OneAmerica Asset Care Hybrid Life+LTC Review (2026)
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Independently reviewed & last updated 2026-06-08
Quick take: OneAmerica Asset Care is the leading hybrid life+LTC product accepting §1035 exchanges from old life insurance OR annuities. A+/AA- mutual carrier. Compounds LTC benefit pool 3-5%/yr.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
Ratings (independent third-party)
| Rating Agency | Grade |
|---|---|
| AM Best | A+ |
| S&P | AA- |
| Moody's | A1 |
| COMDEX (composite, 0-100) | 92 |
Hans is independently licensed. Reviews are based on publicly available rate sheets, prospectuses, public carrier rate sheets, and carrier filings.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Asset Care, the standout features
OneAmerica Asset Care is the #1 hybrid life+LTC product accepting §1035 exchanges from annuities. Most hybrid LTC carriers only accept life-insurance 1035 exchanges. OneAmerica accepts annuity-to-LTC exchanges, converting taxable annuity gains into tax-free LTC benefits.
The §1035 annuity-to-LTC play
| Step | What happens |
|---|---|
| 1 | Old annuity has $100K gains + $200K basis = $300K total |
| 2 | §1035 exchange to OneAmerica Asset Care |
| 3 | Gains transferred tax-free (no recognition event) |
| 4 | When LTC benefits paid, the gain portion is TAX-FREE (PPA 2006 §844 + §7702B) |
This is one of only TWO ways to convert annuity gains to tax-free dollars (the other is annuity-to-charity via charitable gift annuity).
OneAmerica Asset Care specs (June 2026)
| Spec | Value |
|---|---|
| AM Best | A+ |
| Structure | Mutual holding company |
| Single-premium minimum | $50K |
| LTC benefit pool growth | 3-5%/yr compound |
| Daily LTC benefit | 1-3% of policy face value (depends on rider) |
| Joint coverage available | Yes (single policy covers couple) |
| Couple discount | ~20% premium reduction |
Pros
- A+ AM Best (top-tier mutual)
- Accepts annuity-to-LTC 1035 (rare)
- Joint-life option (one policy for couple)
- LTC benefit pool compounds at 3-5%
- §7702B qualified (LTC benefits tax-free)
Cons
- More expensive than non-hybrid LTC for the SAME daily benefit
- LTC underwriting required (some get declined at 70+)
- Lower internal rate of return if you never use LTC
- Complex 1035 mechanics (need experienced agent)
Best for
- Buyers age 55-70 with assets to fund hybrid LTC
- Couples wanting joint coverage in one policy
- Anyone with old annuities they'd like to convert to tax-free LTC dollars
How hybrid LTC works, in plain terms
A hybrid life + LTC insurance policy combines a life insurance base with a long-term care (LTC) rider. If you need long-term care, the policy pays you tax-free LTC benefits. If you DON'T need care, the death benefit passes to your heirs. No "use-it-or-lose-it" like traditional LTC.
The math:
• Pay a single premium of $100,000 at age 65
• LTC benefit pool: ~$250,000-$300,000 (with inflation rider)
• Tax-free LTC benefits if you qualify (2 of 6 ADLs deficient for 90+ days OR cognitive impairment)
• If you never need care: full death benefit to heirs (~$150K-$200K)
The §1035 advantage:
Old whole life or universal life with $50K+ cash value? A §1035 exchange moves it tax-free into hybrid LTC and turns stagnant cash into 2-3× LTC benefit leverage.
The fees are baked into the premium. There is no separate annual fee.
Quick Hybrid LTC FAQ
Q: Why is hybrid LTC better than traditional LTC?
A: Traditional LTC is use-it-or-lose-it (no death benefit if no care needed) PLUS premiums can increase. Hybrid LTC has a death benefit if unused AND premium is locked at issue.
Q: How are LTC benefits taxed?
A: TAX-FREE under IRC §7702B + PPA 2006 §844 when triggered for qualifying LTC needs.
Q: What triggers LTC benefit payment?
A: HIPAA chronic illness certification: 2 of 6 ADLs (Activities of Daily Living) deficient for 90+ days, OR substantial cognitive impairment requiring supervision.
Q: What's the difference between indemnity and reimbursement?
A: Indemnity (Nationwide CareMatters II, OneAmerica) = monthly cash, no receipts needed. Reimbursement (Lincoln MoneyGuard, Securian SecureCare) = submit care bills, get reimbursed. Indemnity has flexibility advantage.
