Goldstein Scorecard: C+ (dated October 4, 2026). See how it is graded.
EquiTrust Bridge Review: Fixed Index Annuity With a Long-Term Care Rider, Coverage Ratios and Taxes
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Facts verified against EquiTrust's Bridge brochure (06-26), Coverage Ratio, enhancements and fees flyers, ratings page and IRS Rev. Proc. 2025-32 on October 4, 2026 · Updated
EquiTrust Bridge is a fixed index annuity with a long-term care rider from EquiTrust Life Insurance Company (AM Best B++), sold from age 50. Per EquiTrust's current brochure and flyers (06-26), the LTC benefit base is first-five-years premium times a Coverage Ratio (at age 64: 141%, 216% or 316% by class), growing 3% a year for up to 20 years, paid monthly over up to 60 months without receipts. Benefits can be income tax-free only within IRC 7702B limits.
Update (October 4, 2026): all product terms below were re-read against EquiTrust's current brochure and flyers. New on this page: the contract's Minimum Guaranteed Contract Value (87.5% of premiums, less rider fees and withdrawals, at a rate EquiTrust does not publish) and the terminal illness waiver limit (75% of accumulation value). A Wisconsin issue-age note and an unverified launch-year note were removed.
Correction (September 24, 2026): this page used to describe ~4 to 5% credited interest, a $25,000 minimum, a 2 to 3x benefit pool and 2 to 4 years of benefits. Bridge is index-linked (no fixed credited rate), and EquiTrust's brochure describes up to 60 monthly payments from a Coverage-Ratio benefit base. The unverified figures were removed.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
How Bridge works (verified)
| Feature | Detail |
|---|---|
| Annuity | Fixed index annuity: tax-deferred, index-linked credits that are never less than zero. Index options include the S&P 500 and the S&P MARC 5% Excess Return Index; current caps and participation rates are not publicly disclosed |
| Issue ages | 50 and older (lowered from 55 on January 1, 2026); maximum issue age varies by state |
| Underwriting | Everyone who passes annuity suitability is approved. A few health questions set your class; some applicants complete a 30-minute video interview. Since June 16, 2026 maximum Coverage Ratios are standard for all clients |
| LTC benefit base | Premiums received in contract years 1 to 5 × your Coverage Ratio, set by issue age and underwriting class |
| Coverage Ratio examples (Preferred / Standard / Secure) | Age 50: 330% / 230% / 155%. Age 64: 316% / 216% / 141%. Age 80: 300% / 200% / 125%. With the inflation option, the Coverage Ratio is 100% |
| Benefit growth | +3% a year for up to 20 years or until claim (2% before January 1, 2026); 5% a year available for an additional fee |
| Payout | Monthly for up to 60 months; amount set at claim. Benefits reduce the accumulation value dollar for dollar and continue after it reaches zero until the benefit base is used |
| Benefit type | Indemnity: no receipts or invoices; family caregivers can be paid; annual physician certification |
| Claim trigger | Unable to perform at least 2 of 6 activities of daily living, or substantial supervision needed for cognitive impairment, per the brochure's definitions |
| Vesting | Claims starting in contract years 1 to 4 pay 20%, 40%, 60%, 80% of the Net Amount at Risk (benefit base above accumulation value); 100% after |
| Costs | Monthly LTC rider fee from the accumulation value; 1% premium load on first-year premium; $100 annual NeverStop wellness program fee |
| Surrender charges | 10 years: 9, 8, 7, 6.5, 5.5, 4.5, 3.5, 2.5, 1.5, 0.5% of accumulation value (may vary by state), plus an MVA (not in DE or WA) |
| Free withdrawals and waivers | 10% of accumulation value a year after the first contract year. Nursing home or hospital confinement of 90 consecutive days: charges waived from year 2. Terminal illness: charges waived on up to 75% of accumulation value |
| Minimum Guaranteed Contract Value | At least 87.5% of premiums, less LTC rider fees and partial withdrawals, accumulated at the Minimum Guaranteed Contract Rate (rate not published; ask for it) |
| Death benefit | Full accumulation value to beneficiaries. The benefit base has no cash value |
| Carrier ratings | AM Best B++ (Good), Fitch A- (Strong), S&P A- (Strong), as shown on EquiTrust's financial strength page October 4, 2026 (the page gives no rating dates) |
Your underwriting class is the big lever. Hypothetical: on $50,000 at age 64, the starting benefit base is $70,500 at Secure (141%), $108,000 at Standard (216%) or $158,000 at Preferred (316%), before the 3% yearly growth. Spread over 60 months, a $108,000 base is $1,800 a month; the first part of every benefit is your own accumulation value.
Get an independent read on Equitrust Bridge LTC before you sign.
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How it's taxed
Plain English, for non-IRA money unless noted. This is education, not tax advice; check your situation with a tax professional.
- Growth is tax-deferred. Index credits are not taxed while they stay in the annuity.
