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Using CDs to Fund Long-Term Care? There’s a Better Way

Picture of Eric Estrada

Your clients may be sitting on CDs, savings accounts, or money market funds that offer little more than emotional security. In reality, these conservative assets are often earning less than 2% annually—and that’s before taxes and inflation take a bite.

For clients who want safety, liquidity, and leverage, there’s a smarter alternative: Asset-Based Long-Term Care (LTC) funded with a single premium.

One product stands out in this space: Asset Care® by OneAmerica®.

What Is Asset-Based LTC?

Asset-based LTC combines whole life insurance with long-term care protection. With one lump-sum premium (often repositioned from a CD or idle cash), your client gets:

  • A guaranteed death benefit

  • Tax-free LTC benefits (if needed)

  • Access to cash value

  • Return of premium options (for emergency access)

  • No premium increases, ever

CDs vs. Asset Care®

Feature CDs Asset-Based LTC (Asset Care®)
Principal Protection ✅ Yes ✅ Yes
Tax-Deferred Growth ❌ No ✅ Yes
Long-Term Care Coverage ❌ None ✅ Leverages dollars 3–5x
Death Benefit ❌ No ✅ Yes – income tax-free
Liquidity ✅ Yes (with penalties) ✅ ROP options, cash value
Inflation Protection ❌ No ✅ Optional rider available
Legacy Benefits ❌ No ✅ Yes

Why It Works for CD Clients

1. Leverage Conservative Money for More Protection
Instead of earning 1–2% in a CD, a client can reposition $100,000 into Asset Care® and immediately create:

  • $250,000+ of LTC benefits

  • A guaranteed death benefit

  • Lifetime LTC protection (optional rider)

2. Access to Funds
Asset Care® includes Return of Premium (ROP) options that let your clients access 100% of their money (minus any used benefits) if they need it in an emergency. It’s not a use-it-or-lose-it product.

3. Peace of Mind—Regardless of Outcome

  • If they need LTC: they use the benefits—tax-free.

  • If they don’t need LTC: the unused value passes tax-free to their heirs.

  • If they need cash: many options offer withdrawals or loans from the policy.

4. Joint Coverage Available
Spouses can share one policy and one pool of LTC benefits. This can simplify planning and potentially lower overall costs.

Ideal Clients for This Strategy

✅ Ages 60–80 with idle cash or CDs
✅ Concerned about future health costs or protecting retirement income
✅ Interested in leaving a legacy, even if care is never needed
✅ Want access to money but don’t need it immediately
✅ Prefer guaranteed benefits and no future premiums

Final Word: From Idle Cash to Purposeful Protection

CDs may offer safety—but they don’t offer leverage, legacy, or long-term care protection. With Asset Care®, your clients can turn that underperforming asset into something powerful, flexible, and meaningful.

Don’t let their money sit idle.
Help it protect their lifestyle, their family, and their future.

Need a case design or client-ready proposal? I can help with illustrations, product comparisons, and sales language for this exact conversation. Let’s turn CD renewals into LTC solutions.