more.You can also combine this with lifetime income. For example, a lifetime with 20-year period certain option ensures payments will continue for at least 20 years, even if you pass away sooner. This can help provide added financial support for beneficiaries.Which Option Is Right for You?The right choice depends on your personal situation. If youre focused on maximizing income, a single lifetime option may provide the highest payments. If others rely on your income, a joint or period certain option can help provide continued support. While options that include survivor benefits may result in slightly lower payments, they can offer added peace of mind.Key Factors to ConsiderAs you evaluate your options, keep these considerations in mind: Timing of income: Do you need payments now, or are you planning for later? Health and longevity: Longer life expectancy may make lifetime income more valuable. Dependents: Consider whether someone else may need financial support if you pass away. Insurance company strength: Guarantees like lifetime income are based on the financial stability of the insurer, so its important to choose a well-rated company. The Bottom LineAnnuities offer a range of payout options that can help you create an income plan tailored to your needs.By thinking through when youll need incomeand who may depend on ityou can choose an approach that works for your life today and your plans for the future. A financial professional can help you explore your options and find a path that fits.Want more? Check out our blog, Navigating Annuity Payout OptionsWere Here for You!Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing. Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc.  Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).  Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk. Investments are: Not GuaranteedInvolve RiskMay Lose Value.

Many people include annuities in their retirement strategybut arent always clear on how surrender periods work. Understanding this key feature can help you avoid unnecessary fees and make more informed decisions about your money.Why Many Retirees Choose AnnuitiesAnnuities are often part of a retirement strategy because of the benefits they can provide over time. Research from BlackRock found that annuity owners value the financial security of guaranteed lifetime income, with 97% saying it helps them worry less about running out of money and 93% saying it helps reduce concerns about everyday expenses. Additionally, many report feeling more confident during market volatility and less vulnerable to financial missteps later in life. Together, these features can provide greater peace of mindespecially for those looking to create a more predictable income stream in retirement.What Is an Annuity Surrender Period?An annuity surrender period is the length of time after purchase during which withdrawing more than the allowed amount may trigger a fee, known as a surrender charge.Think of it as a waiting period: If you access too much of your money too soon, you could pay a percentage-based fee on those withdrawals.How Long Does a Surrender Period Last?Surrender periods vary by product and insurer, but most fall within a typical range: 310 years for many annuities. Fixed annuities often fall on the shorter end. Variable or indexed annuities may have longer timelines. The exact scheduleand any penaltiesshould always be outlined in your contract.Related: Types of Annuities Explained: Evaluating Your Retirement Income OptionsHow Surrender Charges WorkIf you withdraw funds during the surrender period, you may pay a fee based on the amount withdrawn. Charges are typically a percentage of the withdrawal amount. Fees are usually highest early on and decrease each year. Many contracts allow limited penalty-free withdrawals, often around 10% annually. For example, a surrender charge might start around 69% in the first year and gradually decline until it reaches 0% at the end of the period.What Are the Benefits of Waiting?While it can be tempting to access your funds early, there are several advantages to waiting until the surrender period ends: Avoid surrender charges: Once the period is over, you can typically withdraw your full balance without incurring fees. Give your investment more time to grow: Annuities grow on a tax-deferred basis, meaning earnings arent taxed until withdrawnallowing more potential for compounding over time. Take full advantage of your contract: Surrender periods exist in part to support features like guaranteed rates or income benefits, which are designed for longer-term use. What Happens If You Withdraw Early?Withdrawing funds before the surrender period ends can come with added costs: Surrender charges, often around 510% (or more in some cases). Possible additional fees outlined in your contract. Potential tax implications, depending on your situation. Because these costs can add up, its important to review your annuity terms carefully before making a withdrawal.Key Takeaways A surrender period is a temporary restriction on accessing your annuity funds without fees. Most last between 3 and 10 years, with charges that decline over time. Waiting out the surrender period can help you avoid fees and maximize growth. Always review your contract to understand withdrawal limits and fee schedules. Next StepsIf youre thinking about withdrawing from your annuity: Contact your provider to understand your specific surrender schedule and fees. Review any penalty-free withdrawal options. Weigh the cost of withdrawing now vs. the benefit of waiting. Taking a few extra steps now can help you avoid surprisesand make the most of your retirement strategy.Want more? Check out our blog, Get to Know the Annuity, a Key Retirement Savings VehicleWere Here for You!Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing. Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc.  Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).  Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk. Investments are: Not GuaranteedInvolve RiskMay Lose Value.