- Rider charges are not taxable withdrawals. Under IRC §72(e)(11), added by the Pension Protection Act of 2006, charges for a qualified LTC rider taken from a non-qualified annuity are not treated as distributions. They do reduce your cost basis, so more of the contract counts as gain later.
- LTC benefits can be income tax-free, with conditions. Benefits from a tax-qualified LTC rider under IRC §7702B are treated like LTC insurance benefits, including the part paid from your own accumulation value, when the claim meets the qualified-care definitions. EquiTrust's brochure says Bridge benefits are "typically" tax-free under §7702B.
- The no-receipt limit. Bridge pays a set monthly amount without receipts (a per diem benefit). Those payments are excluded from income only up to the IRS per diem limit: $430 a day for 2026 (about $156,950 for a full year), per Rev. Proc. 2025-32, section 4.62, or your actual qualified LTC costs if higher. The rest is taxable income. The limit counts all per diem coverage on the same person; benefits are reported on Form 1099-LTC and Form 8853.
- If you never use the LTC benefit. Withdrawals come out gain first and are taxed as ordinary income, with a 10% IRS penalty on taxable amounts before 59½ unless an exception applies. Beneficiaries owe income tax on the gain; annuities get no step-up in basis.
- 1035 exchange funding. The Pension Protection Act allows an existing annuity or life policy to be moved into an annuity with a qualified LTC rider without current tax, but only as a direct exchange under IRC §1035. Confirm EquiTrust will accept your exchange.
- IRA money is a weaker fit. The PPA treatment above applies to non-qualified annuities. Inside an IRA, LTC benefits generally come out as taxable IRA distributions.
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | C+ | AM Best B++ (Good); Fitch A- and S&P A- (EquiTrust ratings page, undated, checked October 4, 2026). |
| Rate or cap competitiveness | Incomplete | Current caps and participation rates are not publicly disclosed. The design's value is the LTC multiple (Coverage Ratio), not the crediting rate. |
| Guaranteed floor | C | Minimum Guaranteed Contract Value of 87.5% of premiums, less rider fees and withdrawals, at an unpublished minimum rate. The LTC benefit base grows a contractual 3% a year for up to 20 years. |
| Liquidity | C | 10-year surrender schedule from 9%, MVA (not DE or WA), 10% free after year 1, confinement and terminal illness waivers. |
| Costs | C | 1% first-year premium load, $100 a year wellness fee, and a monthly rider fee whose rate is set in the illustration rather than published. |
| Transparency | B | Coverage Ratios by age and class, surrender schedule, vesting and fee types are public and dated. Crediting rates and rider fee rates are not. |
| LTC benefit design | B | No-receipt monthly benefits, family caregivers allowed, approval for anyone who passes suitability; full benefits need four years to vest. |
| Overall | C+ | A practical way to turn annuity money into LTC coverage for people who may not qualify elsewhere, from a B++ carrier, with fees and rates you must get in writing. |
Pros and cons
| Pros | Cons |
|---|---|
| Anyone who passes annuity suitability is approved; health questions only set the class. | Full LTC benefits take four years to vest (20% in year 1). |
| Coverage Ratios up to 330% of first-five-years premium, plus 3% yearly growth. | Monthly benefits use up your own accumulation value first. |
| No-receipt monthly benefits that can pay family caregivers. | Per diem benefits are excluded from income only up to $430 a day (2026) or actual qualified costs. |
| Unused LTC benefits leave the full accumulation value to beneficiaries. | 10-year surrender schedule plus MVA in most states; 1% premium load and $100 annual fee. |
| Brochure discloses an 87.5% Minimum Guaranteed Contract Value. | AM Best B++ is below the A range many buyers screen for. |
Who it's for, and when to look elsewhere
Fits:
- You are 50 or older and want some LTC protection but may not qualify for life-insurance-based hybrid underwriting.
- You want benefits paid without receipts, including to family caregivers.
- You have non-IRA annuity or cash money earmarked for care and can leave it for the 10-year surrender period.
- You are comfortable that full benefits take four years to vest.
Look elsewhere if:
- The money is IRA money; the PPA tax treatment does not apply inside an IRA.
- You want a carrier rated in the A range by AM Best.
- The money is for safety and growth rather than care. A MYGA locks a declared rate for the term, backed by the claims-paying ability of the issuing insurer. For comparison, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs and the best nationally available 5-year CDs about 4.70% to 5.00% APY (MYGAs: public carrier rate sheets, October 14, 2026; CDs: Bankrate and Popular Direct, October 18, 2026). Current rates: MYGA rates.
Run the numbers: annuity surrender charge calculator and annuity calculator. Related reviews: hybrid LTC annuities explained, OneAmerica Asset Care, EquiTrust MarketPower and long-term care reviews.
Questions to ask your agent
- What is the Minimum Guaranteed Contract Rate, and what are the guaranteed minimum caps and participation rates on the index options? Please put them in writing.
