Updated July 2026

OneAmerica Asset Care vs. Traditional Long-Term Care Insurance: A 2026 Comparison Guide

Quick answer: Traditional long-term care insurance pays a monthly benefit for care costs but carries no cash value and, historically, has been subject to premium increases. OneAmerica Asset Care is a hybrid policy that combines life insurance (or an annuity) with long-term care benefits — premiums and benefits are contractually guaranteed never to change, and if you never need care, your beneficiaries receive a tax-free death benefit instead of the money simply disappearing. The right choice depends on your priorities: lowest possible premium (traditional) versus guaranteed value and asset protection (hybrid).

Why This Comparison Matters Right Now

The math behind long-term care has gotten harder to ignore. The federal Administration for Community Living estimates that someone turning 65 today has close to a 70% chance of needing some form of long-term care services during their lifetime. And according to CareScout’s 2025 Cost of Care Survey, the national median annual cost has climbed to roughly $129,575 for a private nursing home room, $74,400 for assisted living, and $80,080 for 44 hours a week of in-home non-medical care.

Those numbers explain why more pre-retirees are comparing traditional LTC policies against hybrid options like OneAmerica Asset Care before they decide how — or whether — to self-insure.

How Traditional Long-Term Care Insurance Works

A traditional LTC policy is “use it or lose it.” You pay an annual premium, and if you need qualifying long-term care, the policy reimburses covered costs up to your daily or monthly benefit limit. If you never need care, the premiums you paid are gone — there’s no residual value for your family.

The other well-known drawback: many traditional LTC carriers have filed for rate increases over the life of a policy, sometimes more than once, as insurers underestimated how long and how often policyholders would use benefits. Premiums are not guaranteed to stay level.

How OneAmerica Asset Care Works

Asset Care is a hybrid, or “linked-benefit,” policy. Instead of standing alone, the long-term care benefit is attached to either a life insurance policy or an annuity, which changes the economics in a few important ways:

• Guaranteed premiums and benefits. OneAmerica guarantees that once your policy is issued, premiums will never increase and the long-term care benefit will never be reduced — a contractual guarantee traditional LTC carriers generally cannot make.
• Nothing is wasted if you never need care. If long-term care is never needed, the policy pays a tax-free death benefit to your beneficiaries instead. Because the base product is life insurance or an annuity, IRS rules generally allow long-term care payouts to pass tax-free as well.
• Lifetime benefit option. Asset Care is widely recognized as one of the only hybrid LTC products on the market still offering a true lifetime, unlimited benefit period — most competitors cap benefits at a set number of years.
• Flexible funding. You can fund a policy with a single lump-sum premium or spread payments over a set number of years (5, 10, or to age 95), and in some structures, qualified retirement funds can be used to pay premiums.
• Coverage scope. Benefits extend to home care, assisted living, nursing home care, adult day care, hospice, respite care, and caregiver training — not just facility-based care.

Asset Care is underwritten by The State Life Insurance Company, part of OneAmerica, which carries an A.M. Best A+ (Superior) financial strength rating and has been operating for well over a century.

Side-by-Side Comparison

Feature	Traditional LTC Insurance	OneAmerica Asset Care
Premium stability	Can increase over time	Guaranteed level for life
If care is never needed	Premiums paid are not returned	Tax-free death benefit paid to beneficiaries
Lifetime benefit option	Rare, and often costly	Available
Underlying product	Stand-alone LTC policy	Life insurance or annuity base
Typical starting premium	Lower initial cost	Higher upfront, but guaranteed

Who Tends to Prefer Each Option

Traditional LTC insurance tends to appeal to people who want the lowest possible starting premium and are comfortable with some rate-increase risk, and who aren’t concerned with leaving a residual benefit to heirs.

OneAmerica Asset Care tends to appeal to people who have already accumulated retirement assets they want to protect, who dislike the idea of paying for insurance they might never use, and who want price certainty they can plan around for the next 20–30 years. It’s also a common fit for federal employees and retirees who are funding long-term care planning alongside FERS, TSP, or other retirement income and want a single decision that also addresses estate transfer.

Frequently Asked Questions

Is OneAmerica Asset Care more expensive than traditional LTC insurance?
Often, yes, in terms of upfront premium — because you’re funding a permanent life insurance or annuity base in addition to the LTC benefit. But the guarantee of no future rate increases and the death benefit if care is never used changes the long-term value comparison significantly.

Can I use retirement funds to pay for Asset Care?
Depending on how the policy is structured, qualified funds can sometimes be used to fund premiums. This is a case-by-case determination based on your specific retirement accounts and tax situation.

Does Medicare cover long-term care instead?
No. Medicare’s coverage for skilled nursing is limited, typically maxing out at 100 days, and it does not cover most home health aide or adult day care services that Asset Care covers.

What if Medicaid will cover my nursing home care?
Medicaid does pay for nursing home care in most states, but generally only after a person has spent down most of their countable assets. Long-term care insurance, including Asset Care, is designed to help you avoid that spend-down.

Is Asset Care available on a joint basis for couples?
Yes. Asset Care can be issued on a joint life basis, which can lower the combined cost compared to two individual policies.