The goal of saving for retirement seems straightforward: Build as big of a nest egg as you can. But as retirement draws closer, things can feel more complicated as you consider future taxes, withdrawals, and how to make your savings work for the long term. One option to help manage future taxes while still allowing your savings to grow is a Roth IRA conversion. It moves funds from a traditional IRA or another pre-tax retirement account into a Roth IRA. You pay taxes today for the potential benefit of tax-free withdrawals later. The idea sounds simple, but its important to know the rules for a Roth IRA conversion and make sure it fits with your goals. This guide breaks down the essentials to help you decide if this strategy works with your retirement plan. What Is a Roth IRA Conversion? A Roth IRA conversion is the process of moving money from a traditional, pre-tax retirement account, such as a traditional IRA or a 401(k), into a Roth IRA. Instead of paying taxes on withdrawals later, you pay the taxes now so that future qualified withdrawals can be tax-free. For people who may be in a higher tax bracket in retirement, this can be an appealing long-term strategy. Full vs. Partial Roth IRA Conversions Roth IRA conversions do not have to be all-or-none. Partial Roth IRA Conversions: A partial conversion gradually moves smaller amounts into a Roth IRA. Many people use this approach to spread out the tax impact, stay within a preferred tax bracket, or reduce the effect on Medicare premiums and Social Security taxation. Full Roth IRA Conversions: A complete conversion transfers the entire pre-tax balance in a single tax year. While this can simplify record-keeping and start tax-free growth immediately, it also can lead to a larger tax bill or affect income-based programs. When Are Roth Conversions Not Allowed? In a few situations, Roth conversions are not permitted: You cannot convert your required minimum distribution (RMD). If you are required to take an RMD, you must withdraw it first before converting any remaining funds. SIMPLE IRA funds cannot be converted within the first two years of participation. Some employer-sponsored plans restrict which balances can be converted. When Is the Right (or Wrong) Time to Convert? A Roth IRA conversion can offer meaningful long-term benefits, but timing is key. A financial advisor can help review your situation and consider these questions: Can You Pay the Taxes? Any amount you convert is taxed as ordinary income, so its essential to set aside funds to pay the tax bill. Using the converted amount to pay the taxes reduces the amount that can grow tax-free and may trigger a 10% penalty if you are younger than age 59. Do You Have Time on Your Side? Roth conversions work best when you have time for the funds to grow. If you expect to need the money in fewer than five years, a conversion may not be ideal, as Roth earnings are subject to a five-year waiting period before they can be withdrawn without penalty. Will Your Tax Rate Stay the Same or Increase in Retirement? If your tax rate will be the same or higher in retirement, a conversion may be worth exploring. Roth IRAs do not require RMDs during your lifetime as the original owner, allowing converted funds to continue growing tax-free. If you must take an RMD in the same year as a conversion, the RMD must be taken first. How a Roth IRA Conversion Works Heres a step-by-step look at how to do a Roth IRA conversion. 1. Open a Roth IRA If you do not already have a Roth IRA, you will need to open one at the institution of your choice. 2. Determine What Money Youre Converting The source of funds affects how the conversion is taxed and processed. Backdoor Roth IRA: Converting traditional IRA funds, often used by people who earn too much to make direct Roth contributions. Mega Backdoor Roth: Converting after-tax 401(k) contributions. Not all plans allow this, and some have specific timing rules. 3. Decide How You Want to Convert the Funds There are three primary methods for converting funds: Indirect rollover: You receive the funds and must deposit them into the Roth IRA within 60 days. Missing the deadline turns the amount into a taxable distribution. Direct rollover (trustee to trustee): Your financial institution transfers funds directly to the Roth IRA at another institution. Same-trustee transfer: If both accounts are at the same institution, you can request an internal transfer. 4. Decide on Tax Withholding You can choose whether to withhold taxes from the converted amount. Because withholding reduces the amount that can grow tax-free, many people choose to pay taxes from non-retirement funds. 