Alternative Qualified Money Strategy

A short time ago, I share the new strategy for funding Asset Care using qualified money.  As I noted, the new name for this strategy is a mouthful – Asset Care Single Premium Funding Whole Life.

To review the article – CLICK HERE

In it, I shared an example of a couple, Mr. & Mrs. Cash age 60 & 61 who rollover $200,000 of qualified money into the Asset Care funding strategy for qualified money. The long and the short of it is this – their $200,000 rollover was transformed into a lifetime monthly LTC benefit of $7,050 per person with a guaranteed minimum benefit pool (aka death benefit) of $234,995.

It is a “set it and forget it strategy where over ten years her qualified money powers their LTC protection.  It is a one funding two strategy.

Other folks say – I can do the same thing using a Single Premium Immediate Annuity and funding a recurring premium Asset Care.  Let’s look at how that funding strategy compares.

In the example, we will utilize the OneAmerica ImmediateCare Single Premium Immediate Annuity as our funding source.

In order to generate the same premium that our Asset Care funding strategy for qualified money does, an IRA Rollover of $226,924 is required into the ImmediateCare SPIA.  That is $26,924 more dollars to generate the same benefits.

The one of the advantages to using the ImmediateCare SPIA funding strategy is that you are not boxed into a ten year funding plan.  Any funding scheme offered by  Asset Care (5 pay, 10 pay, 20 pay, or pay to age 95) can be used as along as it aligns with the SPIA distribution.

A secondary benefit of this strategy is that two commissions are generated for the solution.

When you have a case that you want to consider your alternatives, you can contact me at kevin.fisher@oneamerica.com or (678) 512-9627 – voice or text.  You can also speak with Justin Fox, my internal Sales Partner at justinfox.isp@oneamerica.com or (844)658-3725.