2) Example 2

The community spouse used $126,500 of the couple’s resources to purchase a 9-year period-certain immediate annuity from a life insurance company. The community spouse is the annuitant. The annuity names AHCCCS as the beneficiary in the position after the institutionalized spouse.

The community spouse was 74-years-old on the date the annuity was purchased and according to the SSA Period Life Table had a life expectancy of 9.75 years or 117 months.

The annuity will issue regular monthly checks of $1,488.75 for a set period of 9 years or 108 total months. The insurance company will pay out a total of $160,785.00 over the period of the annuity contract.

Since the annuity meets all of the following requirements, it is a compensated transfer:

Names AHCCCS as the beneficiary;

Purchased from a life insurance company;

Issuing regular monthly payments; and

Will provide for full return of principal and interest during the community spouse’s life expectancy.