Key Metrics at a Glance
| Issue Ages | 40-85 | Varies by product |
|---|---|---|
| Minimum Premium | $10,000 | Single premium |
| Maximum Premium | $500,000 | Varies by product |
| Base LTC Period | 24-36 months | Extendable with COB |
| Elimination Period | 7 or 90 days | 7-day on Annuity Care |
| Benefit Type | Reimbursement | Must document expenses |
| 1035 Exchange | Yes | Tax-free from annuities |
| COB Options | 3-yr to Lifetime | Unlimited available |
Your Money Always Comes Back
With asset-based LTC, you're not gambling on getting sick. You're repositioning an asset that works for you in every scenario.
| Scenario | What Happens | Benefit | Who Gets It |
|---|---|---|---|
| Door 1: LIVE | You need LTC care | Tax-free LTC benefits from LTCAV + COB extension (2-3x premium) | You get the money |
| Door 2: DIE | You don't need LTC | Accumulated value passes to your beneficiaries | Family gets the money |
| Door 3: LEAVE | You change your mind | Surrender value returned (after surrender charge period) | You get the money |
The Bottom Line: Unlike traditional LTC insurance where premiums are "use it or lose it," Annuity Care ensures your money comes back to you or your family in every scenario. The insurance company doesn't keep your premium if you never need care.
The Annuity Care Product Family
OneAmerica offers three annuity-based LTC products. Choose based on your elimination period preference, COB funding approach, and growth strategy.
| Product | Issue Ages | Base Period | Elimination | COB Options | Inflation |
|---|---|---|---|---|---|
| Annuity Care | 50-85 | 36 months | 7 days | Optional: 36-month or Lifetime | N/A |
| Annuity Care IIBuilt-in COB | 40-80 | 24 mo (single) / 30 mo (joint) | 90 days | Built-in 3-year COB | 5% compound (COB only) |
| Indexed Annuity Care | 50-80 | 36 months | 7 days | Optional: 36-month or Lifetime | Market-linked growth |
Choose Annuity Care if:
- • You want the fastest benefit access (7-day wait)
- • You need Lifetime COB option
- • You're ages 81-85
Choose Annuity Care II if:
- • You prefer built-in COB (no separate premium)
- • You want inflation protection on COB
- • You're comfortable with 90-day elimination
How Annuity Care Works
The Dual-Account Structure
Your single premium grows in two parallel accounts, creating built-in LTC leverage:
Accumulated Value (AV)
Grows at the standard interest rate
- • Your cash/surrender value
- • What passes to heirs at death
- • Subject to surrender charges in early years
LTC Accumulated Value (LTCAV)
Grows at a higher interest rate
- • Your LTC benefit pool
- • Accessed for qualified care expenses
- • No surrender charges on LTC withdrawals
The Result: Your LTC pool grows faster than your cash value without increasing your premium. This creates leverage—more LTC protection per dollar invested.
Dual-Account Structure
Your premium grows in two parallel accounts: the Accumulated Value (AV) for cash/death benefit and the Long-Term Care Accumulated Value (LTCAV) at a higher interest rate. This creates built-in leverage for LTC without increasing your cost.
1035 Exchange Eligible
Transfer an existing non-qualified annuity into Annuity Care without triggering taxable gains. Perfect for repositioning old fixed annuities or CDs into meaningful LTC protection while preserving your cost basis.
Lifetime COB Option
Annuity Care offers a Lifetime Continuation of Benefits option—one of the few products in the market with truly unlimited LTC coverage. Critical for conditions like Alzheimer's that can require 8-10+ years of care.
Tax-Free LTC Benefits
Thanks to the Pension Protection Act of 2006, qualified LTC withdrawals from the LTCAV are tax-free as a reduction of basis. COB benefit payments are also tax-free.
Eligible Person Designation
Add your spouse as an "Eligible Person" to receive LTC benefits under your policy—even without being listed as owner or annuitant. A simple way to provide spousal coverage.
Care Benefit Concierge
OneAmerica provides dedicated claims support to help families navigate the care process. Includes claims filing assistance, care coordination, direct payment to providers, and ongoing benefit management.
