OneAmerica’s Asset Care and Annuity Care are flexible hybrid policies designed to meet your needs, including:
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.
Why Choose OneAmerica?
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 a universal or whole life insurance policy, One America offers a choice of either an annuity-based policy 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
| Description | Asset Care | Annuity Care |
|---|---|---|
| Ages | 35-80 | 59.5 – 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 | Yes | Yes |
| Return of Premium | Yes | No |
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 | Age | Monthly LTC Benefit | Total LTC Benefit | Death Benefit | Cash Surrender Value |
|---|---|---|---|---|---|
| 1 | 55 | $6,084 | Unlimited | $152,088 | $52,051 |
| 11 | 65 | $6,084 | Unlimited | $152,088 | $68,931 |
| 20 | 74 | $6,084 | Unlimited | $152,088 | $91,930 |
| 30 | 84 | $6,084 | Unlimited | $152,088 | $115,841 |
| 45 | 99 | $6,084 | Unlimited | $152,088 | $138,274 |
Age 55 – Male – Single Premium = $100,000
| Policy Year | Age | Monthly LTC Benefit | Total LTC Benefit | Death Benefit | Cash Surrender Value |
|---|---|---|---|---|---|
| 1 | 55 | $6,927 | Unlimited | $173,175 | $65,162 |
| 11 | 65 | $6,927 | Unlimited | $173,175 | $88,032 |
| 20 | 74 | $6,927 | Unlimited | $173,175 | $111,909 |
| 30 | 84 | $6,927 | Unlimited | $173,175 | $137,549 |
| 45 | 99 | $6,927 | Unlimited | $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.
| Description | Annuity Care | Annuity Care II | Indexed Annuity Care |
|---|---|---|---|
| Issued Ages | 50-85 | 40-80 | 40-85 |
| Minimum Premium | $10,000 | N/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 Days | 90 Days | 60 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 | Age | Base Annual LTC Benefit | Total LTC Benefit | Cash Surrender |
|---|---|---|---|---|
| 1 | 56 | $51,048 | $408,413 | $92,869 |
| 10 | 65 | $59,220 | $473,801 | $114,991 |
| 20 | 75 | $67,560 | $540,558 | $131,194 |
| 30 | 85 | $77,088 | $616,722 | $149,679 |
| 45 | 100 | $93,936 | $751,554 | $182,402 |
Age 55 – Male – Single Premium = $100,000
| Policy Year | Age | Base Annual LTC Benefit | Total LTC Benefit | Cash Surrender |
|---|---|---|---|---|
| 1 | 56 | $51,048 | $408,413 | $92,869 |
| 10 | 65 | $59,220 | $473,801 | $114,991 |
| 20 | 75 | $67,560 | $540,558 | $131,194 |
| 30 | 85 | $77,088 | $616,722 | $149,679 |
| 45 | 100 | $93,936 | $751,554 | $182,402 |
Average LTC Costs by OneAmerica.
Click on the map to discover LTC costs by state
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.
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.
- $500,000 max without inflation and/or nonforfeiture) ↩︎
