Live, Die, Quit – that has been the mantra for asset-based / linked benefit / hybrid Long Term Care solutions since their inception three decades ago. (Have I mentioned that only OneAmerica and one other carrier have that experience?)
We often focus on the Live and Die scenarios. If you require care while you are alive, there are tax-free benefits available for extended healthcare services. And, should you never use the policy for care (or use only a portion of the benefits), tax-free death benefits are paid to the designated beneficiary.
Just a reminder, Asset Care LTC benefits are paid by first accelerating the death benefit at a rate of 2%, 3%, or 4% (individual cases only) until that death benefit is exhausted before the Continuation of Benefit (aka COB) Rider is engaged and continues to pay claims until care is no longer needed or terminates if the limited duration COB is elected rather than the lifetime option.
Here is a differentiator for Asset Care when funded with a single premium paid either in cash or 1035 exchange. With the launch of the revised Asset Care, we introduced a product with a full Return of Premium (ROP).
For those clients and/or advisors who are focused on maximizing liquidity options and are willing to forego lifetime LTC benefits, Asset Care with Return of Premium offers just that – full return of the premium at any time.
This solution is only available as a single premium strategy and with a 100-month benefit duration (2% acceleration of death benefit followed by a 50-month benefit rider). As always, this is available with either a joint or individual policy.
While 2% of asset-based LTC policies fall into the “quit” category, Asset Care with Return of Premium offers full refundability (if that is a word) once the policy is issued. There is no vesting schedule, there are no surrender charges – it’s a pure return of premium.