FAQ from Regional Meetings

This week, Michael Florio and I kicked off our OneAmerica Regional Meeting series at the Basketball Hall of Fame in Springfield, MA and at Davio’s – Patriot Place in Foxboro, MA. What came out of the meetings was a sharing of ideas by those people who participated in our events.

We have two coming up in New Jersey next week.

Please join us for our OneAmerica Care Solutions Regional Meetings. October 5 & 7, Cherry Hill, NJ and Hackensack, NJ will be our meeting locations. For more information and to register, https://ltccoffeebreak.com/care-solutions-road-show/

One thing that popped up to me was the “oh wow” moment that some people had when we discussed our long term care premium options. Simply, there were more combinations available than what most people recognized.

In a blatant effort to talk trash and challenge our peers to walk the talk, I am sharing a list of our funding options.

Asset Care Base PolicyCOB Rider
single premium cashsingle premium cash
single premium 1035single premium 1035
single premium cashrecurring premium
recurring premiumrecurring premium
recurring premium + dump in recurring premium + dump in
qualified moneyqualified money
nonqualified deferred annuitynonqualified deferred annuity
Annuity Care Base PolicyCOB Rider
single premium cash or 1035single premium cash or 1035
single premium cash or 1035recurring premium

One strategy that is the most underutilized strategy is transforming tax-deferred accumulation in nonqualified deferred annuities into tax-free long term care benefits using Annuity Care. And, extending those benefits into an unlimited stream of long term care benefits by adding the lifetime continuation of benefits rider.

Another approach that is often not considered is funding the base policy (asset Care or Annuity Care) using a lump sum then paying the continuation of benefits rider premiums annually out of income. Remember, the COB is defined under IRC section 7702(b) as long term care insurance which means those premiums are eligible for deduction from an income tax perspective if the client itemizes and meets the medical expense threshold relative to their adjusted gross income.

And, the reminder that all recurring premiums are GUARANTEED is nothing more than reinforcing the value of our asset-based long term care solutions.

Schedule a meeting (virtual or in-person) to discuss how Care Solutions can address your client’s extended healthcare funding concerns – contact me at (678) 512-9627 or via email at kevin.fisher@oneamerica.com

Do you have product questions or need an illustration? Call Justin Fox at (844) 658-3725 or email at justinfox.isp@oneamerica.com