Through our independent agency, you can compare hybrid long term care insurance quotes and illustrations from One America State Life Insurance Company. They offer both single and joint annuity and life plans to fit most situations.
We offer their hybrid annuity and life plans direct to consumer. Using our expertise and guidance, we can help your decide which type would be most appropriate for your long term care planning while also explaining what you can count on from your coverage in the future.
Linked long term care plans are growing in popularity and for good reason. These policies offer liquidity and leveraged benefit pools to their owners while also providing residual benefits to the policy’s beneficiaries.
One of their most attractive features however is the elimination of ongoing premiums. Like other carriers offering hybrid long term care, One America State Life has products that can be funded with a single premium or a set number of fixed deposits. Unpredictable lifetime premiums can be eliminated with their asset based long term care policies.
Depending on where you live, State Life will offer one or two types of hybrid annuity plans. Both annuities offer different benefit lengths to choose from as well as guaranteed policy growth and inflation protection options.
Most of our clients have a number in mind when they contact us. For example, someone might want to know how much a $100,000 investment in a LTC annuity would generate in current and future long term care benefits.
Other times, we reverse engineer plans to find out how much premium it would take to create a desired daily benefit for a known number of years. It’s not a one size fits all approach with our agency. Still in other cases, our clients are wanting to know what their benefit pools will look like if an existing annuity is rolled over into their hybrid product.
And that’s one of the advantages of hybrid annuity accounts from One America State Life. They will accept non-qualified annuity monies on a tax free basis. This is called a 1035 tax-free exchange and can be a valuable strategy for long term care planning.
First, the 1035 exchange (annuity rollover) does not create a taxable event and second, all qualified distributions for long term care from the new annuity are not taxable either – even the gains! This would include the gains rolled over from the previous annuity.
In some cases, a hybrid long term care life insurance plan is most beneficial for our clients. One America offers several versions of this products and in some cases life policies will provide additional leverage when compared to a hybrid annuity.
When you are shopping for asset based long term care, it is our opinion that one of the most important factors is leverage. In other words, you want to create the largest pool of money that can be used to cover long term care costs with the least amount of money invested.
Hybrid life insurance policies can be advantageous for those who are younger and in good health. The benefit pools can be larger and may require a smaller deposit when compared to some hybrid annuities.
And life insurance benefits have the advantage of being income tax free at passing. If the policy is never used for long term care purposes, then it will pay income tax free to the named beneficiaries of the policy.
One America State Life offers both hybrid life and annuity polices that our clients find attractive when planning for future long term care expenses. We can help you understand how both work and which may be of more benefit to you and your family.
If there is one segment where One America bests the competition, it is with joint long term care plans. Both their annuity and life plans can be purchased on joint lives.
Joint plans eliminate the need for a husband and wife to purchase two different policies – or try to connect their plans with a shared type of rider. Both insured spouses have access to the same pool of money at the same time with One America.
This may also provide additional leverage – especially if one spouse needs more long term care benefits than the other. Why invest $75,000 in two separate policies, when you can place $150,000 in one? With one plan, both spouses will have access to a larger pool of money if it’s needed. And both spouses can access this pool of money at the same time for long term care.
One of the biggest concerns we hear from long term care shoppers is the cost of care. In many parts of the country, facility cost are approaching $200 a day. It does not take long for some LTC policies to be depleted at this rate.
In order to combat these high costs, One America State Life offers inflation protection options that can be purchased and added on both their life and annuity plans. The most common choice is a 5% compounding rider that will guarantee an increase in the daily benefit each year.
Benefit lengths and pools can be tailored to meet most requests. Most of our clients choose plans that will last a minimum of 5-6 years, but longer terms are available. And some policies offer a lifetime benefit pool for those who want maximum benefits that will never run out.
Policies are sold to age 80 and some medical underwriting is required for most plans. Like all things insurance, it is best to investigate and purchase coverage while you are younger and in good health. The longer you wait, the less leverage you can buy and the more difficult medical underwriting can become.
Hyers and Associates is a full service, independent insurance agency specializing in hybrid long term care plans. We offer hybrid insurance coverage from One America State Life and several other carriers. Contact us today to discuss your best options.
Category: Long Term Care Insurance, Retirement PlanningLast updated on January 17th, 2017