- Show me the full surrender schedule by year for my state, how the MVA works, and the 10% free withdrawal from year 2.
- What is my monthly LTC rider fee in dollars, by year, at my age and class?
- What is my Coverage Ratio and starting benefit base, and what does the 60-month benefit look like if a claim starts in years 1 to 4 under the vesting schedule?
- How are you paid on this product? Commission comes from EquiTrust and is built into the product's pricing, not deducted from my premium. What percentage is it, and would a longer surrender term pay you more? (Background: how annuity commissions work.)
From my desk
On an annuity with an LTC rider, I check the Coverage Ratio and the vesting schedule first, then the monthly rider fee in dollars. Those three tell me how much of the benefit is really insurance and how much is the buyer's own money coming back.
The number buyers misread most on this product type is the benefit base. A $158,000 base on a $50,000 premium does not mean $158,000 of insurance: the first $50,000 or more is your accumulation value, paid back to you. The insured part is the Net Amount at Risk above that, and in the first four years only part of it is vested.
Against a MYGA, I ask what the money is for. If it is earmarked for care, the MYGA has no LTC multiple at all. If it is not, I compare the MYGA's declared rate with Bridge's guaranteed values, net of the 1% load, the $100 fee and the rider fee.
Hans Goldstein, independent licensed insurance producer, CA license 4273294, NPN 20602398. Not affiliated with EquiTrust. No carrier paid for this review.
Frequently asked questions
What is EquiTrust Bridge?
A fixed index annuity from EquiTrust Life Insurance Company with a Long-Term Care Rider and the NeverStop wellness program. The annuity earns index-linked credits that are never less than zero; the rider pays monthly long-term care benefits for up to 60 months if you qualify.
How big is the Bridge LTC benefit?
The LTC Benefit Base equals premiums received in contract years 1 to 5 times a Coverage Ratio set by issue age and underwriting class. At issue age 64 the ratios are 316% (Preferred), 216% (Standard) and 141% (Secure), per EquiTrust's Coverage Ratios flyer (06-26). The base grows 3% a year for up to 20 years or until a claim; with the 5% inflation option the Coverage Ratio is 100%.
Is there a waiting period before full benefits?
Yes. A claim that starts in contract years 1 to 4 pays 20%, 40%, 60% or 80% of the Net Amount at Risk (the benefit base above your accumulation value), and 100% after that. Your own accumulation value is always available.
What does EquiTrust Bridge cost?
A monthly LTC rider fee deducted from the accumulation value, a 1% premium load on first-year premium and a $100 annual NeverStop wellness fee, per EquiTrust's fees flyer (01-26). Surrender charges run 10 years, from 9% down to 0.5%, plus an MVA except in DE and WA.
Are EquiTrust Bridge LTC benefits tax-free?
They can be, with conditions. For non-IRA money, benefits from a tax-qualified LTC rider under IRC 7702B are excluded from income when the claim meets the qualified-care rules. Because Bridge pays without receipts, the exclusion is capped at the IRS per diem limit ($430 a day for 2026, Rev. Proc. 2025-32) or your actual qualified care costs if higher. Inside an IRA, benefits generally come out as taxable distributions.
Who can buy EquiTrust Bridge?
Since January 1, 2026 the minimum issue age is 50 (it was 55). Everyone who passes annuity suitability is approved; health questions only set the class (Secure, Standard or Preferred), and some applicants complete a 30-minute video interview. Availability and maximum issue age vary by state.
What is EquiTrust's AM Best rating?
EquiTrust's financial strength page, checked October 4, 2026, shows AM Best B++ (Good), Fitch A- (Strong) and S&P A- (Strong) for EquiTrust Life Insurance Company. The page does not give rating dates.
Sources (checked October 4, 2026)
- EquiTrust, Bridge client brochure ET-BRG-BR-1100 (06-26)
- EquiTrust, Bridge Coverage Ratios flyer ET-BRG-FLR-COV (06-26)
- EquiTrust, Bridge 2026 enhancements flyer ET-BRG-FLR-ENHNCMNTS (06-26)
- EquiTrust, Bridge fees flyer ET-BRG-FLR-FEES (01-26)
- EquiTrust Bridge page (source of the four documents above)
- EquiTrust financial strength: AM Best B++, Fitch A-, S&P A-
- IRS Rev. Proc. 2025-32, section 4.62 (2026 per diem limit $430); IRC §§72(e)(11), 1035, 7702B
- MYGA and CD benchmark: public carrier rate sheets (MYGAs, October 14, 2026) and DepositAccounts (CDs, September 24, 2026)
Figures are copied from the sources named, as of the dates shown; confirm current terms and rates with the issuer before you buy. MYGA figures are market benchmarks, not quotes.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
An annuity with an LTC rider ties up a large premium for years. Before you sign, check that the Coverage Ratio and the four-year vesting fit your plans, and whether a §1035 exchange from an old policy could fund it. I'll go through it with you before you commit.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a free 15-minute call if you want one.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.