Asset-based long-term care stands out as leading option for consumers due to premium and benefit guarantees

A recent concept report based on research by Wade Pfau, Ph.D., CFA, and Michael Finke, Ph.D., CFP® illustrates the impact of various types of long-term care (LTC) protection on retirement income.

The concept report, ‘Planning for Every Possibility,’ compares outcomes from self-funding LTC, health-based LTC insurance and asset-based LTC protection for two hypothetical couples at different stages of preparing for retirement.

Using averages for various levels of care at today’s costs, the report shows that out-of-pocket costs for long-term care events can vary widely among types of LTC protection. In addition, asset-based LTC protection stands out as a leading option because of the product’s premium certainty and guaranteed benefit.

“The rising cost of care poses a significant risk to most retirees’ income, and our new analysis offers a unique look at the effectiveness of various types of LTC,” said Dr. Pfau, a professor of retirement income at The American College for Financial Services.

The research simulates scenarios for couples experiencing a severe long-term care event. Only asset-based LTC protection offers premiums guaranteed never to increase, lower out-of-pockets costs than either health-based LTC or self-funding LTC, the option to cover both spouses with one policy, and a potential death benefit if long-term care benefits aren’t fully used.

“Our study demonstrated that a variety of types of LTC protection can significantly reduce risk exposure for retirees, but our behavioral analysis suggests that consumers may not be equally drawn to all types of LTC products,” said Dr. Finke, Dean and Chief Academic Officer at The American College of Financial Services. “Even well-informed consumers are only highly likely to purchase LTC products that provide premium certainty. And a guaranteed benefit – either as LTC protection or a death benefit – can appeal to consumers who are otherwise averse to traditional LTC products.”

‘Planning for Every Possibility,’ available at, is a concept report based on Drs. Pfau and Finke’s white paper, “Managing long-term care spending risks in retirement.”

“This concept report illustrates clearly the differences between health-based and asset-based LTC protection, and self-funding LTC events,” said Pat Foley, president of Individual Insurance and Retirement Services at OneAmerica®. “Asset-based LTC protection is a clear choice for its ability to both reduce out-of-pocket costs and provide guarantees for premiums and benefits.”

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A national leader in the insurance and financial services marketplace for 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products. Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources who are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit

OneAmerica® is the marketing name for the companies of OneAmerica.

Products issued and underwritten by The State Life Insurance Company® (State Life), Indianapolis, IN, a OneAmerica company that offers the Care Solutions product suite. All guarantees are subject to the claims paying ability of State Life.

Contact: Tammy Lieber, Public Relations Manager