OneAmerica's Asset Care Plans:

A Hybrid Approach- Benefits Guaranteed even if you don't need care

OneAmerica's Asset Care plan is designed as a hybrid life insurance and long-term care solution, providing policyholders with the flexibility to use their life insurance death benefit for long-term care expenses if needed. Here's a summary based on general information available up to 2024:

• Purpose: The plan aims to help policyholders cover the costs associated with long-term care without depleting their assets or requiring them to rely solely on personal savings or government programs. If care is not needed, a tax free life insurance death benefit is paid to the policyholder's beneficiary. 
• How It Works: 
  • Life Insurance Component: Policyholders purchase a life insurance policy where the death benefit can be accessed during their lifetime if they require long-term care. This benefit can be accelerated, meaning you can receive part or all of the death benefit early to pay for care.
  • Long-Term Care Benefits: If you need long-term care, you can use the funds from your life insurance policy to cover these expenses. The plan might offer various payment options, like a lump sum, monthly payments, or reimbursement for expenses incurred.
• Tax Benefits: Using the life insurance policy for long-term care expenses can offer tax advantages, as the benefits received for care are generally tax-free if structured correctly under IRS guidelines.
• Flexibility: The Asset Care plan might include options like joint life policies for couples, single premium payments, or return of premium options, allowing customization based on individual financial planning needs.
• Legacy Protection: If the long-term care benefits are not used or only partially used, the remaining death benefit is still paid out to beneficiaries, ensuring that your financial legacy remains intact.
• Product Details: The plan is offered under various policy form series, indicating different structures or options within the Asset Care framework, tailored to meet different client needs or state regulations. It also is one of the only contracts available that offers lifetime benefits.
• Availability: While OneAmerica offers this product in many states, it's not available everywhere, with exclusions in places like Hawaii, Montana, New York, and Vermont.
• Considerations: Potential policyholders should consider their health, age, financial situation, and long-term care needs when evaluating if this plan fits their strategy for long-term care planning. The cost of such policies can be significant, but they provide peace of mind and financial protection against the potentially high costs of long-term care.

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