Where there are a number of quality life/LTCI plans out there, one that we have been recommending frequently lately is OneAmerica’s Asset-Care product, because it offers unprecedented flexibility in a number of areas.
How it works: in return for the premium (typically drawn from an existing asset, like a maturing CD, although premiums may be paid in more than a single payments) insureds receive guaranteed whole life insurance with a long term care insurance rider. The entire death benefit can be accessed as monthly LTCI benefits. The policy accumulates a monthly cash value, and unused long term care insurance benefits pass to policy beneficiaries in the form of life insurance.
That’s pretty standard for life/LTCI policies. Now, here’s what sets Asset-Care apart:
- Insureds can elect an unlimited LTCI benefit period – Most policies’ benefit periods max out at 50 months. With Asset-Care, insureds can elect a benefit period of 20, 25, or 50 months or purchase an optional lifetime benefit rider, which is hard to find in the market. The rider is offered for a guaranteed premium, paid either as a single sum or on a fixed annual basis.
- Partner benefits are available – In addition to providing coverage to single insureds, Asset-Care offers partner benefits. Partners are broadly defined as married couples, unmarried couples, even siblings. The key is: there must be an insurable interest. The monthly LTCI benefit is available to both partners, even at the same time if needed, and the death benefit is paid after the last insured’s death.
- A 50-month waiting period is available – Advisors and clients often ask us for long term care insurance policies with longer waiting periods for clients who want to partially self-fund their LTC plan. Asset-Care offers a 50-month waiting period option, the longest we’ve seen.
- The policy may be cashed in – Not too many life/LTCI plans allow insureds to cash out their policy at any time and receive a full return of premium (less any distributions, of course), but this one does.
In short, there are situations where Asset-Care may be an ideal solution for you or one of your clients. For more information, email us at email@example.com. Or complete our short online form torequest a quotation. (Link: https://www.magaltc.com/request-a-quote)