Q: Can I use family members as caregivers?
A: Indemnity hybrid LTC: yes, you can pay family caregivers. Reimbursement model: typically no. You must use licensed providers.
Q: How long do benefits last?
A: Most hybrid LTC: 2-7 year benefit periods (typically 6 years). OneAmerica Asset Care is the ONLY hybrid with lifetime/unlimited duration.
Q: What's the §1035 exchange play?
A: Transfer cash value from existing life insurance or non-qualified annuity tax-free into hybrid LTC. Common 2-3× leverage on LTC benefit pool vs. the cash transferred.
Q: What if I die without needing care?
A: Death benefit (typically equal to or slightly higher than premium paid) passes to heirs. Not a wasted premium.
Look elsewhere if
- Pure death benefit goal → traditional whole life or IUL
- Pure LTC coverage only → traditional LTC (cheaper but no death benefit return)
- Under 55 → may be premature; traditional LTC may fit better
Comparison vs other hybrid LTC
| Product | AM Best | Accepts annuity 1035 | Best feature |
|---|---|---|---|
| OneAmerica Asset Care | A+ | Yes | Annuity-to-LTC tax-free pathway |
| Lincoln MoneyGuard III | A+ | No | Strong death benefit + LTC pool |
| Mutual of Omaha Living Promise | A+ | No | Cash benefit, no receipts required |
| Nationwide CareMatters | A+ | No | Cash benefit, flexible payout |
| Pacific PremierCare | A+ | No | Strong cash value growth |
What to do
213-414-2808 for an Asset Care quote + § 1035 analysis if you have old annuities sitting on gains. Hans models the tax savings + LTC coverage trade-off for your specific situation.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4273294. NPN #20602398. Reviews 30+ carriers. Phone: 213-414-2808. Email: [email protected].
Goldstein Complexity Index
Every annuity I review gets a complexity score from 0 to 100. Higher means harder to understand. Complexity is where buyers get hurt: riders they didn't know they were paying for, surrender charges that surprise them, and income "benefit bases" they took for cash. SPIAs and MYGAs score low. Products that stack a bonus, an income rider, an MVA and several crediting options score high.
This product's score: 36/100, Grade A (Mostly clear)
One or two complications (a rider, a crediting choice). With a 30-min agent walkthrough, most buyers understand it.
Score breakdown
| Dimension | Score (1-10) | What this measures |
|---|---|---|
| Riders | 6/10 | How many riders, optional or built in (income, death benefit, LTC). Each one adds cost and one more thing to understand. |
| Crediting strategies | 4/10 | How many index options (cap, spread, participation rate, step rate, volatility-controlled indices). More choices are harder to follow. |
| Surrender complexity | 5/10 | Length of the surrender period, plus any MVA and bonus recapture. The longer and more layered it is, the harder it is to know what leaving early costs. |
| Benefit-base separation | 3/10 | Whether there is a separate income base ("PIV") that is not cash but looks like it. This causes more buyer confusion than anything else. |
| Bonus structure | 3/10 | A premium bonus with a recapture schedule. The bonus is real, but you can lose part of it if you leave early. |
How to read this
- A+/A (0-40): Easy to understand. A pure accumulation FIA, a MYGA or a SPIA. Little room for mis-selling.
- B (41-60): Read the contract carefully and get a second opinion before signing. Income riders cause most of the confusion.
- C (61-80): Many owners don't fully understand what they bought. Common mis-sells: a bonus presented as cash, a benefit base presented as account value, surrender charges glossed over.
- D (81-100): Get an independent second opinion before signing. The product may still fit you, but the odds you later say "I didn't know it worked that way" are high.
Why it matters: nobody gets sued for selling a complicated product, but buyers regret them all the time. An annuity that wins your money in year one and confuses you for the next 14 is worse than a simpler one you understood from the start. Simple products are easier to check.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
Hybrid LTC is a permanent decision committing six figures. Before you sign, is the benefit duration right for your risk tolerance? Is there a §1035 exchange play from an old policy? Get a second opinion before you commit a six-figure premium.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a free 15-minute call if you want one.
Comparing this MYGA against others? Request a free, independent second opinion on the quote you have, or see this month's best MYGA rates.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
We’ll email it to you. Hans replies within one business day. Privacy Policy.
Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.