OneAmerica Annuity Care – Long-term care annuity

March 15, 2024

Indexed Annuity Care from OneAmerica® is an innovative solution to pay for future long-term care (LTC) costs. It can change the way you think about long-term care planning. Especially if you’ve been thinking about self-insuring the risk.

This long-term care annuity has upside growth potential, combined with LTC benefits and guarantees. The health qualification process is more lenient than traditional long-term care insurance and premiums will NOT increase.

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How Indexed Annuity Care works:

  • Pay a single premium for the contract. However, the long-term care rider can be paid as a continuous pay, so the entire policy doesn’t have to be funded as a lump sum.
  • Streamlined underwriting, without the need for medical records.
  • Available to single annuitants or as a joint plan to cover spouses.
  • Link your contract’s growth to several crediting strategies tied to the S&P 500.
  • As the account value grows, so does the amount available for long-term care expenses.


Overview of benefits:

  • You have the ability to link the annuity’s growth to four separate indexing strategies, including point-to-point and monthly average or a fixed account.
  • It provides the tax benefits of the Pension Protection Act, including income tax-free withdrawals for qualifying LTC expenses. Also allows for a 1035 tax-free exchange.
  • Access to leveraged long-term care benefits that exceed the policy’s value.
  • Optional extended or lifetime benefits with guaranteed premiums for qualifying LTC expenses.

Optional Continuation of Benefits Rider – How it works

OneAmerica Indexed Annuity Care rider.



Funding Long-Term Care Annuities

A popular way to fund an LTC Annuity is to reposition an existing annuity or other asset. Either qualified (IRA, 401k, etc.) or nonqualified funds may be used.

Qualified Money – There may be benefits to using your IRA or 401k to fund a long-term care annuity. Because distributions are funded from an income rider, each year’s distribution can be used to offset your total Required Minimum Distribution (RMD) requirement.

Nonqualified Money – You can use money from bank CDs, savings, annuities or life insurance. And you may be able to increase your current return while protecting yourself with tax-free long-term care protection.

Pro Tip: Many people are able to perform a tax-free 1035 exchange from an existing annuity to an LTC Annuity.

How IRA Withdrawals Can Fund Your LTC Annuity


Get Long-Term Care Annuity Illustrations

Explore protecting your assets and family from future LTC costs with a long-term care annuity. We have highly rated companies, multiple plan options, and expert long-term care advisors. Expect personalized service on topics such as:

  Suggestions for the product best suited to your situation

  Guidance when comparing multiple products and companies

  Assistance with health qualifying for coverage


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Indexed Annuity Care is underwritten and issued by State Life, Indianapolis, Ind. It is not available in all states and may vary by state. State Life is a OneAmerica company. The companies of OneAmerica have been providing insurance and financial services for over 140 years.

About the Author: Craig Matesky
Reviewed by: Mike Berger