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OneAmerica Annuities Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

OneAmerica can trace its roots back to 1877. Today, it’s part of a large financial services network that offers retirement plans, life insurance policies and more. Its annuity contracts are issued by The State Life Insurance Company and come with lifetime-care benefits (LTC), which can come in handy should you need care at home or an assisted living facility. 

An annuity can provide a reliable lifetime stream of income after retirement. But knowing which one to get, and with which riders, can be tough. A qualified financial advisor can guide you through all the insurance jargon and paperwork to help you find the annuity that works best for you.

Annuity Fees Annuity Type Minimum Initial Premium More Information
OneAmerica Annuity Care II Find an Advisor

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  • No annual contract fees
Single premium fixed deferred annuity $10,000

Annuity Type

Single premium fixed deferred annuity

Minimum Initial Premium

One America Indexed Annuity Care Find an Advisor

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  • No annual contract fees
Fixed indexed annuity $50,000

Annuity Type

Fixed indexed annuity

Minimum Initial Premium

One America Legacy Care Find an Advisor

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  • No annual contract fees
Immediate annuity $10,000

Annuity Type

Immediate annuity

Minimum Initial Premium


The guarantees of any annuity are only as good as the claims-paying capability of the issuing company. So it’s important to look at a company’s financial outlook before buying an annuity from it.  A.M. Best gave OneAmerica an A+ and Standard & Poor’s  gave it an AA-.

OneAmerica Annuity Care II

The Annuity Care II by OneAmerica is a single premium fixed deferred annuity. This means you open an account by making a single minimum premium payment of $10,000. Your premium then grows tax deferred at a guaranteed minimum interest rate.

The Annuity Care II is different from other companies’ fixed annuities in that it has built-in long-term care benefits. They can cover costs for home care, nursing homes, assisted living facilities and other long-term care facilities. That portion of your premium grows at a higher interest rate. This is called the Long-Term Care Accumulated Value (LTCAV).

Should the LTCAV portion run out, you can extend the benefits with a Continuation of Benefits (COB) Balance for an extra fee deducted monthly from your account. This continues LTC benefits as defined in your contract.

LTC benefits are medically underwritten and requires that you qualify for coverage. These qualifications may vary by state, so it’s best to discuss the OneAmerica Annuity Care II with your insurance agent or a financial advisor.

You can open an Annuity Care II up to age 80.


The OneAmerica Annuity Care II has no annual contract fees. The COB benefit, however, would incur additional fees. The firm doesn't make this feel publicly available, so you’d need to speak with an agent. 

For each of the first 10 years of your contract, you can access up to 10% of your money penalty-free. But you’d face surrender charges if you exceed that amount. Below is the surrender charge schedule:

Year 1 2 3 4 5 6 7 8 9 10+
Withdrawal Charge 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

Realistic Return Expectations 

Both the LTCAC portion and non-LTCAC portion of the Annuity Care II annuity earn based on fixed interest rates. The key to any fixed annuity is to get a rate that allows you to earn more than inflation. As an alternative, a certificate of deposit (CD) might provide more overall liquidity.

OneAmerica Indexed Annuity Care

While fixed annuities can provide the safety of a guaranteed interest rate, they may not offer much room for growth. Indexed annuities try to straddle both worlds by offering a growth rate that is only linked to a stock index. Often they have a floor of zero and a ceiling. 

OneAmerica offers the Indexed Annuity Care, which is tied to the performance of the S&P 500 index. This option comes with a long-term care (LTC) benefit option, which covers expenses for long-term care facilities, home assistance and more. The base contract provides 24 months of LTC benefits to a single annuitant and 30 shared months to joint annuitants. Each year for the first 10 years, your contract value would increase by a specific multiplier, typically ranging from 1.01% to 1.15%.

