Key Metrics at a Glance
| Issue Ages | 40-80 | Class determines leverage |
|---|---|---|
| Minimum Premium | $36,000 | Single premium |
| Maximum Premium | $400,000 | Per contract |
| LTC Multiple | 2x or 3x | Based on class |
| Elimination Period | 90 days | Retroactive payment |
| Benefit Type | Cash Indemnity | No receipts required |
| Crediting Rate | 3% Guaranteed | Principal protected |
| 1035 Exchange | Yes | Tax-free from annuities |
Your Money Always Comes Back
With asset-based LTC, you're not gambling on getting sick. You're repositioning an asset that works for you in every scenario.
| Scenario | What Happens | Benefit | Who Gets It |
|---|---|---|---|
| Door 1: LIVE | You need LTC care | Tax-free cash benefits (2-3x contract value) for 4-6 years | You get the money |
| Door 2: DIE | You don't need LTC | Remaining contract value passes to your beneficiaries | Family gets the money |
| Door 3: LEAVE | You change your mind | Surrender value returned (after CDSC period) | You get the money |
The Bottom Line: Unlike traditional LTC insurance where premiums are "use it or lose it," CareMatters Annuity ensures your money comes back to you or your family in every scenario.
Underwriting Classes: Your Leverage Depends on Health
CareMatters Annuity uses three underwriting classes. Your class—determined by 6 health questions—directly affects your LTC leverage and duration.
Preferred Class
24 months acceleration + 48 months extension
Standard Class
24 months acceleration + 24 months extension
Select Class
36 months acceleration + 36 months extension
How Classes Are Determined
Questions 1-5 determine eligibility (pass/fail). Question 6 determines class: if no conditions from Q6 apply, you may qualify for Preferred (3x). If any Q6 conditions apply, you'll likely get Standard (2x). Ages 75-80 automatically receive Select class.
How CareMatters Annuity Works
The Two-Phase Benefit Structure
LTC benefits are paid in two phases, creating leverage beyond your initial premium:
Phase 1: Acceleration
Benefits paid by reducing your contract value
- • Monthly benefit = Contract Value / Acceleration Factor
- • Duration: 24-36 months depending on class
- • Reduces death benefit dollar-for-dollar
Phase 2: Extension
Benefits continue after contract value reaches zero
- • Same monthly benefit amount continues
- • Duration: 24-48 months depending on class
- • This is where the leverage comes from
The Result: Your premium is multiplied 2-3x for LTC purposes. A $100,000 premium can provide $200,000-$300,000 in LTC benefits.
True Cash Indemnity Benefits
Once your claim is approved, you receive your full monthly benefit as cash—no receipts, no expense documentation, no restrictions. Use it for professional care, family caregivers, home modifications, or however you choose. This is the same flexibility as SecureCare III, but on an annuity chassis.
100% Informal Caregiver Coverage
Pay family members or friends to care for you with zero restrictions. As long as informal care is appropriate and included in your plan of care, you can use 100% of your benefit for unlicensed caregivers—including your own children or spouse.
100% International Benefits
Receive 100% of your LTC benefits while residing internationally—no reduction, no time limit. One of the best international coverage options in the hybrid LTC market. Requires a U.S.-licensed practitioner to oversee your plan of care.
6-Question Simplified Underwriting
The simplest underwriting in the hybrid LTC market. Six health questions determine eligibility—no APS, no paramed exam, no Part B application. Cognitive screening required only for applicants 70+. Most decisions in 2-3 weeks.
1035 Exchange Eligible
Transfer an existing non-qualified annuity into CareMatters Annuity without triggering taxable gains. Perfect for repositioning underperforming fixed annuities into meaningful LTC protection while preserving your cost basis.
Caregiver Advocate Service
Free support service for insureds, contract owners, and their families. Provides information and referrals for local care services, facilities, adult day care, and community resources. No obligation to use these services.
Optional Benefits
Inflation Protection Benefit
5% compound annual increase to maximum monthly LTC benefit. Helps offset rising care costs over time. Requires upfront premium.
Must request full monthly benefit to receive inflation increase each month.
LTC Nonforfeiture Benefit
Provides a paid-up LTC benefit with shortened duration if you annuitize or fully surrender while alive. Requires upfront premium.
Protects some LTC value even if you exit the contract.