Types of Care Covered
Surrender Charge Schedule
Surrender charges apply for 9 years. After year 1, you can withdraw 10% annually without charges. LTC withdrawals are never subject to surrender charges.
Leverage Examples: What Your Money Can Do
Annuity Care typically delivers 2-3x leverage, with the Lifetime COB option providing unlimited potential for long-duration care needs.
Ellen, 78
Single Premium: $125,000
Lifetime COB ensures coverage never runs out
James, 55
Single Premium: $100,000
Inflation protection triples COB benefit over 25 years
Robert & Susan, 65/63
Single Premium: $200,000
Either spouse can trigger benefits
Examples are hypothetical illustrations. Actual benefits depend on age, health, premium amount, and product options selected. Request a personalized illustration for your specific situation.
Real World Scenarios
Is Annuity Care right for YOUR situation? Here's who this works for—and when to consider alternatives.
Perfect Fit: The Annuity Repositioner
Perfect FitEllen (Age 78): Ellen has $125,000 in an old fixed annuity earning 1.5%. It's barely keeping pace with inflation and offers no LTC protection. She's healthy but has a family history of longevity and is concerned about outliving her care funds.
How Annuity Care Helps:
Ellen 1035 exchanges into Annuity Care with the Lifetime COB option. Her money now grows at a higher rate for LTC purposes, and she has unlimited coverage duration. Key Benefits: • Tax-free 1035 exchange preserves cost basis • Lifetime COB for unlimited care duration • $3,000/month guaranteed LTC benefits • Accumulated value passes to heirs if unused
Outcome:
Ellen's $125,000 now provides $3,000/month in guaranteed LTC benefits—for life if needed. Her old annuity that was earning 1.5% now serves a dual purpose: growth potential AND unlimited LTC protection. No taxes triggered on the exchange.
Perfect Fit: The Early Planner with Inflation Concerns
Perfect FitJames (Age 55): James has seen healthcare costs skyrocket and doesn't trust that his base benefits will be adequate 25-30 years from now. He wants protection that grows over time to keep pace with rising care costs.
How Annuity Care Helps:
Annuity Care II with 5% compound inflation protection on the COB. His base coverage provides $3,000/month for 2 years, but the inflation-protected COB will grow to approximately $9,000/month by claim time. Inflation Growth: • Base benefit: $3,000/month (year 1) • COB at year 25: ~$9,000/month • 5% compound = 3x growth over 25 years • Total pool exceeds $396,000
Outcome:
At age 80, James's COB benefits have tripled from $3,000 to ~$9,000/month due to 5% compound growth. Even if care costs have doubled, his benefits have more than kept pace. Total potential LTC pool exceeds $396,000 from his $100,000 premium.
Perfect Fit: The Couple Seeking Joint Coverage
Perfect FitRobert and Susan (Age 65/63): The couple wants coverage for both spouses without purchasing two separate policies. They want whichever spouse needs care first to have access to the full benefit pool.
How Annuity Care Helps:
Joint Annuity Care II with Susan designated as the "Eligible Person." Either spouse can trigger and receive benefits. The joint structure extends the base coverage. Joint Benefits: • 30 months base (vs 24 for single) • Built-in 3-year COB • Combined 66 months coverage • Either spouse can claim
Outcome:
Robert and Susan have a combined 66 months of potential coverage at ~$5,800/month. Either spouse can claim. When one spouse passes, the other retains full access to remaining benefits. Simple paperwork, unified coverage.
Compare Options: The Maximum Leverage Seeker
Compare OptionsMargaret (Age 62): Margaret has $150,000 and wants to maximize her LTC leverage—getting $500,000+ in potential benefits. She's comparing OneAmerica products and wondering which structure delivers more protection per dollar.
Analysis:
Annuity Care products typically deliver 2-3x leverage, while life-based products like OneAmerica Asset Care can deliver 3-5x. Comparison: • Annuity Care: 2-3x leverage, 1035 eligible • Asset Care: 3-5x leverage, life-based • MoneyGuard: 3-4x leverage, 0-day elim If maximum leverage is the priority AND Margaret doesn't have an existing annuity to 1035 exchange, Asset Care or MoneyGuard may be better fits.
