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State Life Asset Care is the perfect hybrid long term care policy with life insurance benefits

by Jack Lenenberg

State Life One America Asset Care   Review of the State Life Asset Care I Hybrid Long Term Care Insurance Policy

Unlimited Lifetime Long Term Care Benefits Combined With Life Insurance Foundation

This year, the State Life Asset Care policy marked its 25th anniversary.  Introduced in 1989, State Life Asset Care was the first whole life insurance policy with long term care benefits.  Even more importantly, Asset Care is the only hybrid life/LTC policy that provides Unlimited long term care benefits.

In addition to providing you an Unlimited long term care benefit period, Asset Care provides life insurance benefits even if long term care is never needed, and premiums that are guaranteed to never increase.  Asset Care can also cover two lives with a single policy and provide long term care benefits to each.  

These unique features of State Life Asset Care---Unlimited LTC benefits, Joint Coverage, Paid-Up Life Insurance, and Guaranteed Premiums set Asset Care apart from all other asset-based hybrid long term care policies. State Life Asset Care offers:

  • Guaranteed premium
  • Unlimited lifetime long term care benefits
  • Paid-up life insurance benefit
  • Guaranteed return of premium
  • Joint coverage for two insureds

State Life Asset Care may be funded with a single upfront premium or premiums may be funded on a flexible payment basis.

The appeal of asset-based long term care insurance policies

Asset-based long term care policies are built on the chassis of either life insurance or annuities.  You may also have heard of these policies referred to as hybrids, combination, or linked-benefit policies. 

With these policies, if long term care is needed your life insurance or annuity benefit is accessed to pay for qualifying long term care expenses on a tax-free basis.  Once your life insurance or annuity contract is accelerated, you will continue to receive long term care benefits through an extension or continuation provision.  If long term care is not needed, your named beneficiaries receive the life insurance or annuity payout. 

Most importantly, with hybrid policies your premiums are guaranteed. 

Hybrid long term care policies are usually funded with a single premium, although flexible premium payment options are available. This is important for you because you will never be exposed to an increase in cost, especially at a time in the future when you might least be able to afford it.  

Asset-based policies may appeal to you if you have concerns about paying for something you may never need and and receive no value in return. 

Review of the State Life Asset Care policy - How does it compare to alternative hybrid policies?

Estate Preservation.  Asset-Care can help to safeguard your estate by providing benefits for long-term care expenses, such as care in your own home or in an assisted living facility. The policy’s death benefit provides long-term care benefits. You can qualify for long-term care benefits in one of two ways: 

1) Inability to perform at least two of six activities of daily living; or 

2) Requiring care as a result of a cognitive impairment such as Alzheimer’s disease.

Long-term care benefits. Asset-Care provides comprehensive long-term care benefits for qualifying care. Expenses include those incurred at home, in adult day care, at an assisted living facility or in a nursing home.

Optional lifetime coverage — at fixed premiums.  While Asset-Care’s base policy guarantees long-term care coverage for a significant period of time, if you need long-term care, how long you will require this care is unknown. That is why you should consider increasing your guaranteed length of coverage with Asset-Care Plus. This benefit continuation rider offers lifetime benefits for additional peace of mind.

Joint Coverage.  If you purchase Asset-Care with two insureds (for example, a husband and wife), the long-term care benefits are available to both insureds. Unused benefits are paid to your beneficiaries after the last insured’s death. This joint version of Asset-Care has been given United States Patent #6,584,446.

Today, there are a handful of asset-based hybrid long term care insurance policies available most notably Lincoln Moneyguard II, OneAmerica/State Life Asset Care, Pacific Life Premier Care Advantage, and Nationwide CareMatters.

The unique benefit of State Life Asset Care is that the State Life Asset Care policy is the only hybrid long term care policy that provides joint coverage for couples; and Asset Care is the only hybrid policy that provides lifetime unlimited LTC benefits.

These long term care insurance benefits are great.  But how does State Life Asset Care compare with other hybrid long term care policies such as Lincoln Moneyguard II or Pacific Life Premier Care Advantage?  

Well, for married couples the numbers indicate the State Life Asset Care is most likely the best hybrid long term care policy value by far.

