Founded in 1877, OneAmerica (formerly American United Life Insurance Company) is a mid-sized, yet highly respected, mutual insurer. Its niche is asset-based long-term care insurance, offered through linked-benefit life insurance and annuity products. OneAmerica’s standout feature is the option for lifetime LTC benefits, something most competitors do not provide. This has made it a favorite among financial planners building long-term retirement and estate strategies.
Pros and Cons
Strengths
- Offers lifetime long-term care benefits (rare in the industry)
- Hybrid policies guarantee premiums and provide a death benefit if LTC isn’t used
- Flexible funding: single pay, limited pay, or annuity-based premium options
- Strong reputation among financial advisors for planning-based solutions
Weaknesses
- Higher upfront costs than standalone LTC insurance
- Coverage usually requires repositioning assets (e.g., lump sums or significant premiums)
- Policies can be complex and require an experienced advisor to structure properly
- Smaller insurer compared to Nationwide or New York Life (less brand recognition)
Compare Long-Term Care Insurance Providers
Process
OneAmerica products are sold through licensed financial advisors. Applicants choose between hybrid life insurance or annuity contracts with LTC benefits. Underwriting involves a health questionnaire, review of possible medical records, and sometimes a physical examination. Benefits are triggered when the insured is unable to perform two or more Activities of Daily Living (ADLs) or has severe cognitive impairment. Unlike reimbursement-based policies, OneAmerica hybrids are generally indemnity-style, providing flexibility in how benefits are spent.
Costs and Fees
Policies are structured as asset-based, meaning they often require either a hefty single premium (e.g., $ 100,000 or more) or limited pay periods. While upfront costs are high, premiums are guaranteed, eliminating the risk of future rate increases. Riders include lifetime benefit riders, inflation protection, and joint/shared care for couples. The combination of guaranteed premiums and lifetime coverage is OneAmerica’s primary value proposition.
Customer Experience
OneAmerica maintains an A+ AM Best rating and is generally regarded as financially solid, although it is smaller in scale than giants like New York Life or Nationwide. Customers and advisors appreciate its lifetime coverage feature, which is often highlighted as a unique benefit. Common critiques are policy complexity and accessibility — not every family can afford or qualify for the extensive asset repositioning typically required.
Comparison to Competitors
Compared to Nationwide, OneAmerica’s key differentiator is its lifetime benefit rider. Nationwide caps benefits but provides more accessible entry points with flexible premium structures. Families with the assets to fund OneAmerica policies may appreciate the peace of mind that comes with unlimited coverage.
In comparison to Lincoln Financial, OneAmerica places greater emphasis on lifetime coverage and annuity funding, whereas Lincoln is more recognized for its competitive pricing and streamlined policy structures.
When stacked against New York Life, OneAmerica is more about depth of benefits and less about brand recognition. New York Life hybrids are designed for broad appeal, while OneAmerica serves a narrower but highly motivated audience: families who want permanent, guaranteed LTC coverage without benefit caps.
Our Ranking of OneAmerica Long-Term Care Insurance
We compared OneAmerica to the top long-term care insurance providers, and here’s how it ranked:
- Customer Experience (30%): 8.5 / 10
- Fees & Costs (25%): 7.5 / 10
- Product Options (20%): 9.5 / 10
- Application Process (15%): 8 / 10
- Overall Score: 8.5 / 10
Compare AssistedKin’s Top 5 Picks for Long-Term Care Insurance
| Recommended For | Company | Product Type | Premiums Guaranteed | Editor's Rating (Out of 10) | Next Steps |
|---|---|---|---|---|---|
| Best for Traditional Long-Term Care Coverage | Mutual of Omaha | Standalone Policy | No | 8.2 | Get Rates |
| Best for Comparing Policy Options | GoldenCare | Brokerage (Multi-products available) | Yes - Varies by Carrier | 8.0 / 10 | Get Rates |
| Best for Lifetime Coverage | OneAmerica | Hybrid (Life/Annuity) | Yes | 8.5 | Get Rates |
| Best for Cash Indemnity Flexibility | Nationwide | Hybrid (Life Insurance/Long-Term Care) | Yes | 8.6 | Get Rates |
| Best All-Around Hybrid Value | Lincoln Financial | Hybrid (Life Insurance) | Yes | 8.4 | Get Rates |
Final Thoughts
OneAmerica is one of the best choices for families who want unlimited, lifetime long-term care benefits and can afford to reposition assets into a hybrid policy. While expensive and less accessible for the average household, its guaranteed premiums and unmatched benefit duration make it a standout in the hybrid LTC space.
Frequently Asked Questions
Answers to common questions about OneAmerica long-term care insurance.
No. All products are hybrids, typically life insurance or annuities with LTC riders.
Its lifetime benefit rider allows for unlimited LTC benefits, unlike most competitors that cap coverage.
It often requires a hefty single premium or limited-pay structure, making it better suited for asset repositioning.
Families with significant assets who want guaranteed, lifetime LTC coverage and are comfortable with hybrid policies.