Our Recommendation:
Margaret should compare illustrations for both Asset Care and Annuity Care. Asset Care's life insurance structure typically provides higher LTC leverage, while Annuity Care shines for 1035 exchanges and accumulation potential.
Where It Shines
1035 Exchange Powerhouse
The premier solution for repositioning underperforming annuities. Transfer existing non-qualified annuities tax-free and gain LTC protection without triggering capital gains. Cost basis carries over.
Lifetime COB Option (Unique)
Annuity Care offers Lifetime Continuation of Benefits—one of the only products in the market with truly unlimited LTC coverage duration. Critical for Alzheimer's and other conditions requiring extended care.
Dual-Account Leverage
The LTCAV grows at a higher interest rate than the AV, creating built-in leverage for LTC purposes without increasing your premium. Your LTC pool grows faster than your cash value.
Flexible Product Family
Three products to match different needs: Annuity Care (7-day wait, optional COB), Annuity Care II (built-in COB, inflation option), and Indexed Annuity Care (market-linked growth). One carrier, multiple solutions.
OneAmerica LTC Expertise
OneAmerica has been a recognized leader in asset-based LTC for decades. Their Care Benefit Concierge provides dedicated claims support, and their claims-paying reputation is excellent.
!What Gives Us Pause
Lower Leverage Than Life-Based Products
Annuity Care typically delivers 2-3x leverage versus 3-5x for life-based hybrids like Asset Care or Lincoln MoneyGuard. If maximum LTC leverage is the priority, a life-based structure may be better.
Reimbursement Only (No Indemnity)
Benefits are paid based on actual care expenses submitted. No cash indemnity option like SecureCare III or Brighthouse SmartCare. You must document expenses to receive benefits.
90-Day Elimination on Annuity Care II
Annuity Care II has a 90-day waiting period before benefits begin (vs. 7 days for Annuity Care). You'll need other resources to cover care costs during this period.
Single Premium Required
All Annuity Care products require a single premium payment. No 5-pay, 10-pay, or annual premium options like Asset Care or MoneyGuard offer. Must have lump sum available.
9-Year Surrender Charge Period
Surrender charges apply for 9 years (9% in year 1 down to 0% in year 10+). The 10% annual free withdrawal helps, but full liquidity takes nearly a decade.
Underwriting Reality
OneAmerica uses simplified underwriting for most applicants. Here's what to expect based on common health profiles.
Likely to Qualify
- •Well-controlled Type 2 diabetes (A1C under 8.0)
- •Controlled high blood pressure on stable medication
- •Successfully treated cancer (5+ years clear)
- •Osteoarthritis without mobility aids
- •Mild anxiety/depression on stable medication
- •BMI approximately 20-35
- •No cognitive impairment of any kind
!May Face Challenges
- •Diabetes with complications or A1C over 8.5
- •Multiple chronic conditions requiring ongoing management
- •History of TIA (mini-stroke) within 2 years
- •Recent cancer treatment (within 5 years)
- •Use of cane or walker for mobility
- •BMI outside 18-40 range
- •Sleep apnea requiring CPAP
Likely Declined
- •Cognitive impairment of any degree
- •Parkinson's disease (any stage)
- •Multiple Sclerosis or ALS
- •Stroke within 2 years with residual effects
- •Current cancer treatment (other than skin cancer)
- •Insulin-dependent diabetes with poor control
- •Current use of wheelchair or confined to bed
- •Any existing need for long-term care services
Underwriting Notes
- • Application health questions are more concise than traditional LTC
- • Brief telephone interview replaces attending physician statements
- • No medical exams required for most applicants
- • Decisions typically within 2-3 weeks
- • Apply earlier rather than later—underwriting only gets stricter
- • Well-documented condition management improves outcomes
Frequently Asked Questions
Compare to Similar Products
Explore these related guides to continue your research.
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0-day elimination, reimbursement or indemnity choice, Benefit Transfer Rider for couples.
Cash indemnity, 100% ROP after 6 years, up to 8-year benefit period.
Cash indemnity, CPI inflation option, 20% residual death benefit guarantee.