One America Asset Care Review
One America Asset Care Hybrid policies (1-4) offer a unique line of products with multiple competitive edges over conventional long-term care policies.
That even allows us to fund these policies with Qualified Money.
Here are some of the topics we will be covering in today’s review.
- One America Asset Care 1-4 funding options
- One America Asset Care Long Term Care Benefits
- One America Asset Care Riders
- One America Asset Care Joint policies for two insureds (patented)
- Guaranteed Premiums
- Return of Premium-Death Benefit-Asset Growth- Hybrid Policy
So what is the difference between Asset Care 1-4?
For the most part, it’s how we want to fund it.
- One America Asset Care 1 is a single premium whole life policy with long term care benefits. Cash or cash equivalents (Stocks, Money Market, CDs, Savings) can be used to fund this policy.
- One America Asset Care 2 is a Non-Qualified Annuity which can be funded with 1035 exchange from existing annuities or life insurance.
- One America Asset Care 3 is State Life’s truly unique product. One which allows you to use qualified money transferred from an IRA/Retirement Plan/Pension Plan or 401K to cover your long-term care needs. This transferred money then, like all Asset Care products, provides long term care, cash value accumulation, as well as death benefits. Your assets are being moved from one pocket to the other and will always show up on your balance sheet as an asset.
- One America Asset Care 4 is structured similarly to conventional long-term care. Asset Care 4 allows the policy owner to choose between annual payments of 10 to 20 years. Great for working individuals who want to pay over time.
How Does State Lifes Asset Care payout Long Term Care Benefits?
One America Asset Care Policy’s provides anywhere from 2%-4% of the policies death benefit per month in Long Term Care benefits. These “benefits” apply towards assisted living, nursing facility, and home health care. State Lifes pay out based percentage is 2%, however for additional premium you can get the option to use 3% or 4% of the death benefit per insured.
How is One Americas Asset Care death benefits (LTC pool) determined?
Let’s take this as an example, let’s take Asset Care 1(lump sum) for easy math, even though most clients prefer to use qualified money (Asset Care 3) or annual installments of 10-20 years (Asset Care 4).
Say you and your spouse purchase a joint policy and fund it with $125,000 in one payment. Immediately the death benefit is calculated to $250,000. So, assuming 2% Per Person. This equates to $5,000 per person per month.
You also have the option to add Asset Cares Unlimited Benefits rider, which provides two different paths.
- The first is to double the length of coverage, adding an additional 50 months for an additional $850 a year.
- Or Unlimited funds which come out to a Guaranteed premium of $1,200 a year (onetime payment available for both options). So then if you or your partner ever need long term care, you will have unlimited duration of funds to draw from.
Here are the two Continuation of Benefits options are illustrated.
Here are One America Asset Care Unique Riders
One America Asset Care Plus Continuation Benefits rider: State life answer to limited death benefits funds to draw from, is Asset Care Plus. Which is a rider that can be funded in two options, initially in a single premium or with annual installments. Asset Care Continuation of Benefits rider provides the insured(s) unlimited benefit periods for long term care needs, which covers any risk of depleting your estate or fixed income assets you’ve acquired over a lifetime.
One America Asset Care Inflation Rider (IPR):Is a great way for clients to protect against the raising cost of qualifying long term care expenses. IPR premiums are guaranteed, only the insured policy owner may stop payments. There are four options to choose from 3% simple, 3% compound, 5% simple, 5% compound. Premiums can be paid up front or with annual installments.
One America Joint Life Option: One of the most distinguished benefits to the Asset Care policies is the joint life option. You and your partner can have a single policy covering both of your long-term care needs. No other carrier can do a joint long term care policy, since State Life has patented the joint second to die. Two insureds on the same policy leads to an increase in death benefits and since the death benefit is where the long-term care benefits are drawn from, it means more coverage for you and your partner.
One Americas Guaranteed Premiums
The best and most distinguished features of One Americas Asset Care plans are the guaranteed premiums. Just thirty years ago, almost every company offered long term care insurance, now we are down to just a handful of carriers. Of the companies that offer what is considered conventional/traditional long-term care insurance, none offer guaranteed premiums. What happened was people who purchased policies in the 1980’s and 1990’s had affordable premiums, soon all the carries began to increase their premiums. All policy holders were pushed into a corner, continue to pay the premiums with no knowledge of the next rate hike, or let their Long Term Care policy lapse and lose not only all the money they paid in, but also their needed coverage in the future.
What Happens if I never Use my Asset Based Long Term Care?
Conventional long term care policies have premiums that are not guaranteed, and provide coverage as long as you continue to pay the premiums. In 2007 to 2008 the insurance companies realized that they had an upcoming problem because they did not project the premiums and lapse ratios correctly. Quickly they began to raise rates on policies over a certain age and this pushed premiums up to the point that was no longer affordable for most people which forced them to let their policies lapse after many years of paying into them. They never received premium back, or ever got to use their coverage.
State Life Asset Cares covers all of the short comings of conventional long term care.
- Return of premium (all years)
- Minimum 4% interest rate on life policy
- Life policy Long Term Care Insurance over a 20-year premium payment period
- Life premium will not increase
- Cash Value Growth
If you decide to surrender the policy, you can pull your cash out. If you never use your benefits, at the time of your passing, you beneficiary will receive the LTC funds (death benefit). It really is a tails you win, heads you tie situation. Your money is growing, your Long-Term Care needs are covered, and you have the added security of leaving behind a legacy. Not only this, but long term care insurance is one of the only ways protect your estate from increasing costs of health and medical care.
Feel free to contact us for personal long-term care insurance proposals with all the leading carriers such as Mass Mutual, Lincoln Money Guard, Transamerica, Nationwide, Mutual of Omaha and more. We are more than willing to talk or exchange emails with any questions you have concerning your long term care insurance needs.
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