Reserve Fund Annuity

The Ahlbum Insurance Group is proud to offer a Reserve Fund Annuity to help policyholders to accumulate the funds required to cover the yearly deductibles or coinsurance. The annuity can be used as a traditional savings device or used to cover all or part of your Medicare and Medicare Supplement deductibles.

For more information: Call (954) 970-4760

Reserve Fund Annuity

How Does It Work?

You may elect to place funds into a Reserve Fund Annuity to help pay for your calendar year deductible and coinsurance.

Funds can be deposited as a lump sum or as monthly deposits (Minimum $50) made with your insurance premium payments

When United American receives a healthcare provider’s claim and your calendar year deductible and coinsurance have not been met, funds will be withdrawn from your Reserve Fund (subject to some restrictions) to directly pay for your deductible or coinsurance amount to the healthcare provider subject to sufficient funds being available in the Reserve Fund.

If the account balance in the Reserve Fund is not sufficient to pay the full amount owed, you will be responsible for paying the remaining balance to the healthcare provider.

Once your calendar year deductible or coinsurance amount has been met, your insurance policy will begin paying all eligible benefits outlined in the policy.

Reserve Fund Annuity

Features

Consider these features:

  • Issue ages 65-90 (65 – 86 in OK).
  • No-load annuity – you keep the full amount you deposit. (Less State Annuity Premium Tax in CA, ME, NV, SD, WV & WY).
  • No fees or penalty charges for withdrawals of funds.
  • Interest rate is guaranteed to never be less than 3%

You choose how to use your annuity. Use the annuity as a traditional savings vehicle, or the Reserve Fund Annuity could be used to pay toward the following:

  • Plan A – Medicare Part A hospital inpatient deductible. Medicare Part B annual deductible, skilled nursing facility coinsurance and Medicare Part B excess charges.
  • Plan B & D – Medicare Part B deductible, skilled nursing facility coinsurance, and Medicare Part B excess charges.
  • Plan G – Medicare Part B deductible.
Reserve Fund Annuity

You could also use your annuity to automatically pay toward your calendar year deductible or cost-sharing amounts by authorizing United American to draft funds from the annuity.

  • HDF, HDG – Calendar year deductible ($2,490 in 2022)
  • The Out Of Pocket Limit for Plan K ($6,620 in 2022)
  • The Out Of Pocket Limit for Plan L ($3,310 in 2022)

This is a non-qualified annuity.

Restrictions

Funds must have been on deposit in the annuity for 14 days prior to being applied to the calendar year deductible.

A minimum of ten dollars ($10) must be maintained on deposit in the Reserve Fund.

There is a maximum initial deposit of two times the policyholder’s anticipated deductibles, coinsurance amounts, or excess charges for Medicare approved services or $4,740. $20,000 is the maximum that may be deposited over the life of the annuity.

If the available funds cannot fully pay the deductible or coinsurance amount to the provider, we will pay the amount available to the healthcare provider and any remaining deductible or coinsurance balance will be your responsibility.

There are no fees associated with the payment of deductible or coinsurance amounts  or withdrawals from the accumulated annuity balance.

Any deposited funds not used and remaining at the end of the year can be left on deposit for the next year or withdrawn by you subject to the $10 minimum.

Annuitants in CA, ME, NV, SD, WV, & WY are subject to a State Annuity Premium Tax.

Interest withdrawn on deposits will be reported on Form 1099 each year.

The maturity date of the annuity must not have passed.

Reserve Fund Annuity

How Do I Enroll?

Contact your Ahlbum Insurance Group representative today to enroll.
Call: (954) 970-4760

A $50 deposit will be required.

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Address

2000 Banks Road, #209
Margate, FL 33063

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