• Why Should I Get Long-Term Care Insurance?

    This much is certain:

    • We are living longer
    • As we grow older, the need for assistance becomes greater
    • Odds are significant that at some point you will need long-term care
    • Long-term care is expensive.

    What are your options?

    Generally, these are the most common choices:

    • Do nothing and rely upon government programs such as Medicare or Medicaid
    • Traditional Long-Term Care Insurance
    • Self-Insure

    Let’s review each of these options:

    Do nothing and rely upon government programs such as Medicare or Medicaid.

    Medicare will only cover up to 100 days in a nursing home following a 3 day hospital stay.

    • Medicare paid only 20.4% of the total national long-term care cost in 2005.

    Medicaid qualifications and coverage vary from state to state, but it is usually for those who have little or no personal assets.

    • Medicaid paid 48.9% of the total national long-term care cost in 2005.
    • In general, the cost of Medicaid is poverty.
      • Medicaid deductible = all your assets
      • Medicaid premium = all your income

    Medicaid has other disadvantages:

    • Loss of options
    • Loss of independence
    • Not portable from state to state

    Genworth 2014 Cost Of Care Survey

    Traditional Long-Term Care Insurance


    • Transfers financial risk
    • Insures your estate (protects assets)
    • Helps avoid last minute planning
    • Can help keep you out of a nursing home


    • Expensive
    • Difficult to qualify


    Use current assets


    • No premiums to pay
    • No underwriting


    • All your assets are exposed to long-term care risk

    Generally, you can use assets such as these to pay for your long-term care needs:

    • Money market
    • CD
    • Retirement funds
    • Bonds
    • Annuities
    • Stocks
    • Mutual funds

    There is a way to self-insure long-term care so that your money is safe, free from market risk, liquid, grows tax-deferred, and worth three times its value for long-term care needs. All you need to do is change the way you save. GILICO can help you with their innovative product: AnnuiCare®.

  • Why Should I Purchase an AnnuiCare® Policy?

    It has been shown that a majority of people self-insure their long-term care insurance. With AnnuiCare®, you can enjoy the advantages of self-insurance while protecting your assets from risk. Your money accumulates tax-deferred, less monthly charges for the long-term care benefit.

    For example, if you have an emergency fund set aside, moving a portion of it into AnnuiCare® can provide you up to three times that amount for long-term care. This allows you to free up the remainder of your assets to reward yourself today. You still maintain control of your funds, but now you have much more financial flexibility.

  • How Will an AnnuiCare® Policy Impact My Taxes?

    During the accumulation phase of your annuity, interest earnings are tax-deferred. Withdrawals for your LTC premium deductions and benefits are not taxable.

Am I Eligible for AnnuiCare®?

  • Financial Suitability Standards

    Net Worth: You must have at least $100,000 of available assets exclusive of home and vehicles.

    Cash Flow: You must have ample funds to invest in AnnuiCare®. If you depend on these funds and/or the interest from these funds for routine living expenses, AnnuiCare® may not be suitable.

AnnuiCare® Benefits

Deductible Period

Waiver of Premium

  • When are Premiums for Long-Term Care waived?

    AnnuiCare® has two Waiver of Premium features:

    • Premiums are waived on a month-to-month basis after 180 consecutive days of benefits are payable for Nursing Home Care or Assisted Living Facility Care. Waiver of Premiums ends when no benefit for these services is payable for 30 consecutive days.
    • Premiums are permanently waived once the Accumulation Value of the annuity is fully depleted directly as a result of deductions for rider premiums or benefits.

Ownership and Funding

  • May a parent or child of the insured own the policy?

    No. AnnuiCare® is an annuity with LTC benefits. If the non-insured owner (other than the spouse) were to die, federal law requires that the cash value be paid to the beneficiary, which would terminate LTC benefits.

  • May qualified funds, such as an IRA, be used to fund AnnuiCare®?

    Not without special arrangement. Contact your agent or the company for details. Qualified plans have mandated distributions, and will require the owner to reduce the value of the policy, and thus benefits, at what may be an inopportune time.

  • How do partial withdrawals affect AnnuiCare® coverage?

    The owner/insured may withdraw 100% of annuity interest earned without surrender charges and principal may be withdrawn subject to policy penalties, or a 10% Free Withdrawal is available after the first contract year on all AnnuiCare® policies issued on or after July 18, 2005. NOTE: Extreme caution should be exercised when making withdrawals because policyowner withdrawals reduce the AnnuiCare® Benefit Limit by three times the amount withdrawn.

Notice of Claims and Questions Regarding Benefits

Notify us as soon as possible when covered care or services are needed. We will determine if Benefit Conditions have been met. Care Advisors are available to assist in the development of a Plan of Care. Visit our Contact Us page and get in touch with one of Care Advisors.

Inflation Protection

  • What is Inflation Protection?

    Inflation Protection is the Policyowner’s guaranteed right to increase LTC benefits up to 5% annually to keep up with the increasing cost of LTC.

  • How does Inflation Protection work?

    As the Annuity earns interest and increases in value each year, the AnnuiCare® Daily Maximum and Benefit Limit increase in proportion. The Inflation Protection feature in AnnuiCare® guarantees the insured the right, without evidence of insurability, to make additional annuity premium payments within 30 days after policy anniversaries, such that the AnnuiCare® benefits are at least 5% greater than on the previous anniversary.