Due to the fact that many people are living so much longer today than ever before, making sure that you have money available if it is needed for long-term care and/or other related health care issues are important.
In fact, in many cases, this is the number one concern for people who are retired or are approaching that time in their lives, because health care costs continue to rise, and they could have a very serious impact on your retirement funds.
Regardless of whether you are currently in ideal health, unfortunately, unexpected accidents and injuries can – and sometimes do – occur. For that, you may oftentimes need to reach into your own pocket in order to pay the necessary deductibles, co-payments, and/or any of the expenses that are not covered by Medicare or other insurance coverage.
In order to help with offsetting such costs, one of the available options that can be chosen in conjunction with the American Equity Bonus Gold annuity is the Wellbeing Benefit. This benefit can essentially increase the amount of your Lifetime Income Benefit payment if you or your spouse (if applicable) meet certain criteria.
There are actually options in relation to the Wellbeing benefit. One offers the lifetime income benefit and wellbeing rider with a compounding IAV rate of 5.5%, and the other offers a compounding IAV rate of 6.0%.
So, with either of these particular options, in addition to the lifetime income benefit, you also receive the wellbeing benefit – so it’s like having two different flavored scoops of ice cream all in one big cone.
Taking a Closer Look at the Fine Print for the Wellbeing Rider on the Bonus Gold Annuity
Unfortunately, even though this rider could help you to pay for certain health care related expenses, nothing in life is free – and the same holds true for the Wellness Rider on the American Equity Bonus Gold annuity.
In this case, the wellbeing rider that offers the compounding IAV rate of 5.5% will also cost you an annual fee of 0.85% of your annuity contract value – and it is deducted each year from your annuity value, provided that the Lifetime Income Benefit Rider (LIBR) remains active.
The other option, the one offering the compounding IAV rate of 6.0% will essentially cost you an annual rider fee of 1.0%. Again, as long as the rider remains active, the fee will be deducted from your contract value on each contract anniversary. You can check out all of the nitty gritty details here.
Also, there is a long list of “eligibility” requirements that must be present if you are to take advantage of the benefits offered via the optional Wellbeing benefit – and you must meet all seven of these.
The wellbeing rider eligibility requirements include all of the following:
- The Wellbeing Rider must be in force, and
- The Enhanced Lifetime Income Benefit waiting period has elapsed (which is presently two years), and
- You (and your spouse, if applicable) are at least age 50 at the election of this benefit, and
- The current contract value of your American Equity Bonus Gold annuity is greater than zero, and
- You (or your spouse, if applicable) are able to perform all 6 of the “Activities of Daily Living (ADLs)” on the effective date of the rider, and
- The Enhanced Living Income Benefit has not been previously elected, and
- You (or your spouse, if applicable) provide a licensed doctor’s statement – on a form that is provided by American Equity – that certifies that you (or your spouse) is now unable to perform two of the six listed activities of daily living without substantial assistance due to a permanent loss of functional capacity.
*Note: The six Activities of Daily Living (ADLs) include: bathing, dressing, transferring, toileting, continence, and eating.
Wowie, that’s a lot of factors that need to be met.
In addition, it is important to note that the Lifetime Income Benefit and Wellbeing Rider benefit on the American Equity Bonus Gold annuity is only available if you choose the level payout option (either as a single life or a joint life) on the annuity.
In this case, given all of the necessary requirements for unlocking these funds from the annuity, it may just be easier to buy a lottery ticket and hope for the best, or to go out and search for a pot of gold that can help to pay for your future potential wellbeing expenses!
Would You Like Unbiased Advice on Whether or Not This Rider is Right for You?
While most insurance and financial companies do a great job of painting a nice, rosy picture of how their products can add benefit to their clients’ lives, the reality is that there is usually a hidden cost somewhere.
While these companies tout from the mountaintops that they provide “transparency” and full disclosure, often times you need a pick ax in order to really drill down and find the information that you need with regard to fees, charges, and other not-so-nice components of these products.
But even so, what if you know everything that there is to know about the Bonus Gold annuity and its riders?
Quite frankly, even the best performing financial products may still not always be right for certain people. That’s because everyone’s financial goals are different and unique.
So, if you have any questions or concerns regarding the Wellbeing Rider on the American Equity Bonus Gold annuity, then please feel free to reach out to us.
Our team of annuity “geeks” can help you to wade through the plethora of numbers and information, and ultimately determine whether or not this annuity rider is truly right for you.