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OneAmerica Asset Care Hybrid - Lifetime Long Term Care

One America Asset Care Hybrid

OneAmerica Asset Care underwritten by The State Life Insurance Company is the market leading long term care insurance policy.  Asset Care is the original hybrid long term care policy, first sold over 30 years ago. Asset Care is the only hybrid long term care policy that will provide you with Lifetime Unlimited long term care insurance benefits.

See Also: 2024 Review of OneAmerica Asset Care

A hybrid long term care policy (also known as asset based, or linked-benefit) may be the best way to protect your retirement assets from being exposed to the high costs associated with long term care.

With hybrid long term care policies you may benefit in one of 3 ways:

  1. long term care benefits should you need care
  2. a life insurance benefit to your estate should care not be needed
  3. a return of a portion of your premium payment should you change your mind

The additional advantage of hybrid long term care policies is that unlike traditional long term care insurance options, your premiums are fixed and guaranteed and are not subject to rate increases by the insurance company.

OneAmerica Asset Care is a very unique long term care policy.

  • Asset Care provides Unlimited Lifetime coverage
  • Asset Care offers coverage on a joint life basis
  • Asset Care allows qualified money such as IRA, 401(k) and 403(b) rollovers to fund your plan

OneAmerica Asset Care Features and Benefits

Policy structure: Whole Life insurance with accelerated death benefits for qualifying long term care expenses

Issue classes:  Individual and joint life for spouses, partners and couples

Issue ages: ages 35 - 80, maximum 25 year age difference for joint insureds

Minimum face amount: $50,000

LTC Payout: reimbursement on a monthly basis, the death benefit may be accelerated for long term care expenses. Qualification is based upon either an inability to perform 2 of 6 activities of daily living for a period that is expected to last at least 90 days (eating, bathing, dressing, toileting, transferring, maintaining continence) or being severely cognitively impaired (Alzheimer's or dementia)

LTC Acceleration of Benefit (AOB) maximum monthly payout options: The base Asset Care life insurance policy will provide long term care benefits for a minimum period of 25 months, 33 months, or 50 months depending upon your election.  The 25 months acceleration is only available on individual life policies.  

LTC Continuation of Benefits (COB) rider: The optional LTC COB Rider will extend your long term care coverage after your life insurance benefit has been reduced to zero. Your Continuation of Benefits Rider may be 25 months, 33 months, 50 months, or Lifetime Unlimited (best option)

Inflation Protection: You may elect to include optional 3% or 5% compound inflation protection.  Inflation protection may be included on the Acceleration of Benefits (AOB) Rider and/or on the Continuation of Benefits (COB) Rider.  You may elect inflation protection for a 20 year period or for your entire Lifetime.

LTC Elimination Period: 0 days for home health care services, 90 days for facility care.  Days received for home care will satisfy the 90 day facility care elimination period requirement. The 90 day elimination period must be satisfied in a 270 day period.

LTC Benefits: facility care (all levels), assisted living, home health care, homemaker services, care coordination, hospice care, adult day care, respite care, international facility, bed reservation, caregiver training, supportive equipment

Payment options: Single Premium, 5 Pay, 10 Pay, 20 Pay, Pay to 95. Fixed and guaranteed premiums

Claims Concierge: Policy review and claims support throughout the claims process

Other Important Facts About OneAmerica Asset Care

Tax deductibility of long term care premiums: OneAmerica Asset Care separately identifies the premium components associated with the life insurance policy and the long term care insurance benefits.  The long term care premium may be tax deductible.

Income tax free death benefit: life insurance benefits are generally paid tax-free under Internal Revenue Code Section 101(a).

Income tax free LTC benefits: Long term care benefits are generally paid tax free under Internal Revenue Code 104(a)(3)

Policy loans and withdrawals: You may access your Asset Care accumulated cash value for loans and withdrawals.

Is OneAmerica a strong company?

Yes, OneAmerica is an exceptionally strong insurance company.  The underlying underwriter of OneAmerica Asset Care is The State Life Insurance Company.  State Life is rated A+ by AM Best; AA- by Standard and Poor's; State Life has a Comdex Percentile Score of 95/100.

 State Life and OneAmerica Financials

Real Life Examples of the OneAmerica Asset Care Hybrid LTC Policy

Let's take a look at a few real-life examples of the Asset Care policy for a few hypothetical situations.  This will help you to see if the benefits provided by the Asset Care policy might be attractive for your specific situation.

Let's examine the premium costs for joint life coverage for various married couples ages 55, 65 and 75.