5. Pay the Taxes The converted amount is included in your taxable income for the year. Your financial institution will provide tax forms to help with reporting. Critical Timing and Tax Rules Several IRS rules can influence the impact of your conversion. The Five-Year Rule Each conversion has its own five-year clock. You must wait five tax years before withdrawing the converted amount penalty-free. This applies even if you are already 59 or older. Required Minimum Distribution (RMD) Rules Roth IRAs do not require RMDs during your lifetime. However, if you are already required to take RMDs, you must withdraw that amount before converting any additional funds. Medicare IRMAA Surcharges A conversion increases your taxable income, which may raise Medicare Part B and Part D premiums two years later due to Medicare Income-Related Monthly Adjustment Amount (IRMAA) rules. Converting before enrolling in Medicare or spreading conversions over several years may help manage the impact. Social Security Taxation A conversion may increase how much of your Social Security benefits are taxable. Up to 85 percent of benefits can become taxable. Some retirees convert before claiming benefits or convert gradually to help manage their annual income. Frequently Asked Questions Are There Limits on Conversion Amounts? No. You can convert as much as you choose in a single year. What Types of Plans Can Be Converted? Traditional IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs (after two years), and many employer-sponsored plans like 401(k)s and 403(b)s. Are There Income Limits for Roth IRA Conversions? No, but your income can affect the tax cost of a conversion and may influence Medicare premiums, Social Security taxation, and eligibility for certain credits. What Happens If You Miss the 60-Day Deadline on an Indirect Rollover? The IRS treats the amount as a taxable distribution, which may also trigger penalties if you are younger than 59. Were Here for You Bankers Life is here to help customers understand their retirement and insurance options. To learn more about how we can support your planning, visit BankersLife.com.

When you think of financial stability and freedom, what comes to mind? For many, it may be a home thats paid off in full, zero credit card debt, or a six-figure portfolio. But what people tend to forget is just how fragile financial freedom can be, especially when there isnt a savings net in place.Your debt might be under control and your paycheck impressive, but one big emergency (say an accident or property damage) could change everythingespecially if you dont have easily accessible savings to cushion the blow. Preparing for a financial emergency is an often-underrated component of a well-rounded financial plan. It becomes even more important as you transition to retirement, and your portfolio serves as your primary source of income.In a recent study by the Center for Retirement Research at Boston College, researchers found that the average retiree household spends around 10% of annual income on unexpected expenses.1 Without a plan in place, those unexpected costs have the potential to limit your spending power in retirementor worse, diminish your portfolios longevity.Lets take a closer look at why emergency costs can be a higher financial risk for retirees and how to prepare your portfolio for unexpected expenses.The increased impact of emergencies on retireesTo be clear, preparing your finances for an emergency is important at any age and life stage. But once you reach retirement, your ability to recover from a large, unexpected expense lessens.Earlier in life, youre living on a paycheck and (ideally) contributing to a portfolio you dont plan on touching for yearseven decades. As the markets move up and down, your portfolios value fluctuates. But with time to ride out volatility, your portfolio generally has the opportunity to recover. In other words, you have one of the most powerful investment tools on your side: time.In retirement, youre not living on a paycheckat least not in the traditional sense. Your paycheck stems from a mixture of income sources, including your 401(k), other investment accounts, Social Security benefits, and more.Preserving your future retirement incomeBecause you likely want your nest egg to last beyond your lifetime, your priorities usually shift in retirement from growing aggressively to preserving and protecting wealth. For that reason, a sudden, unexpected drawdown from your portfolio can have a lasting impact thats hard (if not impossible) to fully recover from.The need to preserve your assets in retirement is why financial professionals place so much emphasis on withdrawal strategies, in other words, how much you can safely draw from your accounts every year in retirement. General guidelines, like the 4% rule, exist as well to help retirees understand the importance of thoughtful spending.Withdrawing beyond whats deemed safe for your specific circumstances increases your longevity risk (the risk of running out of money in retirement). Yet, unexpected expenses happenmaking it all the more important to prepare ahead and protect your portfolio for the long-term.Staying strategic with taxesYouve been filing tax returns for most of your life. But taxes in retirement tend to increase in complexitymaking them a whole