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

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.

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.

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.

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

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

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.

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

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.

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

Click on the map to discover LTC costs by state

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

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.

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

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) ↩︎