Let's look at Unlimited Lifetime long term care benefits of $6000 month for each individual.  The strong suit of this policy is its ability to provide you with Lifetime long term care insurance.  The OneAmerica Asset Care policy is the only hybrid long term care policy that does offer Unlimited Lifetime benefit periods.  The OneAmerica Asset Care policy is also the only hybrid life/LTC policy issued on a joint life basis.

A $6000 monthly long term care benefit is a good place to begin a conversation.  Of course, you may buy more or less coverage than this monthly amount to fit your unique specific situation.

The Asset Care policy does allow you to fund your plan with many different funding options such as single pay, or premiums spread out over a period of time such as 5 years, 10 years or to age 95.

To keep things simple, let's look at single premium options.

1) Couple age 55, $6000 monthly LTC benefit each, Lifetime benefits per person. Single premium deposit

Joint total premium for two people: $135,142; Joint life insurance benefit if care is not needed $200,000;  If long term care is needed, your policy would provide you with $6000 monthly LTC benefit each for life.

Age 55 year old couple illustration

2) Couple age 65, $6000 monthly LTC benefit each, Lifetime benefits per person. Single premium deposit

Joint total premium for two people: $185,626; Joint life insurance benefit if care is not needed $200,000; If long term care is needed, your policy would provide you with a $6000 monthly LTC benefit each for life.

Age 65 year old couple illustration

3) Couple age 75, $6000 monthly LTC benefit each, Lifetime benefits per person. Single premium deposit

Joint total premium for two people: $253,956; Joint life insurance benefit if care is not needed $200,000; If long term care is needed, your policy would provide you with a $6000 monthly LTC benefit each for life.

Age 75 year old couple illustration

Using IRA Rollovers with OneAmerica Asset Care

The OneAmerica Asset Care policy also allows you to fund your plan with qualified retirement money, such as IRAs, 401(k) and 403(b) rollovers. Using qualified money is an easy process with OneAmerica.  Let's look at a real life example.

Let's say you are a couple age 65 and you would like to rollover IRA funds of $200,000.  What amount of long term care coverage will this provide for you?

Here is the process with Asset Care.

1) Tax-free rollover of your IRA into Qualified Annuity

2) OneAmerica will credit your retirement annuity with 20%.  Your $200,000 rollover will become $240,000.

OneAmerica will distribute your $240,000 in 10 equal installments of $24,000 to fund your Asset Care policy over a period of 10 years.

(You will receive a 1099 taxable distribution of $24,000 annually for 10 years)

Your Asset Care policy will provide you with tax-free LTC benefits of $6074 month each for Lifetime,  Unlimited benefit period.

If long term care is not needed, your heirs will receive a $202,480 death benefit tax free.

This is a terrific way to leverage assets inside qualified retirement accounts to fund your long term care needs.

Here is the Asset Care illustration using a $200,000 rollover as an example.

OA AC IRA Rollover

Underwriting Process for The OneAmerica Asset Care Policy

The underwriting process for the Asset Care policy is fairly easy.  I can usually complete your application in 10 minutes by phone.  Once application is completed, OneAmerica orders underwriting requirements.  As with the underwriting for many hybrid long term care policies, Asset Care underwriting is a streamlined process.  Generally, a telephone health interview for many applicants is the only underwriting requirement.  Your telephone health  interview will usually last 45 minutes.  A short-term memory recall cognitive screening exercise is part of your telephone health interview.  Once your telephone interview has been reviewed, OneAmerica often will approve your application. If feels more information is needed to reach a decision OneAmerica may order medical records or additional requirements such as build measurements, or blood and urine samples.  Overall, it is a very quick and easy process.  Many of my clients are often approved within 7-10 days.

Is OneAmerica Asset Care The Best Hybrid Policy For You?

The OneAmerica Asset Care policy has been the best selling hybrid policy for many years.  Asset Care is the only policy in the arena that offers Unlimited Lifetime benefits and joint life coverage.  Certainly if you seek Unlimited long term care coverage Asset Care will be your best policy.  OneAmerica Asset Care is also the only policy that will accept qualified retirement funds.

Other notable policies available today that will only offer limited LTC insurance benefit periods, such as 5 -7 years of coverage are Nationwide CareMatters II, Securian SecureCare, Pacific Life PremierCare, and Brighthouse SmartCare.  These hybrid long term care policies could also be very reasonable solutions for you depending upon your specific needs and health underwriting. 

I will be pleased to work together with you to help you to evaluate your best long term care insurance options.

Please call me at direct toll free (800) 891-5824 to receive customized illustrations and advice.  Or you may submit your quote request online.

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