Yes, the best annuities may include the following features or waivers. These, as a result, help ease the strain of unforeseen events in your life.
Extended Care Waiver
These features help ease the strain of unforeseen events. They do this by offering no additional charge. A contract owner is confined to a nursing home or another long-term care facility. The first contract year has been completed for at least 90 consecutive days. As a result, early withdrawal charges may be waived on withdrawals up to a full surrender.
Terminal Illness Waiver Features
These features kick in probably more than one year after the contract effective date. A contract or joint owner receives a terminal illness diagnosis. Most noteworthy, a prognosis of 12 months or less is given. The individual can withdraw up to 100% of the annuity’s account value without incurring an early withdrawal charge. Withdrawal provisions are used only once over the duration of the contract. However, there is no additional charge for this waiver.
Doing your annuity homework? Start with our free comparison guide and the 7 questions to ask any advisor. Ready for real numbers? Talk to a licensed advisor in your state — we serve all 50 states.
Additional Protective Features Worth Considering in Tennessee Annuities
Beyond extended care and terminal illness waivers, some annuity contracts in Tennessee also include a disability waiver, which may allow penalty-free withdrawals if you become totally disabled and are unable to work for a specified period. This can provide meaningful financial relief during a difficult recovery without permanently disrupting your retirement savings strategy.
Unemployment waivers are another feature offered by select carriers. If you lose your job involuntarily after the first contract year, you may be permitted to withdraw a portion of your account value without facing surrender charges, giving you a financial cushion while you regain stable income.
It is important to note that these protective features vary significantly between annuity carriers and contract types. Not every product available in Tennessee will include all of these waivers, and eligibility requirements differ. Working with a knowledgeable annuity specialist can help you identify which contracts offer the most comprehensive illness and hardship protections suited to your personal situation.
About the author: Ron W. Wilson is a licensed insurance advisor and annuity specialist with 20 years in the business, working with a nationwide network of advisors licensed in all 50 states.