Asset Care & Annuity Care: OneAmerica’s Hybrid LTC Solutions Explained

Asset Care by OneAmerica

OneAmerica’s Asset Care and Annuity Care are flexible hybrid policies designed to meet your needs, including:

Guaranteed Death Benefits
Lifetime Coverage at Guaranteed Premiums
Return of Premium Option if You Change Your Mind
A Choice of an Annuity or Life Insurance as the Base Policy
Single Life of Joint Life Options to Cover You and Your Spouse

OneAmerica’s long-term care insurance products are a good option to consider for your LTC needs.

Understanding the Need for Long-Term Care Insurance

Long-term care (LTC) encompasses a range of services required by individuals facing chronic illnesses, disabilities, or aging-related conditions. Traditional health insurance plans often fall short of covering these services, making long-term care insurance an essential part of retirement planning.

OneAmerica’s Asset-Based LTC Insurance

With a legacy of over 140 years, OneAmerica has been at the forefront of providing innovative insurance solutions.

OneAmerica is the marketing name for The State Life Insurance Company that issues the policies.

The Asset Care and Annuity Care products are part of the Care Solutions portfolio. They are designed to offer asset-based long-term care insurance, using a whole life or annuity product to provide death benefits or long-term care insurance.

OneAmerica is the marketing name used by The State Life Insurance Company.

Innovative Product Offerings

While most hybrid life insurance policies are based on universal or whole life insurance policies, One America offers a choice of an annuity-based or a life insurance-based policy.

As we’ll explain throughout this article, each has advantages and disadvantages.

  • Asset Care – Combines life insurance with long-term care benefits.
  • Annuity Care – Uses an annuity to provide LTC benefits
DescriptionAsset CareAnnuity Care
Ages35-8059.5 – 80
Minimum Coverage$50,000
(varies by state)
$50,000
(varies by state)
Benefits Available for:Adult Day Care
Assisted Living
Nursing Home
Home Health
Hospice
Caregiver Training
Respite Care
Bed Reservation
Adult Day Care
Assisted Living
Nursing Home
Home Health
Hospice
Caregiver Training
Respite Care
Bed Reservation
Elimination Periods:
Home Health Care
All Other Care
Zero Days
90 Days
Zero Days
90 Days
Payment Options:Single Premium
5 Year Pay
10 Year Pay
20 Year Pay
Pay to Age 95
10 Year Pay
Inflation Protection:3% Compound
5% Compound
3% Compound
5% Compound
Continuation of
Benefits Rider
25 Month
33 Month
50 Month
25 Month
33 Month
50 Month
International
Coverage
YesYes
Return of PremiumYesNo

Who Should Consider Asset Care?

Asset Care is OneAmerica’s hybrid life insurance policy that provides long-term care benefits.

Competitors include Nationwide Care Matters II and Lincoln Financial’s MoneyGuard Fixed Advantage policies. You could also consider Transamerica Living Benefits as an option.

Asset Care is a whole life insurance policy with single premium and recurring premium options available.

It appears that the focus of Asset Care is to provide a greater LTC benefit than competitors that use a universal life insurance policy.

The Asset Care policy offers guaranteed premiums that never increase and guaranteed benefits that never decrease.

Asset Care Consumer Approved Guide

Asset Care Pricing

Here are some sample Florida cases to give you a general idea of the benefits. Sample Asset Care illustrations as of 2/17/2024.

Age 55 – Female – Single Premium = $100,000

Policy
Year
AgeMonthly
LTC Benefit
Total
LTC Benefit
Death
Benefit
Cash Surrender
Value
155$6,084Unlimited$152,088$52,051
1165$6,084Unlimited$152,088$68,931
2074$6,084Unlimited$152,088$91,930
3084$6,084Unlimited$152,088$115,841
4599$6,084Unlimited$152,088$138,274

Age 55 – Male – Single Premium = $100,000

Policy
Year
AgeMonthly
LTC Benefit
Total
LTC Benefit
Death
Benefit
Cash Surrender
Value
155$6,927Unlimited$173,175$65,162
1165$6,927Unlimited$173,175$88,032
2074$6,927Unlimited$173,175$111,909
3084$6,927Unlimited$173,175$137,549
4599$6,927Unlimited$173,175$157,958

Who Should Choose Annuity Care?

