Which rider provides a waiver of surrender charges if the annuitant is confined to a long-term care facility for at least 30 days?

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Multiple Choice

Which rider provides a waiver of surrender charges if the annuitant is confined to a long-term care facility for at least 30 days?

The feature being tested is a bail-out provision. This rider is specifically designed to help if the annuitant must enter a long-term care facility for an extended period. When the confinement lasts at least 30 days, the bail-out provision waives the surrender charges that would normally apply to withdrawals during the surrender period. This protects the contract holder from penalties when liquidity is needed for LTC costs. Surrender charges are the penalties that reduce early withdrawals during the surrender period. A generic waiver isn’t specific enough to explain the trigger, and interest rate guarantees relate to guaranteed credited rates or income features, not penalties on withdrawals.

The feature being tested is a bail-out provision. This rider is specifically designed to help if the annuitant must enter a long-term care facility for an extended period. When the confinement lasts at least 30 days, the bail-out provision waives the surrender charges that would normally apply to withdrawals during the surrender period. This protects the contract holder from penalties when liquidity is needed for LTC costs.

Surrender charges are the penalties that reduce early withdrawals during the surrender period. A generic waiver isn’t specific enough to explain the trigger, and interest rate guarantees relate to guaranteed credited rates or income features, not penalties on withdrawals.

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