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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 4 Accumulation Phase: The first phase of a deferred annuity during which the contract accumulates funds from the payments made into the annuity and accrues interest and earnings. Free Look Period: Period of time after an annuity contract is delivered (usually between 10 and 30 days) when the owner may cancel the contract and receive either their initial payment or the current value of the annuity contract. Maturity Date: The date specified in the annuity contract at which time the owner may choose to extend the contract, surrender the contract for a one-time lump sum payment, or annuitize the contract and receive periodic payments. Systematic Withdrawal Plan: A distribution plan that allows a variable annuity contract owner to receive a specified amount or a percentage of funds from an annuity’s contract value at regular intervals prior to the annuity start date. Required Minimum Distribution (RMD): The minimum amount that an owner of a qualified annuity (established with pre-tax dollars) must withdraw annually starting with the year that he reaches 70½ years of age or, if later, the year in which he retires. 2. General Rule An annuity is a countable resource when it is revocable, assignable or can be sold. Generally, annuities are revocable while in the accumulation phase though an annuity owner will not receive a full refund, unless the annuity is cancelled during the free look period. Once an annuity has been annuitized, the funds are typically unavailable as a lump sum. 3. Types of Annuities Annuities can be classified in a number of ways based on the following: • The time at which annuity payments begin (e.g., deferred, immediate); • The nature of the periodic payments (e.g., fixed, variable); • The period over which annuity payments will be made (e.g., term or period certain, life); and/or