OneAmerica’s Asset Care – Couple’s Policy & Lifetime Benefits
OneAmerica was one of the first insurance companies to provide an asset based Long-Term Care Insurance policy. In addition, their Asset Care product is quite unique in two ways.
For starters, Asset Care is the only Hybrid Long-Term Care Insurance that offers Joint Coverage for couples! Couples can apply for coverage with a single application and receive a joint policy.
Secondly, Asset Care is the only Hybrid Long-Term Care Insurance carrier that provides lifetime coverage! If you apply for unlimited lifetime coverage, OneAmerica will pay long-term care benefits for the life of your qualifying long-term care event.
This means your benefit period is for life and you’ll have an unlimited benefit pool! Joint coverage and lifetime benefits makes OneAmerica stand out in the Hybrid Long-Term Care Insurance marketplace!
Nevertheless, it is always important to understand what your goals are to see if this policy is the right fit for you. Depending on age, OneAmerica’s Asset Care can be more expensive the competitor hybrids with a 6 year Benefit Period.
Therefore, in this article, I will give you examples when find Asset Care may be the right choice. Before we do that however, let’s examine how OneAmerica’s Asset Care works and discuss its features in detail. In this article we will look at:
How Does Asset Care Work?
OneAmerica’s Asset Care is a qualified long-term care insurance rider on a whole life insurance chassis. Asset based LTC products like OneAmerica’s Asset Care provides benefits in three ways:
- It pays for long-term care services if you need care
- If care is never needed, the asset passes onto your heirs creating a legacy
- It offers the option to return your premium to you if you ever change your mind.
These policies are very rarely canceled as they offer such great flexibility and LTC protection benefits.
How Is Asset Care Funded?
Now OneAmerica’s Asset Care is the most flexible hybrid LTC policy in regards to how it can be funded. Asset Care is typically funded using single or recurring premium deposits. For the recurring premium option, you can select to pay for 5, 10, or 20 years. You can also select to pay premiums to age 95.
Typically, assets used to fund Asset Care include:
- Cash value in an existing life insurance policy via a 1035 Exchange
- Simple Reallocation of:
- Saving Accounts
- Mutual Funds
- Money Markets
Asset Care can also be funded using an annuity. In the annuity structure, an annuity uses an income rider to fund a 10-pay whole life insurance policy. The source of premium or assets to fund the annuity include:
- Existing Nonqualified Annuities or Qualified Money via 1035 Exchange
- Existing IRA via Direct Transfer or Rollover
As you can see, Asset Care provides a number of ways to fund or pay for your policy.
How Do I Qualify For A Policy?
To be able to qualify for Asset Care, you must be between the ages of 35-80. However, if you are applying for Asset Care using the annuity funding structure, you must be between the ages of 59 1/2-80.
What Services Does Asset Care Cover?
Asset Care covers care in long-term care facilities including hospice care, adult day care, and care in an assisted living facility. Asset Care also covers home health care including homemaker services.
Additional benefits an Asset Care policy include bed reservation, respite care, and international facility training. However, it is important to note that you should always review your outline of coverage for policy exclusions and limitations.
How Does Asset Care Pay Claims?
Now Asset Care pays claims through reimbursement. Benefits are paid to you or to a long-term care facility after you submit bills or receipts of your long-term care expenses. Reimbursement of benefit payments help to ensure that your benefits are not misused and are utilized for LTC services only.
Now that we’ve covered how Asset Care works, let’s look at some of its key features that sets it apart.
Key Features Of Asset Care
Joint Policy Coverage
The beauty of OneAmerica’s Asset Care policy is it’s the only hybrid on the market that offers joint policy coverage. This means that couples can apply for coverage on one single policy.
Joint applicants are defined as legally married spouses, domestic partners, or those in a civil union. The maximum age difference between joint insureds is 25 years.
This is a great feature to have as a single policy can offer a couple more leverage by on their LTC benefits.
Unlimited Lifetime Benefits
So what makes Asset Care stand out among other Hybrid Long-Term Care Insurance policies? Well for starters, Asset Care offers Unlimited Lifetime Benefits!
With Unlimited Lifetime Benefits, you never have to worry about exhausting your LTC coverage. Asset Care will to continue to pay for LTC benefits (up to the maximum monthly benefit allowed in your policy) so long as you are eligible for claims.
While most hybrid policies offer maximum benefit periods of 7 or 8 years, Asset Care offers benefits for a lifetime. In addition, you can apply for the Unlimited Lifetime Benefit option on joint policies. Therefore, the unlimited life benefit will apply to both insureds for a single premium rate.
Let’s consider the fact that an individual with Alzheimer’s dementia can live as long as 20 years after diagnosis. This is according to the Alzheimer’s Association. If that person had a long-term care insurance policy with a benefit period of 8 years, they would be left paying for care for at least another decade!