different ball game than what youre likely used to.Different sources of income face different tax consequences, whether theyre tax-free, taxable, or subject to a more favorable capital gains tax. Keeping your annual and lifelong tax liability in check typically requires a strategic withdrawal strategy with careful, multiyear tax planning and considerations.Facing an unexpected expense may require urgent action, giving you less opportunity and time to make strategic tax-focused withdrawal decisions. You may be forced instead to make quick withdrawals that either increase your immediate tax liability or otherwise impact your future tax strategy.Sequence of returns riskTheres a phenomenon known as sequence of returns risk that can affect people retiring during a volatile market environment.Essentially, large withdrawals early in retirement, particularly during a market downturn, can lock losses into place and reduce your portfolios ability to recover in the future. Even one-time withdrawals, if theyre large enough, can impact the value of your portfolio for life.How current retirees are handling emergenciesAccording to the Center for Retirement Research study, the average annual unexpected costs run a household around $6,000, though that number increases to nearly $11,000 for households with higher income.1With emergency costs taking up around 10% of a retirees annual household expenses, this can equate to around two and a half years worth of retirement income across a 25-year retirement. Considering how hard you work to save for retirement; thats certainly no small impact.1Currently, around 58% of all surveyed households can cover their annual unexpected costs using cash, without tapping into their retirement savings.13 ways to prepare for unexpected expenses in retirementAs you continue preparing for retirement, think about how youll protect the assets you worked hard to build.1. Be realisticFirst and foremost, acknowledge the need to plan for the unpredictable. If surveyed households annually spend an average of $6,000-$10,000 on unexpected expenses, consider this a starting point for savings. Or reflect on your own spending over the past several years. What popped up recently that you werent planning to spend on? How much did it cost?This could include: Car repairs (or a new car altogether) Appliance repairs or replacements Home maintenance and emergency repairs Medical bills Financial support for a child or loved one While you cant predict everything thatll happen in the coming years (particularly once you transition to retirement), you can still try to protect your assets against what you cant see coming.2. Create a robust emergency fundWork slowly to build an emergency fund that could realistically cover the unexpected expenses youre most likely to encounter. Its better to add a few dollars to a separate savings account consistently than wait until you feel like you can make a significant contribution.Your emergency fund should be in an easily accessible account, as liquidity is the priority here. Consider a high-yield savings account or money market account to keep your cash close by, while still earning a little interest to help combat inflation.An emergency fund can also be used to support your early retirement needs during a period of market volatility. If youre facing sequence of returns risk during a market downturn, you may find it necessary to pull from cash reserves. Doing so would allow your money more time to recover before withdrawals begin.3. Review of insurance policies and coverageInsurance policies are designed to protect against the unexpected. Everyones insurance needs will look a little different depending on their family status, life stage, other available assets, medical history, and other factors. Even as you age or your net worth grows, you may find the policies that used to support your family no longer offer enough coverageor youve outgrown the need for certain policies altogether.Ahead of retirement, consider what policies could offer critical protection and preserve more of your retirement income. These might include: Healthcare or Medicare (original, supplemental, or Advantage) Long-term care Liability Life Home and auto Keep in mind that policy premiums impact your spending and other financial goals. Youll need to strike the right balance between protecting your assets and not overpaying on policies that dont fit your needs.Expect the unexpected in retirementAs much planning as you can do to build your dream retirement, protecting it against unexpected expenses is critical. From an early market downturn to high medical costs later in life, you just dont know what curveballs lifes throwing your way. An emergency fund, as well as putting the right policies in place, can help you quickly address unexpected expenses without jeopardizing your other retirement resources. You may find it helpful to speak with an advisor about your specific needs and circumstances as you approach retirement.

