What is being covered in this annuity review?

In this review of the State Life Legacy Care annuity, we will be going over the following details:

Independent Review of the One America Freedom Builder 9 Fixed Indexed Annuity

  • Type of product
  • How it works
  • Advantages and potential drawbacks
  • Where it may – or may not – fit in an overall financial plan

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

If you’re like most people, you are probably looking forward to having a nice relaxing retirement. But even if you’ve saved and accumulated a nice sized nest egg, a costly long-term care need could end up depleting your portfolio and derailing your financial future.

So, when planning for your retirement income needs, it is essential to also have a way to cover these types of health care needs. You could purchase a stand-alone long-term care insurance policy. But what if you never use it? Those premium dollars could be lost forever.

That’s why “hybrid” plans like the Legacy Care from OneAmerica/State Life Insurance Company are a viable alternative. This combination plan can provide you with funds if you need them for long-term care needs, along with a retirement income stream that you can count on for helping to pay your ongoing living expenses.

But before you get too excited, it is essential that you know exactly how the product works, and how it may – or may not – be a good fit for your particular short- and long-term financial objectives.

Annuity and Retirement Income Planning Information You Can Trust

If you have never been to our website before, please allow us to officially welcome you here to Annuity Gator.

Who exactly are we?

At Annuity Gator, we are a team of experienced financial and annuity professionals who focus on providing in-depth, and unbiased, annuity reviews on the Internet. We have been at this for quite a while now – far longer than our competitors have – even though there are now a number of “copycat” websites that are popping up. (Imitation is a form of flattery, isn’t it?!)

It is our mission to provide in-depth information and reviews about annuities to consumers – as well as to financial professionals – so that they know exactly what they may (or may not!) be getting into when considering and/or selling an annuity.

These products can be highly complex, so it helps to have someone who is adept in how annuities work, and who can pare down the massive amount of “fine print” into something that is more easily understood.

That’s where Annuity Gator comes in!

When looking for annuity information online, it is essential that you know who is trying to provide education on the products, and who is simply trying to sell you something…regardless of whether or not it is the right financial vehicle for you. It’s easy to be lulled into some of the other websites out there in cyberspace – especially when they make bold claims, like:

  •  Lowest fees
  •  High income
  •  Top-rated annuity carriers
  •  Income stream for life

Does this look at all familiar?

In addition, the more “bells and whistles” an annuity has, the more “small print” you are likely to come across that “explains” to you how it works. Not that it’s a bad thing – the more information, the better – but it can make shopping for the right annuity much more cumbersome.

That being said, if you have landed here on our website in search of more details on the State Life Legacy plan, you are definitely in the right place. In fact, we dare say that this is the only website where you can find all of the information you need.

This includes an honest review of the good, the bad, and yes, even the ugly about this annuity. But that way, you will be able to make a much better decision regarding whether or not this is truly the best annuity for you.

So, if you’re ready to get started, let’s dive right in!

The State Life Legacy Care Policy at a Glance

Contract YearSurrender Charge %

Opening Thoughts About the Legacy Care Product from State Life Insurance Company

OneAmerica is made up of a family of companies that offers a wide range of insurance and annuities. The State Life Insurance Company, which is a OneAmerica company, provides asset-based long-term care products. In doing so, it utilizes life insurance, plus fixed interest deferred and immediate annuities – some that contain long-term care insurance riders.

For more than 140 years, OneAmerica has been serving its customers and policyholders – including through some rough financial times, like the Great Depression and the 2008 Great Recession.

As of year-end 2018, The State Life Insurance Company held roughly $8.5 billion in assets, and had nearly $13 billion of total life insurance in force. The company’s assets under management were in excess of $77 billion, with 2018 revenue of $2.2 billion.

For more details regarding The State Life Insurance Company, you can go here.

Due in large part to its financial stability and stellar claims-paying reputation, OneAmerica has received very high ratings from the insurance carrier rating agencies. These include an A+ from A.M. Best, and a AA- from Standard & Poor’s.

As life expectancy is much higher today than in years gone by, people are in need of protecting themselves from running out of income in retirement, as well as the high cost of long-term care. But, while annuities can take care of the lifetime income component, stand-alone long-term care insurance policies are quite expensive – and they can be even more so if someone pays a premium for many years, but ends up never needing the benefits.

That’s where the Legacy Care product from State Life Insurance Company/OneAmerica can help.

But don’t get out your checkbook just yet!

Before we get into the gritty details, here are some legal disclosures…

This is an independent product review, not a recommendation to buy or sell an annuity. OneAmerica has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.