State Life Asset Care, Lincoln Moneyguard II, and Pacific Life Premier Care Advantage Compared

We receive daily inquiries from consumers such as you asking us "What is the best hybrid long term care policy?"  Or "Should I buy long term care insurance combined with life insurance?"

Often times your answer will depend upon many factors such as your age, your marital or partner status, and your desired plan design.  Thus, the "best policy" for you may be different than the "best policy" for someone else.  

That being said, for couples desiring long term care benefits combined with life insurance the State Life Asset Care policy is generally the most compelling solution and value today when compared to the competition, Lincoln Moneyguard II and Pacific Life Premier Care Advantage. 

To illustrate this value, let's take a look at a common hypothetical situation.

Married couple, ages 62 and 57, Residents of the State of Washington, desired monthly long term care benefit: $6,000 month, single premium design.

Pacific Life Premier Care Advantage

Male age 62: Premium Deposit $101,191, death benefit $144,000, LTC benefit $576,000, illustration

Female age 57: premium deposit $97,103, death benefit $144,000, LTC benefit $576,000, illustration

Combined premium $198,294, $288,000 combined death benefit, $576,000 LTC per person (8 years each)

Lincoln Moneyguard II

Male age 62: Premium Deposit $92,884, death benefit $144,000, LTC benefit $432,000, illustration

Female age 57: Premium deposit $76,779, death benefit $144,000, LTC benefit $432,000, illustration

Combined premium $169,663, $288,000 combined death benefit, $432,000 LTC per person (6 years each)

State Life Asset Care I

Male Age 62, Female Age 57, Premium Deposit $105,493, $150,000 death benefit, LTC Benefits Unlimited, illustration

Combined premium $105,493, $150,000 combined death benefit, Unlimited LTC Benefits (Lifetime benefit periods each)

Hybrid Policy Comparison
Company Premium combined Life insurance  LTC Benefits $6000 month each
State Life Asset Care $105,493 $150,000 2nd-to-die Unlimited LTC each; Lifetime benefit periods each
Pacific Life Premier Care Advantage $198,294 $144,000 each $576,000 each, 8 year benefit period each
Lincoln Moneyguard $169,663 $144,000 each $432,000 each, 6 year benefit period each

Conclusions

In analyzing the above benefit and premium comparisons for the hypothetical couple ages 62 and 57 the State Life Asset Care policy provides the greatest premium leverage and overall asset protection for long term care needs.  In minimizing your death benefit, the State Life Asset Care policy will allow you to maximize your long term care benefits for 40%-65% less premium than Lincoln or Pacific Life will require you to outlay.

Whereas, most policies today provide limited benefit periods to narrow the insurance company exposure at claim time, the State Life Asset Care policy is one of the very few long term care insurance policies that still offers you an Unlimited Lifetime benefit period.  

This is a valuable component of your long term care policy.  Alzheimer's disease, Parkinson's disease and stroke are just a few examples of causes that will necessitate needing care for a long period of time.  

While policies such as Lincoln Moneyguard II  and Pacific Life Premier Care Advantage may cover a percentage of the risk, i.e., 6 year or 8 year benefit periods, only the State Life Asset Care policy will cover your long term care needs for a Lifetime Unlimited benefit period. 

In eliminating the Unlimited risk for what amounts to a comparable or actually less total premium outlay than other long term care hybrid policy solutions, the State Life Asset Care policy yields a terrific policy value for you.

Financial Ratings of State Life Insurance Company

AM Best A+. Superior.

Standard & Poor's AA- Very Strong.

Comdex Percentile 95/100

State Life Detailed Financial Ratings

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We work with the leading long term care insurance companies including Genworth, Mass Mutual, Lincoln Moneyguard, State Life, Mutual of Omaha, Pacific Life Premier Care Advantage, Transamerica, New York Life, LifeSecure, John Hancock, and more.  It will be our pleasure to provide you with objective and unbiased advice.  To receive illustrations and quotes custom tailored to your specific situation, please contact us for assistance direct toll free at (800) 891-5824.

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Jack Lenenberg, J.D.

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