Surrender Charge Schedule
10-year CDSC schedule. Starting year 2, you can withdraw 10% of contract value annually without charges. LTC withdrawals are never subject to surrender charges.
Leverage Examples: What Your Money Can Do
Your underwriting class determines your leverage. Preferred class gets 3x; Standard and Select get 2x.
Margaret, 58 (Preferred Class)
Single Premium: $100,000
Healthiest applicants get maximum leverage
Robert, 65 (Standard Class)
Single Premium: $150,000
Higher premium compensates for lower multiple
Helen, 77 (Select Class)
Single Premium: $100,000
Extended duration designed for older buyers
Examples are hypothetical illustrations. Actual benefits depend on age, health, underwriting class, and optional riders selected. Request a personalized illustration.
Real World Scenarios
Is CareMatters Annuity right for YOUR situation? Here's who this works for—and when to consider alternatives.
Perfect Fit: The Cash Flexibility Seeker
Perfect FitPatricia (Age 62): Patricia values flexibility and control. She doesn't want to submit monthly receipts or justify her care decisions to an insurance company. She wants to decide how her benefits are used—whether that's professional caregivers, paying her daughter to help, or home modifications.
How CareMatters Annuity Helps:
CareMatters Annuity with cash indemnity benefits. Once Patricia qualifies for benefits, she receives a check each month—no questions asked. If she qualifies for Preferred class, her $100,000 becomes $300,000 in LTC coverage with $4,167/month for 6 years. Key Benefits: • No receipts or expense documentation • Full control over how benefits are spent • 100% coverage for family caregivers • Mix professional and family care freely
Outcome:
Patricia has complete control over how her care is delivered and paid for. She can mix professional care with family help, change providers without paperwork, and use funds for things like grab bars or wheelchair ramps that might not qualify under reimbursement policies.
Perfect Fit: The International Retiree
Perfect FitDavid and Maria (Age 64): The couple plans to live 6 months per year internationally and wants LTC coverage that works globally. Most policies reduce international benefits to 50% or restrict them to the acceleration phase only.
How CareMatters Annuity Helps:
CareMatters Annuity pays 100% of benefits internationally for the entire benefit period. David and Maria can each fund their own policy with $75,000. If they qualify for Standard class, they each have $150,000 in LTC coverage. International Advantages: • 100% benefits abroad (vs 50% for competitors) • No time limit on international coverage • Cash indemnity works with any provider • Hire local caregivers without network restrictions
Outcome:
Whether they need care in Phoenix or San José, they receive full benefits. The cash indemnity structure means they can hire local caregivers in Costa Rica without worrying about provider network restrictions.
Good Fit: The Simplified Underwriting Candidate
Perfect FitThomas (Age 71): Thomas has well-controlled Type 2 diabetes and high blood pressure. He's been declined for traditional LTC insurance and is worried about the invasive underwriting process for hybrid products. He doesn't want to go through a paramed exam or have his doctor submit records.
How CareMatters Annuity Helps:
CareMatters Annuity's 6-question underwriting has no APS, no paramed exam, and no Part B application. Thomas will need a cognitive screening at 71, but if he can answer "None of these" to questions 1-5 and his conditions aren't in Q6 automatic declines, he may qualify. Underwriting Simplicity: • Just 6 health questions • No medical records required • No blood work or exams • Decision in 2-3 weeks
Outcome:
Because well-controlled diabetes and hypertension aren't automatic disqualifiers (they're in question 6, which determines class rather than eligibility), Thomas may qualify for Standard class. His $100,000 repositioning becomes $200,000 in LTC coverage.
Compare Options: The Maximum Leverage Seeker
Compare OptionsJennifer (Age 55): Jennifer has $100,000 to reposition and wants the highest possible leverage—$400,000+ in LTC benefits. She's comparing annuity-based and life-based hybrid products.
Analysis:
CareMatters Annuity provides 2-3x leverage. Life-based hybrids like Lincoln MoneyGuard or OneAmerica Asset Care can provide 3.5-5x leverage. Leverage Comparison: • CareMatters Annuity: 2-3x (Preferred) • OneAmerica Asset Care: 3-5x • Lincoln MoneyGuard: 3.5-4.5x • SecureCare III: 3-4x If maximum leverage is the priority, a life-based structure may be better.
