Long-Term Care Rider While the common belief is that most long-term care expenses are covered by Medicare or supplemental health insurance, many are not, which means they have to be paid from personal assets. Unless you have long-term care protection, these expenses can be significant and have a severe impact on the value of your estate. The Long-Term Care Rider provides tax-free benefits for qualified long-term care services. The Rider benefits help cover long-term care expenses such as: • Home health care • Assisted living • Adult day health care • Nursing home care • Home modifications • Medical equipment and supplies to assist with activities of daily living
During the first four years, benefits are subject to a four-year vesting schedule: 20%, 40%, 60%, 80%, 100%. For example, if you submit a claim to begin benefits in the fourth contract year, benefit payments will equal 80% of the fully vested amount. The Rider is subject to a fee deducted monthly from your annuity account value. The fee is based on your attained age and underwriting class. In addition, premium received in the first year is subject to a 1% premium load. The Coverage Ratio you elect at issue may range between 100% of your premium, up to a maximum determined by your issue age and underwriting class. The higher your elected Coverage Ratio, the higher the charges to the annuity account value. Your agent can help you find the right balance between anticipated long-term care costs and the value of your annuity account.
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ET-BRG-1100A (08-22)
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