No. of Recommendations: 2
If there's no life contingency, why are they specifying "Female age 65"?

A fixed term, 15 yr annuity should cost the same no matter the sex or age of the annuitant.


Period certain annuities can be used as Medicaid bypass trusts to benefit a spouse who doesn't need nursing home care, and have the needed nursing home care paid for by Medicaid without depleting the couple's assets. If that's the case, a requirement may be that the trust must be set up to pay out within the expected lifetime of the annuitant, and not for the lifetime of the annuitant. For example, a 65 year old female born 1/15/54 (currently 65 and 7 months) has a life expectancy of 21.0 years, per the SSA calculator https://www.ssa.gov/cgi-bin/longevity.cgi So, the annuity could be as long as 21 years and still meet the requirements for a Medicaid bypass trust. An annuity that is not a life term, but is only a 15 year period certain annuity would meet this criteria.

If the annuitant were instead, a male born on 1/15/44 (current age 75 years 7 months) then the life expectancy would be 11.3 years, so the longest annuity that could be used for a Medicaid bypass trust would be 11 years, 3 months. If he got the 15 year period certain annuity, it would not qualify for a Medicaid bypass trust, as his expected lifetime is less than 15 years, and he would be required to pay for the nursing home care for his spouse.

Please note: Medicaid bypass trusts are subject to many state specific rules, and your state may have different requirements.

AJ
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