Increased Guaranteed Interest Rate with Annuity Care II Effective 07/15/23
We are excited to share that OneAmerica® has increased the minimum guaranteed rate for Annuity Care II from 1% to 2.55%.
With this change, Annuity Care II can provide your clients with a higher guaranteed interest while providing protection they have come to enjoy from OneAmerica. This will apply to policies issued after July 15th.
What this means, is that the guaranteed portion of the illustration will look markedly better compared to previously run proposals.
AnnuityCare II allows clients to take a single premium (from Cash, existing Life Insurance, or an existing Annuity); and create up to 4X leverage for LTC purposes. Costs for the LTC coverage are deducted monthly from the annuity itself with no further out-of-pocket payments. A higher guaranteed rate means that on a worst-case basis; the client will receive a much higher interest credit than before. This can alleviate many client concerns about the sustainability of current interest rates or just guarantees in general.
AnnuityCare II is issued based on a phone interview only, and can be an “easier” way to put LTC protection into place.
Take this example for instance: A 62 year old couple using a 100K single premium. This buys coverage on BOTH Spouses.
| 100K Single Premium | NEW 2.55% Guarantee | 3.25% Current Rate: |
|---|---|---|
| Accumulated Value yr 1 | $100k | $100k |
| Accumulated Value yr 20 | $104K | $119K |
| LTC Monthly Benefit yr 1 | $3,364 | $3,364 |
| TC Monthly Benefit yr 20 | $3,564 | $4,013 |
| LTC Period | 102 Months | 102 Months |
| Total LTC Pool yr 1 | $343K | $343K |
| Total LTC Pool yr 20 | $364K | $409K |
As you can see for this couple- The guarantees offset the monthly LTC charges on a worst case scenario. They have strong guarantees WHILE STILL buying 8 1/2 year of meaningful LTC coverage.