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Daily Coverage

Long-Term Care Insurance policies pay a daily amount towards home care, assisted living, or nursing home. Home care is the most common claim, with 75% of claims starting at home.

Plan Duration

Average claim: 2.9 years. Assuming you don’t have a crystal ball, you don’t know how long you’ll need Long Term Care for. The chance of needing Long Term Care is 1 in 2, but the chance of needing it for over five years is much smaller. Like any insurance, you may buy this and never use it, so finding a balance is key.

Return of Premium

Add this option and you’ll be able to leave your beneficiary the total sum of all of your premiums paid, less any claims you’ve made. If the thought of buying this and never using it bothers you, guarantee a return of funds with Return of Premium.

Home Health Care on Day 1

Coverage for care at home is available with no waiting period. This 10-15% extra option is the most popular add-on rider.

Shared Coverage

Women make longer claims than men, on average. Hedge your risk with your spouse by adding a Shared Care rider to your policy.

Inflation Protection

If you're buying this thinking of using in the future, include inflation protection.

American Equity RateShield 10

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American Equity’s RateShield 10 is a flexible fixed deferred annuity that offers a 1-year rate guarantee, and a surrender charge period of 10 years. The RateShield 10 has a provision for Market Value Adjustment (MVA), and an optional lifetime income rider that come at an extra fee.

Rate Guarantees

For the first contract year, your annuity is credited with a fixed interest rate (currently 1.95%), guaranteed for just one year. If you intend to make additional premium payments before maturation date of your annuity, you must seek the company’s approval. The interest rate applicable on the date when you pay the additional premiums might be different from the one applied on the initial premium.

Surrender Values and Charges

With RateShield 10 from American Equity, your annuity’s surrender value is never below 87.5% of your premiums, less withdrawals, accumulated at the MGIR (Minimum Guaranteed Interest Rate). If surrender or partial withdrawal happens during the surrender charge duration, a deduction is made based on the surrender charge schedule.

Surrender charge schedule

Contract Year 1 2 3 4 5 6 7 8 9 10 11
Surrender Charge Percentage 9.20 9.20 8.20 7.20 6.20 5.20 4.10 3.10 2.10 1.00 0
  • Free withdrawals – each year, the annuity owner has an opportunity to withdraw up to 10% of his or her contract value free of any charges.
  • Partial withdrawals – partial withdrawals are also available over time, but with accompanying withdrawal charges.

Qualified Care Needs

Qualified care riders are automatically available free of charge to all annuitants below the age of 75 at issue.

  • Nursing Care Rider – this rider allows the annuity owner to get 100% of their Contract Value free of any charges if they’re confined to a nursing care home for at least 90 consecutive days, after the 3rd contract year. If confinement happens within the second or third year, a 20% penalty-free withdrawal is allowed.
  • Terminal Illness Rider – this rider allows the annuity owner to get 100% of their Contract Value penalty-free with they are diagnosed with a terminal illness any time after the first contract year.

Death Benefit

In the event of the annuitant’s death, the appointed beneficiaries receive the entire sum of the contract. This money is paid in lump sum, free of any surrender charges.

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