What is Terminal Illness Waiver?
A terminal illness waiver is an annuity contract provision that waives all surrender charges if the contract owner or annuitant is diagnosed with a terminal illness. This allows full, penalty-free access to the account value during a time when the funds may be needed most.
How It Works
If your MYGA includes a terminal illness waiver, you can withdraw the entire account value without incurring surrender charges upon receiving a qualifying diagnosis, typically defined as a condition expected to result in death within 12 months. Documentation from a licensed physician is required.
Like the nursing home waiver, this is not universal. Some carriers include it automatically, others offer it as an optional feature, and some do not offer it at all. Always review these provisions before purchasing.
