While exact plan designs and benefits may vary by state,* here are the basics of how this plan works:

1. Your client establishes a guaranteed tax-deferred annuity
2. A portion of the annuity value is used to pay for a Long-Term Care rider (no out-of-pocket premiums)
3. If your client meets regular TQ LTCi benefit triggers, reimbursement benefits begin after 90-day Deductible (Elimination) Period
4. LTC expenses will be reimbursed up to the Daily Maximum Benefit and paid from the annuity value, penalty free, for at least the first two years.  Thereafter, no less than four years of benefits will remain available from the LTC rider.
5. The LTC Benefit is determined by the annuity value:
   • Total Available LTC Benefit is 3 times the annuity value (i.e. $100,000 initial annuity value = $300,000 initial LTC benefit)
   • Daily Max. LTC Benefit is the Total LTC Benefit divided by 2190 days (6 years x 365 days)
   • The LTC Benefits grow in proportion with (at the same rate as) the growth of the annuity (growth based on a plan’s net interest credited)
6. The AnnuiCare policy will reimburse LTC expenses up to 100% of the Daily Maximum Benefit for many types of LTC services (i.e. HHC, Assisted Living, NH, Hospice, etc.) and Adult Day Care at 50% of Daily Maximum.

AnnuiCare 5, 7 & 10 are Flexible Premium Annuities featuring a non-guaranteed interest rate.