OneAmerica is going after consumers who hope stock market gains will make their long-term care (LTC) dollars go further.

The State Life Insurance Company, a unit of OneAmerica, has introduced the Indexed Annuity Care product, a single-premium annuity contract.

The contract is one of a relatively small number of indexed annuity contracts with LTC benefits that have been introduced in the United States.

Sheryl Moore of Moore Market Intelligence reports that some other companies that have offered indexed annuities aimed at the LTC planning market include Washington National, Midland National Life and North American Company for Life & Health.

OneAmerica says it believes its annuity is the first indexed annuity that provides benefits that meet the definition of “long-term care insurance” given in Internal Revenue Code Section 7702(B).

A customer who buys the State Life annuity can choose between earning a fixed interest rate or a rate that may rise if the S&P 500 Index goes up. 

An annuity holder who uses a contract to pay for qualifying long-term care products or services, such as payments for home care, adult day care, nursing home care, hospice, or a stay in an assisted living facility, can get extra benefits. A holder can also buy an optional lifetime LTC benefits rider. State Life guarantees that the premiums for the rider will never increase.

A married couple can use one contract to cover both spouses, OneAmerica says.

See also: Indexed annuity sales grow 15.4 percent in 2Q 2014

Correction: An earlier version of this article described the status of the State Life annuity incorrectly. The issuer says it believes its annuity is the first indexed annuity with long-term care benefits that qualify as long-term care insurance under Internal Revenue Code Section 7702(B).