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One America offers this type of annuity, so let's us their product as an example.
In addition to the contract account value, there is also an LTC account value (similar to an income account in that it grows at a faster rate, but the surrender value and death benefit are based upon the remainder of the contract account value.
If the client taps into the LTC account value, the payment of benefits are income-tax free as a reduction of basis.
Hope that helps. Don't have time to write more.
In addition to the contract account value, there is also an LTC account value (similar to an income account in that it grows at a faster rate, but the surrender value and death benefit are based upon the remainder of the contract account value.
If the client taps into the LTC account value, the payment of benefits are income-tax free as a reduction of basis.
Hope that helps. Don't have time to write more.