You can open this indexed annuity with a minimum premium of $50,000. The maximum issue age for the OneAmerica Indexed Annuity Care is 85. When you sign up for an indexed annuity with OneAmerica, there are several interest crediting options to choose from: 

  • Annual point-to-point strategy (PTP) with a cap or participation rate: This strategy credits you the difference between the starting and ending points of the S&P 500 in a given year, up to a cap or participation rate that’s declared each year. So if the difference was 7% and the cap for the year was 5%, you’d earn 5% in interest. If the difference is negative, you won’t receive interest that year. 
  • Monthly average (MA) strategy with cap or participation rate: This strategy allows you to earn an interest rate based on the monthly average of the S&P 500 index each year. The rate is calculated by taking the average of the S&P 500 based on its closing rate on the 14th day of each month. It’s then compared to its performance at the beginning of the cycle. You'd get the gain as interest, subject to a cap or participation rate declared annually. 

In addition, you have the opportunity to allocate all or portion of your contract value to a fixed interest rate option declared annually. This allows you to protect your savings regardless of stock market performance. Also, you can extend LTC benefits with a Continuation of Benefits (COB) rider. This extends LTC benefits for a predetermined time or a lifetime after the initial LTC benefit balance drops to zero.


OneAmerica doesn't charge annual contract or maintenance fees for its indexed annuity. However, the COB rider does come with an asset-based fee. OneAmerica doesn’t publish this fee, so you’ll have to speak with an agent to get the latest details. 

For the first nine policy rears, you’d face a surrender charge if you access your money. The current Indexed Annuity Care surrender charge schedule is: 

Year 1 2 3 4 5 6 7 8 9 10+
Withdrawal Charge 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

The IRS may levy a 10% federal tax fee on withdrawal taken before reaching age 59.5. 

Realistic Return Expectations 

Your returns largely depend on the performance of the S&P 500 index and the interest crediting strategy you choose. Of course, historical performance doesn’t guarantee future results, but the S&P 500 has historically earned around 10% annually. Not that regardless of how well or poor the S&P 500 does, you'll never lose your principal, as your annuity contract protects you from losses.

OneAmerica Legacy Care

Legacy Care is one of OneAmerica’s single premium immediate annuities. This means you open an account with a single payment. The minimum premium is $10,000. This annuity earns an annual fixed interest rate, growing tax-free. When it’s time to retire, you then convert your account to a lifetime stream of income. 

If you pass away before your payments begin, your beneficiary can receive your account’s value either as a lump sum or under a plan set in the contract.


OneAmerica doesn’t charge annual annuity contract fees for its Legacy Annuity. But you should speak with an agent about potential fees associated with additional benefit riders. Surrender charges vary by state, but they are typically 7% for the first five policy years and 0% beyond that time period. You can take out a Legacy Care annuity up until age 99. 

As with most qualified retirement products, you would face federal taxes for accessing your savings before reaching a certain age. The IRS would levy a 10% tax on the withdrawal if you make it before reaching age 59.5. 

Realistic Return Expectations 

When opening a OneAmerica Legacy Annuity, think about how your plans for the future will affect the income you'll need. In addition, it's important to ensure that you keep pace with inflation.

Best Places for Small Business Owners

SmartAsset analyzed data to find the best places for small business owners in the country. This interactive map shows the best counties for small business owners in the U.S. and in each state. Zoom between states and the national map to see the top spots in each region. Also, scroll over any county to learn about that region's small business statistics.

Rank County Small Business Returns Small Business Income Income Taxes

Methodology Which places are best for small businesses owners? To answer this question, we considered three factors: the proportion of people in a county with small business income, how much business income those people reported and the amount of tax a potential resident must pay on their income.

To determine how attractive a region is for small business owners, we compared the number of tax returns that report small business income compared to the total tax-filing population of the region. Next, we compared the total amount of small business income to the overall amount of income reported in each region.

Small businesses are typically incorporated as pass-through entities, meaning that the business owners pay income taxes on the company profits rather than the company itself paying income tax. Because of this, income taxes can play a major role in determining the financial success of a given small business. To determine income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes for each location.

These three factors were then indexed and equally weighted to yield our small business index. Places with the highest small business index are the places which ranked the highest in the study.

Sources: Internal Revenue Service (IRS), US Census Bureau 2018 American Community Survey, Government Sources, SmartAsset