However, an Asset Care policy with Unlimited Lifetime Benefits would provide LTC benefits for the duration of their long-term care event!
No Elimination Period For Home Health Care Services
Asset Care also offers no elimination period or waiting period for home health care services if you go on claims. This is a great feature to have in a Hybrid Long-Term Care insurance policy.
According to the U.S. Department of Health and Human Services, most-long term care services are provided at home. Therefore, having a 0-day elimination period for home health care is quite beneficial if you ever need long-term care services.
In addition, having a 0-day elimination period for home health care services can result in huge cost savings. The annual median cost in the U.S. for home health care services is $50,000 a year. Hence not having to pay out-of-pocket for your typical 90-day elimination period may save you over $12,000!
Unfortunately however, the elimination period for all other forms of LTC services (facilities, adult day care, etc.) is 90 days with an Asset Care policy.
Now OneAmerica’s Asset Care has one of the more flexible inflation protection options. It offers inflation protection of either 3% or 5% compound interest for a limited duration of 20 years or for the life of the policy. This flexibility allows for an individual to help control the cost of their policy while still receiving valuable inflation protection.
When Is OneAmerica’s Asset Care The Right Choice?
As I stated earlier, OneAmerica’s Asset Care can be right depending on your age and goals. Therefore, I will give you two examples that reflect this poit. Although comparing Asset Care’s lifetime benefits to a competitor’s 6 year benefits may not be “apples to apples”, it can still help us to see when Asset Care is the better option.
Example 1 – 65 Year Old Couple Looking For The Most Long-Term Care Benefits
Now in our first example, we will use a 65 year old couple looking to place $200,000 in a hybrid policy to secure long-term care coverage. They want to get the most benefits possible. We will compare Asset Care to Nationwide’s CareMatters II in our example. This will help us see who can offer the couple the most coverage.
For a 65 year old couple looking to place $200,000 in a hybrid policy, here is what Asset Care offers:
For $200,000, a 65 year old couple can each get an initial monthly LTC benefit of $4,052 for life. In addition, due to a 20-year 3% compound inflation protection option, that monthly benefit increases to $7,319 for life!
Now let’s look at what Nationwide’s CareMatters II can offer them:
The two illustrations above are for a 65 year old male and female respectively. Nationwide does not offer joint hybrid policies. From the illustrations above, Nationwide offers an initial $4,052 monthly LTC benefit just like OneAmerica’s Asset Care. It also offers a 3% compound inflation protection option.
However, Nationwide’s CareMatters II has a 6-year benefit period while Asset Care offers there coverage for life. Therefore, if your goal was to get the most benefits possible for your money, OneAmerica’s Asset Care is the clear winner!
Now let’s look at another example. But this time, we will consider a couple that is 15 years younger.
Example 2 – 50 Year Old Couple Looking To Save On Costs
In this example, we will use a 50 year old couple looking to spend up to $120,000 in premium for a hybrid policy. However, they hope they can get a policy for less. Let’s look at a comparison between Asset Care and Nationwide’s CareMatters II for this 50 year old couple to find the best choice. We will begin with Asset Care:
For $120,000 in total premium, OneAmerica’s Asset Care offers a 50 year old couple an initial monthly LTC benefit of $2,659 each with a benefit of $6,053 at approximately age 80. The increase is due to a lifetime 3% compound inflation protection option. Again these benefits are being offered for life.
Now let’s take a look at a similar design with Nationwide CareMatters II:
Again, both Nationwide illustrations are for a 50 year old male and female respectively. Like Asset Care, Nationwide CareMatters II can offer this couple an initial monthly LTC benefit of $2,569. Also, with a 3% compound inflation protection option, their monthly LTC benefit will increase to $6,054 at approximately age 80.
However, there is one major difference! The Nationwide policy offers the same monthly LTC coverage but is actually $30,000 less in premium! The combined premium of the Nationwide policies is $90,362. That is a 25% savings!
Therefore, if the couple wanted to save on premium and were comfortable with a 6 year benefit period instead of a lifetime benefit, Nationwide CareMatters II would be their best choice.
This is why I said, several times throughout the article, that depending on your age and goals, OneAmerica’s Asset Care can be your best choice.
Conclusion – OneAmerica Asset Care May Be Right For You
OneAmerica’s Asset Care is a great product. However, without knowing your personal goals it is hard conclusively state that this product is the right product for your needs. That’s why I invite you to reach out to us if you are considering an Asset Care policy so we can better assess your situation.
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If you are interested in a OneAmerica Asset Care policy or would like more information, call us today at 1(800) 498-3955 or fill out the form below!