Examine this OneAmerica Annuity dual-purpose contract. Instead of looking for an annual premium Long Term Care (LTC) Policy, look for an Annuity Contract that can also pay for any/all long-term care costs, often with just one single upfront premium. If you don’t use the annuity contract for long-term care, it remains in full effect as an annuity (per illustration).
This illustration shows an LTC Fixed Index Annuity contract purchased by two CA 61YO individuals with a $166K total single premium, providing $5,500 per month Lifetime Long-Term Care coverage for each owner, plus 5% annual inflation. The Death Benefit remains intact at some level for a while if the LTC Coverage is used (more illustrations and discussions required). Often, these policies are written in combinations under the OneAmerica umbrella (a portion of the LTC coverage split between the SPWL chassis and their Annuity chassis). Overall, we believe that this approach to long-term care is more appealing to many because it is “predictable” and the policyholder “retains something of value” for their premium if they never use the long-term care coverage. OneAmerica is the pioneer and market leader for this type of coverage (over 30 years offering) and is “A” rated.
One HUGE benefit of these contracts is that they can be purchased with Qualified Funds (IRA’s, most 401Ks).
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