OneAmerica State Life Annuity Care Hybrid Annuity and Long Term Care Review – Long Term Care University
Long Term Care University – Question of the Month – 07/15/26
By Aaron Skloff, AIF, CFA, MBA
Q: We read the Long Term Care University article ‘Traditional Versus Hybrid Life and Long Term Care Insurance’ , ‘Hybrid Annuity and Long Term Care’ and ‘1035 Tax-Free Exchange‘. Can you please review the OneAmerica State Life Annuity Care Hybrid Annuity and Long Term Care (LTC) policy?
Overview. Forethought Life Insurance Company is part of Global Atlantic, Life Insurance Company, an A.M. Best A rated, a wholly owned subsidiary of KKR founded in 2004. The Global Atlantic Forethought ForeCare policy is a Hybrid Annuity and Long Term Care Insurance (also called asset based) policy. With Traditional LTC policies, premiums can be increased and you may not receive any benefits if you do not need LTC. With Hybrid LTC policies the benefits and premiums are guaranteed. The insurance company either: 1) pays you if you need LTC, 2) pays your heirs if you do not need LTC, 3) pays you and your heirs if you need a modest amount of LTC or 4) pays you a refund if you cancel the policy.
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OneAmerica State Life Annity Care is Unique Because It Has a 7 Day Elimination Period. An elimination period is the number of days you pay for your LTC costs out of your own pocket (like a deductible on a homeowners insurance policy). Annuity Care begins paying for your care after 7 days of care.
OneAmerica State Life Annuity Care is Unique Because It Provides Lifetime Benefits. One of the largest long term care insurance companies reported that 50% of all claims dollars it has paid are due to dementia, including Alzheimer’s disease. According to the Alzheimer’s Association, 1 in 9 people ages 65 and older and about 1 in 3 people ages 85 and older have Alzheimer’s disease. The duration of Alzheimer’s disease is generally four to eight years after a diagnosis, but can last as long as 20 years.
OneAmerica State Life Annuity Care Policy Options. The policy options include: Benefit periods of 3 years or Lifetime, with a Continuation of Benefits (COB), for an individual or shared policy; Nonforfeiture and Inflation protection of none, 2%, 3%, 4% or 5%.
How OneAmerica State Life Annuity Care Compares with Other Hybrid Annuity and LTC Policies. Let’s look at a husband and wife, Bill and Sue, who are each 70 years old and reside in Florida. They each pay a $100,000 one-time premium (or $200,000 combined) and are expected to need LTC in 10 years at the age of 80. They are comparing Hybrid Annuity and LTC policies that offer the largest LTC benefits, with at least five years of LTC benefits.
OneAmerica State Life Annuity Care Outperforms Competitors with Lifetime Benefits and an Unlimited Dollar Amount of Total LTC Benefits. Bill and Sue will each have a $3,086 Base and $2,259 COB monthly for an induvial policy at age 80 or $5,300 Base and $3,879 COB monthly for a shared policy at age 80 – both with Lifetime total LTC benefits. Global Atlantic Forethought ForeCare is notable for its 0 day elimination period for home care. OneAmerica State Life Annuity Care II is notable for its highest non-lifetime individual and shared monthly LTC benefit. OneAmerica State Life Indexed Annuity Care is notable for its highest lifetime individual and shared monthly LTC benefit, and that policy values are linked to major market indices.
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Conclusions. OneAmerica State Life Annuity Care provides Lifetime benefits and an unlimited dollar amount of total LTC benefits. Since premiums vary greatly based on age, health and marital status, request individualized quotes.
Aaron Skloff, Accredited Investment Fiduciary (AIF), Chartered Financial Analyst (CFA) charter holder, Master of Business Administration (MBA), is the Chief Executive Officer of Skloff Financial Group, a Registered Investment Advisory firm. The firm specializes in financial planning and investment management services for high net worth individuals and benefits for small to middle sized companies. He can be contacted at www.skloff.com or 908-464-3060.