Our Recommendation:
Jennifer should compare illustrations. CareMatters shines for cash indemnity flexibility and simplified underwriting. If she qualifies for Preferred class (3x), the leverage difference narrows. But if pure leverage is paramount, life-based products typically win.
Where It Shines
Cash Indemnity on an Annuity Chassis (Unique)
The only annuity-based LTC product with true cash indemnity benefits. Competitors like OneAmerica Annuity Care require reimbursement with expense documentation. CareMatters combines annuity tax advantages with cash indemnity freedom.
Simplest Underwriting in Market
Six questions. No APS. No paramed. No Part B. Cognitive screening only at 70+. This is dramatically simpler than any competitor. Most applicants get decisions in 2-3 weeks without medical records.
100% Informal Caregiver + 100% International
Full benefits for family caregivers with no restrictions. Full benefits internationally with no reduction or time limit. Few competitors match this combination of flexibility.
Retroactive Elimination Period
Once you complete the 90-day elimination period, benefits for those first 90 days are paid retroactively along with month 4. You don't lose 3 months of coverage—you get paid back. Elimination period is met once for life.
Guaranteed 3% Crediting Rate
Your contract value grows at a guaranteed 3% rate. This provides predictable growth and guaranteed LTC benefits. Principal is protected—your contract value will never go below your initial investment (less withdrawals).
!What Gives Us Pause
Binary Underwriting (Pass/Fail)
If any disqualifying condition appears in questions 1-5, you're declined outright—no rated offer, no negotiation. Competitors like OneAmerica may offer coverage with modified terms. CareMatters is all-or-nothing.
Lower Leverage Than Life-Based Products
Maximum 3x leverage (Preferred class) vs. 3.5-5x for life-based hybrids like Asset Care or MoneyGuard. If you qualify for Standard class (2x), the leverage gap widens significantly.
Higher Minimum Premium
$36,000 minimum vs. $10,000-$25,000 for competitors. This limits accessibility for buyers who want to start smaller or test the waters with a modest repositioning.
No Policy Loans
Liquidity comes only from partial surrenders (which permanently reduce LTC benefits) or full surrender. No loan option like some competitors offer. This limits flexibility if you need temporary access to funds.
10-Year Surrender Charge Period
CDSC starts at 10% in year 1 and doesn't reach 0% until year 11. The 10% free withdrawal (starting year 2) helps, but full liquidity takes a decade. OneAmerica's 9-year schedule is slightly shorter.
Underwriting Reality: The 6-Question Process
CareMatters Annuity has the simplest underwriting in the hybrid LTC market. Six questions determine eligibility—no APS, no paramed, no Part B.
Likely to Qualify
- •No current hospitalization, bed confinement, or facility residence
- •No use of walker, wheelchair, hospital bed, oxygen, or dialysis (past 5 years)
- •No assistance needed with ADLs or medication management
- •No memory loss, dementia, Parkinson's, MS, ALS (past 5 years)
- •No pending surgery or unreceived test results
- •Well-controlled conditions not listed in Question 6
!May Get Standard Class
- •Diabetes (treated in past 2 years)
- •Heart disease (treated in past 2 years)
- •Stroke or TIA (past 2 years)
- •Peripheral neuropathy or vascular disease
- •Multiple falls or fall with fracture (past 2 years)
- •Organ transplant (excluding cornea)
- •Bipolar disorder, schizophrenia, psychosis
Likely Declined
- •Currently receiving any LTC services
- •Using walker, wheelchair, oxygen, or dialysis
- •Need assistance with any ADL
- •Memory loss, dementia, or Alzheimer's (any degree)
- •Parkinson's disease, MS, ALS, muscular dystrophy
- •COPD/emphysema with tobacco use
- •Cirrhosis of the liver
- •Pending/incomplete medical tests or surgery
The Simplest Underwriting in Hybrid LTC
Frequently Asked Questions
Compare to Similar Products
Explore these related guides to continue your research.
Annuity-based like CareMatters, but reimbursement model with Lifetime COB option and lower $10K minimum.
Life-based with cash indemnity like CareMatters, plus 100% ROP after 6 years and up to 8-year duration.
0-day elimination, reimbursement or indemnity choice at claim, Benefit Transfer Rider for couples.
Life-based hybrid from Nationwide with CPI inflation option and 20% residual death benefit.