Frequently Asked Questions

A hybrid annuity combines a fixed or fixed indexed annuity with long-term care benefits. Your contract value is protected from market loss per contract terms, earnings grow tax-deferred, and you can access a pool of funds for qualified long-term care expenses if needed. Guarantees are backed by the claims-paying ability of the issuing insurer.

If you need qualified care, the policy can provide a monthly benefit (often 2-4% of your account value) to help pay for home care, assisted living, or nursing home costs. If you never need care, your beneficiaries receive the remaining value.

Earnings in an annuity grow tax-deferred, meaning you don't pay taxes until you withdraw. Texas has no state income tax, so you'll only pay federal taxes on earnings when distributed.

Most hybrid annuities allow penalty-free withdrawals up to a certain percentage each year (often 10%). Early withdrawals beyond that may incur surrender charges, and withdrawals before age 59½ may face IRS penalties.

Your contract value can continue to grow tax-deferred, and you can use it for retirement income or pass it to your beneficiaries, per contract terms. The long-term care benefit is there if you need it.

Yes, Texas Medicaid covers nursing home care and some home and community-based services. However, there are strict income and asset limits you must meet to qualify.

For a single person, countable assets generally must be $2,000 or less. For married couples where one spouse needs care, the spouse at home may keep a Community Spouse Resource Allowance that Texas updates every year — check Texas HHS for the current figure. Your home, one vehicle, and certain other assets may be exempt.

Texas has a 5-year look-back period. If you give away assets or sell them below market value within 5 years of applying for Medicaid, you may face a penalty period where you're ineligible for benefits.

Spend-down means reducing countable assets to the limit before Medicaid pays for long-term care. Permitted approaches can include paying for care, buying exempt items, and, for some married couples, a Medicaid-compliant annuity under strict rules. Rules are complex — coordinate with an elder law attorney, ideally well before care is needed.

Your primary home is usually exempt while you're alive if you or your spouse lives there. However, Texas may place a lien on your home to recover costs after you pass, unless certain exceptions apply (like a surviving spouse or disabled child).

Final expense insurance is a small whole life policy (typically $5,000-$25,000) designed to cover funeral costs, burial expenses, and other end-of-life bills so your family doesn't have to pay out of pocket.

The average funeral in Texas costs $7,000-$10,000. Most people choose $10,000-$15,000 to cover funeral costs plus outstanding medical bills, credit card debt, or other final expenses.

Final expense is a type of whole life insurance, but it's specifically designed for end-of-life costs. It has smaller face amounts, simplified underwriting, and is easier to qualify for than traditional life insurance.

Some final expense policies are simplified-issue or no-health-question products. Eligibility depends on the product and its terms. Premiums may be higher, and there may be a waiting period.

Most policies pay within a few days to a few weeks after the claim is filed. Some insurers offer accelerated death benefits that can be paid within 24-48 hours to help cover immediate funeral costs.