If you’ve been around anyone from OneAmerica, one important element of all of our Care Solutions products is the guarantees that the products provide. Let’s focus specifically on Asset-Care.
For those of you who have either not heard this or are new to Asset-Care, not only do we provide a guaranteed minimum benefit that will be paid at claim time BUT the premiums paid to fund Asset-Care base and continuation of benefit are guaranteed.
While this element is not much of a factor when Asset-Care is funded via single premium, guarantees do matter when funding on a recurring basis. To hear more about, Asset-Care and recurring funding, CLICK HERE.
Recently, I met with a couple who purchased a traditional LTC policy a little over a decade ago from one of our peers. Originally, when they were in just recently retired, the annual premium for both of their policies was just over $4,000. Today, those premiums have increased three times to $6,200 AND three more increases have been approved which will drive the cost up by another $3,000 annually.
Consider this, at the time when they are most likely to utilize their policies, they are faced with a decision of whether to keep pay the higher premiums, trim their benefits, drop their coverage, or made radical changes to their lifestyle. They are between the proverbial rock and a hard place.
What is the right thing to do? It is a difficult call to make and it is sensitive and emotional. The couple did the right thing and now, they are facing the possibility of wasted dollars for no benefit.
This will never be a situation with Asset-Care – EVER.