| Product Summary |
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Annuity Care is an SPDA offering clients access to funds which can be used for reimbursement for LTC expenses. The LTC Accumulated Value is credited at a higher interest rate than the Cash Value Maximizer rate. Underwriting is more lenient than with regular LTC insurance policies.
Annuity Care has all the benefits of a regular SPDA, plus it provides for the reimbursement for LTC expenses on a FIFO basis i.e. tax free. That benefit is especially advantages for the client who has annuities that have value substantially over their cost basis. |
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| Principal Guarantee* |
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| Principal Guarantee: |
No |
| MVA: |
No |
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| Rate Lock Policy |
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Cash Transactions: All applications must be received with full premium in the Home Office by the end of business the day before the rate change in order to preserve the current interest rate.
Transfer/1035 Transactions: All applications with completed transfer or 1035 paperwork must be received the day before the rate change. All pending transfers or 1035s must be fully funded within in 30 days to preserve the current interest rate. |
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| Surrender Schedule |
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| Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
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8 |
8 |
8 |
7 |
6 |
5 |
4 |
3 |
2 |
0 |
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| Contributions |
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| Max.: |
$300,000 |
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| Min. NQ: |
$10,000 |
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TSA 403b: |
no |
| Min. IRA: |
$10,000 |
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401(k): |
yes |
| Min. add.: |
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| Add. Extend Surr.: |
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| All IRAs: |
yes |
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| Liquidity Features |
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| Annual Free WD: |
10% after the 1st yr |
| Earnings: |
no |
| Cumulative: |
no |
| Systematic: |
no |
| Loan Provision: |
no |
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| Waivers |
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| Nursing Care: |
yes |
| Terminal: |
no |
| Disability: |
yes |
| Unemployment: |
no |
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| Notes |
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Unless there are joint owners it is recommended that the owner and the annuitant be the same person. It is better that the owner be an actual person.
If the annuity is being purchased in anticipation of future LTC expenses it is not recommended to use the annuity for current expenses as they would be LIFO and therefore taxable.
*LTC Maximizer: 4.05% for 5 years
*CF Maximizer: 3.25% for 1 year |
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| Company Ratings |
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| AM Best: |
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A |
| S&P: |
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AA- |
| Moodys: |
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| Fitchs: |
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| Current Rates (effective 07/01/2010) |
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| Current first year rate: |
4.05% |
| Includes first year bonus of: |
0.00% |
| Base Rate: |
See Below* |
| Length of rate guarantee: |
5 Years |
| Minimum guaranteed rate: |
3.00% |
| Average Yield: |
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| State Approval |
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Not Approved In: CT, MT, NH, NY
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| Age Restrictions |
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| Owner qualified $: |
85 |
| Owner non-qualified $: |
85 |
| Annuitant qualified $: |
85 |
| Annuitant non-qualified $: |
85 |
| Maturity Age: |
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| Owner/Annuitant Driven |
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Owner |
| Mailing Address |
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Overnight Address:
One America
250 West North St
Indianapolis, IN 46202
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