Equitrust Bridge- Cash Benefit LTC Annuity Combo
Overview of EquiTrust Bridge:
- Product Type: The Bridge is described as a flexible-premium, fixed index deferred annuity with a Long-Term Care (LTC) Rider and a NeverStop Wellness Program, indicating it's designed for those looking to combine retirement savings with long-term care planning.
- Investment Options: It offers various crediting methods linked to market indices, such as the S&P 500, with options like caps, participation rates, or monthly average participation rates, providing flexibility in how returns are credited.
- Long-Term Care Benefits: The policy includes a significant focus on long-term care, with an initial coverage limit of up to $1,000,000 in the first year, suggesting it's tailored for those concerned about future care costs. The contract also pays cash indemnity long-term care benefits that can be used to pay an informal caregiver or even a loved one.
- Flexibility and Withdrawals:
- Premiums: There's flexibility in premium payments, with a minimum initial premium of $50,000 and subsequent contributions allowed up to $250,000 annually after the first year.
- Withdrawal Provisions: After the first year, policyholders can withdraw up to 10% of the accumulation value annually without surrender charges or market value adjustments, offering liquidity.
- Surrender Charges: The surrender schedule decreases over 10 years, starting at 9% and reducing annually, which might lock in the funds for a decade for those wanting to avoid penalties.
Digital Underwriting Process:
- Instant Approval for Long-Term Care Benefits: The Bridge policy by EquiTrust offers what's described as "instant, guaranteed approval" for long-term care benefits without health questions, interviews, medical exams, or prescription checks. This streamlined process is designed to make obtaining long-term care coverage more accessible and less intrusive.
- Underwriting Classes: Despite the instant approval, there are options for different underwriting classes (Secure, Standard, Preferred) which can affect the benefit amount. Clients can opt for a basic class without any underwriting or choose to undergo a quick digital process for potentially higher benefits.
- No Medical Exams or Records: The underwriting does not require medical exams, fluids, or medical records. This approach leverages third-party medical data and prescription history for prequalification, making the process entirely digital and immediate.
- Speed and Convenience: The absence of medical exams significantly reduces the time to approval, which can be a major selling point for consumers looking for quick coverage without the hassle of medical tests.
- Broader Accessibility: By removing the barrier of medical exams, EquiTrust potentially opens up its products to a wider demographic, including those who might be hesitant or unable to undergo medical examinations.