For more information on how to compare annuities in order to determine which one may be right for you, to obtain our free annuity report.

How OneAmerica/State Life Insurance Company Describes the Legacy Care Plan

OneAmerica/The State Life Insurance Company describe the Legacy Care as a single premium deferred annuity that offers several unique features and benefits, and can also provide value and peace of mind.

With this financial vehicle, after you have owned the plan for one year, you can receive interest-free surrender charges to help pay for a long-term care need. This can provide you with the flexibility you need to access funds, just in case.

Like other annuities, the money that is inside of the account can grow tax-deferred (tax is due at the time of withdrawal, though). You can also receive guaranteed income for life. And, even if you have converted the contract over into an income stream, if your health changes, there could be the opportunity to receive an enhanced monthly income by exchanging the Legacy Care contract.

In this case, Legacy Care also includes a benefit increase rider whereby if you become chronically ill, you may exchange some or all of the cash value of this annuity into a medically underwritten State Life single premium immediate annuity – and you can do so without any surrender charges. The exchange will also be increased by 5% of the transfer that represents the net single premium (minus any partial surrenders).

To view the State Life Legacy Care product sheet, go here.

You can also access the full Legacy Care product brochure HERE.

How an Insurance or Financial Advisor Might “Pitch” the Legacy Care Product to You

If you have been presented the Legacy Care product by your current insurance or financial advisor, it is likely that they have highlighted the key benefits, such as flexibility, and a good alternative to a “use it or lose it” stand-alone long-term care insurance plan.

But there are a few things that you need to be aware of before you make a long-term commitment to this plan. First, if you access the cash in the account for non-healthcare reasons, you could incur a surrender charge (as well as tax on the gain).

In addition, unlike individual annuities, if you exchange the Legacy Care product using the benefit increase rider, it will require you to pass medical underwriting. So, if you have certain pre-existing health conditions, there is a chance that you may not qualify for the Legacy Care option.

Fees on the Legacy Care from State Life Insurance Company

With the Legacy Care product, you could also find that there are some fees incurred if you purchase this type of policy. For instance, if you own this plan and you decided to take your money out of it early (i.e., during the surrender period), then you will not only face a penalty (surrender fees), but the funds you receive could also be subject to income tax.

In this case, Legacy Care imposes a five-year surrender charge schedule. Plus, if you make such a withdrawal before you have turned age 59 ½, you could also incur an additional 10% “early withdrawal” penalty from the IRS. With that in mind, it is really important that you only fund the Legacy Care plan with money that you won’t need later on for an emergency or other financial obligation.

The Annuity Gator’s End Take on Legacy Care from State Life

Where it works the best:

There are some nice features offered on the Legacy Care from The State Life Insurance Company. Given that, this product could fit well into your overall financial plan if you:

  •  Aren’t sure you’ll need long-term care, but don’t want to risk having to pay the cost.
  •  Have a long life expectancy and feel that you’ll need costly long-term care services in the future.
  •  Don’t want to purchase a “use it or lose it” stand-alone long-term care insurance policy.

Where it works the worst:

Legacy Care isn’t for everyone, though. For instance, this plan may not work well if you:

  •  May need the money for other obligations within the policy’s 5-year surrender charge period.
  •  Have a shorter life expectancy.
  •  Already have a health condition that could disqualify you from the underwriting process for the benefit increase option.

In Summary

Nobody knows what will happen in the future. But you can reduce a great deal of stress by being prepared for some of life’s biggest expenses. This can include retirement income needs, as well as the cost of long-term care services.

The Legacy Care product from OneAmerica/The State Life Insurance Company can provide you with a good way to cover more than one need with just one single product. Plus, if you never require long-term care, the benefits in this product won’t go to waste.

That being said, the only way to know for sure if Legacy Care is right for you is to have it tested. At Annuity Gator, we can help you to compare this product side-by-side with other annuities and annuity-related vehicles and see which – if any – may be best for you.

If you’d like to “test drive” the Legacy Care product – or for that matter, any annuity product – just contact us and we’ll get one of our trained annuity “geeks” on it right away!

Still Have Questions? Interested in Seeing Other Annuity Products Reviewed?

We realize that this annuity review may have run a bit long. But quite frankly, we would much rather know that you have “too much” information on this product than not have enough. So, if you found this annuity review to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too.)

In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits.

Any other annuities that you would like to learn more about?

If so, just give us a shout and let us know, and our team will get to working on them right away.


The Annuity Gator

P.S. If you would like to read more of our OneAmerica annuity reviews here are some links to check out:

Independent Review of the State Life Legacy Care Annuity