AnnuiCare Advantages
AnnuiCare is a guaranteed tax-deferred annuity that also provides Tax-Qualified Long-Term Care coverage. Long-Term Care coverage is equal to three times the value of your annuity at a fraction of the cost of traditional Long-Term Care insurance. In addition, the Long-Term Care premiums are conveniently paid from the annuity’s value, so there are no large, out-of-pocket premiums.
- Money-Back – AnnuiCare provides Long-Term Care benefits if you need them or your annuity value, including net interest, if you don’t.
- Safety – Your AnnuiCare value is free from market risk.
- Liquidity – Your annuity interest can be accessed easily with no withdrawal charges.
- Long-Term Care Benefit – AnnuiCare will reimburse up to three times your annuity value for Long-Term Care benefits for six years or longer.
- Waiting Period – Claims may be filed beginning on day one, and benefits may begin as soon as the 90-day Deductible Period is met.
- Tax-Deferred Growth– Interest earned in your annuity accumulates tax-deferred.
- Pre-Existing Conditions Are Covered – We will not deny benefits for pre-existing conditions.
- Death Benefit – The full value of your annuity will be paid directly to your beneficiaries, bypassing probate.
The AnnuiCare Concept
Combines the safety and tax advantages of an annuity with Long-Term Care insurance benefits. AnnuiCare provides three times the annuity value for Tax-Qualified Long-Term Care expenses.
3 FOR 1 LONG-TERM CARE BENEFITS WITH NO OUT-OF-POCKET PREMIUMS
$100,000 Annuity Provides $300,000 Long-Term Care Benefit
How AnnuiCare Works
- You establish a guaranteed tax-deferred annuity.
- A portion of your annuity value is used to pay for the Long-Term Care rider. As a result, there are no out-of-pocket premiums.
- Benefits begin after a 90-day Deductible Period if you are certified by a Licensed Health Care Practitioner as:
- Being unable to perform two of the six Activities of Daily Living: bathing, continence, dressing, eating, toileting, and transferring; or
- Having a cognitive impairment requiring substantial supervision, such as Alzheimer’s Disease.
- Your Long-Term Care expenses will be reimbursed up to the Daily Maximum benefit. These reimbursements will be paid from your annuity value, penalty-free, for at least the first two years. Thereafter, benefits will be reimbursed from the AnnuiCare rider for no less than four years, providing six years or more of Long-Term Care benefits.
- Your AnnuiCare policy will reimburse Long-Term Care expenses up to 100% of your Daily Maximum benefit for:
- Home Health Care
- Nursing Home Care
- Homemaker Services
- Assisted Living Facility Care
- Personal Care Services
- Hospice Services
- Alternative Care Services
- Respite Care
- Adult Day Care (50% of Daily Maximum)
What happens to my annuity if I never need Long-Term Care benefits?
Your annuity will continue to earn tax-deferred interest. You may choose to receive your annuity value in a lump sum, periodic payments including a lifetime income, or it will be paid to your beneficiaries.
The Annuity Value will pass on to the beneficiaries as a death benefit if not needed.
How is AnnuiCare different from other Long-Term Care insurance?
AnnuiCare combines the savings feature of a tax-deferred annuity to protect a traditional Long- Term Care policy. As a result, the dollars you put aside for Long-Term Care are spent only if you need them but not lost if you never use them.
Does AnnuiCare pay for the same Long-Term Care services as a traditional Long-Term Care policy?
Yes, it does! AnnuiCare is Tax-Qualified Long-Term Care insurance.
How does the cost of AnnuiCare’s LTC riders compare to traditional LTC insurance plans?
The LTC premiums deducted from your annuity are generally about one-third of the out-of-pocket premium you would pay for a traditional plan with substantially similar benefits.
These savings are available to you because your annuity value is used first for LTC benefits. (Cost estimate is based on examples by age provided at U.S. Department of Health and Human Services – National Clearinghouse for Long-Term Care Information – www.longtermcare.gov.)
How do I qualify for AnnuiCare?
AnnuiCare has a simplified underwriting process.
After completing the application, ages 69 and younger will have a telephone interview with a registered nurse.
If you are age 70 or older, the interview will be conducted in person at your convenience.
No physical exam or lab work is needed.
Underwriting is usually completed within three business days of your interview.
Can I buy AnnuiCare with qualified money?
You can buy AnnuiCare with a qualified account such as an IRA.
The qualified account is transferred into AnnuiCare.
Then over a five-year period, the funds are distributed into the non-qualified annuity portion of the AnnuiCare policy.
You will receive a 1099 and be taxed on the portion transferred each year, allowing you to spread the income tax over a five-year period.
How does the Pension Protection Act of 2006 affect AnnuiCare?
Effective January 1, 2010, annuity value is withdrawn to pay Tax-Qualified Long-Term Care premiums are not taxed.
All AnnuiCare policies receive this tax benefit.
That means Tax-Free Premiums and Tax-Free Long-term Care Benefits.
How do I qualify to receive Long-Term Care benefits from my AnnuiCare policy?
If you cannot perform at least two of six Activities of Daily Living or have cognitive impairment requiring substantial supervision, you will qualify to receive benefits after a one-time 90-day Deductible Period.
Guaranty Income Life’s Annuicare has no waiting periods.
How long must the policy be in force before Long- Term Care benefits can be accessed?
AnnuiCare is unique because it has no long waiting periods.
Claims can be filed beginning day one, and benefits may begin as soon as the 90-day Deductible Period is met.
Washington Long-Term Care Tax
GILICO meets the requirement to opt out of the Washington Long-Term Care Tax. Apply Now.
