Updated: Apr 8, 2024
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Updated: Apr 17, 2024
Fixed Index Annuities are complicated or I don't understand the benefit?
Annuities offer a guaranteed lifetime withdrawal benefit providing you a stream of income during your retirement years. If you work in the private sector and will not be receiving a government pension an annuity can provide an additional stream of income in addition to social security.
Fixed Index Annuities are tied to the stock market so my annuity could lose value?
With fixed index annuities your annuity funds are not invested directly into the equity markets. Linking to an index provides the potential to earn market returns on your annuity if the market index increases. Fixed indexed annuities have downside protection so your annuity will never lose value if the market index returns a negative value in a given year.
If I die before annuitizing what happens to my fixed index annuity? Does the insurance company get to keep the annuity value?
Fixed index annuities that haven't been annuitized, the remaining account value is passed on to your beneficiaries named by you in the annuity policy.
While there are a lot of myths floating around about fixed index annuities they are a powerful financial product for most individuals that are not entitled to a pension at retirement. Most fixed index annuities have a floor and cap rate for annuity earnings and actually represent less volatility than investing the funds directly into the equity markets.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.
Updated: Apr 17, 2024
Medicaid is a social insurance program jointly funded at the state and federal level that pays for health services for qualifying low-income individuals. Since Medicaid is funded at the state level eligibility and health services covered vary depending on which state the individual resides in. Medicaid helps pay for nursing home care as well as home and community LTC services for older low income individuals with limited assets that fall within their respective state eligibility group qualifications.
When dealing with long-term care Medicaid is more significant than Medicare but it is possible for an individual to be dual eligible qualifying for both Medicare and Medicaid. Many elderly people who do not have LTC insurance end up paying for LTC services themselves and quickly realize their financial resources are not sufficient to cover extended stays at a nursing home. Those who need long-term care may end up relying on friends and family but few people have the financial resources to sustain a lengthy stay at a nursing home. After the elderly individual has liquidated all their assets to pay for their nursing home stay they end up qualifying for Medicaid as they now have no income or other assets. Medicaid is the primary payor of LTC services in the United States due to individuals exhausting their financial resources in their elderly years.
Many elderly individuals will find themselves in need of long-term care services but without the financial resources to cover the extraordinary costs.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.
