Fixed indexed annuities with long term care (LTC) riders and benefits
Survey of 21 companies with 134 products
Most fixed indexed annuities surveyed have a nursing home waiver. Only a few companies offer more comprehensive long term care benefits. The underwriting requirements are far less stringent than life insurance, as little as not confined in a nursing home at date of issue date. Unlike hybrid life insurance with long term care, there is next to no underwriting obstacles to purchase an annuity with LTC benefits, as little as not currently in a nursing home and maximum issue age limits.
Notable Product
Securian “SecureLink® Chronic Illness Access” (not in MA, NY, WA) recommend Fixed Indexed Annuity, automatically includes for an additional charge accelerated death benefit for chronic illness and terminal illness; 8% roll up (to age 85), not to exceed 200% of contract value, guaranteed growth of your death benefit
This chronic illness access benefit allows significantly broader spending options than most products that require nursing home confinement. The goal, after all, is to stay at home. With this Securian annuity you can spend your benefit however you choose: in-home care, home expenses, medical supplies, a vacation. Securian was the only company in this fixed indexed annuity survey that offered an unrestricted chronic illness benefit.
Fixed Indexed Annuity Products with LTC Benefits: Key Features and provisions
Look for benefits besides the fairly standard nursing home waiver: those with benefit multiplier, guaranteed roll-up.
Waiver for Long Term Care qualified conditions: unable to perform 2 of 6 activities of daily living or cognitive impairment, permanent event
Waiver trigger:
Nursing home residency: qualifier over 95% annuity products surveyed, typical benefit limitation
chronic illness
100% withdrawal of contract value free of surrender charges for qualifying event: nursing home, terminal illness
Other product waivers:
disability, terminal illness, unemployment, hospitalization, medical care stay, extended care, confinement benefit free withdrawal at a higher percentage than 10%, e.g. 25%
Max issue age
State availability: varies considerably
Nursing home confinement not available states varies considerably for products
benefit multiplier
nursing home benefit multiplier for qualified LTC condition
double or triple benefit up to five years, less if accumulation value is zero
consecutive years? better feature if non consecutive years allowed
one time per contract
benefit multiplier sequence
1. guaranteed income
2. income multiplier 5 year benefit period
3. return to original guaranteed income
Guaranteed Lifetime Benefit Withdrawal (GLBW) rider (available for a fee)
roll-up value: compounded annually, up to 200% contract value; period varies: e.g. up to 10 years, up to 85th birthday, prior to lifetime payment selection;
look for products with this feature
Conditions
waiting period after contract issue date: 1 year, 2 years
proof of confinement
confinement waiting period, consecutive days : 30 days, 90 days
written proof of continued confinement policy anniversary
accumulation value less than zero
Nursing Home: Qualified Care Center
how many days in a qualified care facility, a ratio, e.g. 180 out of 250 days
recertification
every 12 months
policy anniversary
years 3, 4 and 5
Please request a quote free, strictly confidential
Licensed Agent: Sean Drummey
phone: (910) 328-0447
email: spdrummey@gmail.com
National producer #5534308
Survey conducted in November 2023, product offerings subject change