Our Professional Opinion on the EquiTrust Bridge Annuity
Bridge is one of the few EquiTrust products we recommend for certain situations despite the company’s B++ AM Best rating. The reason is not a higher index cap or a larger bonus. Bridge is a specialized long-term care annuity that can create an indemnity-style care benefit, use simplified underwriting, and continue qualified long-term care payments after the Accumulation Value is depleted.
EquiTrust is a financially established annuity company, but its B++ AM Best rating is below our preferred A- minimum. Other rating agencies may view the company differently, but our long-term annuity standard is based on AM Best. That does not make every EquiTrust contract unsuitable; it means the product must provide a meaningful advantage over an A- or better-rated insurer before we accept the lower rating.
The lower rating still matters. We do not recommend Bridge as a general accumulation annuity, and we would not use it merely because a consumer wants tax deferral or index-linked growth. We consider it when its care design solves a problem that an A- or better-rated alternative does not solve as well.
Bridge can be particularly useful for a buyer with nonqualified money who wants cash-indemnity benefits, has difficulty qualifying for traditional long-term care coverage, values home-care and assisted-living benefits, or wants the option to accept the Secure underwriting class without a longer assessment process.
The key advantage is the insurer-funded Net Amount at Risk. Long-term care payments first reduce Accumulation Value dollar for dollar, but qualified payments can continue after the account reaches zero when rider rules are followed. That is materially different from an ordinary nursing-home waiver or a temporary income doubler.
Bottom line: We recommend Bridge for select long-term care cases, not as a blanket annuity recommendation. The buyer must accept EquiTrust’s B++ rating, a ten-year surrender period, a premium load, monthly rider charges, underwriting, and nonqualified-only funding.
What We Like
- Benefits can continue after account depletion: The insurer-funded portion can keep paying after the Accumulation Value reaches zero.
- Indemnity-style payments: Benefits do not require submitting monthly receipts under the standard design.
- Five-year benefit period: The rider can pay up to 60 monthly benefits.
- Home and facility coverage: Qualified services can include home health care, adult day care, assisted living, and nursing-home care.
- Simplified underwriting: The applicant answers a short health questionnaire and may qualify for streamlined classes.
- Secure-class option: Some applicants can accept a lower coverage ratio rather than complete further assessment.
- Benefit-base growth: The LTC Benefit Base can grow before claim under the rider terms.
- Optional inflation protection: An inflation rider can increase future care benefits for qualifying buyers.
- Wellness support: The NeverStop program can provide care-planning resources and potential credits.
What We Don’t Like
- B++ AM Best rating: The insurer may be responsible for claims many years in the future.
- Nonqualified money only: IRA and other qualified assets are not accepted.
- No joint ownership: Ownership and insured-person rules are restrictive.
- Ten-year surrender period: Ordinary withdrawals can face charges and an MVA.
- Premium load: The standard contract deducts a load from first-year premium.
- Monthly rider charges: Costs depend on age, underwriting class, vesting, and insurer-funded risk.
- Benefit vesting: The full insurer-funded benefit is not immediately vested.
- Inflation rider tradeoffs: Adding inflation protection can lower the initial coverage ratio and increase costs.
- Ownership changes can terminate the rider: The contract needs careful estate and trust planning.
What Is the EquiTrust Bridge Annuity?
Bridge is a flexible-premium fixed indexed annuity with a qualified long-term care rider. It accepts nonqualified money and combines an Accumulation Value with a separate LTC Benefit Base and insurer-funded benefit.
The contract can earn fixed or index-linked interest, but accumulation is secondary. The primary reason to own Bridge is the long-term care coverage. A buyer who does not need the rider should use a simpler and stronger-rated accumulation product.
Bridge Product Details
| Feature | Current Product Design |
|---|---|
| Product type | Flexible-premium fixed indexed annuity with a long-term care rider |
| Funding | Nonqualified money only |
| Issue ages | Generally 50–80; state variations apply |
| Minimum premium | $50,000 |
| Additional premium | Generally $2,000 minimum; annual and coverage limits apply |
| Ownership | No joint ownership under the standard design; insured and owner rules apply |
| Surrender period | Ten years |
| LTC benefit period | Up to 60 monthly benefits |
| Underwriting classes | Preferred, Standard, and Secure |
| Benefit trigger | Generally inability to perform 2 of 6 ADLs or severe cognitive impairment, with a plan of care |
| Benefit settings | Home care, adult day care, assisted living, nursing home, and other qualified services |
| Premium load | Standard first-year load applies; inflation rider can change the load |
| Rider charge | Monthly charge based on age, class, vesting, and Net Amount at Risk |
How the Long-Term Care Benefit Base Works
At issue, the LTC Benefit Base is calculated by multiplying eligible premium by an age- and underwriting-based coverage ratio. A healthier applicant can qualify for a higher ratio, while the Secure class provides a more accessible but generally lower amount of coverage.