A widows pension is the common name for Social Security survivor benefits, monthly payments provided to certain family members after a worker who paid Social Security taxes passes away.These benefits are based on your spouses earnings record and work history, not your income. In many cases, they can continue for the rest of the surviving spouses life if eligibility requirements are met.To qualify, the deceased spouse must have earned enough Social Security work credits. While many workers reach full eligibility with about 40 credits (roughly 10 years of work), the exact requirement depends on their age at death; younger workers may qualify with fewer credits.A Brief History of Survivor BenefitsSocial Security survivor benefits were introduced in 1939, expanding the program beyond retirement income.These updates were designed to: Provide financial support to families after the loss of a wage earner. Extend benefits to spouses and dependent children. This marked the first step toward Social Security becoming a broader safety netnot just a retirement program.Who Qualifies for Survivor Benefits in 2026?Eligibility depends on your relationship to the deceased and your age. For surviving spouses, the general rules include:Basic EligibilityYou may qualify if: You are age 60 or older. You are age 50 or older with a qualifying disability (that began within seven years of your spouses death). You are caring for the deceaseds child who is under age 16 or has a disability (no minimum age requirement) . Additional Considerations You typically must have been married for at least nine months (with some exceptions). Divorced spouses may qualify if the marriage lasted at least 10 years. If you remarry after age 60 (or age 50 if disabled), you can still receive survivor benefits. Coordination With Your Own BenefitsIf youre eligible for both: A survivor benefit, and Your own Social Security retirement benefit You typically receive the higher of the two, but you may have the option to switch between them depending on timing.How Much Could You Receive?The amount varies based on: Your spouses lifetime earnings. The benefit they were receiving (or eligible to receive). Your age when you claim. In general: At full retirement age, you can receive up to 100% of your spouses benefit. At age 60, you may receive as little as 71.5%, with reduced payments for claiming early. There may also be a one-time lump-sum payment of $255 available to eligible survivors.When Should You Claim?One of the most important decisions is when to begin benefits. You can claim as early as age 60 (or 50 if disabled). Waiting until your full retirement age (typically 6667) can increase your monthly payment. Claiming early permanently reduces your benefit. If youre still working, keep in mind: Benefits may be temporarily reduced if your earnings exceed annual limits before full retirement age . Related: Maximizing Social Security Benefits for Middle to Upper-Income RetireesHow to Apply for Survivor BenefitsBefore applying, the Social Security Administration (SSA) must be notified of your spouses death. In many cases, the funeral home handles this step.To apply: Call Social Security at 1-800-772-1213, or Visit your local office. Applications cannot currently be completed fully online.You may need to provide: A death certificate. Marriage documentation. Social Security numbers. Tax forms or proof of earnings. For more details, you can visit the official SSA overview: Learn about Survivor BenefitsFinal ThoughtsLosing a spouse is never easy, and financial concerns can add to that stress. Survivor benefits are designed to provide some stability during a difficult time.Understanding how widows pensions workespecially eligibility rules, timing strategies, and benefit optionscan help you make more informed decisions about your financial future.Want more? Check out our blog, Social Security in 2026: How Far Will Your Benefits Really Go?Were Here for You!Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing. Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc.  Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).  Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk. Investments are: Not GuaranteedInvolve RiskMay Lose Value.