Step 1 - Determining Annuitized Cash Value

Annuities and MA-LTC

Reporting and Verification

Annuity Transactions

MA-LTC Annuity Requirements

Designating DHS as the PRB

Requirement Conditions

Designation Process

Designation Activity

Transfer Evaluation

Requirement Conditions

Evaluation Method

Actuarially Sound Determination

Transfer Evaluation Activity

Step 1 - Determining Annuitized Cash Value

The first step in determining if an annuity is actuarially sound is to determine the cash value on the date of annuitization.

Use the value of the funds
Verification of the cash value on the date of annuitization is required when an MA-LTC client or the applicant and or their spouse annuitizes an annuity. The cash value can be found in the annuity contract or other annuity documentation and the funds used to purchase the annuity can be determined by requesting completion of the Required Annuity Information Form (DHS-5143).
the applicant and or their spouse annuitized.

Do not include funds in the cash value that were contributed by someone other than the MA-LTC applicant or their spouse.

Stephanie is requesting MA-LTC. She is the owner and payee of an immediate annuity she purchased 13 months ago when she was 63 years of age. Stephanie used $82,000 of her own funds to purchase her immediate annuity.

Consider the cash value on the date of annuitization to be $82,000.

To Do: Read the scenario found on the Actuarially Sound Determination Activity (PDF) handout and answer Question 1. Return to this page to check your answer.

The annuitized cash value is $200,000 ($225,000 the total value annuitized - $25,000 contributed by Ralph.)

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Transfer Evaluation - Actuarially Sound Determination

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Updated December 22, 2022.
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