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Asset-Based Long-Term Care
Innovative Alternatives to Long-Term Care Insurance
You want to live out the last days of your life as comfortably and with as much dignity as possible. Whether you prefer home health care or living in a nursing home, preparation can reduce the expense and burden of long-term care on your loved ones.
The State Life Insurance Company, a OneAmerica® company, offers specific products, based on life insurance and annuities, which can provide long-term care benefits if care is needed. If you never need care, your asset passes to the next generation and becomes part of your legacy — making asset-based long-term care an innovative alternative to traditional long-term care insurance.
Contact your insurance agent/producer today to find out more about these exciting products.
Life Insurance with Long-Term Care Benefits
Discover life insurance that can give you options. Use it during your lifetime to help pay for care in your home, care in a facility, or other long-term care services. If you don’t need care, you can access the cash value during your life or make the death benefit part of your financial legacy.
Annuities with Long-Term Care Benefits
Invest in a fixed annuity to efficiently use the assets you have earmarked for long-term care. Use the annuity’s value to cover your first few years of care, then protect yourself beyond that with an optional coverage extension*. Access to the long-term care benefits can even be income tax-free.
*Option at additional cost
Neither State Life nor their representatives provide tax or legal advice. For answers to specific questions and before making any decisions, please consult a qualified attorney or tax advisor.
May not be available in all states.
A fixed annuity contract and a fixed life insurance policy are both long-term products. Annuities are tax-deferred insurance contracts designed for retirement. They can allow you to create a fixed stream of income through a process called annuitization and also provides a fixed rate of return based on the terms of the contract. Fixed life insurance is not an investment, retirement account or savings account and should only be purchased by individuals that have a need to provide a death benefit to protect others with insurable interests in their lives against financial loss. Life insurance requires medical underwriting and the cash values of a policy are not considered liquid and cash value policy loans are taxable if the policy is surrendered or terminates before the insured's death and the cash value exceeds the policy's cost basis.
Fixed annuities and insurance policies both have limitations. If you own an annuity and decide to take your money out early, or you own a life insurance policy that lapses with loans outstanding, you may face fees called surrender charges and the loan amount becomes subject immediately to federal income tax. Additionally, if you're not yet 59½, you may also have to pay an additional 10% tax penalty on top of ordinary income taxes. An annuity contract and a life insurance policy’s tax treatment ultimately depend on a variety of factors. You should also know that both fixed annuities and life insurance contain guarantees and protections that are subject to the issuing insurance company’s ability to pay for them.
Policies, contracts and long-term care insurance riders are underwritten by The State Life Insurance Company,Indianapolis, Indiana. This is a solicitation of long term care insurance. Details about the cost, benefits, limitations and exclusions of these policies and long term care insurance riders will be provided to you by a licensed insurance agent/producer. When you respond, an insurance agent/producer will contact you. These products require medical underwriting.
To be eligible for benefits the insured must be a chronically ill individual, with qualified long-term care services provided pursuant to a plan of care prescribed by a licensed health care practitioner.
Funding long-term care costs with annuities or life insurance may not be a suitable strategy for everyone. For example, your assets may not be sufficient to cover all of the costs associated with long-term care. In addition, long-term care insurance may provide certain protections that asset based long-term care does not. You should consult with an independent financial planner to determine if this product is right for you.