OneAmerica Long-Term Care Insurance Review

A division of the U.S. Department of Health and Human Services published a study on how long-term services affect retiree’s finances and found most Americans turning age 65 will need long-term care at some point. The cost of this care is at minimum tens of thousands of dollars and can easily reach hundreds of thousands, depleting your retirement savings and other assets.

More consumers are looking to long-term care insurance as an option to preserve those precious assets. OneAmerica offers Asset-Care long-term care insurance through The State Life Insurance Company with asset-based long-term care coverage using life insurance as the foundation. The company recommends this type of policy for consumers who:

  • Are in average or better health
  • Need to protect their assets from taxes
  • Have funds to pay for some long-term care but want coverage as a financial hedge

Other OneAmerica financial products used to manage long-term care expenses are annuity-based. Annuity Care and Legacy Care help you plan as a retiree, and ImmediateCare is for those already receiving long-term care.

Pros
  • Multiple payment options
  • Tax shelter
  • Death benefit to beneficiaries if you don’t use the insurance
  • Convenient customer portal on the website

Cons
  • No Asset-Care quotes or sample pricing on OneAmerica site

OneAmerica Long-Term Care Insurance Key Benefits

OneAmerica’s Asset-Care is a hybrid long-term care insurance policy with key benefits, like a tax-free death benefit for survivors if you only use a portion of benefits or none at all. Because an Asset-Care plan uses life insurance as a base, HIPAA stipulates no taxes on payouts when used for long-term care.

Asset-Care pays for quality care wherever you need it: in your home, a nursing home, an assisted living facility or adult day care. Coverage also extends to hospice care, respite care, supportive equipment and caregiver training. You can buy a policy for yourself or as a couple.

OneAmerica guarantees Asset-Care long-term care insurance benefits will never change, and premiums will never increase. Most other long-term care policies can’t make that promise.

Asset-Care long-term care insurance with OneAmerica can come in the form of a life insurance policy with long-term care benefits or in the form of an annuity with long-term care benefits.

  • Life Insurance with Long-Term Care Benefits: You can use this policy during your lifetime to help pay for things like in-home care, facility care or other long-term services. If you don’t need care, you can use the cash value or use it as a death benefit.

  • Annuities with Long-Term Care Benefits: You can invest in a fixed annuity with OneAmerica, use the annuity’s value to help cover the first couple of years of long-term care, then purchase an optional coverage extension to help pay for long-term care for the remainder. Access to long-term care benefits can be tax free.

How Much Does OneAmerica Long-Term Care Insurance Cost?

While OneAmerica’s website provides state-specific long-term care expense data, you will have to speak to a licensed OneAmerica representative to get a quote for Asset-Care policies meeting your needs. OneAmerica offers various options for paying premiums.

While providing a sample quote isn’t possible, we can show you how Asset-Care compares to paying all long-term care expenses out of your savings or using standard long-term care insurance. We based our sample costs on a 65-year-old couple who are most concerned about the effect a severe long-term care event will have on their retirement income.

OneAmerica
Asset-Care vs. Self Funding vs. LTC Insurance
Funding Source Long-Term Care Total Cost Out-of-Pocket Costs Potential Death Benefit
Savings $765,949 $765,949 $0
Traditional LTC Insurance $765,949 $256,765 $0
Asset-Care LTC Insurance $765,949 $237,566 $125,000

Source: OneAmerica Long-term Care Protection Studies, 2017

How to Buy OneAmerica Long-Term Care Insurance

Consumers can directly contact The State Life Insurance Company to discuss an Asset-Care long-term care policy by calling the number on the website or using an online form. You can also find listings on the site for OneAmerica Insurance representatives in your area.

The site also includes informative articles, videos and an FAQ section to answer common questions about OneAmerica’s suite of financial products and services.

OneAmerica Complaints

The financial services industry’s leading credit rating agencies all highly rate OneAmerica. A.M. Best gives the company an “A+” rating, and Standard and Poor’s rates OneAmerica with an “AA-”. These high marks put the company among the top 9 percent of life insurance companies in terms of financial strength. OneAmerica is accredited with the Better Business Bureau and has an “A+” rating, as does The State Life Insurance Company.

We didn’t find consumer reviews for OneAmerica other than those published on the company website. We found a couple of financial websites giving a nod to OneAmerica’s hybrid annuity long-term care plans in articles explaining how to save money on long-term care insurance.

Oneamerica

Source: OneAmerica

OneAmerica Q&A

  • Why do I need OneAmerica long-term care insurance? Won’t Medicare cover my expenses?
    Medicare and Medicare Supplement plans typically cover a fraction of long-term care expenses many people face. Medicare coverage for skilled nursing, for example, usually maxes out at 100 days. Medicare does not include services like adult day care and home health aides while Asset-Care does.

  • Do I need OneAmerica long-term care insurance if Medicaid covers nursing home costs?
    Medicaid pays for nursing home care in most states, but usually only after you sell off all assets. You can avoid losing all you worked to accumulate over the years by purchasing long-term care insurance from OneAmerica.

  • Why should I consider OneAmerica long-term care insurance when I’m in good health?
    One serious accident, injury or illness can create a sudden and unexpected need for long-term care. Nearly everyone’s health deteriorates in later years, and long-term care insurance can be the answer to managing costs for care and assistance.

  • When does OneAmerica’s Asset-Care long-term care insurance go into effect?
    OneAmerica’s long-term care coverage starts when you can no longer perform at least two activities of daily living, commonly called ADLs, without a good deal of assistance. ADLs are eating, bathing, dressing, toileting, and transferring into and out of a bed. Your benefits also go into effect if you develop cognitive impairment, such as Alzheimer’s disease.

  • What are OneAmerica’s annuity options for managing long-term care costs?
    Annuities are usually best for individuals who have maxed out all other retirement savings options, but a OneAmerica representative can help you determine which long-term care insurance product is best. You pay one premium up-front for the annuity-based long-term care plans mentioned earlier. Your account accumulates a guaranteed interest rate, and there are no taxes on withdrawals used for long-term care.

Conclusion

Long-term care costs fluctuate across the country, but no matter where you live, these services are expensive. The Administration on Aging reported monthly long-term care costs of approximately $7,700 for a private room in a nursing home and around $3,600 for a one-bedroom unit in an assisted living facility. Adult day care averages $68 per day and home health aide services nearly $21 per hour. OneAmerica’s asset-based long-term care plans lighten both the emotional and financial burden expensive long-term care places on seniors and their loved ones.

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