One America Long-Term Care

One America Long-Term Care

When comparing long-term care insurance, you should recognize the differences between One America/State Life and other major companies.

There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance, however, the primary features and benefit choices are comparable from company to company. Differences do exist between the primary companies. When comparing long-term care insurance, you should recognize the differences between One America/State Life and other major companies.

The two products offered by One America/State Life are “hybrid’ long-term care policies. They are considered 7702B policies. This means they are actually long-term care policies with normal benefit triggers. Generally, you want to avoid a 101g policy which would only provide a long-term care benefit if you are terminal and then only give you access to the death benefit early (speak with a licensed agent for details).

One America has two primary products – Asset Care and Annuity Care. Both provide comprehensive coverage for long-term care. Asset Care is a life insurance policy with a rider for full long-term care coverage. Annuity Care is an annuity will full coverage for long-term care.

With these “hybrid” policies you are guaranteed to either receive benefits for long-term care, death, or both. You have access to your money as well in three ways:

You need long-term care services and supports – Just like any tax-qualified long-term care policy, you receive tax-free benefits when you meet the benefit triggers – two of six activities of daily living or supervision due to cognitive impairment.

You die – Like any life insurance policy, when you pass away your beneficiaries will receive the tax-free death benefit.

You change your mind – If for any reason you need money you can receive the cash surrender value. While very few people will ever consider doing that, it gives many people additional peace-of-mind knowing you have access to the money in the policy.

One America/State Life’s Asset Care is their life insurance policy with a long-term care policy together. It has the same comprehensive features and benefits as most long-term care insurance policies offer. In addition, they have the added benefits of access to your money and a death benefit. These features include:

  • Single premium or guaranteed premium which can NEVER increase
  • Unlimited comprehensive lifetime long term care benefits
  • Monthly long-term care benefits
  • Inflation options available (2%, 3%, 4%, and 5% compound)
  • On spousal policies, each spouse has their own long-term care benefit
  • Death benefit (second to die for joint spousal policy)
  • Tax-Free long-term care benefits. Tax-Free death benefit
  • Case management
  • Bed reservation
  • Caregiver training

There is a significant tax benefit with this policy. Since they break down the premium individually for “life” and “long-term care” it gives the policyholder the ability to deduct the long-term care portion of the premium for tax purposes (as allowed by law) or for reimbursement in qualified Health Savings Accounts.

There is also flexibility on how you pay the premium. You could choose annual payments for life OR annual payments for 10 years or 20 years. These are fixed guaranteed premiums which can never go up. You could also choose to pay one “lump sum” and have a fully paid policy from day one.

One America/State Life’s Annuity Care is very unique and provides similar comprehensive long-term care benefits. However, don’t think of this as an annuity as you would never utilize this policy in that way. When you deposit money in this policy, with a single premium, it automatically creates a much larger sum of tax-free long-term care benefits. You can use both non-qualified or qualified money. In addition, one plan allows you to pay ongoing premiums – or deposits – in addition to the original first premium. Just like Asset Care, you can receive money from the policy three ways:

You need long-term care services and supports – Just like any tax-qualified long-term care policy, you receive tax-free benefits when you meet the benefit triggers – two of six activities of daily living or supervision due to cognitive impairment.

You die – Your beneficiaries will receive the accumulated value of the policy, minus any long-term care benefit that may have been paid. On a joint policy, it would be the second to die.

You change your mind – If for any reason you need money you can receive the cash surrender value. While very few people will ever consider doing that, it gives many people additional peace-of-mind knowing you have access to the money in the policy.

This policy grows in two ways. First with “interest”. The policy provides a guaranteed interest rate. This interest rate could never drop below that amount, guaranteed. Generally, the interest rates will be higher but it could never drop below that rate.  In addition, you can add an inflation rider which increases the long-term care benefit above that interest rate. This can especially be important if you are younger or have strong longevity in your family.

1035 tax-free exchanges are allowed. This means you can roll money from another annuity into this policy, including qualified funds.

Key Consideration

One key difference between Annuity Care is the underwriting rules. They are less strict than typical long-term care policies. A long-term care specialist can assist you in this area. Those who are older may also find this an appropriate way to address future long-term care costs. 

Both products also feature international benefits.

Since these policies from One America are not traditional long-term care policies they will not qualify as a partnership policy under state and federal law. However, since both plans have options for unlimited long-term care (meaning you can never exhaust your long-term care benefit) this is less of a concern. 

Get more details on the partnership program by finding your state on the LTC News Map. You can get the current cost of long-term care services, the availability of partnership plans and tax incentives by clicking here.

Significant premium differences exist between companies for the exact same benefits. Long-Term Care Insurance premiums are calculated based on your selection of benefit levels you wish to have in place. Premium calculations are also based on your age and health at the time of application. Plus, you may qualify for discounts which might be available.

Every company has their own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.

You can find a qualified specialist who represents the major insurance companies which offer these products by clicking here.

Keep in mind, numerous state and federal regulation impact Long-Term Care Insurance. However, options and benefits do vary from company to company. Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy.

Since your health is a primary consideration in determining your eligibility for coverage it is always best to start planning prior to retirement when health is usually better. A Long-Term Care Specialist will ask you a number of questions about your health in order to make the appropriate recommendation.

Please note: Since every company has different underwriting rules you could be eligible with one company and not another.

Because Long-Term Care Insurance is custom designed you can design the plan to fit your specific needs, concerns and budget. A specialist will help you design your plan to address your concerns. Generally, you can design almost any plan, to:

  • Safeguard income and savings
  • Protect the lifestyle of your spouse/partner
  • Provide options for quality care
  • Reduce the stress and burdens otherwise placed on family members
  • Give your adult children time to be family
  • Provide a legacy for loved ones

State variations may apply.

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