OneAmerica’s Asset Care
Over the last 140 years, OneAmerica has been providing insurance all across the country. One of their most popular products is Asset Based Long-Term Care Insurance. One of their most popular products in this area is called Asset Care.
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?
OneAmerica’s Asset Care is typically funded using a 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 sources of premium or 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
Therefore, as you can see, Asset Care provided a number of ways to fund or pay for your policy.
Does Asset Care Offer Joint Policies & If So, How Do I Qualify?
Asset Care offers both individual and joint policies. Joint applicants are defined as legally married spouses, domestic partners, or those in a civil union.
To apply for Asset Care, you must be between the ages of 35-80 if you are paying for the policies via single or recurring premiums. The maximum age difference between joint insureds is 25 years.
If you are applying for Asset Care and 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 a long-term care facility (all levels) 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 of having an Asset Care policy is bed reservation, respite care, and international facility training. It is important to note that you should review your state’s outline of coverage for a specific and complete list of policy exclusions and limitations.
How Does Asset Care Pay Claims?
Asset Care pays claims through reimbursement. Benefit payments are made after the bills or receipts of long-term care expenses you incurred are submitted to the insurer.
Benefits are paid to you or to a long-term care facility. Reimbursement of benefit payments help ensure that your benefits are not misused and are utilized for LTC services only.
Key Features Of Asset Care
Unlimited Lifetime Benefits
What separates Asset Care from the rest of the hybrid long-term care insurance policies on the market is it offers Unlimited Lifetime Benefits. This is what makes Asset Care a really strong insurance policy.
While most hybrid long-term care policies offer maximum benefit periods of 7 or 8 years, Asset Care offers benefits for a lifetime.
With an unlimited lifetime benefit period, you never have to worry about exhausting your LTC coverage. So long as you are eligible for claims, Asset Care will pay for your LTC services up to the maximum monthly benefit allowed in your policy.
In addition the unlimited lifetime benefit option can be selected on joint policies. Therefore, the unlimited life benefit will apply to both insureds for a single premium rate.
Consider the fact that an individual with Alzheimer’s dementia (according to the Alzheimer’s Association) can live as long as 20 years after diagnosis.
If that person had a long-term care insurance policy with a benefit of 8 years, they would be left paying for care for at least another decade!
However, with an Asset Care policy with unlimited lifetime coverage, their LTC benefits would last for the duration of their life with Alzheimer’s dementia.
This is what makes Asset Care a genuine insurance policy.
No Elimination Period For Home Health Care Services
Asset Care 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.
The reason why this is a great benefit is because most-long term care services are provided at home. This is according to the U.S. Department of Health and Human Services
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!
The elimination period for all other forms of LTC services (facility, adult day care, etc.) is 90 days with an Asset Care policy.
OneAmerica’s Asset Care offers one of the most flexible inflation protection options.
It offers an inflation of 3% or 5% compound interest, which is standard. However, it also offers the option to have protection for a limited duration of 20 years or for the life of the policy.
This is what makes it unique. The flexibility allows for an individual to help control the cost of their policy while still receiving the valuable inflation protection option.
How Does Asset Care Compare to Other Hybrid Products
OneAmerica’s Asset Care can be quite competitive in the right circumstances. Let’s take a look at its competitiveness by considering its strengths in the following areas:
- Long-Term Care Benefit Pool
- Benefit Period
- Elimination Period
- Inflation Protection
- Premium Payment Options
For a better understanding of each of those 5 categories, read our post “5 Things to Review In Every Hybrid Long-term Care Insurance Policy.”
Now we have already discussed how Asset Care stands out in four of the five categories above.
Those categories are: the premium payment options, the elimination period, and the benefit period. Just as a reminder:
- Premium Payment Options – Asset Care offers Single or Recurring Premiums as well as a unique Annuity Payment Structure
- Benefit Period – Asset Care is the only policy on the market that offers Unlimited Lifetime Benefits.
- Elimination Period – Asset Care offers a 0 Day Elimination Period for Home Health Care. The only other product that does better is Lincoln’s MoneyGuard which has no elimination period for all eligible claims
- Inflation Protection – Asset Care offers flexible inflation protection of 3% or 5% compound interest for 20 years or for life.
Now lets see how well it does in the remaining two categories, LTC Benefits & Inflation Protection. Let’s use a couple as a case study.
Case Study: Mr. & Mrs. Thompson
Mr. & Mrs. Thompson are looking for a joint policy for husband and wife that lasts a long time and provides the most LTC benefits for $150,000.
Mr. Thompson is age 64 and Mrs. Thompson is age 62 year. Both are non-smokers in healthy condition.
OneAmerica Asset Care VS. Lincoln’s MoneyGuard
Let’s see what a OneAmerica policy can get them to cover the cost of home health care services in Kentucky:
A OneAmerica Asset Care policy can provide the Thompson’s about $124,000 in Unlimited Lifetime annual LTC benefits for a single premium of $150,000!
That’s a total benefit of $5,164 a month for each of them for life if they both went on claims.
In addition, the Thompson’s can apply for coverage with one simple application.
Now let’s see what a popular product like Lincoln Financial’s MoneyGuard can offer them.
Lincoln’s MoneyGuard offers the Thompson’s a combined LTC pool of $106,500 in annual LTC Benefits for only 7 years.
Therefore not only does OneAmerica offer the Thompson’s almost $20,000 more a year in benefits, they also provide their coverage for life!
In addition, OneAmerica offers them the ease of one application. Lincoln, on the other hand, would require Mr. & Mrs. Thompson to apply separately for coverage.
Conclusion For Allen & Marie – OneAmerica Asset Care is “The Winner”
OneAmerica’s Asset Care is the clear winner for the Thompson’s hybrid long-term care insurance needs.
Asset Care provides more LTC benefits than MoneyGuard and with Unlimited Lifetime coverage on a single policy all for the same premium!
Again, MoneyGuard’s benefits last for a period of 7 years and the Thompson’s would have to get separate individual policies.
Is OneAmerica Asset Care Right For Me?
If your needs are similar to Allen & Marie then Asset Care may be a good option for you. I have seen it work well for couples with a variety of needs. That’s why it’s one of the most popular and oldest asset based long-term care products out there.
However, without knowing your personal circumstances 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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