The LTC Benefit Base is a benefit calculation, not cash. It should be distinguished from the Accumulation Value using the same principles that apply to other annuity values. It is not available for ordinary surrender or as a normal death benefit.
Underwriting and the Secure-Class Option
Bridge begins with a short health questionnaire. Depending on the answers, the applicant can qualify for Preferred, Standard, or Secure underwriting. Some applicants may complete a virtual assessment for a better class.
The ability to accept the Secure class can be valuable for someone who may not qualify for traditional coverage or does not want a more involved assessment. It does not mean every applicant is guaranteed a policy, and the lower class can materially reduce the coverage ratio.
How Long-Term Care Benefits Are Paid
The insured generally qualifies after being unable to perform at least two of six activities of daily living or after a qualifying severe cognitive impairment. A physician must certify the need and establish a plan of care for qualified services.
Bridge uses an indemnity-style design. The monthly benefit is calculated under the rider formula and generally does not require submitting receipts each month. Benefits are intended for qualified long-term care services and require ongoing eligibility certification.
Why Benefits Can Continue After the Account Reaches Zero
The monthly benefit combines the Accumulation Value with a vested portion of the insurer-funded Net Amount at Risk. Long-term care payments reduce the Accumulation Value dollar for dollar. After the account reaches zero through qualified care payments, the vested insurer-funded benefit can continue for the remaining benefit period.
This is the feature that makes Bridge meaningfully different from many annuity care riders. A standard nursing-home waiver merely removes a surrender charge, and many income doublers stop when the account value is depleted. Bridge can continue its qualified LTC payment after depletion, provided no disqualifying withdrawal or contract change terminates the rider.
Vesting and Benefit-Base Growth
The insurer-funded Net Amount at Risk generally vests in stages over the early contract years, reaching full vesting after the applicable schedule. A claim before full vesting can produce a lower insurer-funded amount.
Before claim, the LTC Benefit Base can receive stated annual growth for a limited period. An optional inflation rider can increase the future benefit more rapidly, but it also reduces the maximum initial coverage ratio, lowers the maximum first-year coverage, and increases the premium load. Inflation protection should be priced as a tradeoff, not treated as free growth.
Premium Load, Rider Charges, and Wellness Fee
Bridge charges a first-year premium load and a monthly LTC rider charge. The monthly cost is based on factors including issue age, underwriting class, vesting, and the insurer-funded Net Amount at Risk. These are real annuity and rider fees that reduce Accumulation Value.
The NeverStop wellness program can also charge an annual fee unless terminated or unavailable in the state. It may provide assessments, care-navigation support, and wellness credits, but those services should not distract from the core insurance cost and benefit.
Covered Care Settings
Qualified care can include home health care, adult day care, assisted living, and nursing-home care, subject to the rider definitions and plan of care.
This breadth is one reason Bridge can fill a real planning need. The policy should still be reviewed for elimination periods, service definitions, exclusions, state variations, and annual recertification requirements.
Index Crediting and Account Value
The annuity account includes a fixed option and strategies linked to the S&P 500 and proprietary indexes. Market losses do not directly reduce account value, but future caps, participation rates, and fixed rates can change.
Because care coverage is the main purpose, we would not choose Bridge based on an engineered index illustration. Review volatility-controlled index limitations and use conservative crediting assumptions when projecting the cash account.
Ordinary Withdrawals, Surrender Charges, and MVA
Bridge is not a liquid care account. Ordinary withdrawals can reduce the LTC Benefit Base, the Accumulation Value, and future benefits. Amounts above the free allowance can face the following surrender schedule:
| Schedule | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Contract year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Surrender charge | 9% | 8% | 7% | 6.5% | 5.5% | 4.5% | 3.5% | 2.5% | 1.5% | 0.5% |
Chargeable transactions can also receive a Market Value Adjustment. If the Accumulation Value reaches zero because of ordinary withdrawals rather than qualified LTC payments, the rider can terminate.
