A hybrid annuity combines a fixed deferred annuity product with which of the following?

• A. A long-term care rider
• B. A life insurance policy
• C. An investment account
• D. A variable annuity

Answer: (A)

A hybrid annuity effectively merges the characteristics of a fixed deferred annuity with a long-term care rider. This combination is designed to offer both a savings element for retirement and an option for covering potential long-term care expenses, which can be a significant financial burden for individuals as they age. The fixed deferred annuity component provides a guaranteed return on investment over time, while the long-term care rider extends coverage for costs associated with long-term care services, such as assisted living or nursing home care, if needed.

This structure allows individuals to prepare for two important aspects of financial planning: securing future retirement income and safeguarding against the high costs of long-term care, ensuring that they do not deplete their savings prematurely. The hybrid approach is particularly attractive to consumers who want the security of a fixed annuity combined with the added protection of long-term care benefits.