If you have annuities, the gains in that annuity may be taxable to your heirs when you die.

The good news is that the Pension Protection Act (PPA) gives your existing non-qualified annuity beneficial tax treatment if the annuity is used for long-term care expenses.

OneAmerica Annuity Care offers an annuity-based LTC option that benefits from the PPA.

If you purchase the Annuity Care policy and fund it with the existing annuity, distributions for long-term care expenses are tax-free, regardless of your cost basis and gains in the original annuity!

There are three versions of the annuity care product available:

  • Annuity Care
  • Annuity Care II – is used for Pension Protection Act cases.
  • Indexed Annuity Care – Interest crediting tied to the S&P 500 index may provide a higher rate of return than the other versions.
DescriptionAnnuity
Care
Annuity
Care II
Indexed
Annuity Care
Issued Ages50-8540-8040-85
Minimum
Premium
$10,000N/A$50,000
Maximum
Premium
$500,000$300,000
or
$500,0001
$500,000
Single Premium
Interest
Rates
Guaranteed
5 Years
Guaranteed
5 Years
Fixed Account
Point to Point
Monthly Average
LTC Waiting
Period
7 Days90 Days60 Days
Continuation
of Benefits
36 months
or life
6 years (40-69)
3 years (70+)
Individual Policy-
24, 48 months or life
Survivor policy offers
30, 60 months or life

We don’t give tax advice, so always consult with your tax advisor regarding your situation.

Annuity Care Consumer Approved Guide

Annuity Care Pricing

Sample Annuity Care illustrations, Florida as of 2/17/2024,

Age 55 – Female – Single Premium = $100,000

Policy
Year
AgeBase Annual
LTC Benefit
Total
LTC Benefit
Cash Surrender
156$51,048$408,413$92,869
1065$59,220$473,801$114,991
2075$67,560$540,558$131,194
3085$77,088$616,722$149,679
45100$93,936$751,554$182,402

Age 55 – Male – Single Premium = $100,000

Policy
Year
AgeBase Annual
LTC Benefit
Total
LTC Benefit
Cash Surrender
156$51,048$408,413$92,869
1065$59,220$473,801$114,991
2075$67,560$540,558$131,194
3085$77,088$616,722$149,679
45100$93,936$751,554$182,402

Average LTC Costs by OneAmerica.

Click on the map to discover LTC costs by state

map, usa, america-835859.jpg

Some states have programs to consider, like the California Long-Term Care Insurance Program.

Care Solutions Underwriting

Underwriting for Care Solutions policies is straightforward.

We ask you some basic questions to start the application process.

You then have a choice to complete a phone or online interview.

For the healthiest clients, the phone interview offers the possibility of approval after the phone interview.

Online interviews will require full underwriting by the company, which may include a paramedical exam.

Keep in mind that interviewers will be asking cognitive screening questions for many applicants.

Underwriters will review and assess any health issues you may have before making their underwriting decision.

FAQ

You have questions about AssetCare, and we have the answers.

Final Words

Hybrid policies like Asset Care and Annuity Care have primarily replaced the traditional policies that CNA Long Term Care, Genworth, and John Hancock offered.

Although we just heard that Genworth’s CareScout subsidiary is entering the LTC market.

With our service, we’ll discuss your needs and goals.

There is never any pressure or obligation with our service.

We then provide quote options with several companies to give you accurate comparisons.

Once we know which insurance company will be best for your situation, we’ll illustrate and review the options available so you can choose the best LTC coverage to meet your needs.

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  1. $500,000 max without inflation and/or nonforfeiture) ↩︎
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