Tax Treatment of Bridge Benefits
Bridge is intended to qualify as a tax-qualified long-term care contract under federal rules. Long-term care benefits are generally designed to be received income-tax-free up to applicable federal limits, but the tax result depends on the contract, total benefits, actual care, and individual circumstances.
The annuity accepts only nonqualified funds. Review annuity taxation separately from the LTC rider and consult a tax professional before a 1035 exchange or claim.
EquiTrust Financial Strength and the B++ Issue
An annuity guarantee is only as strong as the issuing insurance company. Because EquiTrust is rated B++ by AM Best, we apply a higher burden of proof than we would to an A- or better-rated carrier. Bridge can justify consideration because its indemnity-style LTC benefits, streamlined underwriting, and post-depletion payments are not easily duplicated. That product-level uniqueness can outweigh the rating difference for the right client, but it does not remove the insurer risk.
For a large purchase, consider insurer diversification and the limits of your state guaranty association. State guaranty protection is a backstop, not a substitute for choosing financially strong insurance companies.
Who Should Consider Bridge?
- A buyer age 50–80 with nonqualified money earmarked for long-term care planning.
- Someone who values indemnity-style benefits without monthly receipt submission.
- A consumer who wants benefits for home care, adult day care, assisted living, and nursing-home care.
- A buyer who may have difficulty qualifying for traditional long-term care insurance and can accept Secure-class coverage.
- Someone who values a five-year benefit period that can continue after the annuity account is depleted.
- A consumer who understands and accepts EquiTrust’s B++ rating and rider charges.
Who Should Avoid It?
- Someone using IRA, 401(k), or other qualified retirement money.
- A buyer who wants simple accumulation rather than long-term care coverage.
- Someone who needs joint ownership or unrestricted estate-planning changes.
- A consumer who may need substantial ordinary withdrawals during the surrender period.
- A healthy buyer who can obtain materially stronger or less expensive coverage from an A- or better-rated insurer.
- Anyone unwilling to complete annual eligibility certification during a claim.
Other Insurance Coverage to Consider
- Medicare Supplement coverage: Helps control Medicare deductibles and coinsurance, but it does not pay for most custodial long-term care.
- Life insurance: Can preserve a separate inheritance if retirement assets are expected to be spent on care.
- Traditional long-term care insurance: May offer broader benefit periods, shared-care options, or more coverage per premium for buyers who qualify.
Alternatives to Compare
Hybrid life and long-term care insurance can provide a larger guaranteed death benefit and dedicated LTC coverage from a different policy structure.
Other long-term care annuities: Compare products from A- or better-rated insurers, including benefit duration, underwriting, inflation protection, and whether payments continue after account depletion.
Traditional coverage: Use an independent long-term care annuity broker to compare Bridge with stand-alone LTC insurance and other asset-based solutions before transferring nonqualified money.
Our Final Recommendation
We recommend EquiTrust Bridge for select long-term care situations when its indemnity design, streamlined underwriting, or post-depletion benefits solve a need that stronger-rated alternatives do not solve as well. This is a product-specific exception to our normal A- minimum—not a blanket endorsement of EquiTrust annuities. The care benefit must justify the company rating, charges, surrender period, and ownership restrictions.
Contact The Annuity Expert for free quotes and a no-obligation comparison of Bridge with annuities from A- or better-rated insurers. We will compare the guarantee, income or accumulation value, fees, surrender period, liquidity, death benefit, company strength, and any care benefits before you buy coverage.
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Frequently Asked Questions
Is the EquiTrust Bridge annuity recommended?
Yes, for select long-term care cases. We recommend it when the indemnity-style benefits, underwriting flexibility, or post-depletion payments provide a meaningful advantage that is difficult to obtain from an A- or better-rated insurer.
Can Bridge be purchased with IRA money?
No. The standard product accepts nonqualified money only.
Do Bridge benefits continue after the account reaches zero?
They can continue when the account is depleted through qualified long-term care payments and the rider remains in force. Ordinary withdrawals that reduce the account to zero can terminate the rider.
Does Bridge require long-term care receipts?
The standard rider uses an indemnity-style design and generally does not require monthly receipt submission, although benefits must satisfy the policy’s qualification and care-plan rules.
How long can Bridge pay benefits?
The standard benefit period is up to 60 monthly payments, subject to the rider terms, vesting, eligibility, and remaining benefits.
Why recommend a B++ company?
Bridge has a distinctive LTC design that may solve needs not easily met elsewhere. We still compare stronger-rated alternatives first and recommend Bridge only when its unique benefits provide a meaningful reason to accept the rating difference.