The universe of annuity/long-term care insurance combination products just got bigger.

The State Life Insurance Co., Indianapolis, has introduced its Annuity Care III product, the latest in its lineup of tax-advantaged and asset-based life insurance and annuity products with long-term care benefits.

Annuity Care III enables the policyholder to convert a portion of his or her qualified money portfolio (not set aside for income) into a single-premium deferred annuity over a period of four years.

Among the product’s features are:

  • Access to the cash value of the annuity for qualified long-term care expenses; extended benefits are also available.
  • Long-term care benefits increase as additional conversions are made and as cash value accumulates.
  • Underwriting approval is only required at the time of the initial application, thus guaranteeing insurability during the four-year conversion period. (However, the right to purchase additional policies without underwriting is voided if any additional purchase option is not exercised.)
  • Long-term care benefits are available for a husband and wife on the same annuity.

Under the Annuity Care III plan, each premium paid (conversion) is deposited into a new policy. Benefits are calculated on attained age and subject to a new surrender charge schedule. Interest rates and monthly insurance charges will be based on the prevailing rates at the time each premium is received.

- MW